Take a Closer Look at Employees Pay, Leave, and Entitlements

One of the biggest challenges that management faces is motivating its employees. To be effective, managers should focus their efforts on providing opportunities for growth and development, communicating clear expectations, rewarding good performance, and giving feedback. Here is what it all means.

1. Pay

This is one of the biggest questions that management faces because it’s always trying to strike a balance between attracting talented people and controlling costs. The amount of money that an organization pays its workers comes out of the revenue generated by the goods or services it provides to customers. When managers decide on pay levels, they are indirectly determining how many people will want to work at their companies, which in turn affects how many customers can be handled efficiently with available resources. There are also workplace allowances that employees are given that can impact the overall pay levels in an organization. So, while it’s important to attract the best people, it also is important for an organization to keep its costs down and avoid pay levels that discourage productivity.

2. Leave (vacation, sick time, personal leave, holidays)

This is another essential issue that managers need to understand because it impacts employee morale, job performance levels, and deadlines. For example, if an organization lets workers take as much time as they want when they’re ill or personal issues arise, then the business will likely miss deadlines and lose money. However, if the rules are too strict (for example: only a certain number of sick days), then workers may become resentful and feel like they’re being treated like children who can’t make decisions for themselves. This is why most organizations attempt to find a balance between too little and too much time off. Also, because holidays only happen once a year, it’s essential to consider how they should be factored into overall leave resources.

3. Entitlements (health care, child care, insurance)

Employee entitlements are rights owed to employees by employers or laws entitling them to certain benefits or conditions of employment. This is a standard part of any job in most western countries. In most developed countries, business owners are required to provide certain entitlements to their workers. For example, health care is a right in some places and many of these governments have agencies that can help citizens apply for coverage. Other entitlements include health care, child care services, and retirement benefits. Although these “rights” may seem like a burden on employers, they’re important because they provide a competitive edge over other businesses that don’t offer them – not just domestically but globally as well – which allows companies to attract the best talent. 

4. Wage (wage increase, grievance)

In some cases, employees don’t just need a reason for doing their jobs, they need more money. This is where wage issues come into play because managers should understand how pay levels can affect motivation and morale. Employees who feel underpaid will likely exhibit lower productivity while those who feel overpaid may become complacent or seek employment elsewhere in search of better pay rates. Also, if an employer violates any labor laws by not paying overtime, withholding taxes from workers’ paychecks, etc., this will cause resentment that could lead to legal problems down the road. Consider also that wages aren’t always determined by what the market will bear, in some cases, unions negotiate for better pay to offset the risks of working under hazardous conditions.

Why do employees need to be motivated?

What does it mean to motivate employees? The dictionary defines “motivation” as the act of giving someone a reason for doing something. In terms of people, motivation is having the desire and energy necessary to accomplish certain tasks. This can be very important because if employees don’t have this desire and energy, they may do a poor job completing their responsibilities. While some people seem naturally motivated, most need something to work toward – that is, managers need to provide their workers with reasons for doing good work. Why should employees care about what they’re doing or how well they do it? Why should they come in early and stay late when an organization doesn’t require them to? That’s why companies establish incentives such as bonuses and competition between departments which can motivate employees to work harder and smarter. Also, because employees rely on their managers to manage resources correctly, they will be encouraged by a manager who makes sound decisions.

So, understanding how to motivate employees is a necessary part of the job for any manager. Research shows that happier and more productive workers result in organizations with higher revenues. That is why it is important to understand the rights and entitlements of employees because putting them into practice makes a company look good from the outside, and it provides employees with an incentive to work harder.