(Solution) CIPD 5HR03 different types of benefits offered by organisations and the merits of each. (AC 1.4)
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Description
Solution
Benefit
CIPD (2023) defines benefit is an advantage or profit gained from something that helps or assists employees to improve their well-being, such as healthcare, paid time off, retirement funds, or financial perks.
Financial benefit
Performance bonuses
GA Pensions could offer performance bonuses incentivise strong annual results by rewarding employees who exceed objectives with additional monetary rewards paying out immediately.
Performance bonuses can drive higher productivity and motivate staff to surpass goals (Kagan, 2022). However, they also involve substantial financial cost and may increase political tensions between high and low performers if not structured equitably. Clear communication is needed regarding targets and payouts.
Non-Financial benefit
Flexible working arrangements
Flexible working arrangements allow employees to balance work responsibilities with personal commitments, improving work-life integration and job satisfaction as reported by UN (2023).
Flexible working appeals to work-life balance seekers and helps retention, but can be challenging to implement due to monitoring and communication issues. It may create perceptions of unfairness and lower in-office collaboration if not applied consistently (Minutedock, 2020). Clear policies are needed regarding availability and accountability.
Similarities
Both performance bonuses and flexible working arrangements aim to improve employee satisfaction and productivity. They reward high performance and accommodating personal needs respectively. When implemented effectively with transparent policies, goals and guidelines, they can motivate staff and enhance commitment to the organization. However, inconsistency in application may breed resentment and perceptions of unfair treatment requiring careful management and communication.
Differences
| Performance bonuses
|
Flexible working arrangements
|
| · Performance bonuses are a direct financial incentive aimed at rewarding employees who exceed set targets and goals with an additional monetary payout.
· Performance bonuses have clearer monetary outcomes (Best of HR 2023). |
· Flexible working on the other hand is an indirect, non-financial benefit focused on improving work-life integration and satisfaction by allowing employees to balance work with personal commitments through flexible schedules or locations of work (CIPD, 2018)
· Flexible working has less tangible benefits and can be more difficult to implement and monitor consistently across employees. |
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- In conclusion, the findings in this report indicate that Woolworths is currently using Ariba and SAP systems. This study covers the annual spend of Woolworths, the portfolio of Woolworths, their Category and Risk Management.
- Based on the study, Woolworths have to reduce their annual costs, and this may be supported by automation of as many processes as possible and this will also improve their efficiency and effectiveness levels.
- Woolworths also has made significant efforts in categorising its products and managing supply and other risks by having a wide pool of suppliers.
- Further, the introduction of online shopping has greatly boosted their market reach and their competitiveness.
- Woolworths also has to consider grouping all its purchases into categories. This will greatly ease the amounts spent on buying individual items since bulk purchases allow for great discounts due to the economies of scale.
- Further, category management will ensure that the entire supply chain is managed effectively and efficiently with minimal instances of supply chain disruptions.
- Woolworths also must prioritise its stakeholders and acknowledge the role that each stakeholder plays and how this contributes significantly to the overall growth of the firm.
- Stakeholders have to be informed and involved when major decisions are to be made as this will enrich the strategies, contributions and suggestions brought forward.
- Stakeholder analysis is also key to maintain the stakeholder relations which improves not only the reputation of Woolworths but also the market share of Woolworths. This gives them a niche in their market.