Introduction
Compensation and benefit system is a division of the human resource management that is aimed at making policies concerning workers’ benefits. Compensation benefits can be referred as all the benefits that employees receive and are part of the salary, and which is given to employees as a reward for their labor. Compensation benefits can be divided into three major classes. These benefits can either be direct, indirect or non-financial (Lissy, 11). In direct compensation, the company pays its employee in form of salaries, remunerations, commissions and bonuses. In indirect compensation, firms and other enterprises reward their employees in other means that are not included in the direct compensation, but rewards form a part of their compensations. These include leaves, retirement plans, and education benefits. In non-financial compensation, employees are awarded other benefits that do not come in the forms of cash or salaries such as career development.
Every employer wishes and aims to keep the best employee in the world. However, to keep these employees, firms have to provide the best compensation benefit systems (Chiu 411). Firms have been striving to keep employees over the years, and this action has resulted in the development of the finest compensation benefits in the world currently. Even if compensation benefits are one of the basic needs that employees look in a firm, there are also other things that they put in place before they agree to sign a contract with the firm. Research shows that even before an employee is employed in a firm, he/she looks at the compensation benefit system that the firm offers and the culture of the organization (Chen 49). A proper compensation system, therefore, can be described as the system that will help the organization to achieve its goals and ensure its sustainability in the future, which includes proper balance of wages, rewards, and benefits. This paper will focus on the compensation benefits and rewards system of Dell Company.
A brief history of Dell Company
Dell Company is located in Texas in the United States. The company was started in the year 1984 by Michael Dell, who was still a student in the University of Texas when setting up the company (Angela para 1). The company was formerly known as PC’s Limited, and it has been among the top performing companies in the world as it appears in the top 100 list of best companies in the world according to Forbes (Angela para 1). Dell Inc. deals with producing personal computers, computer accessories and other computer related products. Currently, the company has employed more than 78000 employees around the world (Angela para 1). Over the past five years, the corporation has been consistent in the ranking where it has been ranked among the top computer and laptop producers in the world behind Hewlett-Packard.
Dell Company is regarded as one of the best enterprises in the world that attract and retain employees due to their trend of offering employees with benefits and rewarding them regularly. Dell’s outstanding culture of offering its employees with benefits and rewards is argued as the gravitational force that pulls and brings creative and bright minds to the organization.
Rewards and Compensation Packages Offered By Dell Company to Its Employees
Among the rewards and compensation packages that Dell offers to its employees are health packages, rewards and recognizing the employees even when they are not on duty. Dell’s priority is the employees’ health and their well-being (Understanding para 5). Dell Company has a reward package that allows employees to customize their health plan coverage that suits their family. Dell offers its employee a wide variety of health plans, which they can choose from since the needs of various employees differ from each other. The company also gives the employees a chance to choose the level of medical coverage that they require (Understanding para 5). Every medical plan comes with other prepackaged services such as out of pocket costs and access to almost all hospitals and clinics around the country. For instance, all employees working in the company have access to dentists all over the country, and their medical bills are fully covered. Another reward that the employees are offered in this sector is the access to the Flexible Spending’s Account, which allows them to manage their healthcare and dependent costs. The firm also provides its employees with life and disability coverage that is aimed to enhance their financial security in cases of uncertainties. The employees working for the firm are also offered with will preparation services and several insurance services.
Dell Company ensures its employees and their household has Employee Assistance Program (EAP), which is offered at free of charge basis (Understanding para 6). This program gives its employee access to professional counseling services to assist with managing family stress, depression and also to help them recover from substance addiction such as drugs. Through this program, the employees are also enlightened on how to prevent diseases and also how to manage their health.
Rewards and recognition- The enterprise rewards its outstanding employees and members of staff who have done a good job (Understanding para 2). Outstanding employees in the company are selected through the measurable process that helps identify and group employees according to their performances. The enterprise is always determined to remain competitive in the market. To ensure this ambition, the company has come up with a compensation plan in the form of rewards to ensure that its employee can compete in a healthy manner and this would result in increased production of quality products that would help the firm to retain if not improve its competitive advantage in the market. In the company, there are several departments, and in each of the departments, there are rewards that are set aside and which are awarded to the most outstanding employees. Through this program, the firm has been able to create a healthy competition across all the departments, resulting in a rise in productivity in the firm (Understanding para 2). The firm also has a long incentive structure that is put in place to reward employees by career level and their performances. Moreover, the company rewards its employees to help them to attain their goals through creating a professional environment that gives all the employees an equal chance to grow professionally (Chiu 418).
Employees in the firm also benefit from career development. Dell Inc is determined in creating a professional environment where employees can develop. Through a series of programs offered in the firm, employees are able to develop and grow professionally. Some of the services provided include job training program, development programs for individuals and mentorship services (Understanding para 4). Workers in the firm also get to enjoy individual services such as financial assistance and advice from professionals hired by the company.
Lastly, it is the goal of the firm to ensure that its talented and professional employees perform to their best. Since Dell understands the needs of its employees, it ends up giving its employees time to pursue and fulfill their personal lives by rewarding them with some reward packages. These reward packages include giving them free time out. The company also gives its employees a chance to model their working schedule in a way that won’t distract their personal lives. The firm also offers its employees with the referral bonus. Referral bonus is a reward awarded to its employees for spotting a potential candidate for a position based on the applicant’s past performances and knowhow. Through this method, the company has been able to hire the best employees in the sector, and this attribute, to some extent, has helped it to remain among the best computer producers in the world. There are also rewards for the employees while they are still off work. This rewards includes paid vacations and holidays (Understanding para 7). The company also brings together all employees and rewards them with a paid holiday where they get a chance to enjoy themselves, ensuring that their minds are refreshed to perform work at hand.
Conclusion
Compensation Benefit and Rewards system have been a platform used by firms in the recent years to attract new employees while retaining their current and outstanding ones (Chiu 415). Compensation benefit and reward system, however, can be referred to a system through which employees are rewarded for their work. These compensation benefits and rewards fall primarily into three groups. These groups are direct fiscal reward, indirect fiscal compensation, and non-financial payment. Many companies have integrated this platform to attract new workers and maintain their current employees, and Dell Company is one of such companies. The different ways that the company uses to reward and compensate its employees include health packages, giving them rewards and recognizing the employees even when they are not on duty.
Works Cited
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Chen, Chao, et al. “Do Rewards Benefit the Organization? The Effects of Reward Types and the Perceptions of Diverse R&D Professionals.” IEEE Transactions on Engineering Management, vol. 46, no. 1, 1999, pp. 47–55
Chiu, Randy K., et al. “Retaining and Motivating Employees.” Personnel Review, vol. 31, no. 4, Aug. 2002, pp. 402–431
Lissy, William. Currents In Compensation And Benefits." Compensation & Benefits Review 24.4 (1993): 12. Business Source Complete. Web. 1 Feb. 2017.
Understanding Our Benefits Dell http://www.dell.com/learn/us/en/uscorp1/understanding-our-benefits. Accessed 1 Feb. 2017.
