Employees are the real strength of any organization. A satisfied and happy team of employees yields phenomenal results and leads an organization to success. Employee benefits play a crucial role in motivating employees to deliver outstanding performance.
The HR department too plays a significant role in ensuring employee satisfaction. The role of the typical HR executive has slowly evolved, and now, along with recruitment, training, and termination, it also includes managing employee compensation and benefits. It’s imperative to understand the common human resource issues in the workplace to accomplish organizational objectives.
Top human resource Issues in the Workplace
- Employee Retention
- Employee Engagement
- Employee Benefits Administration
- Productivity of Employees
Understanding employee benefits and managing employee benefits administration are among the current burning issues in human resource management. When an employer offers employee benefits in the form of medical insurance, life insurance, retirement plans, stock options, etc., it creates a sense of ownership and belonging among the employees. Employees are encouraged to improve their productivity leading to the organization’s growth.
Challenges and human resource Issues With Employee Benefits
Staying Abreast of the Trends
Organizations must stay updated about the changing legislation regarding employee compensation and benefits. HR professionals should have in-depth knowledge about the rules and regulations and policy guidelines regarding employee benefits.
To overcome these HR challenges, the HR department must acquire the required knowledge and stay abreast of the latest developments and changes in human resources.
The HR department may subscribe to industry publications to stay ahead of the competitors and know about the ever-changing laws. They can also hire a broker who collects and provides them strategic know-how about the guidelines.
Cost of Employee Benefits
Increasing costs of employee benefits is one of the critical challenges of the benefits package. According to SHRM, employers’ health costs could rise by 6% in 2021. It has become a matter of concern for the organization to manage these mounting costs of employee benefits. It is essential to ensure that the benefits from the employee benefits should outweigh the costs to impact the business organization positively.
The HR department could carry out a cost-benefit analysis while implementing the employee benefits. The cost drivers should be identified to bring in improved cost transparency.
Employees Don’t Understand Employee Benefits
Another major challenge in compensation and benefits is that the employees do not understand the employee benefits packages. With the plethora of packages and employee benefits being given to choose from, the employees find it challenging to make the right choice.
It is the responsibility of the human resource department to educate their employees about the various employee benefits packages so that they can pick the right insurance option. They should simplify the complex nature of employee benefits and make it easy to understand their advantages and disadvantages.
The human resource department is responsible for designing such an all-encompassing employee benefits strategy that meets the various requirements of different employees.
It is an arduous task for the HR department to have an employee benefits package that appeals to different demographics. While some place importance on health, life, and medical plans, some desire a vacation policy and flexible working hours, whereas others want stock options.
The HR department should speak to the employees and understand their requirements and priorities. They should offer a package that meets their expectations and serves their varied needs and interests. They should assess the current employee benefits package and make the necessary changes to make it suitable for a multi-generational workforce.
Employee Benefits and Employee Retention
One of the significant human resources issues in the workplace is employee retention and employee benefits.
Employers must understand that there is a strong direct relationship between employee benefits and employee retention.
It has been seen that in organizations where attractive employee benefits are given to the employees, the workforce is highly motivated and does not switch companies. A satisfied workforce is the key to attain high rates of employee retention.
It is a matter of concern for the HR department that job satisfaction has decreased at an alarming rate in the past years. A chief reason for such a downward trend is the lack of adequate employee benefits.
A healthcare plan is one such employee benefit that is preferred by most employees and leads to job satisfaction. Companies should try to include healthcare plans as a part of their employee benefits package. Onsurity healthcare plan is the best option to keep your employees happy and productive. Here’s how.
Onsurity provides affordable, accessible and comprehensive healthcare plan for SMEs, startups and growing businesses.
Onsurity’s healthcare membership is packed with all the fringe benefits that your every employee looks forward to having for their health and safety like group health/term life insurance, doctor teleconsultations, fitness webinars, discounted health checkups and medicine orders delivered at doorstep and it would definitely help solve human resource issues in the workplace.
In today’s competitive, volatile and dynamic business environment, organizations must understand HR problems and solutions. HR managers should try to resolve all the human resources issues in the workplace to achieve enhanced employee performance.