Compensation and employee retention
Employees always want to be paid well for the job they do, both for their self-esteem and as a practical means to living. The importance of compensation in employee retention depends on the type of job they do and field of employment they are in. Compensation does not only include the basic salary, but also some benefits and other remunerations.
In her article, Barbara Bean (2017) gives an insight on how to retain employees like nurses into their jobs. She further explains that to get employees retain their job positions and even improve their service deliver, compensation should be considered. Keeping the salaries competitive with those performing similar work regardless of their fields …show more content…
The high cost of health and life insurance means that including them as part of your employee compensation package is an added advantage. It's important to find out the details of other employers plans and compare them with what you offer. Each employer should have time to ask what is covered in the benefits platform. They should also include the kind of benefits expected to be included in the package. They should be encouraging enough to an employee to maintain their work services. Apart from improving their work standards it will also increase their morale hence improving their service …show more content…
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Professional nursing practice has been developing for several centuries. Nursing as a profession can be traced back to the early Christian era. Since then the perception of nursing practice has changed significantly. “Nursing is caring, commitment, and dedication to meeting the functional health needs of all people” (Craven &
A nursing theory allows the nursing profession to define and differentiate nursing care practice from other professional disciplines. The work of Patricia Benner has been crucial in setting a stage to standardize education and career progression for the nursing profession. The nursing care practice has been changing exponentially since the development of the theory From Novice to Expert. It has enabled facilities across the nation to achieve a higher level of patient care due to its ability to identify the needs of each of the stages of a professional nurse’s career progression.
The challenges of an organization can influence the performance of an organization from a satisfaction with pay (Gomez-Mejia, Balkin, & Cardy, 2016, p. 296). The employee salary within an organization is a huge cause for turnover of employees (p. 296). First, the topic of employee salary is of great importance for the current and potential workforce (Lee & Lin, 2014, p. 1577). In addition, employees that have the perception on receiving lower compensation that others within their market will lack in performance and have a desire to leave the organization (p. 1577). In retrospect, the regular evaluation of compensation within the organization is vital to the reduction of employee turnover (p. 1577).
Compensation could also be based in part on seniority with the company. This will show new employees that the company values workers who choose to remain with the company long-term. It also encourages new employees to make a commitment to build a career with the company and deters established employees from seeking other employment. Experienced workers will think twice about pursuing another opportunity if the new job also comes with a pay cut.
Additionally, it is imperative to note that compensation does not automatically imply rewarding in the monetary form. It also includes other benefits such as, health care benefits, work-life balance options, as well as employee perks and incentives. Nonetheless, this day and time employees not only work for the money, but also place equivalent importance on other aspects of compensation.
Jennifer C. Telford, P. A.-B. (n.d.). A Brief History of Professional Nursing in the United States. In J. C. Elizabeth Friberg, Conceptual Foundations: The Bridge to Professional Nursing Practice 6th Edition.
The right compensation program will depend on the organization’s business strategy and goals. To achieve these, an organization must recruit and select the best possible employees. To attract such employees, there must be an attractive compensation plan. Competitors will be offering different payment options, this may be based on pay rate or special perks, and a company’s stock options. Organizations must be aggressive yet reasonable to compete with competitors. Retaining and encouraging employees to perform at their best may be achieved through an immediate incentive award
Pay and Rewards – pay and rewards attract, motivate and retain staff. The employment contract which lists rewards, whether it be pay, bonus or benefits, can remove animosity amongst employees and employers. However, recent research reveals that employees are no longer motivated by a financial reward alone, but
SALARY: compensation is clearly an important factor for employees and it is one of the main reason for them moving to a new job. Successful professionals appreciate generous salary because giving them a high compensation the company shows to recognize properly and appreciate their skills and competencies.
For the most part, attracting and retaining employees in today’s market is one of the biggest challenges that are faced by Human Resources. In today’s society, retaining employees is rather difficult as various employees are known to jump from job to job, almost always in search for more benefits or for their personal dream. Whatever the reason be, high turnover rates can be very expensive to employers as training and hiring one employee and then training and hiring a new employee requires time and money. According to Chron.com, it has been found that “employee replacement costs can reach as high as 50 to 60 percent of an employee’s annual salary.” As this is a one-time transaction, employees that are retained only “charge” the company once and so it is allowing more work for the dollar when the employee stays with the company for a longer time period. Companies that have high turn-over rates spend more money on employees which affects the bottom line of the company, this determines the state on how fast or a matter of if the company will use its money to expand.
Research indicates that employers can increase employee retention, increase employee productivity, and reduce employee healthcare costs by implementing a workplace wellness program.
The goal of virtually every business operating today is essentially the same: to make money. When it comes to the fine art of turning a profit, there are as many different factors that influence whether or not a company makes money as there are ways to make it. All successful companies begin by hiring people who best fit the position, and in the modern-day world of business, a considerable amount of time, effort, or money is invested in this endeavor. Once a stellar candidate has been hired, however, it does the company no good if, six months down the road, they quit because the working environment turned out not to be the right fit for them. Employees may leave a company for many
In today’s competitive workforce, compensation and benefit packages plays a crucial role on recruitment and retention for both the organization and the employee. Bumpbie finds itself in a situation where it could positively affect its employee’s morale, turnover rate and longevity; by making a strategic decision to implement compensation and benefit packages that will encourage current workers to stay and entice new applicants. Money is not always the inherent reason businesses experience high turnover rate, the constant shifting in the job market will always be a contributing factor as well as employee’s moral. Mayhew, R. (2016), explains that an “employee compensation plan” refers to all the components offered as well as the way in which they are paid, and the reason behind the employees getting the compensation case bonuses, salary increases and incentives. The fact that there are voluntary and mandatory benefits that organization provides to their employees give employees the freedom of choice, as well as the option to make the whether to stay with or leave an organization based on the benefits it provides. Variable Pay is also an option that some employers offer their employee which is performance based or results oriented. Whether it is profit sharing, merit based programs or incentive bonuses; it all comes down to which organization can provide employees with the compensation or benefits packages that best satisfy their needs.