I. Examine Hayco’s employee compensation and benefits program. Why did Hayco invest money and effort in building Hayco Home?
Fringe benefits costs are known to be little but it could yield potential benefits for both the employer and the employee as well. Mr. Donald Hay, president and CEO of Hayco Manufacturing Limited, noted that getting skilled labor has been one of the biggest problems that the company faces. Accordingly, they could not make products to the SIX Sigma quality levels without them. Hayco adapted a quality-oriented strategy as to decrease defects, at the same time, lower its manufacturing costs. This strategy can be carried out if the company has employees that are dedicated, well-trained and focused on quality.…show more content… As the company gives a clear message to their employees that they are very much valued through their benefits policy (i.e. Hayco home, in particular) will lead to many advantages for the firm. In one study wherein employees were asked on their expectations from the company, typical responses of these employees included: (1) salary that is competitive with the rest of the industry, (2) trustworthy co-workers, supervisors and upper management, (3) understanding the organization’s mission and vision, (4) an incentive program that has an impact on the employee, (5) a safe work environment, (6) an appropriate recognition for work which is done, (7) job security, and finally (8) dignified treatment of all employees. The management philosophy of Hayco Manufacturing Limited can be assessed as one that values their employees as an important factor in the success of the company.
Any company’s success relies increasingly on the knowledge, abilities and skills, innovative creativity and motivation of their employees. The valuing of employees means that the company is committed to the satisfaction, development and well-being of their employees. There are major challenges and obstacles that companies can face upon this kind of management philosophy (the valuing of employees). They include: