Describe the importance of employee benefits as a strategic component of fulfilling the goals of HRM. The importance of benefits for employees is very high. Lately, medical insurance is a target for most unemployed non-exempt individuals. Personally I have seen cases when the pay is at minimum wage for a job that should be paying more, but because of the fact the organization provided medical insurance for the workers and their families, employees stayed. As for the organization, a great benefit package can minimize turnover significantly.Benefit packages can also attract new employees.
With only 60-70 percent of employers offering benefits, that means that by doing so you may attract the best possible employees to your company. Health benefits alone can be a motivator for a blue collar worker with a family and little education. A hard labor based organization can benefit from providing health insurance for their workers and their families, and will attract quality non-exempt workers to apply for work at the organization. ) Most employees that have been around can tell the difference between horrible standards in an organization and okay standards in other organizations that seem good for some time but get old after a while. These experienced employees will always be looking out for better opportunities and by better opportunities I mean a better benefit package.
Paying an employee $15 dollars a week for food expenses, five week paid vacation along with a $5000 bonus to spend during the vacation, and a lease to a luxurious vehicle after being a part of the organization for ten years is very attractive.No one in their right mind will do anything to jeopardize the job. Therefore employees always remain productive and comfortable. 3) Do you believe the incentive benefits such as those offered at Motek can be used in other organizations? Why or why not? No. These benefits can only be offered by high end organizations that bring in large revenues with very small production and operations costs. Although lunch money is affordable to just about any organization and would most likely be exercised more.