Human resource is the most important assert to any organization. It determines the quality and quantity of a company’s output and the general ability of the company to respond to changes in the contemporary world. Briscoe, Schuler, and Claus (2009) assert that the key to having a productive workforce is to ensure that they are always motivated. A motivated workforce offers the best of the services, are easier to coordinate and will work as a team.
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This has been the aim of StopNshopToday for the past several years that it has been in operation. However, the recent disquiet from the employees has raised a lot of concern and the management is determined to address the issue with the urgency it deserves. Some of the benefits that the management appreciates that the workforce should be given are: standard holidays throughout the year, fair deduction of insurance premiums, among other premiums.
It is worth noting, however, that the company is not operating in a vacuum. Bogardus (2009) explains that external forces that a company has to face may determine the way it relates to the employees in regards to the benefits it offers. The company may only be in a position to offer the employees benefits that are about the average of what is offered by the industry, particularly because of the financial constrains that are involved. Below is a comparison of what other industry players offer, against what is offered at StopNshopToday, Inc.
Comparative Analysis of Employee Benefit Package
Surveys have been conducted and reports to that effect written about the employees compensatory packages in various industries in the United States of America. The table below and the subsequent chart show a comparative analysis of what the industry offers and what is offered at StopNshopToday Inc.
|The Industry Average Benefits against that of StopNshopToday, Inc.|
|Government (%)||StopNshopToday, Inc. (%)||Private Industry (%)|
|Wages and Salaries||70.2||50||70.8|
|Retirements and Savings||8.7||2||3.6|
|Legally Required Benefits||8.1||10||8.7|
A Bar Chart of the Industry Average Benefits against that of StopNshopToday, Inc
The above chart may give an impression that StopNshopTaday, Inc. offers the least to its employees. This is not the case. Even though both government and other private industry employees have a better average salary, at StopNshopToday there is more emphasis on welfare of the employees. At StopNshopToday, the management offers its employees a higher Legally Required Benefits than the industry average.
This is to cover for the salary and wages that is considered lower than the average of other industry players. The management also appreciates the importance of holidays to the employees. It offers the employees compensation on the leave they take as a form of appreciation to their effort to the company. This company also offers one of the best insurance cover compared to what the government employees get.
The management is very positive towards the demands of the employees, as they are the driving force of the company. It is within their right to demand for more paid leave. However, it will only be logical if the consequences of the same are given considerations. StopNshopToday, Inc. is a retail store that heavily demands for the presence of the employees.
Heneman (2009) argues that employing more workers to allow for shits or to serve customers in case other employees are on leave will only mean that the management lowers the salary of the existing employees in order to maintain the current profits. Otherwise the company may run at losses and subsequently be forced to close down, rendering all the employees jobless. This may not be what the employees intend to get when they demand for more paid leave.
It is also not lost to the management that the cost of living has shot up over the recent past, and therefore increased health insurance premium deductions on the salary may hurt their finances. However, the employees should appreciate the fact that health insurance cost has drastically shot up over the past decade.
The percentage cost that was covered by the company in 1991 may seem negligible today, not because the percentage has been reduced, but because the cost has shot up. Other industries offer averagely the same package and their employees have to contend with it.
The statistics show that StopNshopToday, Inc benefits are within the industry’s range. In fact, this company offers the highest percentage of the legally required benefits to the customers as an appreciation. Demanding more paid leave, especially when the season is high may make company miss both current and new customers for lack of attendants.
This company remains one of the most competitive employers in this particular industry. This is reflected not only on the legal benefits it offers the employees, but also the non-financial incentives. To retain this status and even achieve more, all the stakeholders must join hands together and work hard in an effort to improve its current financial status. Employees have their part to play, just as the management. Through this, the company may be in a position to meet more of the demands of the employees.
Bogardus, A. (2009). Professional in Human Resources Certificate. Indianapolis, Indiana: Wiley Publishing.
Briscoe, D., Schuler, R. & Claus, L. (2009). International Human Resource Management: Policies and practice for multinational enterprise. New York, NY: Routeledge.
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Heneman, H. (2009). Staffing Organization. New York: McGraw-Hill.