Financial challenges are the leading form of challenges many businesses, whether small or big, mostly encounter. Companies that have experienced these challenges have ended up disintegrating. We have heard about and witnessed the fall of many businesses, some with remarkable reputations, because of financial crises. For instance, General Motors goes down in history as one of the biggest companies to have fallen partly because of economic problems. Fortunately, after the disgraceful downfall, the US-based company has finally managed to trace its way back into the competitive business world. General Motors is just one of many enterprises that have experienced financial challenges in the past and even presently. And hence since the probability of these challenges occurring is high, there is a need for departments like HR departments always to be ready to provide appealing solutions for such circumstances.
For instance, in a situation where a company is struggling to pay the employees’ wages because of hiking costs in health coverage, an HR manager or department can provide a list of options to help quench the challenge. If I were an HR manager and my organization was experiencing this challenge, the most approachable solution I would provide is compensation to employees. Some of the bonuses I will provide include employee benefits, like health and wellness benefits, vacations, and stock options compensations. These compensations and benefits plans will be helpful because they will help the organization recover some money while retaining employees.
For example, as articulated by Reizer & Mey-Raz (2019), vacations alone provide employees with the opportunity to get refreshed, boosting their well-being. Once an employee’s health status is safe, the organization is exempted from the burden of standing in for that employee’s medical bills, hence reducing healthcare costs. On the other hand, we have the well-being benefit. Although well-being is closely related to vacation, they are differentiated in the sense that well-being is more diversified and specific: it includes special programs designed to boost workers’ healthcare. Under the well-being benefits, I will introduce healthy and less costly programs like simple workouts, especially after long hours of working. Exercises are essential because they help minimize the risk of contracting diseases like obesity while giving the brain time to flex.
Moreover, another compensation I will offer is making stock options available for everyone. Stock options involve promoting employees to the level of being shareholders. When employees become shareholders, they will be more responsible for the affairs of the organization and its goals, enhancing their willingness to stand with the organization in times of financial crises.
In addressing the healthcare cost, the best approach to settle this matter for good is by including wellness programs in the organization. According to Kaspin et al., (2013), wellness programs contribute to improving lives in general. Workers whose organizations have strict wellness programs tend to perform health-wise and in organizational activities. This generally helps in reducing cases of sicknesses among workers, thus in the end, cutting short the cost of healthcare.
The decisions for compensation for the benefit of all borrow so many ideas from the concept of utilitarianism. As defined by Snell et al., (2020), utilitarianism is a principle of ethics that asserts that any action that seeks to satisfy many people is a good action. This principle tends to support the decision for compensation because the compensations aim to ensure everyone is benefited. Also, another concept that supports the decisions is the concept of egoism. It sounds ironic how egoism and utilitarianism can be integrated because, as explained by Snell et al., (2020), egoism differs from the latter since it focuses on individual empowerment. However, although these principles have different perspectives, they can be used in the same situation. For instance, the decision to introduce wellness programs is a decision that will not only help the organization in general but also will provoke individuals to seek personal growth.
Kaspin, Lisa C., Kathleen M. Gorman, and Ross M. Miller. “Systematic review of employer-sponsored wellness strategies and their economic and health-related outcomes.” Population health management 16.1 (2013): 14-21.
Reizer, A., & Mey-Raz, N. (2019). Slowing down vacation fade-out effects. International Journal of Stress Management, 26(3), 213.
Snell, S., Bateman, T., & Konopaske, R. (2020) . M: Management. McGraw-Hill Higher Education.