Compensation Employee Benefits, Rewarding Performance, and Promoting Safety and Health

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Compensation:Employee Benefits, Rewarding Performance, and Promoting Safety andHealth

Compensation:Employee Benefits, Rewarding Performance, and Promoting Safety andHealth

Employee Benefits

Benefits can bethought of as forms of value other than salaries given to employeesin appreciation for their contribution to the organizational success(Gohari et al., 2013). While the government policies regarding laborpractices direct employers to provide basic minimum benefits workers,it is equally apparent to them that adhering to such practices isessential in helping organizations retain their best employees.Modern workforce demands many things. The market for skilled andtalented labor force favors job seekers, thus prompting businesses tooffer attractive packages and benefits with the aim of attractingworkers with exceptional abilities. Sometimes, these workers arepoached from other organizations. Therefore, employee benefits areprimarily issues relating to organizational performance and are usedto optimize employees` contributions (Gohari et al., 2013). Benefitprovision is a way of managing high-risk coverage at lower expenses,thus reducing organizations` financial burdens. Likewise, it improvesthe effectiveness among employees because their families are secure.

Employee benefitsinclude retirement plans, insurance plans, health life insuranceplans, paid vacation, disability insurance, and employee stockownership scheme among others (Gohari et al., 2013). It is a federalrequirement for organizations to compensate workers adequatelyaccording to their qualifications as well as the nature of the taskat hand. However, compensation can be turned into a benefit whenemployers opt to be generous in compensation. They can do so with theaim of enhancing the motivation of the workforce.

As part ofWal-Mart’s motivation strategy, the management offers healthinsurance benefits comprising of health reimbursement account, healthsavings account, and a comprehensive health cover. The health coverincludes short term and long term disabilities, dental and visioninsurance, accidental death and dismemberment, and sick time amongothers. Also, they offer holiday pay and bonus, vacations, associatestock purchase plan, quarterly profit sharing, employee discount, andcollege sponsorship to exceptional candidates among others.Furthermore, the company has also turned federally mandatorycompensation to benefit by implementing a policy which allows foryearly salary increment.

This strategy isone of the aspects which have enhanced the company’s profitabilitybecause it facilitates employee satisfaction and motivation. Thesuccess of the approach can be attested to Wal-Mart’s impressivequarterly and yearly revenue collection. Likewise, it is also theleading performer in the retail and store industry, followed closelyby COSTCO among others. The same approach has also made COSTCOsuccessful within a short period. Motivation through benefits, orextrinsic motivation, is appropriate for Wal-Mart whose processes andoutcomes are predetermined. Wal-Mart has a well-functioning andhighly controlled supply chain where workers find everything findseverything organized. Their work is only to discharge their duties asexpected by the management.

Rewarding Performance

Reward systemsinclude incentive programs which are meant to encourage employees tocontinue working hard as well as motivate others to optimize theircontributions to an organization (Pratheepkanth, 2011). The rationaleof the approach is that people tend to depend on such rewards andwould continue to work hard to continue benefiting. However, cautionmust be taken when giving awards to individuals. Understanding thepsychological, emotional, and physical needs of employees is relevanttowards determining the best reward to give employees. Likewise, itis essential to identify the factors that drive employees’performances in an organization (Pratheepkanth, 2011).). The needs ofpersonnel are embedded in Maslow’s structure of requirements. Thenecessity of motivation proves that there are no ideal job designsacross the world.

The legitimacy ofefficient usage of rewards to enhance employee motivation can also beunderstood within the context of human resource frame. Humanresource structure is a paradigm that prioritizes on aligning theneeds of individuals with organizational expectations. One of theassumptions underlining this concept is that an organization can onlyprosper if it attends to the needs of its workers. Secondly, abalance can only be achieved when a company’s contribution toemployees equals their performance. Additionally, the relevance ofrewards can also be understood within Vroom, Porter, and Lawler’sexpectancy theory. According to the theory, a person’s behavioralchoice is influenced by the anticipated outcome of an endeavor. Thetheory claims that behaviors emanate from choice-related cognitiveprocesses.

Inmost cases, human beings are faced with the challenge of makingdecisions among numerous options. A critical analysis of choicemaking patterns reveals that people tend to minimize pain whilemaximizing gains. The concepts of the theory are based upon threebeliefs, including valence, expectancy, and instrumentality. Valenceimplies the emotional impact of a perceived outcome of any process.Likewise, it includes intrinsic and extrinsic needs of an individual.Extrinsic needs may include financial gains, annual bonuses,time-offs and job promotions among others. Intrinsic needs mayinclude satisfaction, achievements, and rewards among others. Basedon this analysis, it is apparent that human beings have an inherentneed for psychological, emotional, and physical satisfaction.

Formsof rewards include incentives, recognition, awards, pay increase,bonuses, and holiday extension, positive feedback among others(Pratheepkanth, 2011). These reward types can appeal to peopledifferently depending on their needs, the perception of theircontribution, their perceived organizational capability, andprofitability, and the nature of rewards in other organizations.Wal-Mart’s reward system includes creating an opportunity for hardworking employees to climb the executive ladder. In fact, most of thecompany`s store managers began their careers as hourly workers. Italso entails paying reasonable wages. Additionally, the organizationhas a program which recognizes and rewards long-serving associates.They also offer educational sponsorship to hardworking employees.Lastly, the company also offer end-year bonuses to all employees toappreciate their hard work irrespective of annual turnover.

Promoting Safety and Health

The labor policiesrequire employers to provide a safe working environment to allemployments. In the United States, the provision of a safe workingenvironment is entailed in a framework developed by the United StatesLabor Department. The department of occupational safety and healthadministration outlines both the employer and employeeresponsibilities in the provision and adherence to safe workingconditions. Employers have the responsibility of complying with laborpractice policies such as the OSH Act (Taderera et al., 2012). Theyhave to scan the work environment to remove serious recognizedhazards. Employers should also examine their places of work are inline with the provision of labor standards for safety. It is also theresponsibility of organizations to provide protective gear, properfunctioning tools, and appropriate operational manual. Employersshould also warn employees in advance of the potential dangers oftheir work environment to remain cautious when approaching suchareas.

Employers mustalso use the recommended process to contain and store all harmfulsubstances at work (Taderera et al., 2012). They must also informworkers of the availability of the same. Part of the process ofenhancing safety at work includes subjecting employees to basicmedical examination to examine their fitness. It is also important torequest for workers’ medical reports before employing them.

The report shouldnot be used to discriminate against employees with special healthconditions, but should be used to customize the design of workenvironment to fit their needs. As part of workplace improvementstrategy, employers are required to compile reports regarding all theinjuries that occurred in the past. This approach will facilitate thedevelopment of policies and design of work environment (Taderera etal., 2012).

Current employees,former employees, and federal agencies should be able to access theserecords at any given time. It is also the duty of organizations toarrange for inspections from government representatives to inspireconfidence among employees. However, employees are also expected toplay a part in ensuring that their safety is prioritized by theirorganizations. They should put their companies to task regardingtheir approach to ensuring that safety prevails in the workplace.

Companies are alsoencouraged to promote safe health practices among employees.According to social cognitive, aperson’s understanding of situations informs their behavioralpatterns. The perceptions are influenced by social interactions,experiences, and other external factors. Therefore, people rarely trynew things to determine whether they will work, but rather apply thelessons they obtain from others. The belief in self-efficacy is thedriving force towards the adoption of a particular behavior pattern.Based on this context, organizations can liaise with public healthofficials through forums to improve the awareness of employeesregarding safe practices. The circumstances should entail aspectsthat illustrate health-related benefits.


Gohari, P., Ahmadloo, A., Boroujeni, M. B., &amp Hosseinipour, S. J.(2013). The relationship between rewards and employee performance.Interdisciplinary Journal of Contemporary Research in Business,5(3), 543.

Pratheepkanth, P. (2011). Reward system and its impact on employeemotivation in the commercial bank of Sri Lanka plc, in Jaffnadistrict. Global Journal of Management and Business Research,11(4).

Taderera, H. (2012). Occupational Health and Safety ManagementSystems: Institutional and Regulatory Frameworks in Zimbabwe.International Journal of Human Resource Studies, 2(4),99.