Compensation to employees
Many employees have become resistant to work far from their offices due to the decreasing benefits. Holiday parties have become non-existent after the global crisis and employees are working full-time. In my opinion; workplace stress will increase and may result in harmful effects upon the employees. Waller (2010, para 11) observed that “… the percentage of respondents who said that their company held a holiday party fell to 81% last year from 87% in 2006, with 15% saying they plan to reduce or eliminate them in the next year.
” Employer health plans have been affected. Retailers in the health plan sector have faced the problem of income. Few firms have the capacity to provide coverage to employees. Many firms have been unable to provide affordable coverage to employees due to the increasing costs. Employers are charging employees more coverage taxes and this is affecting the ability of employees to join benefits schemes. Income levels have reduced for many employees and the ability to join such schemes is becoming more difficult.
Conclusion According to my observation, the economic recession experienced in the last two years has affected many industries. This has caused high rates of unemployment and retrenchment. The worst affected people by retrenchment and layoffs are the children since they depend on the incomes of their parents. Employee benefits have reduced while others have gone forever. Employees no longer obtain workplace benefits due to the reducing profits being made by the organizations.
There are few institutions offering employee benefit schemes after the recession. Compensation to employees should reflect the performance of the companies they are working for. Many executives are awarding themselves huge benefits which are not consistent with the performance of the companies. Executives of many companies receive many benefits and large compensation perks compared to the junior employees.
Hobson, Katherine. “Study: Retailers Likely to Face Big Health Overhaul Challenges. ” Wall street journal, April 27, 2010. Retrieved 2nd May 2010 from; <http://blogs. wsj. com/health/2010/04/27/study-retailers-likely-to-face-big-health-overhaul-challenges/? blog_id=10&post_id=32918> Kallenbach, Craig M. “Unemployment Benefits Aren’t Keeping Us from Work. ” Wall street journal. APRIL 19, 2010. Retrieved 2nd May 2010 from; <http://online. wsj. com/article_email/SB10001424052702303348504575184803562652086-lMyQjAxMTAwMDIwOTEyNDkyWj. html>