Employees' Benefits - Essay Example

?Justification The major problem faced by employees is the cut back of incentives provided to them which includes cut back of discount offered on employee stock purchase plan from 15% to 10%, cutting back of maternity leaves from 12months to 6months and making short the vacation time, and declining annual bonuses. This study suggests “Leverage the power of the leading stock plan administration technology Our Full Service Plan Administration solution is delivered through our proprietary web technology, Shareworks” (Share Works Premier 2010 par 2).The employer can establish new plans like incentive plans, savings and investment plans. Employees are the most important assets of an organization, who are the pillars which support the organization and without an organization cannot operate its business therefore, Use of web-based technology will help the Microsoft to re-establish stock purchase plan in a better way which will be helpful for the organization to sustain and motivate its employees, web technology will also help the organization to improve its administration and will allow the employees to stay updated about current and upcoming incentive plans (Beam and McFadden, 2001). Introduction of new plans will motivate the employees to work efficiently and these new plans will cover the loss of employee stock purchase plan to employees and will provide more investments option to employees, so introduction of new plans will allow employees to reduce the investment risk by diversifying the portfolio through investing in other investment and savings plans. Investment and saving plans generally provide a sense of ownership in the firm, these plans will definitely boost up employees motivation and their loyalty towards their organization, Microsoft then be able to retain its efficient and productive workers. Microsoft should also increase its existing plans such as increasing the discount percentage on employee stock purchase plan; it will improve the current working conditions of employees and will help the organization to provide employees with improved working environment, researches have shown that improving existing incentive plans will increase the motivational level of employees and it increases organization’s performance as well. The company should also devise new incentive plans and rewards, new incentive plans to the efficient workers will be helpful for the organizations to get best out of their employees in return; whereas organization should introduce new awards and should make sure that those employees who are doing well and meeting their targets should be appraised and rewarded in front of everyone, it makes sure that management cares about them and notices their every effort made for the well-being of the organization. New incentive plans will provide a new opportunity to employees for self-improvement and for enhancing their living style (Martocchio, 2010). Use of web technology will also allow the organization to provide detailed information about plans to the employees that will increase clarity and transparency; it will help the employees to understand offered plans in a better way. Clarity and transparency reflects the mirror image of an organization, so basically it eliminates or minimizes doubts regarding the image of the organization, it will help employees to stay clear about plans and will definitely increase employees’ strive towards achieving those incentives and rewards that will eventually increase organizational productivity and performance (Medina, 2006). Web technology will also help the organization to manage the reward system in an efficient way, so that deserving employees won’t get de-motivated and will be rewarded timely. Use of web technology will decrease the administrative cost of the organization, will allow the organization to better utilize its capital on incentive plans offered to employees. Employees work for some compensation and they always need a pay back for their efforts not only in terms of basic salary but in shape of extra benefits as well. Extra benefits will give them a feel of self actualization and for them given benefits and incentives are the care of organization towards them therefore these benefits and incentives play a very important role to retain employees for long-run, as care of organization towards employees determine a relationship between an organization and an employee, and creates a bond and feel of ownership for employees. Strong relationship determines the level of employee productivity and its contribution of skills and knowledge to the growth of an organization therefore an organization’s initiative towards building a strong relationship is very crucial (Martocchio, 2010). The adoption of new procedures for improving the administrative process when followed by the training sessions provided to employees will minimize the risk of failure and will help the organization to adopt the change without any difficulty, balance score card perspective of learning and growth gives a clear idea that how much training is important for individual and organizational growth therefore adoption of proprietary web technology should be followed by training sessions (Martocchio, 2010). According to the theory of “Maslow hierarchy of needs”, self-actualization is the most important need of an individual whereas self-esteem is the second most important need, well incentives and rewards play a major role in fulfilling these needs. When an employee gets rewarded, with motivation his level of confidence increases and he started to perform in a flow which reflects his improvement in performance. Rewards and performance-bases incentives are self-achievement which is the result of employee capabilities and efforts; it basically helps the employees to realize their potential and to make them feel that how important are they to the organization. Employees get loyal towards their profession when they realize that they are capable of doing of what they are doing, and he becomes keener to achieve next level targets (Bruce and Pepitone, 1999). To conclude, in this competitive environment money is not enough to motivate employees therefore Microsoft should make up for it cut back of incentives to stay competitive in the market and to retain its man power. Dynamics change in PC market has brought up many new competitors for Microsoft, now the company needs to be more loyal towards its employees as today many options are available in the market for learning and growth, therefore Microsoft need to stay competitive by focusing on the working conditions of employees to maintain its market share and position. They need to control their administrative cost and adopt some new ways and plans for employee growth; suggested solutions to rising problem will definitely work out for the organization and result in organizational growth and employees’ sustainability. Solutions offered in the study will increase motivational level of employees that will increase their productivity and will help the organization to improve its administration which will eventually result in reduction of cost and improvement in procedures. Reflection The study undertaken discusses all problems related to compensation and benefits, Microsoft is known for its compensation and benefit packages but its image seems to be dwindling since last five years as the company has cut back its compensation benefits to the employees. The study has also suggested solutions to these problems which are effective enough in my view to cater problems discussed in last topic, well adoption of web technology, new benefits and compensation plans, and improvement in existing plans will allow the firm to stay more attractive for employees, according to me if an employee is satisfied with the organization then for sure he makes effort for the betterment of organizational growth, an organization which aims to lead the market has to be very efficient in all terms. This study provides a sense of learning and growth to readers; when a reader goes through this report he\she will understand the importance of self and organizational growth, he\she will understand how an employee’s performance is dependent on self actualization and self-esteem. Reader will learn about how organizations make effort to sustain their market position and to retain efficient employees, he\she will understand that an organization takes ages to develop its leading position in the market but one wrong decision to manage cost can effect an organization’s image negatively and may result in high employee turnover rate. References Beam, B., and McFadden, J. (2001). Employee Benefits. Chicago, IL: Dearborn Real Estate Education. Bruce, A., and Pepitone, J. (1999). Motivating Employees. NY: McGraw-Hill. Martocchio, J. (2010). Employee Benefits: A primer for human resource professionals. Boston: McGraw-Hill Irwin Medina, R. (2006). Personnel and Human Resources Management. Quezon City: REX Book Store, Inc. Share Works Premier (2010). Solium Capital. Retrieved from Read More