The Importance Of Employee Compensation
Motivating employees can be difficult sometimes. Some employees only see their job as a paycheck and expect more money to be more productive. This is not the answer, there are many different ways to motivate employees without increasing wages. This paper will look at the main reasons employees are motivated to perform in the workplace, the role of compensation in the workplace, and create a compensation plan for Ellard Williams to adopt.
Employee 's Motivational Reasons
There are several different things that motivate an employee to perform well in their workplace. They range from money to personal achievement. Looking at Maslow 's Hierarchy of Needs to explain employee needs, managers can get a better understanding of …show more content…
Money is a very strong motivational factor for employees and organizations can use this to their advantage. Employee compensation, as a whole, is a critical component to organizational strategy. It can influence organizational performance, attract, and retain top talent employees. Employee compensation accounts for about 60 to 95 percent of an organization’s costs. Because of the impact compensation has on an organization, it affects any decisions regarding technology, diversification, market position, and human capital. Any changes an organization wants to pursue, technological or growth, has to take into account current employee compensations and how the new changes will affect those compensations. For a successful change, all employees need to be onboard. If employees’ pay is cut, they are less likely to be motivated to work and productivity will …show more content…
Evaluations would take place the same time each year and raises would be given to the employees that perform well. At a manufacturing firm, bonuses can also be given out yearly to employees that produce over a specific goal. This can include how many widgets are produced in a month or quarter. Pay incentives are a great motivator to employees and will diminish the perception that most of the profitability goes to senior management.
Health Benefits With many sick days being used, whether sick or not, Ellard Williams can create personal day plans for their employees. Based on seniority the employee would receive more personal days to use a year for sick or vacation time, no questions asked. Employees at Ellard Williams for start to three years will get ten days of vacation, four to ten years will get 15 days of vacation, anyone over ten years will get 20 days of vacation. Employees will be motivated to work, knowing if they need a day they can take one. It also attracts employees to stay with the organization longer.