Fringe Benefits and the HR Simulation
Every week when working on the HR Simulation, we have to make a decision about whether or not to increase fringe benefits. If we do decide to increase fringe benefits, we have to determine what benefits to add and therefore, how much to increase fringe benefits by. According to the simulation, benefits play a role in morale and therefore, employee productivity and retention. However, in class yesterday we learned that benefits have an even greater role in the workplace. The benefits a company offers can either attract or deter potential employees. As a result, benefits play a role in the hiring process. Personally, I think it would be useful to include this aspect of benefits in the simulation. After all, recruitment and hiring are aspects of human resources. Moreover, hiring employees is an aspect of the simulation as evidenced by both Incident D and the fact that we are responsible for figuring out how many employees to hire at each level each quarter. The results we get from Professor Poonamallee could include a section on how many potential employees were lost to other firms because of benefits. This section could be useful as it would help us see how the benefits each “company” in the simulation offers affects their abilities to attract employees and compete in the local industry. I believe that this would show us what benefits matter to people, and it would make the simulation more realistic.
Comments
Posted by: Jerald Smith
Posted on: November 18, 2006 02:19 PM
Hi! I am the guy that wrote this horrible! simulation that is making you work so hard!
I am replying to your comments. In the real world the firms that do HR right do an exit interview with employees who quit. However, sometimes the amployee just does not show up and there is no legal way to require them to be subjected to an exit interview.
So your professor is off the hook in telling you how many employees were lost because of fringes.
I will say that it IS a factor in the simulation in how many employees quit. How many is my secret!
I will say that even a 1% above industry average makes a difference. That is why you should buy market information.
Hope you enjoy "learning by doing."
Jerald