Compensation and Benefits
Benefits and compensation refer to non-monetary and monetary remunerations that are enjoyed by employees. Those aspects are important in keeping workers motivated. It is the responsibility of the human resource department to uphold the benefits and compensation structure of an organization. However, it is also important for department managers and supervisors to acknowledge that compensation and benefits influence the performance of workers (Fallon, Jr. & McConnell, 2014). More so, it is worth noting that some benefits are statutory obligation while others are not.
Some of the compensation and benefits offered to employees in the U.S. include medical benefits, disability, and education among others. Unemployment and workers compensation are statutory requirements. Notably, unemployment compensation entails wages that are lost during unemployment periods, which are beyond the control of an employee. They cover employees who are laid off through an organization’s resolution. On the other hand, disability compensation is not a legal requirement. It is categorized as a long-term or a short-term disability where the premium is linked to usage. Flexible benefits, also known as, “cafeteria plans,” are common types of compensation, which offer employees an option to have control over their benefits. The most preferred flexible benefits include health insurance, paid vacation, and pension plan (Fallon, Jr. & McConnell, 2014). Many employees consider these benefits as their benchmark during the hiring process.
Fortune Best Companies to Work For
The selection of 100 best companies involved employees’ survey in America. For instance, 66.7% of the score was based on the Trust Index Survey of the institution, which is collected randomly from employees of a company. The survey asked questions related to the attitudes of the employees on job satisfaction, camaraderie, and management credibility. The remaining 33.3% was based on responses from the company to Institute’s Culture Audit that involved questions on benefits and pay programs as well as open questions on diversity, communication, and hiring (Southern Ohio Medical Center, 2017). The percentages gave a comparison of the top companies to work for.
Provision of Compensation and Benefits by Top 100 Companies
Southern Ohio Medical Center
The not-for-profit health facility offers surgical and emergency care facilities in Northern Kentucky and Southern Ohio. The medical center has 2900 full term employees and 266 specialists and physicians approved by the board and 434 regular volunteers who support the center (Southern Ohio Medical Center, 2017). Southern Ohio Medical Center (SOMC) has been named in the list of Fortune 100 best companies to work for, for three years now (Southern Ohio Medical Center, 2017). The vital consideration in the list was the hiring process and the methods of assisting employees in handling the recession.
The vice president of Human Resources and Organizational Development of SOMC highlighted that they ensured patients and employees were primarily involved in decision-making. He pointed out that staff was involved actively in the health facility, which assisted in enhancing the strong workforce at a time when organizations are freezing hiring and retirement programs and having salary reductions due to recession (Southern Ohio Medical Center, 2017). Hence, this has ensured that they remained a top finalist in the competition.
The employee benefits offered by SOMC differ in terms of employment status, cost, and coverage selected. They include “medical, dental and vision coverage, retirement program, financial program, which involves disability, life insurance, emergency funds, education assistance, and adoption reimbursement among other aspects” (Southern Ohio Medical Center, 2017).
The Hilton Holdings
Hilton is a multinational hospitality establishment franchise that manages a portfolio of resorts and hotels. Hilton topped in Fortune 100 best companies to work for in 2019. The firm was recognized for inclusion and diversity and offering programs for completion of GED Program to its employees. The establishment was selected for emphasizing on trust, values, innovation, leadership effectiveness, and financial growth (Hilton, 2019). These are important aspects of maximizing employees’ full potential.
Hilton involves employees in decision-making by frequently collecting members’ feedback form and suggestions on how to make them more comfortable. Some of the benefits offered by Hilton include parental leave, which includes adoption assistance as well as paid family and medical leave (Hilton, 2019).
Commonalities within the Two Companies
The common features between the two companies are that they involve their employees in the decision-making process in regards to compensation and benefits. The two establishments held their employees in high esteem and offered support during the recession. Some of the common benefits offered by the two firms are generous paid medical and parental leave, which includes adoption assistance as well as education assistance benefits.
Importance of Provision of Compensation and Benefits in Healthcare Organizations
When employers create a compensation structure, they consider the need to re-evaluate over-time based on upcoming business needs, inflation, employee development, succession planning, and employment trends. Usually, employees look for organizations that offer development and promotion opportunities, and a work environment that appreciates them as human capital. Hence, this shows that benefits and compensation are significant factors when deciding about seeking employment elsewhere or remaining in an organization. Therefore, for employers to achieve a positive effect of compensation and benefits on employee retention, they need to create a plan for employee development, which promises workers opportunities to track their careers within the company. An upward track promise should correspond with merit and salary increases. More so, bonuses, profit sharing, stock options, and spot rewards could be used (Matthew, 2017). Application of these concepts will promote the retention and motivation of employees in healthcare organizations.
References
Fallon, Jr., L.F., & McConnell, C.R. (2014). Human resource management in health care: Principles and practice (2nd ed.). Burlington, MA: Jones and Bartlett.
Hilton. (2019). Welcome to Hilton. Retrieved from https://www.hilton.com/en/corporate/
Matthew. R. (2017). How does compensation affect employee retention? Retrieved from https://bizfluent.com/info-7924255-compensation-affect-employee-retention.html
Southern Ohio Medical Center. (2017). Best place to work. Retrieved from https://www.somc.org/employee/employment/best/
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