What is the effect of benefits and compensation plans on the overall performance of the employees?

Background of the Case Study
This case study is of BOX, a cloud storage technology company optimized for file sharing and collaboration. The company was founded by a student at the University of Southern California and his high school friend. The organization started with less than ten employees, but it grew to over 1000 employees ten years later. Box organization derives satisfaction from self-starters and are determined to grow their careers, and through it makes a positive impact in the company, the company helps create future entrepreneurs.
To entice and maintain the best employees’ companies offer a package in incentives, bonuses, or other benefits such as health insurance, yearly salary increases, and paid vacation, among others. The outcome of compensation on productivity varies from company to company. Armstrong (2008) argued that lack of compensation could cause demotivation in employees, and its provision guarantees various permanent factors that might lead to evaluation of benefits and compensation package. This includes; supply and demand, cost of living, and personal qualifications, competitive determinants.
Supply and Demand
There are certain positions with very few people with the qualifications needs a company may decide to offer a higher package to attract candidates.
Cost of Leaving
Life in urban areas is more expensive than in rural areas, and hence compensation package should match that.
Personal Qualification
An employee with more experience will earn more than the one with less experience
Competitive Determinant
It is crucial to analyze to find out how much people in similar positions are earning.
Problem Statement
It was unclear how Box company’s benefits and compensation package was ranked in the labor market. A poor benefit and compensation package could make it difficult for a company to attract and retain competent employees (Idris, Adi, Soetjipto, & Supriyanto, 2020, p. 735). It is proven that high pay can increase the number of qualified applicants who are likely to take the job offer (Reddy & Santosh, 2021, pp. 1769-1776). The company benefits and compensation package included the salary/wages, health and life insurance, retirement benefits, Incentives, bonuses, overtime, vacation time, or salary increment.
Purpose of the Case study
The perception analysis conducted gives insights into how an effective compensation plan can be devoted to suit the ever-rapid changing labor market dynamics. The study was conducted as a case study, and it is essential to understand how various compensation strategies influence the performance of the employees in the organization (Reddy & Santosh, 2021, pp. 1769-1776). This was analyzed by getting opinions from the internal and external employees.
The case study analyzed other organizations’ benefits and compensation packages to understand better how effective their strategies are and determine how to fairly and appropriately reward employees for their work. Evidence has that similar companies may adopt different compensation plans, of which some may be effective than others (Idris et al., 2020, p. 735). The study also seemed to identify gaps in the current benefit and compensation plan, enabling the company to focus on creating strategies that will effectively bridge those identified gaps.
The case study analysis seemed to address the below aspects n the organization.
a) What is the effect of benefits and compensation plans on the overall performance of the employees?
b) What are the critical issues concerning the organization’s current benefits and compensation plan that the management should address?
c) What are the critical insights into the current benefits and compensation plan position compared to another similar organization’s compensation plan?
d) What are the gaps identified in the current benefits and compensation plan in the organization?
An Analysis of Benefits and Compensation Plan at Box Company
As described by Hoque, Awang, Siddiqui, and Sabiu (2018, pp. 1937-1937), compensation is the money that employers give employees in return for work and forms a critical part of the relationship between the company and the employee. Box, an organization based in California, adopts a culture that nurtures self-starter’s employees and assists them to grow their careers fatherland hence making a significant impact. The company is diversified and inclusive in employee profile and demographics (Viswanathan et al., 2018, pp. 368-381). Like other otherizations, Box has different levels of benefit and compensation for their employees, including salary and wage, Health insurance play, salary increment, and incentives.
Salary and Wage
Wage and salary are the compensation made to employees for the work done, and the work could be either be physical or mental (Hoque et al., 2018, pp. 1937-1937). Wages and salaries always include other benefits like health insurance, sick leaves, holiday leave, and pensions, among others. Additionally, compensation can also be paid in bonuses, commissions, or salary increments, which depend on group or individual performance. In Box organization, the employees are entitled to a monthly salary, and it varies according to job descriptionist also has a provision of a reward of annual salary increment to the best performing staff, the staff was able to be identified through an introduced formulaic systematized performance system where employees are evaluated (Reddy & Santosh, 2021, pp. 1769-1776). Box also offers annual bonuses to its senior directors; the other staffs’ bonuses were congregated to form part of the salary.
Recruitment and Compensation
Compensation may serve several purposes helping in recruitment, job performance, and job satisfaction. Benefits and Compensation plans can be used to; hire and maintain qualified employees and motivate staff, leading to employee job satisfaction and reducing employee turnover (Sidabutar, Syah, & Anindita, 2020, pp. 1-5).
A company may feel the need to adjust the benefits and compensation plan depending on the business needs or available resources, like the case of Box company, during the initial start of the company. The employees did not focus on the compensation aspect of the job. They were focused on building the business and is as much as the compensation was low during that time, they trusted that the equity would pay off someday. The company grew, and their compensation shifted to a larger scale since the company had expanded and its returns had increased.
Haring and retention of competent, qualified employees is a vision that is shared but lots of organizations. However, the benefit and the compensation package might sometimes determine the pool of applicants attracted to the job. During the struggling phase of Box company, they had a problem attracting a comment employee in engineering, and this affected the company’s ability to meet its business goal, this was because, at that time, the organization had no resource to attract the most qualified candidates in the competitive labor market.
Essential Components of a Benefit and Compensation System
At Box Company, the hiring process started with the hiring manager, who developed the job description and gave it to a recruiter. The recruiter would then shortlist qualified candidates and forward resumes to the hiring manager. When a diction has been made, the recruiter will screen the candidate via phone and then interview team members. Everyone would give their feedback through the Box’s Applicant Tracking System (recruitment software) and then meet to analyze the candidate’s performance. If the hiring manager approves the candidate, the recruiter will send an offer approval thread via e-mail to Levee and Smith (Owners), including a compensation package determined by the compensation team. Any organization must have a clear understanding of the various laws and policies of the land tube able to come up with a practical benefit and compensation plan. Different companies make use of similar components like job descriptions and write structures to develop a compensation system.