The significance of attracting, retaining, and motivating talents has always been paramount to leading companies and organizations. Presently, employees are seen as an organization’s asset. Everyone likes to feel valued, needed, and rewarded for the work they do, and the base salary doesn’t necessarily check all the boxes to keep employees happy and motivated. In this article, we will talk discuss what compensation and benefits mean and also their importance.
As you must have heard the famous phrase “give and take.” You always have to give to get something in return. For example, you own a bakery and have three employees who are meant to work from 8:00 am to 5:00 pm. If there are days, some of your workers have to stay at work till 9:00 pm or even work overnight to meet up with a request. Those workers will need a form of compensation for working past the time their base salary paid for. So, compensation is given as payment or reparation.
Employees in the 21st century are not willing to work only for money; they are always searching for something extra to enrich and make their lives better. Using the bakery example, what benefits will you give your workers? Employee benefits are not performance-based. Hence, you need to create the right benefits package. For your bakery, your benefits may be a loaf of bread daily or weekly. Carefully designing your benefit plan is necessary to avoid loss.
Benefits and compensation can help motivate, spur, and retain the skilled professionals in your organization. A few importance of a well-designed compensation and benefits plan includes;
If employees are satisfied with their jobs and get fair rewards in exchange for their services, they will love to work for and with you. As a result, you will have more motivated and productive employees.
Would your staff want to work for other companies if you give them rewards and other incentives? Of course not!
Employees all have a variety of needs. Most people care about what the company can offer. As a result, they work for organizations that offer higher pay. Some don’t care about achievement look for jobs in firms that offers better chances of promotion, growth, and learning.
No employee will skip work to stay at home or focus on other activities if they love their workplace and are contented with their pay and get what they require or need?
When you reward your employees for a job well done, it increases their self-confidence
In conclusion, the primary importance of compensation and benefits is to create an optimum environment for maximum productivity. What are the benefits you gain from compensation and benefits? Tweet us and share! For more helpful content, check out our blog.