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Economic Crises and Impact on Employees | Report

   

Added on  2020-01-23

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Table of ContentsINTRODUCTION...........................................................................................................................3Impacts of economic crisis on employees’ living and their incentives.......................................3Employers facing difficulties of retaining the talent of employees............................................4The current payment schemes for the UK businesses.................................................................5Alternative payment scheme to better motivate the employees..................................................7Flexible benefit schemes motivate employees better, especially in a bad economic situation...8Flexible benefits schemes motivate employees better................................................................8Advantages or disadvantages with more flexible benefits schemes...........................................9What are the theories support your analysis..................................................................................11Role can technology play in providing smarter and more flexible benefits to employees.......12Future trends and comparison between countries.....................................................................13CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................16

INTRODUCTIONEmployees are the integral part of any organisation that helps an organisation to achieveits long term and short term goals on or before time. To keep employees motivated, they shouldbe given proper benefits and it is necessary to make sure that they are happy with their work andworking conditions. Employee benefit can be defined as the benefit which is given to employeein addition to their salary, these benefits are the non-wage type of compensation that is beingprovided to employees (Holjevac, Capuder and Kuzle, 2015). These benefits can be like medicalbenefits, perks, housing, reimbursement, group insurance, free utilities , leaves, social securityetc, moreover in UK , employers can motivate their employees by giving smarter benefitpackages to retain and attract their employees. Basically these packages are the expected andstandard part of employees total reimbursement package, these may include benefits likewellness insurance, paid leaves, retirement benefits or plan, disability insurance (Gopal andKoka, 2012). In this study we are going to consider several points like what are the latestpayment scheme, effect of economic crisis on performance or living of employees, what are theflexible welfare schemes, what things need to be done to retain talent of employees.Impacts of economic crisis on employees’ living and their incentives.It is essential for a company that there are adverse implications on the employmentsituation and its living and incentives and pay. United Kingdom is one of the leading economy inthe world approx. $2.5 trillion which having a large number of skilled and qualified workforce.The employment condition before the economic crises 2008 is quite good and their per capitaincome also higher than other European countries (Earl and Taylor, 2015). The economic andfinancial crises of 2008-09 has great impact on the most of EU members specially the UnitedKingdom. Which can leads to wage deceleration, pay freezes and sometimes pay cuts. This kindof economic crisis have a negative hit on the all types of employees such as low-skilled, skilledand professional employees (Bock, And et. al., 2012). According to the data of higher authoritiessuch crises specially influenced on the manufacturing, construction, hospitality and food servicesector. The various business organisational cuts law paid and temporary jobs, reduction inworking hours. Cuts their other benefits, in order to attain their cost saving target and make thebusiness unit.

Reduction on living standards: Today the business and economies are interlinked witheach other which having affects and affected by another country. The recession in 2008 is one ofthe most worst crisis which not only affects EU countries but also influenced on the variousnation excluding India and China (Pedersen and Jeppesen, 2012). Due to this crisis variousdomestic and multinational corporation are reduction in the staff or cut their performance basedincentives which can affects on their living standards. Thousands of employees was leave theirjob which can reduction in their living standards. Increase poverty line: This is another impact which is related with the poverty. Thefinancial crises 2008 having increase the poverty line due to increase in the unemployment ratewithin the United Kingdom (Turkulainen and Ketokivi,2012). The larger impact this crises issocially on the the semi skilled and skilled employees which can working for part time ortemporary basis. Decreasing employees performance: It also reducing the employees performance due tofear of loosing jobs. It can adverse impact on the their productivity and efficiency which canleads to reduction in the overall business firm output and profitability (Jaoko, 2012). Increase in unemployment rate: 2008 economic recession gave a rise UKunemployment are to increase from approx. 5 percent to 8 percent after two years which is worstin history. This can leads to decrease their pay and other benefits and increase the governmentpressure to solve their unemployment issues. Employers facing difficulties of retaining the talent of employees.Human resource is one of the valuable assets for a business organisation. Because HRcan help to attain organisational goals and objectives and contribute their efforts. Therefore, eachand every business unit is focused on their staff so that they can attain their targets in a effectivemanner (Chelladurai, 2006). Today, this is one of the major challenges for large corporation toretain talented staff in their organisation. Beachside employees are seeking a new opportunitieswhere they can get more personal and professional development and also get more pay. It canincrease the cost for the company because identifying, hiring and training employees isexpensive process. These challenges as given below:Compensation Packages: Employees seek equitable pay for their work. As a resultbusiness organisation might take to retain their talented staff is to increase their compensationpackage which can include salaries, insurance, benefits and employees leave (Daley, 2006). As a

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