There are several strategies so that as an employer you can keep your employees satisfied and ensure their permanence in it. This article will show you what a workers’ compensation system is , what it can offer, and the rewarding benefits they bring.
What is the workers compensation system?
The compensation system is a structure that allows evaluating the benefit that a worker can receive directly or indirectly from the business organization. In general, there are benefits for being an employee and others that correspond to some compensation for other services.
The detailed information that can be collected through this system facilitates safeguarding the competent human resources of the body. Of course , the work commitment of the employees is taken into account, a comparison is made between those who perform the same work and their income. This equity allows no inconvenience to arise at the time of remuneration, instead it generates motivation for employees and encourages job performance.
Types of workers’ compensation
In an organization, workers’ compensation is established to encourage workers and provide them with a work environment that motivates them to achieve their tasks. Among which we find the direct and indirect compensations that are an integral part of the system and its objectives such as those mentioned below.
These are the compensations to which the worker gives more focus since they are of an economic nature and are directly included in the contract.
Monetary benefits: These go according to the position held and in recognition of the effort expected of it.
- The basic salary.
- Vacation payment.
- Social benefits.
- Overtime payments .
- Food vouchers.
- Travel expenses.
Bonuses: Excellent incentives that increase employee productivity. These bonuses are directed to certain purposes, be it for time, production or for the special contribution.
- Non-economic incentives: These incentives allow to provide additional security, at the same time that the needs or requirements of the worker within the company are met.
- Social Security.
- Health insurance
- Life insurance .
- Training: Provides the training that makes it possible for the worker to enhance their skills and knowledge that can contribute to the company.
- Recreational : In order to give social protection and encouragement to the worker, opportunities for family recreation, vacations and similar activities are proposed. However, each agency will establish the types of recreational benefits depending on the availability of its resources and anticipated objectives.
Benefits of compensation
The purpose of compensation is to improve performance results, not only for the worker but also for the company. Work experience is expected to be rewarding for both parties, needs and work goals are taken into account .
Benefits for the company
- Better productivity.
- Good work interaction.
- Conserve human resources.
- Specific objectives are achieved.
- Stimulates employee engagement
Benefit for the worker
- Satisfactory work environment.
- Personal and work development.
- Economic support for the worker and the family.
- Social Security.
In order for the company to determine what compensation to offer, it must ascertain the needs that its employees may have or have. It will be determined through suitable conversions, dialogues or requests, which help to improve the management of the company.
- Provide an outline that shows the benefits.
- Indicate in a fair way the indicators that are expected individually or generally.
- Develop a participation and inclusion scheme.
- Provide additional incentives for results.
After all, it is essential that communication is always open between employee and employer so that work strategies can be applied. Always having the means of labor projection and making it easy to acquire them continuously will bring great advantages in human resource management costs