Potential Impact on the organizations
Benefits are important because it will facilitate organizations to attract and retain high-quality employees for a long period of time. Nowadays we can see that there is competitive pressures between organizations for obtain the best of the market labour.
Eight of the top 30 firms that are on the list of “Canada’s 30 Best Pension and Benefits Plans”, came from the financial services industry.
“Financial institutions and pharmaceuticals have a lot of competition for talent, and they’ve had to compete for talent for quite a long time,” notes Crawford. “Benefits is one point of competition that is tangible.”
Benefits will have a different impact in unionized firms and non-unionized firms. Unions have always bargained strongly for better benefits for their members. Non-unions firms may match the packages won by unions in other firms with the purpose to remove one possible incentive for unionization.
Benefits are extremely expensive, but some of them have favorable income tax. That’s an incentive for organizations. Another incentive is that benefits can provide a way of protecting the financial security and peace of mind of employees. So in that case employees will have a good performance at work.
Benefits will have an impact in the particular managerial strategy of the organization and the objective of HR Managers is to promote membership behavior and employee motivation. Organizations can use specific benefits to promote consequences beneficial to the organization. For example, wellness programs may result in healthier employees who miss less work due to sickness. Employee assistant programs help employees to resolve personal problems than might be interfering with her or his job performance.
“Benefits that fall outside the traditional arenas—employee recognition programs, flexible work arrangements, tuition reimbursement programs, to name just a few—are becoming important as companies struggle to attract and...