1. Describe the importance of employee benefits as a strategic component of fulfilling the goals of HRM.
Though many benefits are not legally required, it is vital for companies to keep up with competition and retain employees. HRM, must act as the driving force behind in building willingness in employees, employee retention and by attracting potential candidates. Using benefits as a strategic component helps enhance the effectiveness, morale, productivity and achievement of goals. The internet helps enable employees to research companies before taking a job. Companies can lose employees to competition as a result of not providing desired benefits and may not look good for business in the long run. In addition to reducing turnover rate companies need to set a best industry safety record. HRM needs to understand what motivates the market of targeted employees. Most are not motivated by just a paycheck, but the perquisites like tuition reimbursement, child care and sponsored family events. (Wiley)
Using benefits as a strategic component not only builds motivation, but also helps build stronger relationships between management and employees and the clients. Eventually clients will somehow pick up on these relationships in an event they would have a tour of the company, through word-of mouth and eventually, blogs on the internet. http://www2.enap.gov.br/mesa_redonda/downloads/daley_vasu.mpsa02_PPM.pdf 2. Explain how Genentech and Zappos are using employee benefits as a motivating tool. Genentech and Zappos understand that respect for their employees is vital to their well being. In turn this only benefits the company’s well being and business because a happy employee is a happy person who then helps create a happy atmosphere. Genentech and Zappos use some additional benefits like child care, nap rooms and full-time life coaches. They tend to combine these with a ‘fun-loving culture”. In so doing, this motivates employees with high retention rate. This is...
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