The Importance of Employee Benefits

LaTasha Mitchell

April 13, 2008

Professor Lawrence

Mgmt410

Week 6 case study

1) The importance of employee benefits being used as a strategic component of fulfilling the goals of HRM because it can help prevent high turn over rates. When a company has a good benefits package available to offer employees, it allows the employees something else to look forward to outside of their paychecks. Using benefits, also show employees a since of appreciation because it goes to show how much a company is willing to invest in their employees. For instance if a company doesn’t offer an attractive benefits package but the pay is good, more than likely the employee will start to seek other place of employee just based on the benefits alone. Although you may have a good salary, it’s doesn’t mean anything when you have to come out of out of pocket expenses for medical and dental coverage, which can be expensive. For instance, the company I work for offers a very competitive benefits package from health coverage to tuition assistance to back up daycare. I have never worked for a company, that is willing to pay your tuition up front, outside of tuition reimbursement, which I think is great. That reason alone, I’ve decided to hang in there with the company because I have an excellent benefits package to where I have health coverage and a savings plan that is growing everyday and I have my school tuition paid for by the company. So, I think employee benefits being used as a strategic component of HRM is very important, it says a lot about the company.

2) Motek is using employee benefits as a motivating tool to enable its employees something else to look forward to outside of their paychecks. Motek is showing their employees how much they appreciate them by offering their employees incentives that you normally don’t find in companies. They are showing their employees that because of the hard work you do everyday, thank you for making the company successful. To be brought lunch everyday from an outside restaurant,