How Innovations in Employee Benefits Can Improve the Overall Competitive Compensation Strategy of the Organization

Determine how innovations in employee benefits can improve the overall competitive compensation strategy of the organization.

         In order for an organization to recruit and retain top talent, they must be competitive in the job market and provide competitive benefits. Employers have to remain current on the needs of their employees and offer benefits that meet those needs. Employees have changeable needs and the company has to adapt and comply with those changes in order to remain relevant. Employers have to find new and innovative ideas in order to keep employees engaged and encourage and also supports their commitment and improves their performance.

         The workforce is ever changing and becoming more and more diverse. Employers have to offer a benefits package that appeal to the changes in diversity. Diversity is critical for organization’s ability to innovate and adapt in a fast changing environment. Diversity is essential to growth and prosperity of any company. It is so important because diversity breeds innovation. In order for an organization to attract top talent and compete in the job market, they must offer something that their competitors do not. “Sometimes simply receiving a paycheck is not enough of an incentive to keep employees dedicated and focused” (Jenkins, 2015). It’s valuable for an organization to focus on personalized benefits because they are great for motivating and rewarding employees.

        By using interesting perks that are simple and cost effective, businesses will reap a higher return on investment in the areas of employee engagement, recruitment, morale, and retention, as well as improve innovation, productivity, customer loyalty, and revenue. They also reduce health care cost, combat burnout, and attract investors. Many companies have taken to offering more innovative benefit programs to include childcare, telecommuting and working from home options, education benefits, scholarships, referral bonuses, employee moving programs, and adoption assistance. Offering non-traditional benefit options to employees also help to increase job satisfaction and make employees feel as though they are appreciated by the organization because they are catering to their needs.

        Boston Consulting Group pays 100 percent of its employee’s health care premiums. The company believes attracting top talent and maintaining an environment in which employees can rapidly develop have been key to their success and ability to deliver enormous value to clients. SAS Institute employee rewards include subsidized Montessori childcare, unlimited sick days, a free health care center, and intramural sport teams. In doing so, the company believes if employees are treated as if they make a difference, then they will make a difference. S.C. Johnson has access to a concierge service that will perform daily personal chores and task for its employees. They also have childcare available for parent employees as well as paid sabbaticals.  Starbucks now covers 100% of tuition costs for workers to finish their degrees online through Arizona State University. (Lorenzetti, 2014). These companies have been listed in Forbes best companies to work for and job satisfaction amongst employees is impeccable. Benefits that promote a healthy work-life balance are the major objective of innovative benefits programs designed for today’s diverse workforce. Appealing to what the labor market values in their benefits is the most effective way that companies can remain competitive and attract top talent.