The rising cost of employee benefits and their value to the organization and the employees has become a concern to organizational leaders. It is important to realize that benefits will be effective only in a manner when that helps all parties involved, e.g. both organizations and employees. In doing so, the organization will take advantage of it as well as employee. The task of the management is to increase the value of the benefits provided to employees.
Many benefits are provided by law, such as unemployment compensation, workers’ compensation, and Social Security other types of benefits, such as health insurance, vacations, are not required by law but are provided by organizations to maintain an effective working process. Large companies attempt to meet the needs and demands of their employees providing the benefit packages. So-called cafeteria-plan benefits packages are offered by many organizations that give the opportunity to the employees to select which benefits are most important to them (Daft & Marcic, 2011). Very often organizations use surveys to determine what benefits are most desirable for the employees and the organization. All these measures are prone to increase the value to the organization of the benefits provided to employees.
Vacation time, for example, is an essential advantage for the employee which gives an opportunity for taking time off from work that can raise employee morale. Positive employee morale and attitude to work can increase organization’s productivity, because when the employee comes back to work from vacations, he is likely to work more effectively (Nyce, 2012). Another essential benefit is health insurance that allows the employee to cover his medical needs. It plays an important role to the organization, as the insured employee is less likely to miss work because of illness.
To conclude, it is worth mentioning that it is crucial to realize that benefits will be effective only in a manner when they help all parties involved, e.g. both organizations and employees. The organization will have privileges as well as employee. Increasing the value of the benefits provided to employees, the organization will be able to provide better management.