Essay on Legal Implications in Human Resources
Today most organizations operate in an intensely competitive environment. Those changes that have already taken place in organizations (“increasing globalization, reducing costs, becoming more competitive”) influence the traditional reward system (Chen & Hsieh, 2006, p.64). Moreover, many employers realize that the best employees who have the most highly valued skills work for more than just wages. They work for the companies “with a compelling future to offer, plus the chance to grow as individuals, a place that offers a positive work experience and total pay including base pay, benefits, incentives and recognition” (Chen & Hsieh, 2006, p.64). That is why it is very important for any organization to create an effective reward system.
TOTAL REWARDS CONCEPT
It is known that total rewards refer to the most significant tools available to the employer that may be effectively used for employees’ attraction, motivation and retention. Total rewards include everything the employees perceive to be of value resulting from the employment relationship. The major five elements of total rewards include compensation, benefits, performance and recognition, work-life, development and career opportunities. The major goal of the employers is to combine these elements in a proper way to achieve good results (World at Work, the Total Rewards Association, 2011, para.4).
PRACTICAL APPLICATION OF THE LAWS
As a HRM professional who knows all legal constraints an employer faces in the process of work and who takes into consideration the concept of total rewards, I am ready to discuss the types of employee benefits that I would offer to the employees.
First of all, I would offer those benefits that are mandated by the law, such as overtime, minimum wage, leave under the Family Medical Leave Act, unemployment compensation, workers’ compensation, COBRA benefits, health and disability benefits.
Secondly, I would offer those benefits that are not mandated by the law, but are chosen to increase the applicant’s interest in this or that position and the employees’ motivation and productivity. They include health insurance, accidental death and dismemberment insurance, paid holidays, vacation leave, and sick leave. Besides, I think that it is efficiently and correctly to offer such additional services as day care services for the employees’ children.
Thirdly, I would refer to five elements of total rewards concept and include different programs for development and career opportunities of the employees. It would be better to include a number of training programs and personal development programs.
As a HRM professional, I will pay special attention to the Employee Retirement Income Security Act of 1974 (or ERISA), an effective federal law which sets minimum standards for both the retirement and health benefit plans in private sector of industry. According to the ERISA, it is not required any to meet certain minimum standards. It is known that the ERISA covers retirement, health and other welfare benefit plans, such as life, disability and apprenticeship plans (Compliance Assistance, 2012, para.2).
In addition, I will try to minimize the growing risks of lawsuits from caregivers taking into consideration the following acts that protect caregivers: the Title VII of the Civil Rights Act of 1964, which eliminates job discrimination of employees on the basis of race, religion, sex, color, and national origin (Lau & Johnson, 2011, Ch.12), the Pregnancy Discrimination Act, the Family and Medical Leave Act, which prohibit caregiver discrimination, the Americans with Disabilities Act, the Equal Pay Act and the Employee Retirement Income Security Act (Zeidner, 2009, p.23-24).
Moreover, as a HRM professional, I will pay special attention to the implications of age discrimination and retaliation decisions for employers issued by the Supreme Court. It is known that “these decisions have been characterized as expanding employers’ burden of proof in responding to allegations and potentially increasing the cost to defend themselves in responding to allegations of discrimination” (Calvasina et al., 2008, p.2-3).
CONCLUSION
In conclusion, it is necessary to say that those companies that try to do the best job linking rewards to the employees’ performance and to attract and retain the best employees are the ones best positioned in the competitive environment. Any qualified HRM professional should remember that employees’ rewards can improve the employees’ motivation to perform their duties in a proper way what influences the organization’s productivity.
