The Human Resource ( Hr ) Department

1500 Words Jun 4th, 2016 6 Pages
The Human Resource (HR) department manages the tangible indirect reward to employees. The Benefits that an employer provides to their employees are ones needed to provide the motivation to retain their employment and provide a positive return on investment. With the rising cost of health care, companies are relying on their HR department to provide benefits that will help in lowering the cost associated with older workers. Employers have found one benefit that has provided the greatest return on their investment as it addresses the rising cost of health care, absenteeism, and turnover rate of employees. This paper will analyze HR’s management of the benefit package and identify the benefit that has provided a substantial gain for the …show more content…
Employers have software and computer systems that have life cycles and equipment such as machinery, trucks, tools, and other accessories that have maintenance schedules. These programs are used to help prolong and ensure that equipment is functioning and operating properly for the work that they are tasked to perform. Employers need a benefit that will provide the same for their employees.
First, the HR department must manage a balance between the growing cost of the benefits and the use of these benefits as they work at accomplishing organizational goals. This balance is crucial to any companies’ benefits as the benefits package average cost is one-third of their payroll expenses (Mathis, Jackson, Valentine, Meglich, 2015). HR’s management of benefits requires the monitoring of their use. With the cost of benefits, one that is not being used fully is one that is not worth funding.
The greatest cost that a company incurs is the health care cost, absenteeism, and turnover rate of employees. With an aging workforce, companies have found that these costs are much greater. Some companies have identified a single benefit that has helped in addressing all three areas and not just for the aging workforce. HR’s success in managing a wellness program has proven to lower health care cost for the employee as well as the employer. The wellness program has proven to lower absenteeism as well as
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