Introduction
Discretionary benefits are a powerful tool for attracting and retaining employees. I agree that discretionary benefits are typically viewed as an extra expenditure, but they are also beneficial investments for both the staff and the firm. Among other benefits, they make a valuable contribution to the company’s HR branding and even help attract more qualified and dedicated employees. This is due to the fact that discretionary benefits affect how current and potential staff view the company as an employer. They help create the image of a company that cares about its employees.
Discussion
Moreover, discretionary benefits are an effective tool for more than just recruitment and retention. Additional benefits are also associated with long-term benefits for the company. There are studies that show that there is a relationship between the quality of an employee’s discretionary benefits and individual productivity (Balkin & Werner, 2023). This is related to the theory of justice and is explained by the fact that when an employee recognizes that he or she is overpaid in comparison with others in the reference companies, he or she is driven to work more to justify this overpayment.
The Body Shop is a great example, their discretionary benefits policy is fair inclusive, and competitive for jobs in their field. Companies are becoming more flexible and adapting to the requirements of employees in a competitive labor market, and The Body Shop is one such firm. The emphasis on wellness programs has been one of the most significant changes in discretionary benefits in recent years. According to a new survey, people are more inclined to take a low-paying job with comprehensive health insurance than a higher-paying position without insurance (Jones, 2019). The Body Shop aspires to be a competitive employer and provides its employees with comprehensive insurance.
Conclusion
Offering discretionary benefits might help a firm not only in recruiting new employees. When making a recruiting decision, they are one of the most significant elements, but discretionary benefits also promote morale, retention, and long-term profitability by increasing individual performance.
References
Balkin, D. B., & Werner, S. (2023). Theorizing the relationship between discretionary employee benefits and individual performance. Human Resource Management Review, 33(1), 100901. Web.
Jones, K. (2019). The most desirable employee benefits. Harvard Business Review. Web.