Benefits And Compensation In Organizations: Aligning With Organizational Strategies

Explain the different legislative acts that apply to compensation and benefits

Assess the alignment between the organizational strategy and the total rewards package

Create a total rewards package that includes a mix of compensation, benefits and perquisites that will motivate the various employee groups

The importance of benefits and compensation in Human Resource Management

It is the obligation of every organization to pay its workers and also give them benefits. These benefits may include vacation, life insurance, retirement plans among others. They are forms of payment other than the normal compensation which is provided to workers as a way of returning a favor to them because of their contribution. Benefits and compensation are essential things in human resource management because it assists in motivating the workforce (Edirisooriya, 2014). Employees also tend to receive various benefits due to their actions and performance which helps in identification of the best people in the workforce. The paper will focus on the aggregate rewards package which encompasses non-monetary or monetary rewards, benefits, and compensation. In this paper, we will also discuss why it is essential to align the organizational strategy with the compensation package. The paper will, therefore, address the issues on benefits and compensation in organizations and how they align with organizational strategies.

Employees in Canada are protected by law to avoid exploitation which involves the setting of employment standards. In Alberta, employees have their rights in institutions they work in and this is taken care of by the law. It empowers employees to demand and be aware of their rights besides allowing them to exercise their workers’ rights. The Alberta act protects its employees through the development of different employment standards which involves regulations, compliance and rules measures for employees and employers in Canada.

 The Alberta employment customary rules cover the areas on working hours, earnings, overtime, holidays, minimum wage termination, job-protected leaves and laws on youth workers. These standards ensure that workers receive their benefits and compensation from organizations they work in without fail. These laws are enforced by the use of prosecutions, judgment, and inspections, audits and penalties collection (Barnetson, 2015). There also exists a compensation act which protects workers and employers against the effects of illnesses and injuries associated with the occupation. There is also a section in the Alberta act which states that employers should give workers benefits continuously especially those who get injuries at work making it difficult for them to work. Through these laws, workers can feel protected because they will not be exploited by employers when it comes to compensation.

A company’s overall strategy involves all the actions it plans to take to help it in achieving long-term objectives. Companies tend to forget that alignment of organization strategy and rewards given to workers is very important. According to research, the reward is linked to the achievement of business goals because it helps them in identifying job expectations. Effective, well-balanced executive compensation program helps employees to feel motivated and this allows it to achieve its performance objectives with ease. A proper reward of employees also contributes to the achievement of organizational goals because job performance is improved (Piaralal, Mat, Piaralal, & Bhatti, 2014). To many organizations, benefits and compensation given to employees act as a tool of reinforcing and communicating organization value and priorities to workers.

The Alberta law that protects employees' rights

Making credible links between collective and individual priorities or efforts in the entity is an essential aspect when the entity is set to attain certain goals. It is difficult to align rewards with the overall strategy but it can be done through the making of decisions with different executives and board members. But it is evident that compensation of specialists in the company adds value to it and this contributes to the achievement of the organizational plan (Riaz, Akhtar, & Aslam, 2018). For the reward program to match the organization plan, companies should internalize and understand the business strategy and also understand how the rewards reinforce and align with the company’s strategic objectives. The incentives given to workers also affects the company’s plan, the company can conduct things such as benchmarking to see how others design their compensation programs and even their pay levels. Executives in every company should ensure that alignment of the business plan with the working culture is enforced for better performance.

It is becoming difficult for employers to recruit and sustain a high-quality labor force while maintaining the costs of hiring. The total rewards package can help employees to become unique and also promote the company’s full value. Creating a reward program is essential because it helps in the retention and recruitment of employees. Reward programs are essential in the achievement of goals because it helps to enhance retention and recruiting strategies in a market which has tight labor (Lasprogata & King, 2004). Total payment program provides beneficial, developmental and monetary rewards to people who meet particular goals in the entity. Employees may receive incentives such as recognition programs and group insurance. The total reward in an organization helps workers to acquire non-monetary and monetary rewards which motivates them and business performance is therefore improved.

When developing a good rewards program, it is important for the organization to put together different teams to determine the current package of benefits given and its contribution to the attainment of the company’s goals. If the reward package is contributing to the achievement of objectives in the company, then it is a good payment strategy (Martin & Ottemann, 2016). However the development of a solid program that can motivate a different group of employees, the administration should analyze and identify different reward policies. The analysis helps managers to identify the reward system that is best for the workplace. It is also essential to identify personal advancement opportunities and nonadditional benefits that can help in advancing the company’s objectives.

How organization strategy should align with the rewards offered to workers

Then the manager can publicize the new payment to workers and educate management staffs on the same. Then employees should receive training on how the program will work to achieve the company’s goals together with an individual’s success. After this, managers can evaluate how effective the program can be and which areas require to be changed. A reward package that suits employees can help in the easier achievement of goals because employees will feel motivated and this improves their performance. It is important to know that workers have different needs which need to be satisfied by the company (Mabaso & Dlamini, 2018). Employee groups which are motivated also work together towards a common goal because they also feel motivated to work in the company which has a good pay package.

Works would like to work in a place that they gain more knowledge and become better workers.  Total reward describes the available tools for an employer that is used to motivate, retain and attract workers. To a candidate or an employer for employment, the belief of total rewards involves perceived value due to the employment relationship (Nanzushi, 2015). Many managers would like to come up with ways that they can attract and retain highly valued and highly performed team members. The program has helped many people in organizations by giving them professional and personal growth opportunities besides creating motivation in the work environment.

Many companies have come up with reward-based performance as a way of attracting and retaining employees. The practice can be beneficial to companies because it empowers employees, improves motivation, and increase skills. These practices build motivation, ability, and skills in areas such as share ownership programs, competency-based pay, team rewards, and broad-bands which are associated with improved organizational performance. Customer service and employee engagement also become more connected through this program (Musenze, Thomas, Stella, & Muhammadi, 2013). It is seen that reward such as recognition awards and pays influenced employees and this improved their links with customers. It is seen that recognizing people in companies improves their performance because they feel more appreciated by the organization. The rewards are given to employees which contributes to improved satisfaction among workers which increases the results of work done.

An effective enticement plan depends on doing it on the correct premise. Companies develop many plans as a way of trying to change how workers behave and improving their performance. Leaders feel frustrated when their plans fail to work but it is because they used faulty plans. But to get an effective reward package, the company will have to involve different teams in the sharing of your vision and mindset. The aim of every entity is to gain profits and every plan made have to be profit oriented. It does not suggest that profits are the only things to focus on in the company, but you cannot be able to pay workers if you do not make profits (Murphy, 2015). The company should not develop incentive strategies to increase profits while forgetting about sustained profits. The company can become rich but in the long-term, it is eroding its value creation.  

Conclusion

Different benefits and compensation given to employees act as great motivators in their performance. Companies which focus on employee remuneration makes them more satisfied and this improves the overall job performance. According to this paper, compensation is very important and it is even recommended by the law as a way of satisfying employees. They are the ones who help in the growth of companies and benefits should also be given to them because the companies need them. Employers should treat employees well so that he or she can become attractive to the world and this improves performance.

References

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Edirisooriya, W. A. (2014, February). Impact of rewards on employee performance: With special reference to ElectriCo. In Proceedings of the 3rd International Conference on Management and Economics (Vol. 26, p. 27).

Lasprogata, G., & King, N. J. (2004). Regulation of electronic employee monitoring: Identifying fundamental principles of employee privacy through a comparative study of data privacy legislation in the European Union, United States and Canada. Stan. Tech. L. Rev., 4.

Martin, T. N., & Ottemann, R. (2016). Generational workforce demographic trends and total organizational rewards which might attract and retain different generational employees. Journal of Behavioral and Applied Management, 16(2), 1160.

Mabaso, C. M., & Dlamini, B. I. (2018). Total rewards and its effects on organisational commitment in higher education institutions. SA Journal of Human Resource Management, 16(1), 1-8.

Musenze, I. A., Thomas, M., Stella, B., & Muhammadi, L. (2013). Reward management and organisational performance: An empirical study of private universities in Uganda. International Journal of Innovative Research and Development, 2(8).

Murphy, B. (2015). The impact of reward systems on employee performance (Doctoral dissertation, Dublin Business School).

Nanzushi, C. Y. N. T. H. I. A. (2015). The effect of workplace environment on employee performance in the mobile telecommunication firms in nairobi city county. Unpublished master's thesis. University of Nairobi.

Piaralal, N. K., Mat, N., Piaralal, S. K., & Bhatti, M. A. (2014). Human resource management factors and service recovery performance in Malaysian life insurance industry: Exploring the moderating effects of employment status. European Journal of Training and Development, 38(6), 524-552.

Riaz, H., Akhtar, C., & Aslam, R. (2018). Total Rewards and Employee Performance: Investigating the Mediating Role of Employee Motivation in Telecom Sector. Pakistan Administrative Review, 2(3), 342-356.