Article Critique Assignment - Essay Example

1. Gregory J Morano’s article d “Communicating the value of benefits helps offset anxiety of tough economic times” addresses a very significant human resources management issue during economic recession. Morano emphasizes the need to establish effective communication with employees to avoid anxiety among them regarding layoffs and to reassure them of their place in the organization. The transition phase of uncertainty in which the employees have to put up with the lack of bonuses, raises and incentives can be worsened by the additional work they will have to do because of staff cuts.

It is at this time that companies have to make use of effective communication regarding employee benefits. Many employees are not even aware that their benefits like health plans, employer-paid life insurance, pension deposits, tuition reimbursement programmes and employee assistance programmes amount to roughly one third of their salary. Wise employers would try to make clear to the worried employees at these times that the benefits they are provided are a way to show how much their service are appreciated.

Effective explanation of the real value of benefits will lead to higher levels of employee satisfaction. This will also reduce the instances of talented employees being lured by seemingly higher salaries, since the awareness of the real value of their benefits would help them make realistic calculations, which will convince them why it is better to stick on to their current job. Communication helps not only to retain talent, but to maintain the morale as well. Those who are worried about the lack of bonuses and incentives, and the fear of staff cuts, the reassurance that their compensation is as much as 25% more than what they thought it was could curb the bitterness.

Morano suggests a total compensation communications campaign, which can be realized at a minimal cost. This could also be supplemented at an even lower cost and a more dynamic manner – communicating the benefit plan at a one-to-one basis. With the effective implementation of these strategies, the high anxiety among employees can be minimized drastically, and the productivity of the company can be maintained even during the crises of economic recession.2. During the time of economic recession, employees are not able to show their appreciation towards the good work of their employees with raises, bonuses or incentives.

The constricted budgets do not allow them to be generous towards their employees even if they want it. The employees may experience a lot of financial and psychological insecurity during such times and they would naturally be relieved if a clear awareness of their benefit package can be spread among them.3. Effective communication of the benefit package to employees helps them have higher employment satisfaction. This would also help them remain in their present jobs and compare the real differences when some other organization tries to lure them.

Communication is highly beneficial in maintaining the morale as well.4. The author refers to the need to specify the total benefit contribution by the employer – including the health benefits, pension deposits, employer-paid life insurance, tuition reimbursement programmes, employee assistance programmes and other benefits. This usually amounts up to one third of the salaries that the employees are offered.