Strengthening of Employees Confidence - Literature review Example

Employee Benefits Employers need to keep their workers close to them and offer them security policies so that they never think of jumping out of the boat. There are various ways of offering or maintaining the employees. They need to operate in a friendly environment where their well fare is put in the front line. Employee benefits are efficient strategies to ensure that the workers are contented working in an organization. This paper tries to explain the employee benefits what they are and their usefulness in strengthening the employee’s confidence. The constraints hindering full offer of the benefits will also be discussed in this paper. Introduction Employee’s benefits can be defined as all kinds of considerations offered by an organization in exchange for services given by the employees or for bringing to an end of employment. Some of these employee benefits are monitored or dictated by law, for example, social security, unemployment compensation, and employee compensation, others differ from organization to organization or company to company for instance, health insurance, life insurance, retirement benefits, medical plan among others. Employee benefits are an important tool in the employee life plus their families (Employee benefits 1997). Because of that reason, the benefits one can offer can be a determining issue for a competent employee’s decision to continue working at your place of work or business. These employee benefits are of two types-the employer as required by law must offer and those that the employer chooses to offer his/her employees as a means of compensation. Offering employees a good package of benefits is one way of making sure that one keeps them from jumping ship. Quite a number of small business owners always assume that it is hard for them to offer benefits to their employees. It is evident that a company or organization offering a package of benefits is more likely to have or maintain their employees as long as they may never change their policies (Gunther, 2001). Offering employees’ benefits might end up being a stepping-stone for the organization growth. Employees are likely to be motivated more if the employer is placing their (employee’s) at the spotlight and at all times their welfare is well natured. Some of the organizations offer benefits to hold their potential employees intact and to remain competitive in the market. In this paper, World Bank was the chosen organization to focus on. It is an international financial institution founded in 1944 whose major objective was to lower the poverty level. It assists developing countries mostly by offering them loans. World Bank is more like a cooperative, comprised of 188 members’ countries. A board of governors represents these member states, or stakeholders; they are the ultimate policy makers in the World Bank. These Governors dictate certain duties to twenty-five Executive Directors, who operate on-site at the World Bank. The leading five stakeholders will produce an executive director while elected executive directors will represent the other member countries. This organization has got a president, Jim Young who chairs all meetings of the Directors, and the overall management of the bank is his responsibility. The board of directors selects s the organization president to serve a five-year term, which is renewable. The World Bank runs day-to-day under the leadership and control of the president, management and prominent staff, and the vice president who is the head of regions, sectors, connections and functions (Employee benefits 1997). World Bank is an organization that recognizes that there are no limits when dealing with poverty. They go on with their search of the competent, talented and potential persons around the world. The bank staff cooperates with the government, groups, and civil society, among others around the world, helping individuals in all regions of development, from policy and planning. This organization has a wide range of employee benefits, which include Medical Insurance Plan it is a comprehensive insurance policy that is run by the World Bank Group for employees recruited internationally and locally, and their dependents in the main office. This insurance policy helps members or employees in meeting medical expenditures of various treatments, propensities and supplies (Sacher et al., 2000). Though it is a self-insured plan, the World Bank Group funds it plus the contributions by the members. They also have life insurance, accident insurance, and visitor insurance under insurance plan. In an organization whether profit making or non-profit organization the employee should be put first and all the needs catered for. An employee needs to work in a conducive and friendly environment, employee benefits is part that makes the working environment pleasant and conducive. Employees need to be motivated, and how do you do this? By giving them undoubted services and offers. There are basic employee benefits that should be given to them by the organization. Topping the list of the benefits an employee must have is a medical insurance. This is crucial since it will help an employee clear or take care of the medical treatment/services expense in case of disease attack. Many people applying for jobs may also ask for s retirement plan, life insurance among others. The most appropriate thing an organization or company should do is to offer the right benefits that will attract potential applicants, and the business might just jump-begin its development and growth. The best thing to do is to give employees the benefits they hold of value, and they will end up getting satisfied, they will miss few days of work; they will less likely to quit, their commitment will be strengthened and be motivated to achieve the organizational goals. Research proves that employees are likely to be more productive when they feel their benefits wants are met (Ohio State Bar Association 2002). Employee benefits should be a priority in any organization, the law demands an employer to offer employees with several benefits. They are expected to offer tome off to vote, serve on a jury and do their military duties. They need to comply with all the employees compensation needs. They are supposed to pay state and federal unemployment taxes, thus offering benefits for those workers that are not employed. This king of policies offered by the employers will keep the workers on track and with such they are less likely to quit. Employers should always target on keeping their workers on their side and employee benefit is one of the targets that should work perfectly. An employer can give several benefits to the employees. Health Insurance is among the most attractive benefits one can offer employees (McGregor, 1960). There are various basic options for implementing up a plan: A traditional indemnity strategy or paying up fee for service-workers chooses their medical plan provider; the insurance company may pay directly or decide to reimburse the provider for the taken care amounts. Though offering employee benefits is one of the most appropriate steps an employer can take in keeping their workers intact there comes in the factor of cost containment. The increasing costs of the insurance policies have made some small ventures/businesses to lower on the benefits they provide. Carriers who write the insurance or rather the benefits policies for small operating businesses have the likelihood of charging premiums at a very high rate. In major instances, they demand exclusive medical data about every employee. If any person has a pre-existing condition in the group, the carrier may deny writing a policy. On the other hand, if one of the workers gets seriously ill, the policy is most likely to be cancelled by the carrier the time it is taken for renewal. Companies or organizations may wish to offer employee benefits, but there are implemented policies by the state. They are ordering certain health-services benefits so that if an employer gives a plan at all, it should include several kinds of insurance altogether. Those employers unable to meet these standards are left with no choice but to cut out offering insurance services altogether. There is relief since most of the countries are doing everything possible to ease the difficultness by passing laws and regulations that reduce the burden more so for small businesses to acquire health insurance and that hinders insurance carriers from undermining the small businesses. However, there is another kind of employee benefits that the companies of organizations should at least make them available for their employees. Retirement plans are plans that are implemented to cater for the employees needs at old age. However, it will keep the employees stuck on your organizations, but some of the business owners make a big mistake thinking they cannot fund a retirement strategy against their desire of placing profits made back to the business. In small companies, only a few employees participate in funding their retirement plan. Companies or an organization that offers retirement plans record a high employee retention and contentment plus more potential workers. The other constraint that comes in is the idea that some of the small business owners may not be able to fund the retirement forums. To support more business to include retirement’s strategies. The Economic Growth and Tax Relief Reconciliation Act made in 2001 offers tax credit for costs in line with developing and establishing a retirement plan. This proves that the law recognizes the essentiality of developing a retirement plan in an organization or company for the employees. Recommendations It is evident that employees will always be attracted and motivated working in an organization that looks into their wants. They need to feel that there is someone watching over them or their families in case of anything that may happen. There is a need for these businesses and organizations to offer a good deal of employee benefits. It should be a requirement by law for all businesses or organizations to have the basic employee benefits, there are various benefits that should never miss in the plan (Gunther, 2001). Not every employee should miss funding or rather having insurance plans, which include life insurance, medical insurance among other crucial covers. The government should intervene and pass a law that no employee will work in an organization without having the benefits plans fully funded. Employees should take the initiative of demanding what they need (benefits), if, for instance, a company does not have a health or life insurance workers should down their tools till they are implemented by the management. I think the employee must also demand what is right because it is his/her life at stake during the business activities. Conclusion In conclusion, there are no irrelevant employee benefits that can be implemented by an organization or a company, so it is up to the employers to put up benefits that they know are affordable. Every employee is supposed to have subscribed to the most basic benefits available in an organization or company. Companies having employee benefits will tend to report a high rate of growth in their various sectors, this is because they workers will be committed to achieving the company’s objectives. One of the thing management should keep in mind is offering employees a good package of benefits will keep them working and cooperating efficiently since they have the feeling that even the management minds about their welfare (South, 2004). In every organization, there have to be a department that handles cases concerning the employees benefits so that in case of any complaint it is clear on whom to approach. Interpretation of Biblical principles The New International Version, (NIV) Bible is full and clear on concepts that explains more about business ethics and can therefore be of use as a beginning point for people who are interested in implementing moral standards for the worker-employer relationship. The Bible is a good source although it was written during the time when the activity that took place was agriculture, many of the Bibles notions can be stretched to human resource management in a recent industrial place of work. There are several biblical principles that can be integrated. Providing an honest day’s work- there are ethical obligations placed on workers by Bible. The worker is expected to perform his duties accordingly and not malinger. Failing to offer an honest day at work is a form of theft and would be categorized under the Biblical warning against stealing. This principle is seen in the Bible from the passage where Jacob went to Haran, and he was keen to notice that the shepherds were idling around rather than doing what had brought them. He was surprised that the shepherds were not honest with their daily works. Providing employees with dignified and meaningful work- There are ethical duties placed on employers in the Bible. If employers would at least treat their workers humanely instead of treating them mechanically, they would register lots of success in their businesses and organizations. Performance would be registered high if the workers feel that they receive fair compensation for their efforts. The Bible demands that the employer should even treat slaves humanely. The bible (Leviticus 25:43) says regarding a freeman given up into slavery. “Do not rule over them ruthlessly…). It explains that employers should give their employees that self-worthiness. For instance, providing the employees with employment benefits is a show of treating them humanely because it shows that the employer cares about their wellbeing. Compensation management- the Bible says (Leviticus 19:13): “Do not defraud your neighbour or rob him; do not hold back the wages of a hired man overnight” This is a Biblical principle that explains the fact that employers should pay their employees on time. Withholding their payments due leads to breaking of the Biblical law. Most organizations bend this rule by not completing their agreements with the workers when the old agreements comes to an end or by ending or lowering employee benefits for example health insurance, pension among others. The essence of paying employees will raise the employee’s spirit and get motivated to work extra hard since no delayed payments occurrences. Benefits for employees- It is a requirement by the Bible to offer his/her slave a compensation gift known as hanakah. According to the Bible (Deuteronomy 15:13-14) “And when you release him, do not send him away empty handed, supply him liberally from your flock, your threshing-floor and your winepress”. An employer who is ethical should know that if the Bible needs or requires a slave to be offered a gift after the period of labour, it is certainly clear for employers to reward their loyal employees. References Employee benefits. (1997). London: Centaur Communications Ltd. Sacher, S. J., Singer, J. I., Connerton, T. M., & American Bar Association. (2000).Employee benefits law. Washington, DC: Bureau of National Affairs. McGregor, D. (1960), The Human Side of Enterprise, McGraw Hill, New York. Gunther, M. (2001), "God and Business", Fortune, July 9, 2001, Vol. 144, pp. 58-80. Ohio State Bar Association. (2002). Employee benefits. Columbus, OH: OSBA CLE Institute. South, D. (2004). Employee benefits. Brookings, S.D.: The Center. Read More