Introduction
Employee benefits are a significant aspect of a comprehensive compensation package offered to employees by healthcare organizations. The benefits are aimed and designated at providing financial and non-financial cushions and rewards to employees for their performances at the workplace. In addition, basic salary compensation, such as paid time off, plays a substantial role in motivating employees and other healthcare providers to provide desirable outcomes to patients. The healthcare compensation benefits include retirement plans, paid time off, health insurance plans, life insurance plans, paid family leaves, and other vision plans. Employee benefits are also aimed at attracting potential applicants, reducing turnover, enhancing employee satisfaction, and maintaining work competition in the existing markets. This essay, therefore, aimed at providing a broad definition of employee benefits, their impacts on healthcare organizations on recruitment and retention of healthcare personnel and employees, analyzing the challenges associated with designating and implementing benefits packages, and recommending the types of benefits necessary to ensure San Jose County Hospital offers employee benefits.
Employee Benefits
Employee benefits are a form of comprehensive compensation that employees are given in addition to their wages or basic salary. These benefits are provided to employees to enhance their financial security and motivate them to work harder to achieve better healthcare outcomes and work towards the goals and missions of the organization. Employee benefits are often provided in the form of comprehensive packages, including salaries, incentives, and perks to attract potential interested individuals and retain employees (Werner & Balkin, 2021). The types of employee benefits also vary by individuals’ contributions, ranks, size of the industries, and financial capabilities of the company. The majority of companies and employers in the United States offer employee benefits to their employees, including annual enrollment, yearly selection, holidays, and vacations. The effects play a substantial role in ensuring the loyalty of workers at all stages of their careers.
Impacts of Employee Benefits on Recruitment and Retention Efforts
Employee benefits play a substantial role in attracting and retaining skilled personnel in the healthcare organization and its environs. In the fast-growing technological job markets, employee benefits have become a significant factor in the decision-making of employees and aspiring candidates considering employment opportunities. Employees, in this case, are more likely to choose an organization that offers comprehensive employee benefits and will ensure that they are well cared for. Potential applicants are more likely to consider employee benefits such as healthcare benefits, retirement plans, work and life balance initiatives, healthcare insurance coverage, paid family leaves, and life insurance plans. Furthermore, employees are interested in companies where employees share insurance premiums with their employers for the safety and security of their health. Employers are, therefore, figuring out effective ways of attracting potential employees to work and stay in their respective companies by providing health insurance coverage (Rodríguez-Sánchez et al., 2021). Offering health insurance draws the attention of employees because unions support the system and the benefits are not subjected to mandatory income tax or social security taxes. This enhances their recruitment of top talented staff in their companies and healthcare organizations.
Furthermore, employee benefits also play a substantial role in retaining staff in the company. In the contemporary healthcare industry, there is stiff competition for skilled workers, which has made it a difficult and crucial challenge for managers (Rodríguez-Sánchez et al., 2021). Managers, therefore, use employee benefits to increase employee engagement and loyalty, which increases the turnover rates. Employee benefits make employees in the organizations feel welcomed and valued, which is more likely to retain and attract more individuals to work in the healthcare environment.
Challenges Associated with Designing and Implementing Incentive Programs
Although employee benefits are significant aspects of a thriving healthcare organization, there are various challenges associated with designing and implementing these employee benefits which has become a challenge to managers and organization owners. First managers need to consider the balance between financial constraints and expectations of the companies and standards. The situation has been challenging for companies that operate within a fixed budget and limited financial resources. The healthcare environment is constantly evolving, which implies that there is an ever-changing legal and regulatory environment, which makes it challenging to implement the potential employee benefits for potential employees. There are numerous federal and state guidelines put in place by the government, which also makes it difficult for employees in healthcare organizations to implement employee benefits for their companies. Therefore, employee benefits require thorough research and data analysis before their implementation to ensure they meet the organizational goals and needs of employees in the healthcare environment (Fainman & Kucukyazici, 2020). The cost of healthcare is escalating in the United States which places a substantial burden on both employers and employees. Balancing the need to provide comprehensive coverage for employees has, therefore, become a significant challenge for owners and managers of healthcare organizations. It is, therefore, important for San Jose County Hospital to develop cost-effective strategies that maximize the benefits associated while also controlling the expenses. However, this technique needs technological and data management skills that may not be available.
There are various types of employee benefits in the United States
Healthcare benefits
Healthcare benefits are essential needs for employees because they act as cushions by providing quality healthcare to employees and family members at an affordable cost. Employees usually share the majority of healthcare costs with their employers while they contribute little amounts of money compared to their employers. They contribute to healthcare benefits through minimal premiums and deductibles. The abilities of the employers and the needs of employees in the organization determine the amount of healthcare coverage and plan options. The types of healthcare benefits offered to employees include health maintenance organizations HMOs, preferred provider organizations PPOs, and point-of-service POS plans (Amani et al., 2023).
Retirement Plans
Retirement plans are designed to help employees save for their future and provide them with the financial security needed in case of difficulties in their future. Employers contribute certain amounts and percentages of their salaries to the retirement plan and the amount is highly determined by the abilities of the employers to contribute. Retirement plans can also include childcare benefits whereby the company takes care of the on-site daycare needs for children with working parents to strike a balance between work and personal life (Tipirneni et al., 2020). Retirement plans may also include employee assistance programs whereby the company provides support for personal and professional issues of employees, such as counseling, legal counsel, and financial planning, upon retirement.
Paid time-offs and Flexible Working Arrangements
Paid Time Off PTO refers to the time from work that employees receive and are compensated for working while still considering their employment needs and rights. PTO is important because it enables employees to rest and recharge. PTO is based on the salary employees are entitled to, the length of their services in the organizations, and their positions. In the fast-growing technological and working industry, flexible work arrangements are becoming popular (Glowacka, 2021). Flexible work arrangement includes compressed workweeks, job sharing, and telecommuting. These are essential in ensuring employees’ needs are taken care of.
Significance of Cost-Benefit Analysis in Human Resource Management
Cost-benefit analysis is a significant aspect and tool of management in the Human Resource sector. It assists in decision-making regarding recruitment and retention of skilled personnel. Cost-benefit analysis involves analyzing the cost and benefits of particular actions to determine the financial repercussions and abilities of the company. In most organizations, cost-benefit analysis is done by allowing managers to evaluate the costs associated with various benefits offered and the potential financial impact they may have on the organizations. Cost-benefit analysis is essential in assisting managers make informed decisions regarding their financial abilities.
Influence of Financial Issues on HR Policies
Financial issues such as employee benefits play a substantial role in shaping human resource policies and decision-making procedures in healthcare environments and organizations. The affordability and capability of organizations to offer employee benefits to attract and retain skilled labor is determined by their financial positions and abilities. For instance, limited financial resources limit competitive benefits packages, which makes it difficult for healthcare organizations to attract and retain skilled personnel. Healthcare organizations ought to strike a balance between offering attractive benefits and maintaining financial sustainability.
Recommendations for San Jose County Hospital
Based on the analysis presented and the challenges facing San Jose Hospital, the organization needs to offer the following benefits to its employees.
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Comprehensive healthcare Benefits
Managing employee benefits is a multifaceted process that needs a deep understanding of the workforce needs, regulations from both state and federal government, and effective communication and understanding between employees and employers. To attract and retain staff, the hospital should provide a range of healthcare plans and options with generous coverage for employees. This will be essential in motivating employees and working towards the company’s goals and objectives (Amani et al., 2023).
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Retirement Plans
Retirement plans are essential in ensuring the financial security of employees. To cater to the financial security of employees, hospitals and healthcare organizations should offer a retirement plan such as a 401(k) plan and contribute significantly to employees. Therefore San Jose Hospital should consider retirement plans to motivate their employees.
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Education Assistance
Managers at San Jose Hospital should also provide education and training assistance such as tuition and reimbursement, student loans, and repayment programs to motivate them and boost employees’ knowledge and skills to work towards achieving better healthcare outcomes. This is essential for employees to strike a balance between work and family obligations.
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Life Insurance
Life insurance is a contract between insurers in exchange for premiums and guarantees payment to the beneficiaries of the insured in case the insured dies. Life insurance may include whole life insurance, universal life insurance, and variable life. Life insurance will benefit the insured’s family financially. It is, therefore, significant for San Jose County Hospital to consider life insurance.
Conclusion
Employee benefits are important components of a comprehensive compensation package that should be taken into significant consideration. Employee benefits play a role in attracting and retaining skilled personnel in healthcare organizations in the fast-growing technological and competitive business world. The process of designing and implementing employee benefits has, however, been considered to be challenging because employers need to strike a balance between financial capabilities and employee demands. It is, therefore, important for San Jose Hospital to offer attractive, sustainable employee benefits to attract a skilled workforce and improve turnover rates.
References
Amani, P. J., Sebastian, M. S., Hurtig, A. K., Kiwara, A. D., & Goicolea, I. (2023). Healthcare workers´ experiences and perceptions of the provision of health insurance benefits to the elderly in rural Tanzania: an explorative qualitative study. BMC Public Health, 23(1), 1-9. https://doi.org/10.1186/s12889-023-15297-4
Fainman, E. Z., & Kucukyazici, B. (2020). Design of financial incentives and payment schemes in healthcare systems: A review. Socio-Economic Planning Sciences, 72, 100901. https://doi.org/10.1016/j.seps.2020.100901
Glowacka, M. (2021). A little less autonomy? The future of working time flexibility and its limits. European Labour Law Journal, 12(2), 113-133. https://doi.org/10.1177/2031952520922246
Rodríguez-Sánchez, J. L., González-Torres, T., Montero-Navarro, A., & Gallego-Losada, R. (2020). Investing time and resources for work–life balance: The effect on talent retention. International journal of environmental research and public health, 17(6), 1920. https://doi.org/10.3390/ijerph17061920
Tipirneni, R., Solway, E., Malani, P., Luster, J., Kullgren, J. T., Kirch, M., … & Scherer, A. M. (2020). Health insurance affordability concerns and health care avoidance among US adults approaching retirement. JAMA network open, 3(2), e1920647-e1920647.
Werner, S., & Balkin, D. B. (2021). Strategic benefits: How employee benefits can create a sustainable competitive edge. The Journal of Total Rewards, 30(1), 8-22.
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