By maintaining salary rates and providing them the benefits that an employee should have.
One of the importance of managing an organization is to compensate your employees effectively and achieve employees satisfaction. So, If you are an HR, how are you going to manage the compensation of your employees that will surely satisfy them?
As an HR, compensation for an employee is a must. Give and take relationship takes in. One way of compensating the needs of employees, is to provide their physiological needs as what Abraham Maslow of Hierarchy of needs said.
If you can provide this, satisfactions may be guaranteed. But not only the physiological needs should be compensated but also as the state of well being of an individual. If you respect the dignity of a man or of your employee, then it will bring back to you.
Proper management and good relationship to others plays a vital role in an organization. Tho, it needs also a good leader to do that. Also, as an HR, you need to understand your employee, as what Virginia Henderson's Theory, the 14 Basic needs of a man.
You see also the status or assess your employee, so that you can modify the compensation that will be needed for him/her and that is available in your service, in that way, satisfaction may be guaranteed also.
Financial compensation does not guarantee employees satisfaction. We need to ensure that their hierarchy of needs which was illustrated by Abraham Maslow is well addressed.
We hear many employees who are highly compensated still resign from their post and on the other hand, there are employees who are receiving minimal compensation stayed until their retirement.
If I am a Human Resource Officer, I need to ensure that I address the employees concern not only the material aspect but also the things that are essential for an employee to survive.
Employees satisfaction does not only end with financial compensation. This is well explained by Abraham Maslow in his theory about the Hierarchy of Needs.
We knew that many employees who were highly compensated in their respective companies resigned and there were employees who were receiving minimal financial compensation stayed. If I am a Human Resource Officer, I will make sure that I am not only addressing the material needs of my employees but I will ensure that the essential matters are also taken into consideration by the management. In this way, I am not only addressing their satisfaction but ensuring that their loyalty is with the company.
Also, I need to stand with the commitment and promises I made with my employees so that when the company is in trouble, they will do the same. Human is the most important resource among all the other resources.
There are several ways to ensure employee satisfaction with their compensation. One is to make sure that your salary/wage rates are competitive - meaning, they are in par with the industry rates (much better satisfaction if it's above, although of course cost implications should always be considered). Next, providing rewards for projects completed ahead of schedule or projects delivering returns exceeding expectations, e.g. Actual sales is 20% above the forecast sales during the launch of a certain product entitles the marketing manager and sales force 5% of their monthly pay. Next is very basic but is equally important - providing compensation on time or even better if the provision is ahead of time.
The role HR is usually to provide recommendations to the management as well as implement existing policies and strategies relevant to human resource management.
Having said that, I believe there are two dimensions to achieving employee satisfaction. One is policy and the other is implementation. With regard to the dynamics of human satisfaction, a worker's compensation is only a fraction of it.
As HR Manager, I would recommend the following:
1. Better compensation package vis-a-vis industry average. It will be based on the employees' nature of job, their contribution and actual performance. This means that there will be a basic salary. Add to this are bonuses and allowances depending on the need and performance. It will not just be monetary but other perks like gift checks, employee discounts, etc. I will also recommend that salary be credited to the employees' accounts every week as opposed to monthly or fortnightly. The timing of the salary is very attractive to employees on better managing their living expenses.
In terms of implementation, it is very important to give the compensation consistently and without delay. Delays in crediting of salaries lead to dissatisfaction no matter how High or attractive the compensation.
Lastly, I will propose Staff-enriching trainings like how to better manage finances, how and where to invest, so that employees will also grow and prosper, not just focus on expenses.
Also, I propose an online system wherein employees can track their historical payouts, deductions, contributions, etc. In this way, transparency is achieved.
The primary goal of an employee I believe relies on the compensation or money they are going to receive. You need to compensate what the agreement agreed and give all benefits and rewards if they deserve.
But its not the end HR needs to make sure that the employee stays in the workplace that is good and its relationship to other co-workers. You need to balance everything to retain employees..