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Soap Producers and Distributors Ltd: Human Resources Case Study

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Updated: Feb 14th, 2021

Additions to the Company’s Benefit Program

From the case, it is evident that Soap Producers and Distributors Ltd is facing a serious employee turnover problem despite the fact that its pay levels are 10 to 11 percent above those of similar jobs in the labor market. The company’s benefit program, which includes a supplementary health and life insurance, paid vacations, and a Christmas holiday bonus of $ 1000, is thought to be the major cause of employee turnover.

The management of the company should realize that the employee benefit program forms an integral component of an investment in human capital (Brenner, 2010), and should therefore concentrate efforts towards ensuring the company is able to provide a comprehensive benefit program to curtail further turnover. Consequently, the management should add more employee-oriented benefits into the program to make it more attractive to the workers.

Such additions should include: long-term monetary benefits accruing from the total number of years worked; voluntary benefits such as dental, childcare, and long-term care; family support benefits; training and development, and; work-life balance perks (Nugent, 2009). The management should also consider introducing an individualized benefit program due to the fact that employees have divergent needs (Brenner, 2010)

Cafeteria Approach

Rao (2010) posits that “…a cafeteria plan is one in which the employer gives each employee a benefits fund budget, and lets the person spend it on the benefits he or she prefers” (para. 2). As already mentioned, employees have divergent needs that require customized ways to solve them. When the management of the company customizes the benefit program to fit the individual needs of employees, the problems of high employee turnover, frequent employee complaints, and the frequent need to undertake costly recruitment programs will be effectively solved.

Indeed, the cafeteria approach can also be used as an avenue to reduce costs associated with the benefits program (Brenner, 2010), not mentioning that it triggers productivity and performance due to its capacity to motivate employees. Consequently, it can be argued that the approach will also serve issues of employee non-performance and unsatisfied workers.

The company needs to develop a recruitment strategy that will have the capacity to recruit employees for the long-term. Such a strategy must incorporate an employee benefit program that gives attention to the strategies that have been put in place within the company to ensure that employees are able to balance work roles and family responsibilities (Nugent, 2009). The benefit program must also have the capacity to guarantee long-term security of employees.

In trends, most contemporary organizations are initiating flexible benefit programs to assist them address the twin goals of retaining human capital and controlling costs (Nugent, 2009). A flexible benefits program ensures that the needs of specific interest groups in the organization are individually fulfilled. This predisposition not only ensures elevated levels of satisfaction but also increased profitability and competitiveness (Brenner, 2010.

Current trends also underline the importance of initiating benefit programs that allow for employee training and development, not only to reduce employee turnover but also to develop a more loyal, trusted and satisfied workforce. Lastly, it is important to note that most modern employee benefit programs are coming up with customized and modified health insurance premiums and the amount of paid leave provided to employees in an attempt to attract and retain the workforce of the future (Brenner, 2010).

Reference List

Brenner, B.K. (2010). Using employee benefits can help recruit, attract, and retain the workforce of the future: The mature employee. Journal of Financial Service Professionals, 64(3), 24-28.

Nugent, A.J. (2009). Using voluntary benefits strategically can help employers address goals of retaining employees and controlling costs. Benefits Quarterly, 25(2), 7-10.

Rao, V.S.R. (2010). . Web.

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IvyPanda. 2021. "Soap Producers and Distributors Ltd: Human Resources." February 14, 2021. https://ivypanda.com/essays/soap-producers-and-distributors-ltd-human-resources/.

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IvyPanda. (2021) 'Soap Producers and Distributors Ltd: Human Resources'. 14 February.

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