There was a time when employee compensation was nothing more than a minor supplementation to one’s standard salary. Today, benefits are as important and sometimes even more so than the basic earned wage. American companies are becoming much more open-minded in their approach to pay, evaluation, and rewards systems in order to determine just where they stand in the highly competitive benefits market. Compensation packages from corporate executives all the way down the chain of command help employees stay ahead in an often slow or burned out economy, affording them luxuries such as insurance, counseling, daycare and other entities the average 9-5 worker would not be able to obtain. Increased benefits have proven to be significant aspect of the workplace.
“At a time when workloads per employee are increasing, it is more important than ever for employers to retain the key people with the experience and knowledge that keep the business running smoothly. Voluntary benefits can be an important tool in that effort”. (Guzzetta, 2003)
Employee pay, evaluation and rewards systems are significant determinants when people decide where they are going to work which shows how pay is tied to performance. Without the benefits package offered by large companies in America, employers would find it difficult to effectively compete in the skilled workforce.
Companies all across America have reconstructed their pay, evaluation, and reward systems to reflect the changing economic times. In an effort to retain quality workers, companies need to give a little more in order to get a great deal in the way of employee performance and loyalty.
Guzzetta, Blaise A “Employers Add Options, Cut Costs WithVoluntary Benefits Packages”. Houston Business Journal, September 2003.