What is the impact of compensation and benefits on aemployee performance?
Answer:
I think that most employees respond to increases in pay and benefits with a positive and more productive attitude. I think the inverse is also true. Mainly that most employees will react negatively to a decrease in pay and benefits. The best people are most often drawn to the companies that pay the most and offer the best opportunity for advancement. These statements are all generalities that I feel describe a short term situation. Let me explain.
There are still some people with a very strong work ethic who once they have decided to take a position will do their best regardless of compensation. On the other hand, I have known totally incompetent CEO's who are paid incredibly well. In both of these cases, compensation is irrelevant and character is everything.
Over the long term the effects of compensation and benefits diminish as employees begin to feel a part of the organization. Further erosion takes place in another period where employees feel they are an indispensable part of the organization. And then a final level where some feel they are a superior part of an organization. At his level, people feel the organization owes them a living. In each of these transitions, attitude, performance and production slips. Compensation, at this point, is simply the glue which holds many disgruntled employees in place.
In the final analysis, employee work ethic, loyalty and good character far outweigh the effects of compensation and benefits. Good compensation does not make for good employees. Rather, good employees make good compensation possible!
Youre kidding right? Are you telling me that you cant figure out what the impact of salary and benefits are on employee performance in business?
Wow. If you're over 12, thats hard to believe.
Well, use to be, with higher compensation and benefits you could (and should) expect higher performance from employees. Unfortunately in the last few years this has changed. It seems that more and more people consider higher pay and benefits to be a right, not something earned. The majority of younger folks entering the work force today expect the same type of pay and benefit packages that others have worked for years to achieve. People don't want to start at the bottom and work their way up anymore.
It's like everything else. You tend to get what you pay for. However you can find a bargain and you can get ripped off.
Take a look at WAL-MART vrs HOME DEPOT
At Wal mart-you can't complain
you work in fear of losing your almost minimum wage job w/ no benifits
You have no one to represent you except your immidiate supieror
You know the rest----
Compare that to working for a Co like Home depot of UPS where there is real opportunity for advancement and profit sharing and benies and all that is good
Not to attack wal mart [will no longer be capitalized] but it is a sick symptom of what is happing ing in the US labor market
And they get away with it because they can
What if just 1 walton took 105 of their annual income and distributed it to all the emploees equally as a christmas bonus-do the math
The answers post by the user, for information only, FunQA.com does not guarantee the right.
More Questions and Answers:
More Questions and Answers: