The fair and the generous benefit package and pay for performance plays a significant role in improving the morale, productivity and the communication of the employees. This can be realized from the fact that with the generous benefits and the pay for performance the employees become satisfy with their job, and the employee morale is positively associated with the job satisfaction. The employees, who are awarded such benefits, however, tend to be more contented and satisfied with their current status in the organization. However, such employees show higher morale as well as higher degree of satisfaction and confidence. Provision of the benefit package and pay for performance also maintain and increase the engagement of employees in the organization. They help to motivate the employees that pave the way to the retention of the employees, which ultimately pave the way to increase the productivity of employees, being satisfied they perform their best in order to achieve their goals, which increases their productivity (Chaudhary & Sharma, 2012).
Furthermore, they also help in creating a sense of confidence in the employees that the organization has noticed and considered their hard work and efforts, the people thrive on the basis of the positive feedback they receive (Bernardin, 2007). So, such generous benefits will increase the participation of the employees in the management of the organization, which encourage the employees to communicate with the higher management, put forward their thinking on certain matters, and execute their thoughts as well as ideas effectively. This also helps in reducing the communication gap between the employees and higher management, the employees become aware of the ideas of executives, and the executives become aware of the ideas of employees, and final decision can be made by considering relevant points of all, which ensures progress of the organization.
References
Bernardin. (2007). Human Resource Management. Tata McGraw-Hill Education
Chaudhary, Nupur., & Sharma, Bharti. (2012). Impact of Employee Motivation on Performance (Productivity) In Private Organization. International Journal of Business Trends and Technology, 21(4), 29-35
