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  • Essay / The Importance of Employee Compensation - 1727

    According to Soergel (1), paying employees while on leave is a difficult issue because employers find it unfair to grant financial benefits to workers even when they do not are not. rendering their services. Employee leave is a crucial issue for organizations, especially now that the law requires them to provide sick leave not only to mothers but also to fathers. As more employees opt for jobs that offer paid sick and maternity/paternity leave, the question that deserves careful attention is whether labor laws and proposed policy reforms can adequately address to employee expectations. Compared to salary increases, employees have a strong preference for paid leave. This, then, is another dynamic in the labor management industry that qualifies the observation that non-salary benefits are critical factors dictating worker motivation and retention. Nevertheless, the bitter truth that employers must bear is that none of the workers demonstrate the willingness to see a reduction in salary even with the increase of other benefits besides salary (Soergel 1). Cohen (para. 1-5) found that companies, particularly those operating as private entities, have made significant progress in rewarding their executives. Recent trends in the field of human resource management show that the practice of rewarding workers trickles down to senior management to reward the work and performance of employees at all job levels. The reason for these large-scale reward programs is the inculcation of a performance culture which leads to improved organizational performance (Cohen para..