Improving Employee Performance with Benifits

Do benefits impact performance? 

The main point of benefits is “to improve the quality of the work lives and personal lives of employees” (Belcourt, Singh, Bohlander, & Snell, 2014, p. 390). Benefits such as paid vacation, medical, dental, sick leave, etc. all play a part in contributing to people’s lives. These, of course, are the basics which allow employees to know how these types of expenses will be covered, this alone can remove a great deal of stress as items such as medical, prescriptions, dental are expenses often unexpected, especially medical if living in a country without universal healthcare. With so many companies looking for ways to cut expenses, benefits are often an easy target, and if the employees feel the benefits could be cut, or even linked to performance, this could push them to put in more effort on the job.

In an unionized environment, benefits often put everyone on an even playing field regardless of benefits. However, in an un-unionized workplace, benefits such as pay increases and time off are items which could be offered for performance, which would help definitely help drive employees to work harder.

In a survey showing “lifestyle/family care benefits impact employee performance” (Filangieri, 2015), one of the questions ask how family-related benefits affected performance, “35% think a lack of benefits related to family assistance has negatively impacted their work performance. This rises to 41% of those with children.” (Filangieri, 2015). The survey also lists the top benefits which would help improve performance, these five are;

·       Backup child care

·       Discounted care/reimbursement for care

·       Help hiring a housekeeper

·       Help finding reliable child care

·       Long-term or tailored senior-care planning

Why are companies moving away from defined benefit plans?

As mentioned above, benefits are an easy target when companies need to make cut backs. Benefits are becoming more expensive, whether its time off, childcare, medical, etc. and paying for the same benefits clear across the board for all employees regardless if they are used can not only cost but do very little to improve performance. By allowing employees to pick and choose their own benefits can be a win/win for everyone. The employee gets what they need and/or would use while the employer receives a reduction in the cost of insurance, as well as increased performance as the employee in receive the benefits catered to them.

References

Belcourt, M., Singh, P., Bohlander, G., and Snell, S. (2014). Managing Human Resources. Toronto, ON, Nelson education.

Filangieri, R. (2015, September 22). Survey shows lifestyle/family care benefits impact employee performance. Retrieved from BCG Advisors: http://www.bcgadvisors.com/survey-shows-lifestylefamily-care-benefits-impact-employee-performance/