Benefits
Assignment Instructions:
For this journal, select and evaluate one of the following practices:
- Employee pay is low.
- Employee training is limited.
- Employee benefits are minimal; there is little paid time off or sick time available.
- Employees describe the workplace culture as stressful, competitive, or alienating.
- A business does not give back to the local community in any way.
- A business outsources many of its suppliers, even though many local suppliers are
available.
Then evaluate your selected practice by addressing the following rubric criteria:
- General Factors: Describe general factors that may have contributed to an organization
or business implementing this practice.
- Potential Negative Repercussions: Identify potential negative repercussions of the
practice on employees, the local community, or the business or organization.
- Benefits: Explain benefits for employees, the local community, or the business or
organization experience that might occur if a more people-friendly practice were
incorporated.
, Introduction
Employee benefits form a critical component of modern organizational practices,
influencing employee satisfaction, well-being, and retention. When organizations offer
minimal benefits such as little or no paid time off (PTO) or sick leave, they may achieve
short-term financial savings but at significant long-term costs. This journal evaluates the
practice of limiting employee benefits, with a focus on general factors contributing to its
adoption, the negative repercussions it generates, and the potential benefits that could
arise from adopting a more people-centered approach. The discussion highlights the
balance organizations must strike between financial considerations and employee well-
being.
General Factors
Several general factors contribute to organizations implementing minimal employee
benefits. First, economic considerations play a significant role. Organizations facing tight
margins or highly competitive markets may cut costs by reducing benefits, focusing on
immediate financial sustainability over long-term workforce investment. For example,
small businesses and startups often cite limited budgets as a reason for offering fewer
benefits compared to larger corporations.
Second, regulatory environments can influence organizational practices. In the United
States, there is no federal mandate for paid vacation, and sick leave requirements vary by
state. This lack of uniform legislation enables some businesses to provide the legal
minimum, which may be very limited, rather than adopting more generous policies.
Third, organizational culture and leadership philosophies also shape benefits practices.
Businesses with a culture emphasizing productivity and profit over employee well-being
may regard benefits as secondary or even unnecessary. In some competitive industries,
such as finance or technology startups, leaders may assume that employees should
prioritize career growth over personal time, thereby justifying limited benefits.