Let Workers Work
In these difficult economic times, lots of companies are cutting benefits to maintain profits. So when Fortune magazine recently published its list of the "100 best companies to work for," I couldn't help but notice that lots of these companies are maintaining or even improving benefits such as medical care, onsite child care, fitness facilities, and so forth. Moreover, it turns out that firms that have made the list in the past have on average also done well in the stock market. So they must be doing something right. Are those on the list compiled by Fortune simply examples of successful companies that can afford to be nice? Or is there some link between generous benefits and an organization's performance?
Obviously, there is a link.{{U}} (9) {{/U}}For starters, it seems perfectly sensible that companies with generous benefits and employee-friendly policies attract a more motivated, higher-quality workforce.{{U}} (10) {{/U}}.
Consider health care and health insurance.{{U}} (11) {{/U}}For example, Definity Health, a recent entrant in the health-care-plan in business, supplies consumers with loads of information that it claims "empowers employees with greater control over health and wellness decisions," thus limiting costs to employers. The typical Definity Health plan, in fact, carries a high deductible to encourage patients to become cost-conscious health-care shoppers.
What's wrong with greater employee involvement and cost-consciousness?{{U}} (12) {{/U}}Having individual employees more actively manage their medical benefits — and, for that matter, 401 (k) and even flexible spending accounts — overlooks the advantages of specialization and the division of labor. Do you really want your people to spend their time becoming medical or financial experts, all while they're also engaged in a constant hunt to find quality child care? Wouldn't it be nice — and maybe even efficient — if someone with both knowledge and your employees' best interests in mind relieved them of those burdens?{{U}} (13) {{/U}}Health Advocate, a firm that hunched in January 2002, charges companies about $2 a month per employee to help their people deal with their health insurers. It has already signed up 122 firms.
Companies that successfully capture the motivation and energy of their workers operate under a simple premise:{{U}} (14) {{/U}}When their folks are at work, they want them to focus their energy on being productive.
A In an effort to control rising medical costs, many companies are experimenting with insurance plans that make employees more "cost-conscious" by having them take an active role in their health care.
B Clearly, some companies are beginning to realize that this is a problem. However, most CEOs and top executives don't have a clue how important that connection is.
D Here's a novel thought: Most employees want the same thing.
E Remove from employees as many extraneous burdens and worries as possible.
F But there is another, more important issue here: We're working our employees to the bone with all sorts of tasks unrelated to their jobs.
G Nothing, unless you think about the inevitable trade-offs in a worker's time and attention.
H Moreover, it turns out that firms that have made the list in the past have on average also done well in the stock market.