Rewards System VS. Benefits System
When a company hires people, interviewers consider about the capabilities, behaviours and personalities of the interviewees, so that they can see whether or not the interviewees are able to take over the position and fit in the organizational culture of the company. Meanwhile, the salary and benefits of the job are two main aspects considered by interviewees all the time.
Here, my topic arises and transforms to a question: Is it worth it to provide such costly benefits to employees?
Negative sides of benefits system
The benefits system, giving everyone compensation, they would eventually take it for granted, even worse, it might lead them eventually to lose creativity, motivation and incentive in working time.
Positive sides of rewards system
Although rewards system itself is problematic, companies can use it as a tool to achieve their goals more efficiently either in a short run or long run.
Saving money could make the company stay survival for a longer period
Remarkably, the only reason why an enterprise enters market is that it wants to make profit. So, it is noteworthy that a company can save a certain amount of money from reducing employees’ benefits, and put it in other right positions, such as investing, advertising or rewarding.
Competition makes employees raise the bars and make improvement constantly
By using the saving money to provide more positions is not only beneficial to the company and society, but also this action gives competition and invisible pressure to existing employees. Then, rewarding the employees who are outstanding and contributing to the company the most. Consequentially, a lower turn-over rate and more loyal employees will appear.
Images:
http://www.businessnewsdaily.com/images/i/000/000/191/i02/rewarding-employees-101116-02.jpg?13234716488
http://matrixworldhr.files.wordpress.com/2012/03/dollars-in-medicine-bottle.jpg
http://www.flexraid.com/2013/10/04/table-comparison-of-transparent-raid-vs-raid-over-file-system/
http://eicherengineeringglobal.com/industrial-design-styling-software/attachment/competitive-process/