Employee Benefits

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Making employees happy is vital since it makes employees work better and satisfied working for the company. In this regard, it fulfills HRM goals as it lowers turnover rates and employee complaints. Companies ensuring their employees receive the required benefits leads to employees’ contentment but failure to do so results into dissatisfaction and quitting of duties. In addition, morals should be very good in the company to make the employees happy; mistreating employees makes them shun work. HRMs biggest goal is to keep employees smiling and if employees are happy, even the management is happy and the company therefore runs efficiently. This ensures employees conduct their duties effectively and want to stay in the company.

The sole merit of issuing attractive benefits to employees is that it helps lower turnover rates while helping the firm recruit highly skilled workers at a competitive rate as opposed to other companies. In this regard, proving employees with attractive benefits is essential in retaining skilled and disciplined workers (DeCenzo, 2009). In addition, companies with low turnover make it possible for employees to build their career as proved by Genentech and Zappos.

However, a fat paycheck does not guarantee that skilled workers remain loyal to the firm thus, additional packages for workers is recommended. As an example, Hewitt Associates is a company managing benefits for large corporations; Hewitt initiated a free lunch program for all employees with the firm’s main canteen offering free lunch and breakfast daily. This was a marvelous method that ensured the company’s employees remained happy and Hewitt was able to recruit new skilled workers. With Hewitt’s stoppage of this benefit, employees gradually left the firm offering higher incentives and Hewitt’s reputation crumbled.

Genentech and Zappos

Genentech and Zappos are aware that respecting employees is necessary to ensure their business success. The companies understand their employees a factor which creates a happy work environment beneficial for both the companies and employees.

In Genentech, employees are issued with numerous benefits including unlimited sick leave, concierge service, and child care, among others. The provision of these benefits ensures employees are not affected by cumbersome financial requirements thus, giving them peace of mind helping them avoid unnecessary tensions that may affect them (Ulrich, 1996). On the other hand, Zappos provides unique benefits such as pajama parties, nap rooms, regular occurring happy hours, and a life coach. The provision of these entertaining benefits ensures employees remain loyal to these firms with minimal resignation as well as defections. Hewitt Associates breakfast and lunch benefits kept employees happy but unluckily, it went awry.

Both Genentech and Zappos integrate fun in daily business operations thus motivating employees with high retention rate. These firms highly appreciate their employees due to their loyalty and hard work and the strong company culture valuing impartiality and communication, between the firm and employees. Genentech’s prosperity culminates back to respect for employees as well as rewards issued to them. In addition to traditional benefits, Genentech provides employees with personal concierge service, flexible work scheduling, childcare, nursing mother’s rooms, onsite nurses, adoption assistance, and company sponsored family events. Besides, additional benefits include pet insurance, free snacks, and every six years. In line with this, Zappos, online shoe retailer, takes life a little less seriously than Genentech with perks to match their fun-loving culture like pajama parties, nap rooms, regular happy hours, and a .

Adoption of Genentech’s and Zappos’ Incentives

In my opinion, initiatives offered by both Genentech and Zappos can possibly work for other companies. According to a recent show on the travel channel, there are several organizations from around the world which are willing to everything to ensure their employees’ happiness. These firms are aware that the happier the employees, the harder are able to work in ensuring organizational prosperity. However, the major challenge realized by these firms is laxity of some employees taking advantage of the benefits and in return make no impact on the company’s productivity.

In the corporate world, businesses are not compelled to provide several benefits but for business success, it is essential in helping companies remain competitive and retain employees. Therefore, HRM should be the driving force in building employees’ loyalty, retaining employees as well as attracting budding candidates (Conaty & Ram, 2011). In line with this, using benefits as a strategic component improves workers efficiency, morale, and productivity. Companies who fail to meet employees’ requirements lose employees to competitive firms thus affecting business activities in the long-term period.

In addition to reducing turnover rates, companies should initiate best industry safety records. The HRM should understand factors likely to motivate and retain prospective employees. However, most employees are not motivated by mere 5-figure paychecks alone, but other innovative privileges such as tuition reimbursement, child care and sponsored family events among others. Thus, using benefits as a human resource strategic component helps improve employee motivation, strong relations between management and employees and with clients. Ultimately, the clients become aware of the organization’s practices thus becoming attracted to the organization.


Conaty, B., & Ram, C. (2011). The Talent Masters: Why Smart Leaders put People before Numbers. Crown Publishing Group.

DeCenzo, D.A. (2009). Fundamentals of Human Resource Management, 10th Edition. New York: John Wiley & Sons, Inc.

Ulrich, D. (1996). Human Resource Champions: The next Agenda for adding Value and Delivering Results. Boston, Massachusetts: Harvard Business School Press.