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Employee benefits are viewed by many organizations as a necessary evil, something they have to provide because their competitors do and because employees expect it. Frequently, not enough thought is given to the long-term implications of employee benefits. Instead, benefits decisions rely on past practices or react to current circumstances. However, research shows that employee benefits can have a substantial impact on employee retention, attraction and performance. Benefits can also impact an organization's bottom line because of their high costs. Thus, there is a growing belief that benefits should be viewed strategically, focusing on how benefits can specifically help organizations achieve their strategic goals, leading to a sustainable competitive advantage.
This special issue is composed of articles that take such a focus. In this article, we will lay out various mechanisms that provide a clear connection between specific benefits (and benefits plan features) and important organizational outcomes. The other papers in this special issue help elaborate some of those connections. Research shows that total rewards receive much more attention for HR practitioners than HR academics (Deadrick and Gibson 2007). We hope this special issue will stimulate more research on topics that matter to HR professionals and organizations.
BENEFITS IN A TOTAL REWARDS FRAMEWORK
The concept of total rewards includes compensation, benefits, work-life balance programs, recognition programs, performance management and talent development. In this issue, we view employee benefits as a broad category that includes traditional, tangible, nonmonetary benefits (such as health insurance, retirement plans, payments for time not worked, etc.); non-traditional benefits (such as scholarship programs and financial assistance); and intangible benefits (such as flexible work options and workplace environment). This broad view captures the current trend toward seeing benefits as a strategic tool to support employee well-being and retain, attract and support more productive employees (Block and Davidson 2019).
Hundreds of benefits can be offered, and within each benefit there are many levels of support and features that can differ. For example, when offering a 401(k) plan, organizations have many options with respect to vesting schedule, matching level, matching caps, menu of investment choices, etc. Additionally, decisions regarding the administration, process and practices of the benefits are also likely to affect important employee and organizational outcomes. Thus, decisions regarding flexibility, communication, platforms and eligibility...