As the unemployment rate in the United States currently remains at historically low levels, for multiple companies, the recruiting and retaining of qualified workers became highly essential. Various logistic companies and retailers invest in competitive wages and career development for their employees. Some of the retailers offer expensive vacations, gift cards, charity donations, and other benefits for their workers. From a personal perspective, this strategy is sustainable as it corresponds to modern business objectives and encourages the achievement of the company’s goals.
The motivation of employees is immeasurably significant as a high level of workers’ passion and commitment significantly affects the performance of an organization in a positive way. There are two types of rewards that motivate employees – intrinsic reward (personal satisfaction from good performance) and extrinsic reward (recognition from an employer, such as wage increase, promotion, and benefits). Benefit programs may have “a tremendous impact on employee efficiency and productivity.” Walmart, Target, UPS, Macy’s, FedEx, and many other companies afford fringe benefits (compensations beyond wages) to their workers, such as sick leave and vacation pay, gift cards, pension, and health plans, and medical care. Fringe benefits may also include company cars, executive dining rooms, recreation facilities, and country club memberships. These companies have effective human resource management and address an actual market situation where employers are competing for qualified workers.
In general, all strategies dedicated to the support of employees’ professional development, subsequent wage increases, and encouragement programs are highly effective and sustainable. The expenditures connected with the encouragement of employees do not correspond to the costs associated with the training of new workers, while the satisfaction of devoted staff results in the company’s success.