Human Resource Research Paper 1
HumanResource Research Paper
Organizationsjoining the market to participate in the production of commoditiesand delivery of services is increasing. The population of skilledworkers is also high, but employees prefer working with the highlytalented individuals because of their unique contribution to thesuccess of the firm. Human resource executives suggest that one ofthe ways of acquiring the multi-talented people is by offering themwith cutting-edge health programs. The healthcare packages performvarious roles such as attracting and retaining workers. The papersuggests that companies also need to implement strategic competitiveadvantage by ensuring product differentiation and efficiency.However, organizations are likely to experience various challengesduring their implementation requiring them to focus on an approachthat shall promote sustainable competitive advantage.
Employees play a crucial role in the success of an organization.Employers have a responsibility of ensuring that their workersmaintain a positive attitude towards fulfilling their duties. Theyboost the morale of their staff by offering attractive incentivessuch as health care and retirement packages. Hewitt Associates isamong the leading human resource consultants in the country. Thecompany recently conducted a survey that found that hiring andrecruiting officers adopted either the stop light-to-stop light roador the superhighway with regards to healthcare benefits. An analysisof the Human Resource executives’ approach indicates that currentand future organizations view its workforce as productive and offer acritical business advantage to their firm. Hence, they shall providethem with cutting-edge health care programs.
Health care benefits are significant to the company today and infuture. One of the advantages is that it allows the employers toattract and retain highly skilled employees in their firms. Accordingto Torella & Siegel (2016), if other competing businesses withinthe industry are not offering health insurance to their staff, mostqualified workers shall be willing to work for an organization thatdoes. Hence, companies are likely to achieve a higher competitiveposition in the market by offering their employees cutting-edgehealth care programs. Another role of healthcare benefits is that itensures the workers remain healthy while working at the firm. It isargued that when people obtain medical coverage, they can engage inpreventive care practices such as going for annual checkups. Doctorscan detect early signs of diseases and prevent individuals sufferingfrom serious illnesses (Bates, 2016). They also get to provide theirpatients with crucial information such as the importance of properdiet and physical exercise that can help in preventing them fromcontracting chronic diseases. Therefore, workers with insurancecovers can access preventive care and lead healthy lives that allowthem to be available to perform their duties at work.
Health care benefits serve as a tool used by organizations as thebasis for strategic competitive advantage. Although most employeestend to focus on the amount of salary they receive, they alsoconsider whether the insurance covers they receive meet their needs(Torella & Siegel, 2016). A company can implement strategiccompetitive advantage by product differentiation. If other firms areproviding only medical insurance, one can minimize competition bygiving them a comprehensive cover that insures them from other riskssuch as accidents or that covers their family as well. The highlyskilled workers shall be willing to work in the organization for alonger period because of the product differentiation. Health carebenefits can also promote strategic competitive advantage byimproving efficiency that leads to cost advantage. When employees areprovided with medical insurance covers, the company saves them ofexpenses incurred in hospitals and ensures their wellness. A goodhealth allows the staffs to perform their duties with morale whichresults in increased productivity within the firm (Torella &Siegel, 2016). The high performance by the employees provides theorganization with a competitive advantage that leads to the company’ssuccess.
As firms try to implement the strategic competitive advantage throughthe health care programs, they are likely to encounter variouschallenges. One of the issues could be the threat of substituteproducts in the market. Other rival firms may copy the strategiesthat the company implements resulting in increased rivalry. Providingemployees with similar or enhanced goods and services increases thechances of workers shifting to the other organizations (Bates, 2016).Another challenge arises from the fluctuating market trends. Thechanges in the tastes and preferences of consumers affect the pricesof commodities (Liu, 2013). Therefore, obtaining affordable insurancepackages for a company might be a challenge particularly when themarket conditions are characterized by issues such as inflation andperiods of recession.
Due to the high level of competition experienced in the market todayand in future, organizations need to implement specific approachesthat enable them to remain competitive. The most appropriate way ofachieving sustainable competitive advantage is getting into long-termcontracts with employees (Liu, 2013). Workers can only agree to getinto long-term relationships if they have successfully worked withthe company for a short period. Based on their experience during thelimited duration, they shall decide whether to work for many years.Therefore, employers can achieve sustainable competitive advantage byproviding the staffs with good incentives such as the healthcarebenefits, fair salary, and bonus. When the employees are satisfiedwith the terms of the contract, they are less likely to switch toother competitor firms. Employers need to research the market andidentify factors that are likely to affect their business operationsin the future. The findings of the report shall help the managers todetermine the essential elements that need to be included in theemployment contract of their employees to ensure they continueworking in the firm. For instance, if the cost of living is expectedto increase, the company may develop a plan on salary increment infuture.
In conclusion, when workers are offered the cutting-edge health careprograms, their productivity increases enabling the firm to enjoy asignificant business advantage. Health care incentives alloworganizations to attract and retain highly talented employees. Italso enables the workers to remain healthy as they perform theirduties. Product differentiation and promoting efficiency are toolscompanies can use to implement strategic competitive advantage.However, they may face challenges such as the threat of substitutionand fluctuating market trends. Therefore, to achieve sustainablecompetitive advantage in future, human resource executives need toemploy workers on a long-term basis to minimize their ability toswitch to other rival firms.
Bates, S. (2016). Making Benefits Measure Up. HR Magazine,61(7), 46-52.
Liu, Y. (2013). Sustainable competitive advantage in turbulentbusiness environments. International Journal of ProductionResearch, 51(10), 2821-2841.doi:10.1080/00207543.2012.720392
Torella, J., & Siegel, D. (2016). Employee Benefits. Long-TermLiving: For the Continuing Care Professional, 65(1),20-22.