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HR STRATEGIC PLANNING: Discussion(s) 6, 7, & 8 - Essay Example

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Despite the advancement in technology that can enable people spend less on transport. The fact remain that most of the employee spends a…
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HR STRATEGIC PLANNING: Discussion(s) 6, 7, & 8
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"HR STRATEGIC PLANNING: Discussion(s) 6, 7, & 8"

Download file to see previous pages Majority of the institutions and businesses does not provide a tax-free commuter benefits program, but it is becoming trendy nevertheless. The fact of the matter is that the employee transportation also presents a challenge to the business through costs and logistics caused by workers transportation. Therefore, transport benefits are not only an incentive, but also a means of the company making savings (Mathis, 2014).
The transportation might seem as unnecessary fringe benefit, but it is worth considering retaining the skilled personnel and reducing on business expenses. Depending on the gross salary and the tax-bracket, the employer can manage to reduce the expenses a business incurs.
For instance, under the compensation reduction agreement, the workers can chose to have a portion of their salary withheld and applied for a pre-tax basis to purchase transportation fringe benefits that would be loaded in a fare card. This reduces the taxes the employer and employee would incur in transportation costs (Mathis, 2014). The company can also provide transport pass, qualified parking or provide transport facilities between the workplace and the workers residence. These costs would reduce not only to the employee but also to the business.
Organization requires human resource manager who would formulate policies for identifying, attracting and hiring the right kind of employees to help the business achieve its goals. Its only through human resource and the policies implemented that an organization can attract the right employee, identify metrics to help the employee stay on the target and reward them appropriately (Mathis, 2014). Having such kind of policies in place and designing effective work performance systems unleashes the potentials on part of the employee and improves organizational performance. Whenever the employees are guided and motivated, they tend to deliver in their duties and hence help the company achieve its goal.
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