Compensations and benefits are factors that are offered in an organization for their employees. These payments strategies have been adopted by organizations so as to look out for employees’ well-being. It is important to know that the compensation managers are responsible to ensure that employees receive their wages for their hard work. On the other hand, benefit managers make sure that employees are rewarded for their work in terms of health insurance, retirement plans and other benefits. This paper will discuss some of the mandatory and voluntary compensation and benefits in an organization and why it is considered an important asset to both the employees and the organization.
It is important to note that employees enjoy some of the benefits offered by the organization so an initiate great effort for a good performance of the company overall. Some of the benefits that are enjoyed by the company are fringe benefits. Fringe benefits are some of the services enjoyed by the employees for their hard work to support the growth of the business organization. These fringe benefits include: paid vacations, health insurance plan, pension and many more. This is crucial in an organization because when employees are happy with their work, they tend to be more productive. Benefits managers tend to enroll and renew the benefits programs through working with the benefits vendors so as to ensure that their program is current and competitive (Beam, 1998, p.39). Thus, it is important for an organization to provide benefits as a form of business ethic so as to have productive employees.
On the other hand, compensation are some of the services that the employee enjoys at no extra cost. Some of these compensations include meals, transportation, housing, medical services, education services and many more. Compensations given to employees tend to match with the line of duty. Companies ought to offer subsidies for items purchased by workers including uniforms as a form of encouraging and appreciating the respective work done by various employees. Compensation managers ensure that employees’ wages are accurate and current. This means that some employees qualify for bonuses and incentive pay based on the work performed. These managers ensure that the employees’ pay is competitive so as to keep some of the best and performing employees, which benefits the company at large.
In conclusion, it is clear that compensation and benefits are an important facet into ensuring a productive growth in the business and at the same time employees are satisfied. The compensation managers are responsible for the employees’ pay whereas the benefits managers tend to give additional services such as retirement program and disability (Jasper, 2008, p.29). Thus, it is crucial for an organization to give compensation and benefits to their employees as a form of gratitude for their hard work.
Beam, B. T., & McFadden, J. J. (1998). Employee benefits (5th ed.). Chicago, Ill.: Dearborn Financial Pub.
Jasper, M. C. (2008). Workers' compensation law (2nd ed.). New York: Oceana.