For a long time now, it is widely accepted that for a business to succeed, every player must consider the four basic components in any business that include man, material machine, and money. Of all these factors, man is deemed the most important player, as he can directly play a part in a company’s efficiency and effectiveness. According to Coker, the practice of compensating employees goes a long way into aligning them with the objectives of the company. Many negative attributes in employees such as lateness, laziness, alcoholism, and incompetence can be a big setback to a company achieving its ambitions. Of importance to note is the impact that human ambitions, emotions and expectations has on the employees. Compensation, therefore, tires to address these areas of concern. Compensation refers to any form of reward or monetary payment, which employees receive as an appreciation for their service in a company including perks, cash rewards, benefits and services. Compensation helps to attract, retain, motivates and maintains high morale in the workforce and helps to meet legal requirements and inspires employee’s personal growth.
Texas Health Resources is a health organization that was ranked 15th in Fortune Magazine report on best companies to work for in the world. The company offers a wide range of benefits and compensation to its employees. The perks include telecommuting, compressed work weeks, health insurance for the part-timers, and sick days for the part-timers, subsidized gym and fitness, and college tuition reimbursement for skill advancement purposes. The company also offers paid time off for sick days for both permanently employees and part-time employees. Compensation include salaried extra compensation on top of one’s salary. The company maintains employee diversity in its hiring.
Deloitte is a global consultancy firm, which was ranked 11th by Fortune magazine. The firm believes in employee motivation as shown by its $300 million University meant to train employees to improve on their skills. Perks in this firm include fully paid sabbaticals, onsite medical care establishment, and health insurance for part-timers, college tuition reimbursement, and student loan repayment. Compensation includes extra compensation on top of the salary. Each employee also receives 42 days of paid time off per year. The firm offers a lot of bonuses inform of money to employees for outstanding performances. It offers well-being subsidy, a pension plan and family leave to help employees to bond with their families.
The two companies have many similarities in their compensation strategies. First, the companies are concerned about employees’ health and overall wellbeing. The companies, therefore, offer health insurance to both part-time and permanently employed staff. On top of that, they offer subsidized fitness and gym facilities. They offer paid time off for sick days. This motivates employees knowing that their employer cares about their personal health. Second, the companies are greatly involved in employee skill advancement and personal growth. They offer college tuition reimbursement and other programs geared towards employee skill advancement. By doing so, the employees are able to see the company as a place where they can advance their careers and even feel indebted to work for the company thereby increasing motivation and efficiency.
Benefits and compensation in a company is a proven way to motivate and retain employees. Companies such as Texas Health Resources and Deloitte have succeeded in creating a positive environment for employees through benefits and compensation, which has led to the overall success of the two firms. The employees will tend to work hard if they feel appreciated, loved, and cared. They reciprocate their love by being loyal, working under little supervision, and controlling the business as if it is theirs.