Employee compensation is an approach used to provide monetary or non-monetary benefits in exchange for the work they perform. Compensation is a tool that can be used for multiple purposes that help managers and organizations to achieve various goals such as employee recruitment, and to enhance employee’s performance in organizations. Employee compensation is a tool used by organizations and governments in the management of the human resources for a variety of purposes that help companies to compete in their respective industries (Milkovich, Newman, & Gerhart, 2017). Therefore, the recruitment and retention of workers is a mutual goal shared by all employers.
The affordable care act which is effected through the commercial insurance companies is a plan where an employee can choose any healthcare provider to cater for their needs. However, there are more options for employees such as the Health Maintenance Organization which provide for a group of providers such as doctors and hospitals, and the Preferred Provider Organizations. Consequently, the employers have to select specific acre providers who will agree to submit to strict utilization controls and provide price discounts (Hanapiyah et al. 2017). Sugiharto, (2017) notes that to curb employee turnover, it is important for employers to increase salary levels. However, employees should also consider non-monetary compensation in the form of intangible benefits such as an opportunity for growth, social rewards, recognition, and task enjoyment, among others.
Ultimately, all types of compensation are essential for an organization and to the employers (Milkovich, Newman, & Gerhart, 2017). Successful employers understand that retaining quality workers requires the right compensation and benefits packages. Therefore, employers should not ignore compensating their employees adequately because the benefits boost employment contracts when employers prioritize most of their employee’s needs.
References
Hanapiyah, Z. M., Daud, S., Abdullah, W. M. T. W., & Zainol, Z. (2017). Human Governance and Employee Compensation: A Conceptual Framework. Advanced Science Letters, 23(9), 8718-8722.
Milkovich, G. T., Newman, J. M., & Gerhart, B. (2017). Compensation (12th ed.). New York: McGraw-Hill/Irwin I work for in the Casino/Entertainment Industry.
Sugiharto, T. (2017). Effect of Compensation and Working Environment Motivation And Job Satisfaction In Order To Increase Employee Performance At the Department of Cooperative Micro Small Medium Enterprises (SMEs) And Industry In Ngawi. eAbstract Excellent, 3(1).