MGT2230: Strategies for Managing Improper Use of Employee Benefits

This report examines the issue of improper use of employee benefits within the workplace, highlighting the challenges faced by companies in addressing this issue. It references secondary research to explore the misuse of benefits, citing articles that discuss how employees sometimes exploit benefits for personal gain, the failure of benefit packages to meet diverse workforce needs, and the potential for misuse to undermine psychological contracts. The report also showcases 3M Canada as a company demonstrating best practices by offering comprehensive benefits and promoting employee engagement. Furthermore, it outlines the legal requirements and best practices in Canada, emphasizing compliance with legislations like the Fairness at Work: Federal Labour Standards and the Canadian Human Rights Act. The report concludes with recommendations for formulating policies to deter misuse and suggests an implementation schedule, including a sample policy and communication strategy. This document is available on Desklib, a platform offering a wide range of study tools and solved assignments for students.

Topic: Improper use of Employee Benefits.
Part 1: Executive Summary
Within the workplace, the employees are provided with certain benefits for luring them to the
services. This is in terms of catering to their wellbeing, as labour is extracted from them.
However, a striking issue here is that the employers miss-utilize these benefits, which compels
the employees to encounter complexities within the process of executing the allocated duties and
responsibilities. Legislations like Labor Relations Act, employment standards and Canadian
Human Rights Commission are vital for reducing these instances. Complying with the standards
of these legislations is helpful in terms of providing equal treatment to the employees. This
equality reflects the initiatives towards ensuring the wellbeing of the employees.
Part 2: Secondary Research Findings:
Part 2: Source of Secondary Research: #1
Jaworski, C., Ravichandran, S., Karpinski, A. C., & Singh, S. (2018). The effects of training
satisfaction, employee benefits, and incentives on part-time employees’
commitment. International Journal of Hospitality Management, 74, 1-12. Retrieved
from https://doi.org/10.1016/j.ijhm.2018.02.011
Summary of your findings:
MGT2230 Manager’s HOT seat Page 1

Jaworski et at. (2018) is this article have explored the manner in which the different kinds of
benefits that are offered to the employees within the workplace are being misused by them.
The authors begins the article with the presupposition that the primary purpose of the plethora
of benefits offered by the firms related to the hospitality industry like training, incentives,
flexible shift timings and others is to positively improve the performance or the productivity of
the employees. However, the authors found that the employees rather than using these benefits
which are being offered to them for constructive purposes often tend to misuse them for their
own personal benefits. This in turn affects the other employees as well who try to follow the
same path and thereby the overall performance as well as the culture of the entire firm itself.
Thus, the authors come to the conclusion that the benefits that are being offered by the firms to
their employees for gaining personal and professional growth should not only be in a regulated
but also in controlled manner as well.
Part 2: Source of Secondary Research: #2
Murray, K. (2019). Benefit packages fail to address the needs of a modern, diverse workforce.
Retrieved from https://www.theguardian.com/careers/benefit-packages-diverse-
workforce-employee-employer
Summary of your findings:
Kate Murray in this article published in the Guardian tries to find out the major causes for the
misuse of the benefits as well as the perks which are being given to the different employees
within the framework of the contemporary workplaces. The author after conducting interviews
with employees of some of the best firms of the world found that the major reason why the
benefits or the perks given to the employees are being miss-utilized is because of their failure
MGT2230 Manager’s HOT seat Page 2

to cover all the needs of the diverse modern workforce that the contemporary firms have. The
net result of this is that the small number of benefits or perks offered by the firms fail to take
into effective consideration the needs or the requirements of the diverse workforce that they
boost of. Thus, the employees in order to derive the maximum amount of rewards from the
perks or the rewards which are being given to them start to miss-utilise them. The author, thus,
suggests that the best way possible to overcome this problem is to take into effective
consideration the needs or the requirements of the employees while designing the benefits or
perks that they would be entitled.
Part 2: Source of Secondary Research
Karagonlar, G., Eisenberger, R., & Aselage, J. (2016). Reciprocation wary employees discount
psychological contract fulfillment. Journal of Organizational Behavior, 37(1), 23-40.
Retrieved from https://doi.org/10.1002/job.2016
Summary of your findings:
The authors Karagonlar, Eisenberger and Aselage (2016) in this article have discussed the fact
that the different kinds of benefits or perks which are being offered by the diverse firms can be
seen by the employees as the support that the concerned firm is willing to offer them. More
importantly, they are increasingly being seen as the attempt of the firms to fulfil the
psychological contract of the employees. However, the authors found that the employees by
misusing these benefits or perks not only discouraged the firms from offering any such
benefits or perks in the future times but at the same time force the firms to take the help of
different kinds of stringent policies like ‘zero tolerance policy’ and others. Furthermore, it is
MGT2230 Manager’s HOT seat Page 3

seen that the long-term usage of such policies tend to be harmful for both the employees and
the firms because of the effect that they have on the workplace culture and also on the
productivity of the employees as well as the firm itself.
Part 3: A Canadian Company which is demonstrating best practices
& leading by example:
Part 3: 3M Company
Content.eluta.ca, (2019). Top Employer: 3M Canada Company. Retrieved from
https://content.eluta.ca/top-employer-3m-canada
Summary of findings:
The article clearly states the plethora of benefits as well as perks offered by the Canadian
organisation 3M which in turn had placed it among the “Top 100 firms of the World” in terms
of employee satisfaction and also the facilities that are being offered to them. In this regard, it
needs to be said that every year the company celebrates “Development Month” in which
online tuition or training is being offered to the employees for the improvement of their
performance. More importantly, the company also offers 100% paid maternity leaves (upto 17
weeks) and parental leaves (upto 8 weeks) to their employees so as to enable them to maintain
the balance between their work and family life. Furthermore, the company encourages
employee engagement amount its different employees and this is perhaps one of the major
reasons for the different kinds of social clubs that the company had created for the employees
over the past 45 years. In addition to these, it is seen that the financial benefits, compensations,
incentives and others offered by the company under discussion are the best in the Canadian
MGT2230 Manager’s HOT seat Page 4

business world and this is perhaps one of the major reasons for the high employee satisfaction
that the company enjoys.
The benefits or perks offered by the company 3M when analysed through the lens of the
SMART goals would reveal insightful information. In this regard, it needs to be said that the
overall goal or objective of the company 3M is to monopolise the Canadian business market
and thereby earn a higher amount of profit. The specific goal of the company is to enhance the
performance or the productivity of the employees and for this it is offering various benefits to
their employees like comparatively higher financial rewards, incentives, wages, different kinds
of paid leaves, employee engagement, work-life balance and others. More importantly, these
are intended to not only satisfy the needs of the employees but at the same time to create the
kind of workplace culture wherein they would be able to maximise their performance. The
success attained by these measures or the benefits which are being offered to the employees
can be measured in an effective manner through the job-satisfaction level of the employees
and also their productivity. This is a completely attainable goal provided the company takes
the help of effective implementation measures for offering adequate benefits to the employees.
These are completely relevant to the company’s overall vision or goal or attaining a higher
level of growth and thereby monopolising the Canadian business market. This is important
because of the fact the employees whose needs or requirements have been fulfilled in an
effective manner are likely to perform in an effective manner than the ones whose needs are
being completely disregarded. For the effective attainment of this end the company would
need a minimum time period of 5 years.
Part 4 : Legal Requirements and Best Practices Explained
MGT2230 Manager’s HOT seat Page 5

Part 4: Legal and Best Practices
Summary of findings:
The business firms in Canada and also the employees who are associated with them are
required to abide by or adhere to various legislations and policies of the national government
like the Fairness at Work: Federal Labour Standards, Employee Equity Act (EEA), Canadian
Human Rights Act, Employee Standards Act and others (Chen & Fulmer, 2016). In this
regard, it needs to be mentioned that a common factor among all these legislations or the
stipulations of the Canadian government is the fact that they articulate the need for offering
different kinds of employee benefits on the part of the companies or the firms (Huber, Lechner
& Wunsch, 2016). For example, the Fairness at Work: Federal Labour Standards clearly
articulates the fact that the benefits or the perks offered by the firms should be uniform and in
synchronicity with the needs or the requirements of the employees which in turn should abide
by the other labor laws of the nation (Chen & Fulmer, 2016). On the other hand, the Employee
Equity Act (EEA) requires the firms to offer special assistance or benefits to the women,
people suffering from disabilities, aboriginal people and visible minorities (Huber, Lechner &
Wunsch, 2016). More importantly, the firms are also required to comply by the precepts of the
Employee Standards Act for the designing as well as the implementation of the different kinds
of benefits or perks that are being offered to the employees. Lastly, the firms are also required
to abide by the Canadian Human Rights Act which especially prohibit discrimination in terms
of the benefits or perks which are being offered to the employees in terms of their gender,
social or cultural background, race, ethnicity and other factors (Chen & Fulmer, 2016).
It is pertinent to note that among all these legislations perhaps the Fairness at Work: Federal
Labour Standards is the most important because of the fact that it clearly articulates that within
the workplace there should be fairness on the part of both the employees and the firms. The net
MGT2230 Manager’s HOT seat Page 6

result of this is that the firms wherein the employees are misusing the benefits or perks which
are being offered to them have the right to take action against them. However, at the same time
it needs to be said that the action which is being taken varies from firms to firms. In this
regard, it needs to be said that there are some firms which simply terminate such employees
and on the other hand there are others who simply give warning and other use similar
measures hoping that the employees would give up such practices. There are some ethical as
well as moral considerations involved in the process as well. For example, there are many
people who think that terminating employees is completely ethical or immoral just because
they have misused some of the perks or benefits which were being offered to them. More
importantly, they argue on the basis of the fact that the majority of the working individuals had
to support their families and thus if they jobs are being taken away from them then this would
become a punishment not only for them but also for their families as well which is completely
unethical. In the light of all these arguments, the best way possible to address the issue of the
employees misusing the benefits or the perks which are being given to them is to give them
warning and cut out the benefits or perks that they are entitled for a brief observation period.
Furthermore, depending on the kind of behavior that they exhibit during this observation
period the firm should have the right to either reinstate them or to terminate them.
Part 5: Recommendations & Implementation Schedule
Part 5:
Recommendations:
MGT2230 Manager’s HOT seat Page 7

Formulation of a policy which will deter the employees from misusing the benefits as well as
perks offered to them. As per the policy, the employees who are indulging in such kinds of
actions will be giving an initial warning and also placed under an observation period. During
this observation period they would not be entitled to any benefits or perks of the organisation
and depending on their behavior and performance in this observation period they would either
be terminated or reinstated with the organisation. The organisation will initially have to spread
awareness regarding the need to use the benefits or perks in an ethical manner and also the
repercussions that might follow in the case of failure to do so.
Specific The specific goal is to spread information among the employees regarding
the importance of utilising the benefits or perks which have been given to
them in an effective manner and also the penalties that might be imposed.
Measurable The organisation can measure the success or the failure of this program
through the reduction or the increase in the number of cases of the misuse
of the benefits or perks given by the organisation to the employees.
Achievable This is a completely achievable goal although the organisation would have
to take the help of effective monitoring as well as controlling measures
Realistic This is a realistic goal since it will enable the organisation to deter the
employees from misusing the benefits and perks given to them and
thereby avoid the misuse of the resources of the organisation. This in turn
will encourage the employees to use the benefits given to them in an
effective and thereby enhance their performance which is the main goal of
the organisation.
Time 1 year
MGT2230 Manager’s HOT seat Page 8

Implementation Schedule:
Stage 1- At the initial stage, analysis would be conducted by the organisation regarding
performance of the employee who is believed to have taken undue advantage of the benefits or
perks given by the company. A warning is being served to the concerned employee.
Stage 2- An interview of the concerned employee with the management team and the HR of
the company is being scheduled wherein the employee would be given the opportunity to
defend their actions. This would take place within 48 hours of the initial detection.
Stage 3- If the management team and the HR find that the concerned employee had willingly
miss-utilised the benefits or perks given to them then they are placed in an observation period
of 2 months during which they would not be entitled to any benefits or perks that they had
enjoyed earlier. The General Manager and the HR Manager would be the head of the
observation panel.
Stage 4- The behavior as well as the performance of the concerned employee during this time
is observed and if any signs of improvement are being shown by the employee then he or she
is reinstated with all their earlier perks or benefits or else terminated. More importantly, the
employee who had been reinstated would be entitled to remuneration for the benefits or perks
that was their due in the last two months.
MGT2230 Manager’s HOT seat Page 9

Part 6: Sample Policy & Procedures
Part 6: Benefits Misuse Policy
Overview
This policy is intended to discourage the employees from taking undue advantage of the
benefits or the perks that had been given to them. Ass per this policy, the employees found to
be indulging in such actions would be given a warning and would be given a chance to defend
their actions before the management and HRM team of the organisation. If they are found
guilty then they would have to undergo an observation period of 2 months in which their
performance and behavior will be observed and they will not be entitled to any benefits or
leaves. On the successful completion of this period they would be reinstated and given
remuneration for the benefits or perks of the two months that they have been deprived of
however failing to successful completion of the period would lead to termination. Most of the
communication would be conducted either on a face-to-face basis or via electronic mail.
Purpose
The purpose of this policy is to control the misuse of the benefits or perks which are being
given to the employees by the organisation.
Scope
The policy would be effective in terms of monitoring as well as controlling the instances of the
misuse of the benefits and perks given by the organisation. The proponents of the policy are
entrusted with the responsibility to regulate the behavior of the employees while they are
executing the activities.
Review
MGT2230 Manager’s HOT seat Page 10

After every six months, reports would be established on the progress of the employees in terms
of their performance and also the use of the benefits or perks offered by the organisation.
These reports would be shared with the employees. Timely communication would be
conducted for assessing the issues encountered by the employees in the process of executing
the allocated duties and responsibilities and also the benefits or perks so as to avoid their miss-
utilisation.
Part 7:Conclusion
Part 7: Conclusion
The employees are provided with certain benefits so that they can not only perform as per the
expectations of the organisation but at the same time are able to get significant rewards
because of the same as well. More importantly, it is seen that these rewards and benefits also
help the employees to maintain the right balance between their work and family life. However,
the employees sometimes miss-utilize the benefits, which compels the employers to encounter
certain difficulties. Furthermore, it is seen these not only take a toll on the resources of the
organisation but in the long-term even adversely affect its productivity as well. This is perhaps
one of the major reason why the organisations are increasingly coming forward with different
policies for the effective control of such misappropriation of the organisational resources.
MGT2230 Manager’s HOT seat Page 11

Part 8: Bibliography,Team Logs, Appendices, Peer Evaluations
Chen, Y., & Fulmer, I. (2016). Fine-Tuning What We Know About Flexible Work
Arrangements: Deconstructing Employees’ Experience. In Academy of Management
Proceedings (Vol. 2016, No. 1, p. 13192). Briarcliff Manor, NY 10510: Academy of
Management. Retrieved from https://journals.aom.org/doi/abs/10.5465/ambpp.2016.270
Content.eluta.ca, (2019). Top Employer: 3M Canada Company. Retrieved from
https://content.eluta.ca/top-employer-3m-canada
Huber, M., Lechner, M., & Wunsch, C. (2016). The effect of firms’ phased retirement policies
on the labor market outcomes of their employees. ILR review, 69(5), 1216-1248.
Retrieved from https://journals.sagepub.com/doi/abs/10.1177/0019793916644755
Jaworski, C., Ravichandran, S., Karpinski, A. C., & Singh, S. (2018). The effects of training
satisfaction, employee benefits, and incentives on part-time employees’
commitment. International Journal of Hospitality Management, 74, 1-12. Retrieved from
https://doi.org/10.1016/j.ijhm.2018.02.011
Karagonlar, G., Eisenberger, R., & Aselage, J. (2016). Reciprocation wary employees discount
psychological contract fulfillment. Journal of Organizational Behavior, 37(1), 23-40.
Retrieved from https://doi.org/10.1002/job.2016
Murray, K. (2019). Benefit packages fail to address the needs of a modern, diverse workforce.
Retrieved from https://www.theguardian.com/careers/benefit-packages-diverse-
workforce-employee-employer
MGT2230 Manager’s HOT seat Page 12