Retaining employees in a company is not an easy task in the modern world. Many employees are always looking for better terms and salaries. Companies must spend lots of money to retain their most hard-working employees. There are many advantages of having such employees in an organization.
One of them is the high cost of employing and training new employees. Research has attributed the prevalence of job abandonment among employees to a number of reasons. The Corporate Leadership Council carried out a survey that indicated that close to 25% of the most hard-working employees in America were planning to abandon their jobs in a period of one year.
The study also revealed that 21% of this group of employees complained that their employers had disengaged them. Therefore, employers must revise their employee benefits to bar their staff members from leaving their companies. The benefits include pension, child care, parental leave and health insurance. This paper analyzes the effectiveness of employee benefits in motivating, engaging and retaining employees.
The best way to retain hard-working employees is reviewing employee benefits after some time. The reviews ensure that the company offers better benefits compared to its competitors. This practice minimizes the chances of losing industrious employees to other companies.
The main reason employees leave one company and go to another is the search for better treatment. They always look for companies with better employee benefits compared to their current jobs. Companies that offer incentives and other benefits that help reduce their employees’ expenditure are always the most attractive. Therefore, if Medfirst reviews its benefits every time and makes them better than what its competitors offer, it will reduce the rate of losing its staff members.
Employee benefits also encourage their committed to the organization by making them feel recognized and appreciated. Theories of motivation argue that recognition is one of the needs of human beings, and satisfying it encourages the beneficiaries’ to strive for higher level needs. Therefore, Medfirst’s decision to improve its employee benefits will boost the work rate of each employee in the organization. In the long-run, the company’s turnover rate will also improve.
The behaviorist theories of motivation also support the provision of incentives and other benefits for the employees. According to these theories, rewarding hard-working individuals increases the chances of the recurrence of their good performance. On the other hand, the lack of appreciation encourages the status quo.
Medfirst’s decision to improve the quality and quantity of their benefits will motivate their employees to work harder. They will always associate good performance with rewards and incentives. They will not think about leaving Medfirst for another company. A motivated employee works very hard and does not need supervision. Therefore, giving the employees better benefits will automatically increase the productivity of the company, and their profits will also increase in the same ratio.
Improving employee benefits also enhances the relationship between the employers and their employees. It encourages bonding since the employees will consider their bosses as good people. In many organizations, the benefits include medical cover, pension plans, childcare, accommodation and subsidized services.
These services portray the employer as a person who cares for the welfare of the employees. Therefore, the employees will respect their bosses and reciprocate their kindness through working hard. Hence, Medfirst will greatly benefit from its investment in better benefits for its staffs.
Providing medical cover ensures that the employees are in good health while the other benefits lead to financial security and stability among the employees. Employees can only work when they are healthy and free from illnesses. Therefore, when a company provides medical cover for its employees, it minimizes the chances of illness among them.
Cases of losing their most hard-working employees due to death or serious illnesses will be very rare. The company will always have its best personnel in place. The other benefits will ensure that the employees do not think about looking for more money from other sources or seeking employment in other organizations. Therefore, it is very important for Medfirst to implement its employee benefits improvement plan because it will help them have a consistent number of energetic personnel.
However, the implementation of this plan will require lots of money. The company will spend more money on employees other than the salary it pays them. In the case of Medfirst, the company intends to increase the amount of money it spends on its employees’ benefits. This expenditure does not have a direct effect on the profits the company should get. Nevertheless, the indirect benefits the company gets from spending on employee benefits are greater than the cost of the benefits. In addition, the company would spend more on replacing and training new employees compared to what it will spend on employee benefits.
Conclusion
Medfirst Company should make its employee benefits better than the current ones. The benefits of spending on the employees exceed the cost of spending on them. The benefits will lead to contentment among the employees, and, therefore, the productivity of the company will significantly improve.