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The impact of flexible benefit plans on employee satisfaction essay

February 04, 2017; Accepted: March 03, 2017; Published: Academic staff are the employees of the educational organizations and their job satisfaction promotes teaching and learning.

The Impact of flexible benefit plans on employee satisfaction Essay

Employees will demonstrate pleasurable positive attitudes when they are satisfied with their job 1. Thus, high job satisfaction will increase the productivity of an organization, in turn increasing the overall organizational performance.

Compensation plays an important role in determining an employee's level of job satisfaction. The higher education institutions play a significant role in development of skills, increased economy, therefore, high quality of staff is required.

  1. The predicted result of this study is that employees will value some benefits more than others will. In fact, being fleet of foot is one of the biggest advantages over larger competitors.
  2. Obviously, a person without children will not place as much of a personal or monetary value on childcare or family related benefits so jobs that offer this type of benefit will not be as attractive as jobs offering benefits more focused on the needs of employees without children. Research by Steyn also supports the idea that personality and demographic variables influence what types of benefits employees prefer.
  3. The qualitative method used will be structured interviews each of which will take approximately 10 minutes. Participant selection will be as random as possible given the requirements for the sample.
  4. Finally, research on what type of benefits employees choose seems to indicate that it takes time for employees to accept or come to prefer benefits that are family friendly or health and wellbeing based since companies often introduce these as methods to reduce costs and employees may be resistant to these changes. Surveys are specifically effective in gathering demographic data and data to answer specific questions while interviews can be effective in helping to gather information about attitudes that are more subjective and opinions.

Management at modern-day academic institutions requires special endeavours to acquire and retain highly skilled employees to operate effectively in an extremely competitive environment. Obviously, the level of job satisfaction of these individual employees will impact significantly on performance at these institutions. Compensation is a useful instrument in the hand of the management to contribute to the organisational effectiveness and can the impact of flexible benefit plans on employee satisfaction essay positively on the behaviour and productivity of employees 2.

However, compensation determines the attraction and retention of employees to attain organisation objectives 23. Adeoye and Fields 4 attested that compensation is a major factor in attracting and retaining staff.

To attract, retain and be profitable, organisations need innovative reward systems that satisfy employees. Numerous researchers forecast that talent shortages are going to increase well into the next decade, which will limit the ability of organisations to expand and will jeopardize their chances of survival as global competition becomes more intense 67. Compensation play a vital role in attracting, motivating and retaining talented employees.

According to Ibrahim and Boerhaneoddin 8compensation encourage effective employees to remain in employment for longer periods of time. Additionally, Ibrahim and Boerhaneoddin 8 suggested that generous rewards retain employees and ultimately lead to job satisfactioncommitment and loyalty.

Evidence from previous study seems to suggest that there is positive relationship between compensation and job satisfaction. Several studies have reported a positive relationship between compensation and job 9 - 11. Nawab and Bhatti 13 reported that employee rewards influence job satisfaction in higher education institutions. Nawab and Bhatti 13 also revealed that compensation as part of employee rewards are gaining popularity day by day and higher education institutions should use compensation to satisfy and retain their highly qualified academic staff.

In light of these studies, this study seeks to find the correlation between compensation, benefits and job satisfaction. Research purpose and objectives: There is paucity on research investigating specifically the relationship between compensation, benefits and job satisfaction within the higher education institutions nationally. The main objective of the study was to determine the impact of compensation, benefits on job satisfaction among academic staff in higher education institutions in a South African context.

World at Work Total Rewards model was used in this study and the following study questions were investigated: Pay provided by an employer to its employees for services rendered i. This includes both fixed and variable pay tied to performance levels 14. According to Absar et al. Compensation is important for both employers and employees regarding attracting, retaining and motivating employees.

Ray and Ray 17 regarded compensation as important for employees since it is one of the main reasons people work. Compensation includes claims on goods and services paid to an employee in the form of money or a form that is quickly and easily exchangeable into money at the discretion of the Nel et al.

  • One argument claims that people are likely to prefer different types of benefits based on demographics e;
  • If a specific, benefit does not apply to a participant than they will be instructed to leave it blank.

Compensation or total compensation is "the total of all rewards provided to employees in return for their services" 19. Pay is one of the fundamental components of job satisfaction since it has a powerful effect in determining job satisfaction. The growing needs of people with high living costs force workers seeking higher income that can guarantee their future and life satisfaction. Moreover, if individuals believe they are not compensated well therefore a state of emotional dissatisfaction will be developed.

These emotional discrepancies will grow and accumulate over time thus make employees unhappy and unsatisfied working for the organisation.

Greenberg and Baron 21 indicated that a perceived low salary leads to job dissatisfaction and a major contributor to employee turnover.

How flexible working can benefit you and your employees

However, compensation is the major forecaster of job satisfaction. It is the amount of monetary compensation that is expected by workers in relationship with the services provided to the institutions 24. The study conducted by Noordin and Jusoff 25 and Mustapha 26 reported that salary have a significant effect on lecturers level of job satisfaction which is also aligned with a study by Yang et al. Nawab and Bhatti 13 reported that remuneration has an influence on employee job satisfactiontheir study further revealed that remuneration has a strong significance influence on job satisfaction among academic employees.

Furthermore, the study by Strydom 29 discovered that remuneration plays a major role in job satisfaction and dissatisfaction of faculty members in higher education institutions. Ismail and Abd Razak 30 findings concur that remuneration is considered one of the complex and multidimensional factors of job satisfaction in higher education institutions. However, Sohail and Delin 31.