Compensation and Benefits

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Compensation and Benefits Lisa Epps BUS303 Human Resources Due Date Ashford University There are many people that would choose their life career around the benefits and compensation they may receive. Compensation is known as human resources function that deals with every type of rewards that one may receive in return for performing organizational tasks.()1 Do to these rewards such as compensations; turn-over can be affected in the workforce. If an employee did not feel they valued at the workplace they may leave the job. Some may argue that smaller firm have worst turnover than larger firms. This can be due to the fact that larger firms can offer better benefits to their employees, which smaller firms cannot afford. There are…show more content…
Now no business want this to happen to them, being known for bad customer service and can’t hold on to their employees. CEO of Steak and Shake, Peter Dunn put into operation his plan to better support employees, the crew turnover rate began to fall. In turn, guest satisfaction improved, as measured by Mystery Shops. By the third quarter, crew turnover had dropped to 192 percent, while guest satisfaction increased to 86 percent. During the last quarter of 2003, Steak n Shake’s crew turnover rate went down to 188 percent, but it’s still 59 percentage points higher than the industry average. The company has told investors that it can save $2 million to $4 million per year if it can only convince more frontline workers to stick around. So far, the company has made nominal attempts to make the workplace more appealing to employees, such as offering a self-funded dental and vision program to associates and increasing training for frontline employees. Steak n Shake already offers its frontline employees medical and life insurance; supplemental and dependent life insurance; short-term disability insurance; vacation pay; meal allowances; a 401(k)/profit-sharing plan; and a referral bonus program. Life insurance is the cheapest benefit and produces the greatest reduction in turnover, says La Lopa, an associate professor at Purdue University. Still, the company has yet to address one of the
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