Compensation and Benefits - Essay Example

Compensation and Benefits Affiliation] Compensation and Benefits It is challenging to identify when providing benefits will assist an enterprise in becoming competitive in the marketplace. The reason for this is that providing benefits may either help a firm or destroy it. Benefits may assist an organization in attracting qualified applicants for the jobs it provides, encouraging workers to stay and remain highly productive. Best employees in the labor market have the potential of choosing the jobs that are attracting to them. They are superior when compared to other workers, and are therefore provided with a wide variety of job offers. In this case, in order for an organization to appeal to such employees, and keep them after hiring them, it is essential for them to provide them with competitive compensation packages, including benefits (Ulrich, 2011).
Nonetheless, provision of benefits cost money. For instance, health insurance in the United States is quite expensive. As such, it is true that benefits may result to increased costs, making a firm to incur higher costs and hurt its competitiveness. In this case, it is appropriate for firms to calibrate in a careful manner based on the number of benefits it wishes to offer its employees. An enterprise should be generous enough for it to attract qualified and competitive labor force. However, it should refrain from overpaying employees who are less productive and not worth additional money (Ulrich, 2011).
In a firm, it is true that higher pay and benefits play a major role in attracting and keeping quality employees. Nonetheless, I do not belief that pay is the primary motivating factor for existing employees and job applicants. They look for those firms that are capable of providing them with benefits, such as health insurance, which are some of the most challenging areas for employees to afford.
Reference
Ulrich, D. (2011). Organizational Capability: Competing from the Inside Out. New York: John Wiley & Sons. Read More