Employee Benefits

It is understandable for employees more so recent college graduates to seek the highest paying jobs while overlooking the significant role played by employee benefits to the total compensation. With over 30 percent of total compensation being bundled up in benefit packages, today’s employees are no longer in search for a normal 9am-to-5pm job with a good payment package but instead are continuously seeking jobs that provide several benefits that promote career and personal growth (Dulebohn et al., 2009). As a result, companies have embraced providing employee benefits in an effort to attract and maintain a wider talent pool over their competitors.

The hospitality industry where I work, employee benefits are slowly changing to become part of the compensation package. These include health, vacations, retirement plans, paid leave, vacation and sick off days, unemployment and disability insurance (Dulebohn et al., 2009). Retirement benefits take the form of a certain percentage of the basic salary submitted by the employer on a monthly basis so as to safeguard the income of the employee once they retire. In addition to retirement benefits, my employer also offers public holiday day offs at a later date when the client flow reduces as we are most busy during holidays. In addition, we have a 30-day paid annual leave which should be requested in advance to prevent shortage and allows us to rest and rewind.

Health benefits in my workplace and the hotel industry in general are offered in the form of a comprehensive medical insurance cover for the employee and immediate family members. Employers in the hospitality industry are offering Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), or high deductible health plans. HMOs have their own network of physicians and hospitals who provide services to its members at a lower cost while PPOs provide maximum benefit for using in-network doctors and facilities but still offering some coverage for out-of-network care (Dulebohn et al., 2009). High deductible health plans allow hotels to contribute a certain percentage to add to the monthly deductions and ease the burden on the employee. Most hotels also provide on-site exercise facilities and stress reducing programs. The gym is free for all employees after working hours which saves money while at the same time keeping fit.

Of all these benefits, I most prefer the comprehensive health plans offered by my employer as it reduces the ever-rising cost of health insurance. The plan ensures that me and my immediate family members have access to basic and specialized health services at an affordable rate using the company’s health networks. This would otherwise cost a fortune if we were to sort it out of pocket. Additionally, the company’s health network also shares some of the best performing physicians in the country that would be difficult to find on a personal plan. For this reason, I would consider taking a lower rate of pay provided I know that my health is well taken care of.

Studies have proved that employee benefits are crucial for the well-being of workers which in turn accrues several advantages for the companies offering them. To begin with, employee benefits improves organizational productivity by attracting competent and talented employees (Dulebohn et al., 2009). The wider talent pool brings in more creativity as workers establish new and better ways of doing things. Such innovations drive sales and increase profitability. The benefits also improve the morale of the workers as they feel more appreciated and engaged in the work area. Such motivation reduces the employee turnover rate (Němečková, 2017). It also ensures that they identify with the organization’s vision and mission this give their best leading to increased productivity and better revenues thus ensure sustainability of the provided perks.

References

Dulebohn, J., Molloy, J., Pichler, S., & Murray, B. (2009). Employee benefits: Literature review and emerging issues. Human Resource Management Review, 19(2), 86-103. https://doi.org/10.1016/j.hrmr.2008.10.001

Němečková, I. (2017). The role of benefits in employee motivation and retention in the financial sector of the Czech Republic. Economic Research-EkonomskaIstraživanja, 30(1), 694-704. https://doi.org/10.1080/1331677x.2017.1314827