compensation and benefits comparison

It is obvious in this century that the staff of every company act as a vital center for the institution's success. According to statistics and analysis, such programs that effectively track employee problems appear to maximize productivity by a larger margin. Employees determine the customer base for which they are willing to collaborate and the degree to which they are willing to work with the organization. According to recent research, some workers consider changing positions whilst they are still working. This seems to imply that they are dissatisfied with the job they are doing and are looking for greener pastures elsewhere. Despite the flourishing economy, the United States over the past years has felt the effect of crowding out as most of the employees feel neglected and their issues not adequately addressed. The problem has been considered hugely because other nations have improvised other compensation and benefits package which are more competitive that the ones offered in the United States. From this, we can deduce that the human resource department of any business entity serves as a vital element towards dictating the compensation package that the employees should be handed. Some of the common compensation packages include overtime rates, maternity leave, health and insurance among other packages which are typically discussed between the employee and the employer. There have been various comparisons which have been done to check on the compensation module in the US as compared to Sweden, Japan, and Saudi Arabia.

Introduction

Employee benefits include a chronological pay rise, paid medical expenses and a vacation among others which motivate the laborers to perform better and increase the overall productivity of the institution. A statistical analysis at Deloitte points out that close to 80% of employees would prefer extra benefits than an increase in the monthly salaries. Therefore it goes without mentioning that the heavier the compensation package, the more involved and committed the employees will be towards their functions. In most cases, compensation may be fixed or variable depending on the policies of the corporation. The package agreement is usually signed between the employee and the employer to avoid any misunderstanding between the two parties. Many countries across the world offer specific compensation packages to their workers who have a competitive edge over other countries hence preventing instances of outsourcing. Therefore, this paper seeks to check on the various specific packages in the United States as compared to Sweden, Japan, and Saudi Arabia.

United States

Different American firms offer different kinds of compensation and benefits based on the field which the employee is positioned. Busin points out that most of the technology enterprises in the United States offer wholesome compensation packages so as to maintain the Intellectual property Right of an individual thus preserve the status of the firm in the global market (Busin, 2015). The author goes ahead to provide an insight into the Facebook’s framework, where all the employees are provided with free bicycles which improve their navigation from one point to another. On the other hand, Boslaugh in his book tends to look at the medical orientation and the type of compensation and benefits which the employees are provided with so as to boost their morale and stop focusing on other jobs. The books point bout on the importance of health insurance which makes the laborer work freely without fearing falling sick as all the medical expenses are covered (Boslaugh, 2013). The author cites the example of Obamacare and showcases how the government, the employer, in this case, works to check that the welfare of the subjects is well taken care of thus enhancing productivity.

Major companies in the United States also tend to look at the specific requirements when it comes to workers’ compensation scheme. The payment plans frequently target individuals who are retiring as a token of appreciation for their diligent service. Depending on the extent of set-off, the firm can gain a competitive edge over the other companies or lose a lot while gaining new employees. Biswas points out that a wholesome compensation plan which is implementable serves to increase the morale of incoming employees into the firm (Biswas, 2013). In the United States, employees tend to consider compensation as an aspect of job security, and once all the terms are in agreement with the likes of the employee, then the firm gains more from its employees. A keen analysis of the Glassdoor report, business companies, and the technology firms have been cited as ones which offer excellent compensation packages. Some of the major companies in the United States include Boston Consulting group, Google, LinkedIn and Adobe among other firms. These companies offer unemployment insurance, health insurance, pension insurance among others.

Saudi Arabia

Saudi Arabia is a middle-eastern sovereign country which mainly occupies the Arabian Peninsula. The government essentially controls all the economic activities in the region and is primarily concentrated in the export of oil. The economy of the area is sufficient enough to cater for the interests of the labor force. The statement implies that the policies and the regulations in the state can be implemented uniformly without infringing the rights of neither the employer nor the employees. Simchi, in his rational analysis of the economy, points out that a stable economy is beneficial to the welfare of the managers and the staff (Simchi et. al, 2004). The compensation scheme in Saudi Arabia comprises of a base salary which is timed hourly or monthly based on the standards of the firm. The salary is not inclusive of the allowances and other miscellaneous activities in the workplace. Additionally, the employees are provided a housing allowance which is accrued for any completed month while in payroll and is only paid once in December. Furthermore, the country also has the Saudi Aramco Incentive Plan (SAIP) which is mainly based on the overall corporate and individual performance of the firm.

The employees in the country also benefit from the Ramadan Bonus which is mainly paid during Ramadan period. Additionally, other minor compensations modules which the employees benefit from include the settling in allowance which is provided to newly hired employees into a new region in the country. The overtime (shift premium) also applies in the compensation calendar for most firms in the country.

From this, it is evident that the salaries to the workers are usually tax-free and this works as an essential element which boosts morale. Additionally, the welfare of the workers is well taken care of with the fact that the staff lives in houses which are already paid for and the education to the children is also catered for by the employees (Biswas, 2013). On the brighter side, the workers are also provided with a thirty day paid vacation by the firms which they work for, and the vacation is typically standard. WorldatWork points out all these compensation strategies are beneficial to the staff and will reduce the 30% employees who seek other jobs when they are still in employment (WorldatWork, 2015). Therefore, it is true that the better the compensation and benefits package the higher the staff retention capacity.

Japan

Japan is a country which boasts of the diverse economic boom that it celebrates over the years. The state is considered as one of the flourishing economies in the world with a very high Gross Domestic Product. On the other side, the country is made up an aging population hence lacking the vigor of the young generation. Therefore, this leaves a lot of vacancies in the region from various major organizations. Therefore, there are very many benefits once an individual is employed to manage any business. One of the primary benefits in the employment market is that once a person is employed he or she does not have to fear being fired. The effort is attributed to the labor unions which offer immunity to the individuals who are employed full-time (Shushin Koyo) -Lifetime employment.

Paid leave is also part of the benefits package which employees in the Japanese economy tend to enjoy. The average employee in the region is entitled to a minimum of 10 days per year which should be after a period of six months. In special instances, the allowance for such leave can be pro-rated for the partial years which the employee has worked. Compared to the United States, the numbers of days are very few and thus very disheartening to the labor force. On the other hand, there are no sick leave rights in the nation. When an employee falls sick he uses the paid vacation to seek medical attention. In this case, foreign firms make use of this opportunity to offer sick leave to their staff as special compensation or benefits.

Overtime pay is also part of the benefits which the staff members working in the country. Any employee is expected to work for a minimum of 40weeks per week. Any extra hours worked, one is entitled to an overtime pay except when one works as a manager.

From the analysis of the compensation and the benefits plan, it evident that the policies cannot be applied in the United States as more members of the workforce will tend to look for a job in other parts of the globe. The packages and benefits are very strict and may be demanding to an individual who lives in the United States.

Sweden

Sweden is a European state which has a stable economic background. Most of the individuals in this region are the middle class who work for the many multinational firms which are located in the area. Most of the business entities in the area have the common compensation schemes which they apply to the employees. But over the years, the firm has improvised remuneration and benefits systems which provide the state with a competitive edge over other countries in the European region. Sweden is linked with one of the most sophisticated and best health systems in the world. The health insurance adequately checks on the welfare and health of the women in the country.

Additionally, in Sweden, the parental leave is very lavish and astonishing to many individuals. This sort of parental leave is what most of the American parents wish for from their employers. The Swedish parents are given 480 days of leave per child of which up to 390 days of the parental leave, one is paid 80% of the total salary (WorldatWork, 2015). The enactment of such compensation packages encourages the employment of more women in the corporate world. In the United States, the number of working women is 10% less than the number in Sweden.

Such compensations mechanisms are not easily applicable in the United States but the country can come up with policies and mechanisms which can be applied to increase the number of women in the corporate world.

Comparison

From the above analysis and statistics, it is evident that every state seeks to improve the welfare of the staff and ultimately have high staff retention capability. All the countries considered, the aspect of health, proper salaries, overtime premiums and tokens of rewards for the best performing staff members. All the aspects are critically addressed by the management so as to ensure all the aspects of employee welfare are addressed. The United States has worked vehemently to implement the health policies through the Obamacare; Sweden on its part adequately addresses the maternity/paternity issue.

Japan and Saudi Arabia have unique compensation and benefits packages. Japan boasts of its Lifetime employment scheme while Saudi Arabia checks on the religious issues through the Ramadan bonus. From all the compensation packages and benefits, the unites states can learn one or two items which they can incorporate in the in their system which can improve the status of the compensation and benefits policies. At this point, it is important to note that a blanket contrast and comparison is virtually impossible since every corporation and industry within these respective countries are at liberty to exercise the packages and schemes that work for them. This makes some companies similar across the divide while others are varied significantly.

Contrasts

Despite the similarities, the benefits and compensation packages cannot be offered uniformly across all the countries as a result of the economic disparity. Additionally, the geographical orientation and the culture of the people in the state also tend to act as a hindering factor towards the prosperity of the policies across the globe. The beliefs of the individuals in the state also act as a determinant factor. For instance, Saudi Arabia is an Islamic state and hence the Ramadan bonus policy can easily be applied uniformly. The case cannot be applicable in the United States due to the diverse cultures which are found in the country. Boslaugh points out that the level of cultural and demographic bonding is essential in formulating the schemes of providing the compensation packages (Boslaugh, 2013). Additionally, notions such as safety nets are hard to implement across states since they are opposed from several quarters, for example, in the United States the concept and its various forms are frowned upon due to the fact that they are socialist and the country is capitalist in nature. At this point, it is important to note that a blanket contrast and comparison is virtually impossible since every corporation and industry within these respective countries are at liberty to exercise the packages and schemes that work for them. This makes some companies similar across the divide while others are varied significantly.

Conclusion

Conclusively, it is evident that the overall welfare of the staff is an important element in the overall orientation of any business enterprise. The various compensation packages tend to keep the employee at ease and prevent them from seeking other available employment opportunities in other firms. In this case, the United States can polish the available compensation policies making them have a competitive edge over other states in Europe and across the world. Specifically, the nation should critically check on the health issue and create a brand that cannot be implemented in any other state just like the case in Sweden. Additionally, America should be able to increase the number of vacation days for its employees since these help the latter develop holistically. Staff members who get ample time away from work often have the opportunity to unwind and let go of the stress that may have accumulated as they churned through loads of work and tight deadlines. Finally, The American economy and employers should pay keen attention to a safety net scheme aimed at ensuring that every citizen is accommodated within the healthcare system. This helps boost and culture notions of justice, equality, and peace, which are fundamental for ensuring a coherent society.

References

Biswas, B. (2013). Compensation and benefit design: Applying finance and accounting principles to global human resource management systems. Upper Saddle River N.J: FT Press.

Boslaugh, S. (2013). Health care systems around the world: A comparative guide. Thousand Oaks: Sage Publications.

Busin, M. (2015). Expatriate compensation: A practical and informative textbook for managing expatriate compensation, mobility, and international assignments in the world of work. Randburg [South Africa: Knowres Pub.

Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2004). Managing the supply chain: The definitive guide for the business professional. New York: McGraw-Hill.

WorldatWork. (2015). The worldatwork handbook of compensation, benefits and total rewards: A comprehensive guide for human resource professionals. Hoboken, N.J: Wiley.