New and Improved Rewards at Work

Innovations of Employee Benefits

The succeeding paragraphs will explain how innovations in employee benefits can improve the overall competitive compensation strategy of the organization.

The first way is comply with any changes that go on within businesses. Employees have changeable needs and companies need to make sure that employees keep working with their comprehensive benefits. They must find innovative ways of engaging employees that will encourage, support their commitment, and improve their performance.

The second way is that companies must understand and address the diverse needs of their workforce to service, thrive, and stay competitive. For example, the dramatic increase on women in the workforce, resulting in the rise of the dual focus worker-workers focused on work and family, rather than on work or family and the aging of the workforce are among the most critical factors shaping today’s workplace and affecting the way people live and work (Worldatwork, 2007).

The third way is that innovative benefits become a big issue for employees. During the recruitment process, new employees want to learn about innovative benefits of the company to see if they will manage both their work and personal lives. Lack of these benefits may cause an employee to leave. These benefits impact the way employees feel about their work in a good and bad way, so companies must create innovative benefits for their employees. Otherwise, they can lose their competitive advantage (Worldatwork, 2007).

The forth way is to have more benefits than what an employee thinks is standard. Standard benefits are usually seen as priority and can include pensions, medical, dental, and life insurance. Aside from priority benefits, companies need to add extra enticements. These benefits can include discretionary bonuses, performance related bonuses, profit sharing and gym memberships. Employers who then go the extra mile above standard employee benefits packages may be looking at some extra loyal employees. Innovative employee benefits are not the normal or standard benefits; they can sometimes be seen as unusual but can actually be very worthwhile. Examples of innovative benefits can include flexible working hours for employees, Childcare centers, benefits that include use by members of employee’s family, subsidized housing to employees, and working from home opportunities.

The fifth way is that employee benefits can improve the overall competitive compensation strategy of the organization because it is helpful to attract and retain talented people, raise morale and job satisfaction, increase productivity, increase commitment and engagement, reduce health care cost, combat burnout, and attract investors. It is known by employers that to attract the best employees and to keep them, they need to offer something that the competitors do not. Innovative employee