If Employees Undervalue The Cost Of Benefits Business Essay Example

intangible perks. For instance, when Wipro Technologies CEO Azim Premji appreciates Managing Director T.K Kurien it provides him with intangible benefits.

Compensation includes various aspects related to pay such as salary ranges based on job descriptions and plans based on merit or bonuses/commissions. It also encompasses additional payments like bonuses, profit sharing incentives , overtime pay , recognition rewards or checks ,and sales commissions . Compensation is given in exchange for employees' work contribution to the organization. The cost of common forms of compensation such as wages, salaries, and tips varies depending on the complexity of the job.The training of employees at Kissan food-processing company to pack jars of jam into a cardboard box can be completed in just five minutes and has minimal associated costs. Employee benefits are essential for motivating workers and enhancing job satisfaction, as they play a crucial part in attracting and retaining staff. Employers can implement a salary forfeit system to take advantage of reduced salary exchange expenses and improved cash flow. This system allows employees to sacrifice a portion of their pay in exchange for other benefits, making non-monetary perks more affordable than including them in an employee's salary. Additionally, it enables employers to negotiate lower prices with benefit suppliers. There may also be some limited but potentially intricate tax advantages for both employers and employees. Offering attractive benefits grants employees access to valuable perks like pension plans or company cars without requiring personal arrangements from the individuals themselves. This is especially beneficial for non-cash benefits such as employer-provided mobile phones, which can offer tax advantages to employees. These savings can accumulate over time. Ultimately, employee satisfaction is vital for

maintaining work-life quality, with benefits playing a significant role in supporting this socio-economic aspect. However, high worker satisfaction could imply that employees have the opportunity to be less productive or enjoy pleasant working conditions, which might negatively impact shareholders' investments.
Additionally, managers in management positions may prioritize their own personal benefits over the interests of shareholders by accepting inadequate returns or excessive pay. One way they do this is by improving the compensation of their colleagues, which not only fosters better work relationships but also avoids conflicts that can arise from holding employees to higher standards. However, while employee satisfaction is important, it may not adequately compensate for their efforts compared to monetary rewards. This is similar to how CEO fringe benefits are often seen as inefficient forms of compensation. CEOs are required to accept fringe benefits even if they perform poorly, whereas cash compensation can be fully transferred and used to purchase fringe benefits if desired.

Reliance Capital Limited (RCL) is a registered NBFC (Non-Banking Financial Company) with the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934. RCL recognizes the significant potential in India's rapidly growing financial services sector and aims to become a prominent player by offering comprehensive financial services. A new venture from Reliance Capital Limited, Reliance Life Insurance provides personalized life insurance solutions for individuals and businesses.

In the past, cash was considered the most effective motivator for workers who primarily focused on fulfilling their basic needs. However, as economic conditions improve, workers now prioritize non-monetary factors such as recognition and self-esteemThe text discusses the importance of job satisfaction and motivation in organizations. It mentions that while

monetary benefits can be obtained through monetary means, job satisfaction can only be provided directly by the organization. Motivation is a method supported by theories in economics and sociology to achieve goals. Traditional organizations used to rely on established procedures with easily measurable results for motivation, but different methods are needed when employee output is not easily replicable but still observable. If an employee is not putting in effort due to being friendly with coworkers, consequences can be used as an incentive. Intrinsic incentives are important for motivating innovation as relying solely on extrinsic incentives could result in manipulation. Creating pleasant working conditions can encourage greater effort from employees. Retaining human capital requires effective strategies for gaining a competitive advantage. The study focuses specifically on employee motivation at RELIANCE COMMUNICATIONS (RCOM). Motivational techniques vary depending on individual needs and responses, leading to changes in theories and techniques over timeCompanies use these methods to achieve their economic, social, and financial goals while also controlling costs by limiting the services or products offered to their employees. Employers have the option of providing alternative dental, vision, or healthcare coverage through riders. During open registration periods, employees can choose benefits that suit their needs for the upcoming year. These choices typically include different premiums and deductibles. While both employer-sponsored programs and self-funded programs offer good coverage, self-funded programs come with more risks and issues. However, they allow for customization to save money and fit within budgets. It is important to note that self-funded programs do not allow the purchase of riders, lack open registration periods, and often require third-party administrators to manage insurance claims. Both employer-sponsored and self-funded programs

only provide benefits to current employees and cannot be transferred. Additionally, both plans offer provider network options such as PPOs, HMOs or POS. The choice of a provider network in an employer-sponsored program may affect the overall cost of the program. Conversely, costs for self-funded programs vary depending on the selected program.Human Resources (HR) plays a role in promoting employee engagement by implementing proactive workplace policies and practices that attract skilled individuals and retain talentThe Employee Ownership Job Ownership Research (EOJOR) is associated with JOL, which represents employee-owned and trust-owned businesses. JOL, originally known as Job Ownership Limited and established in 1979, is an organization consisting of member companies including the John Lewis Partnership, Scott Bader, Swann-Morton, Mott MacDonald, Cyril Sweett, and various employee-owned concerns. It operates independently and not for profit with governance and funding provided by its members.

Co-operativesUK is a national administration that promotes all types of co-operatives. Its mission includes raising awareness of co-operative values and principles while supporting the growth of both new and existing co-operatives. Serving as a centralized point for the sector, Co-operativesUK encourages innovation and best practices while advocating for the co-operative movement.

Managing people within an organization has become increasingly important. Manpower is no longer seen merely as another resource but rather acknowledged as the most critical resource. Through effective management of manpower, other resources such as materials, money machines etc., can be directed and controlled efficiently.

Human Resource Management (HRM) involves the planning, organization direction and control of HR procurement development compensation integration maintenance separation to achieve individual organizational social objectives.The objectives of HRM involve effectively utilizing human resources, establishing an appropriate organizational structure, fostering positive working relationships

among members, integrating individuals and informal groups with the organization through their commitment and loyalty, acknowledging individual needs and group goals, providing opportunities for personal growth and advancement, maintaining high morale within the organization, and strengthening human assets. HRM encompasses various activities throughout an employee's tenure in the organization - from entry to departure. These activities include human resource planning, training and development, performance evaluation and job assessment, salary management motivation communication for employees executives welfare programs safety measures health protection industrial relations management as well as HRM opportunities. Part-time employees in different companies work fewer hours per week compared to full-time employees but may have distinct responsibilities. However they receive important benefits on top of their hourly pay. The federal government treats full-time and part-time employees equally by allowing each company to define part-time employment and determine if benefits will be provided. Typically, part-time employment involves working less than 30 hours per week while full-time employees work 40 or more hours. Some benefit policies may require part-time employees to average at least 20 hours per week to qualify.Part-time employees have access to various benefits, such as a 401k retirement plan and basic health insurance. However, dental and vision coverage are often not included in comprehensive wellness insurance for part-timers. Nonetheless, some companies do provide these additional benefits. Additionally, part-time workers may also enjoy less common perks like maternity leave, paid sick days, and paid vacation time.

According to federal law, employers must offer certain benefits to all employees irrespective of their position or work hours. This includes deducting social security from employees' paychecks and matching the employer's payment to the government. Employers also have responsibilities

such as paying unemployment insurance taxes and purchasing workers' compensation insurance.

Providing domestic partner benefits offers several advantages as well. The benefits offered to legally married couples are similar or equivalent to those provided to unmarried couples in domestic partnerships. Nevertheless, many businesses currently do not offer domestic partner benefits due to various reasons, including a lack of understanding regarding the definition of a domestic partner. Concerns and misunderstandings about the costs and impact of providing domestic partnership benefits may exist.

It is important to note that a domestic partnership refers to a committed relationship between two individuals who financially and emotionally support each other but are not married or part of the same family. It is essential to recognize that domestic partnership is not limited solely to same-sex relationships.In certain states such as California, Maryland, Nevada, Maine, Rhode Island, District of Columbia, Washington, Wisconsin, and Oregon, domestic partnership is legally recognized and treated the same as marriage. However, insurance companies may not always consider domestic partners equal to married couples in terms of benefits definitions. Domestic partner benefits are offered to employees who have a significant other but are not married. These benefits typically mirror those provided to married couples.

Some states or cities allow domestic partners to register their relationship which employers may require for benefit enrollment purposes. In states without registration options, alternative legal documentation may be required by employers for eligibility verification.

Employers should consider the following when providing domestic partner benefits:

The Importance of Certification for all Employees

It is crucial that certification applies to all employees if it is required for someone to be considered a significant other. For example, if an

employer expects proof of enrollment for an employee's domestic partner, the same expectation should apply to all employees.

Simplifying the Process of Implementing Fair Compensation

Implementing a fair compensation structure can be challenging. To simplify this process, consider the following checklist:
- Clearly define objectives for your compensation package.
- Effectively enroll new employees.- To motivate and retain current employees, it is important to reward high-performing employees and ensure compliance with federal laws and regulations. Additionally, fostering employee loyalty can be achieved by customizing the compensation plan using a combination of strategies mentioned above.
- Defining your internal pay structure involves several steps. Firstly, you need to measure occupations and employees within your organization. Then, create competence groupings based on this measurement. It is also crucial to understand the needs and demands of your employees regarding indirect compensation such as wellness insurance, paid holiday, lodging, child care, and retirement planning. Once you have collected this information, you can organize your entire salary system accordingly.
- Employees are provided with both indirect compensation (such as benefits) and direct compensation (such as salaries) based on their demands, compensation goals, and labor market information. Regular communication with employees is essential to ensure fairness in the compensation package.
- Flexibility and innovation play a vital role in maintaining competitiveness and fairness both internally and externally. Many organizations find that intangible assets are undervalued by the stock market, indicating that valuing other types of intangible investments may be even more challenging for the market. This supports theories of shortsightedness by managersThe findings of the study demonstrate that there is a positive correlation between employee satisfaction and corporate performance, suggesting that excessive non-monetary compensation may

not be ineffective. However, it is important to note that other explanations for this relationship cannot be entirely ruled out based on the available data. It is recommended that future research focus on identifying the underlying factors contributing to superior performance, as this could have significant implications. If it can be determined that part of the monthly abnormal return can be attributed to high employee satisfaction, implementing programs aimed at improving employee well-being has the potential to greatly increase shareholder value. References such as Abowd (1989), Akerlof and Yellen (1986), Akerlof (1982), and Anginer et al.(2007) provide additional support for these findings.