ADM 551 HUMAN RESOURCES MANAGEMENT

FACULTY AND PROGRAMME

ADMINISTRATIVE SCIENCE AND POLICY
STUDIES (AM228)

SEMESTER: PART 4

GROUP PROJECT (BENEFITS AND SERVICES)

REPORT TITLE
DISCUSS ANY FIVE (5) CHALLENGES OR PROBLEMS ASSOCIATED WITH, AND
FIVE (5) RECOMMENDATIONS TOWARDS THE EFFECTIVENESS OF THE
FOLLOWING HUMAN RESOURCE MANAGEMENT ACTIVITIES:

PREPARED BY

NO. NAME OF MEMBERS MATRIC NUMBER

1 Nurul Syazleena Binti Badrol 2022905885

2 Nurain Nuha Binti Mazlan 2022940499

3 Nur Athirah Binti Rusdi 2022930717

4 Aina Nadhirah Binti Rusdi 2022930417

5 Nur Alia Nadhirah Binti Rosli 2022745875

CLASS GROUP : AM228-4C (GROUP 6)

PREPARED FOR : NUR AIDA BINTI MOHD KAMAL

DATE OF SUBMISSION : WEEK 11

 TABLE OF CONTENTS

1.0 INTRODUCTION .............................................................................................................. 1

2.0 CHALLENGES OR PROBLEMS ASSOCIATED ........................................................ 2

2.1 MAKING UNBIASED EMPLOYMENT DECISIONS ............................................. 2

2.2 DIFFICULTY TO UNDERSTAND BENEFITS ........................................................ 3

2.3 UNCLEAR EMPLOYEE HEALTHCARE NEEDS .................................................. 3

2.4 MULTI GENERATIONAL WORKFORCE .............................................................. 4

2.5 UNMOTIVATED WORKER ....................................................................................... 4

3.0 RECOMMENDATIONS TOWARDS THE EFFECTIVENESS .................................. 5

3.1 ADOPT STRICT PROCEDURES AND JOB RESPONSIBILITIES ...................... 5

3.2 HELPING THE EMPLOYEES TO UNDERSTAND THE BENEFITS .................. 6

3.3 PROVIDING ADDITIONAL CUSTOMIZABLE AND ALLURING BENEFITS

TO ADDRESS HEALTH-RELATED ISSUES................................................................. 7

3.4 FINE-TUNE YOUR INCLUSIVE HIRING PROCESS ............................................ 7

3.5 PROVIDE SPECIFIC SERVICE FOR THE EMPLOYEES. ................................... 8

4.0 CONCLUSION................................................................................................................... 9

5.0 REFERENCES ................................................................................................................. 10

ABSTRACT

Indeed, benefits and services in human resource management (hrm) are critical components

of any organization. According to the discussion during the report's writing, the focus is on the

relevance of any issues or problems encountered by human resource management in providing

or offering benefits and services to employees. In dealing with it, as stated in this report, the

most effective approach should be properly evaluated by (hrm) to provide the best way such

as tight protocols and work responsibilities. Excellent human resource management (hrm)

considers all human management issues as a means of improving employee well-being in terms

of benefits and service.

1.0 INTRODUCTION

Indeed, the benefits and services in human resources management are very significant to

employees and even employers. The provision of non-cash remuneration to employees is

referred to as benefits. In other words, benefits are something offered by the organization to

the employee's other than salary or wages (Azmi, 2022). Meanwhile, benefits in service refer

to employee-beneficial services provided by an organization. Therefore, these benefits and

services are interdependent in that both have an impact on the company as a whole in order to

attract the interest and excitement of the employees so that they always have a passion for their

work and a sense of well-being, which leads to their loyalty to the organization.

Factors that contributed to the formation of these benefits and services include sustaining

employee happiness and behavior in serving the employer's interests, as a result of which the

employee will be more devoted to and loyal to the employer, so enhancing organizational

performance (Dulebohn , Molloy, Pichler, & Murray, 2009). Among these are employee-

requested benefits & services such as health insurance, pension plans, and welfare plans such

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as health programs. Offering more enticing incentives to employees provides them a

competitive advantage in the market

2.0 CHALLENGES OR PROBLEMS ASSOCIATED

2.1 MAKING UNBIASED EMPLOYMENT DECISIONS

Firstly, when making a decision, it will affect the employer because they need to make

sure that the benefit and service that they give to the employee will not feel unbiased to their

employee. The deliberate or unintentional assumptions made when selecting candidates,

allocating tasks, or contrasting employees in other ways are known as bias in the workplace.

Most bias is either conscious or unconscious, and both require knowledge of and instruction to

combat.

In addition, as HR professionals, they are an advocate for the organization and the

employees. Senior management and low-level employees, serve as the intermediary. Given that

access to so much employee information, it can be challenging to make impartial hiring

decisions (e.g., health records, performance reports, etc.). For instance, HR might re-evaluate

an employee's future with the company if they are underperforming and costing you a lot of

money in medical expenses.

Lastly, (Mack, 2017) also mentions that some instances of bias at work are against the

law. For instance, it is probably illegal to choose whether to promote or demote a worker based

on their race. By taking all reasonable measures to make sure the employer decision-making

process is fair and equitable to all parties involved, they can reduce bias.

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2.2 DIFFICULTY TO UNDERSTAND BENEFITS

Due to a large number of benefits and services available, employees frequently have

difficulty investigating this area on their own. Human resource professionals are responsible

for teaching employees about the benefits and services available and which packages provide

the best opportunities for them and their families in order to increase employee engagement

and retention. Furthermore, without the assistance of a trained broker with years of experience

in this area, finding the correct insurance services and communicating the value to the staff can

be challenging. (Alight, 2022). Furthermore, according to data, more than 80% of employees

are confused about their benefits. For the first time, Generation Z employees are researching

benefits information and are confused by the plan options and coverage options. For the

majority of benefit plans, employees are encouraged to use internet websites and smartphone

applications. Younger employees are more likely to use cutting-edge technology than older

employees (Ameritas, 2021). This is why many employees were unaware of the company's

benefits and services.

2.3 UNCLEAR EMPLOYEE HEALTHCARE NEEDS

The alignment of employee healthcare requirements and benefits packages is one of the

largest areas of loss in the entire human resources field. A waste of resources can occur when

benefit schemes are extremely generous. However, coverage gaps can have a severe financial

and human impact on employees. For this reason, it's essential to customize your benefits

packages to the demands of your employees in order to find the ideal balance between thorough

coverage and sensible costing. In this diagnostic job, analyzing employee healthcare

utilization data that is made available by your carrier can be quite helpful. The company can

only optimize its products if they understand what the employees actually need (Gierut, 2019).

For example, high voltage electricity maintainer workers might need more healthcare benefits

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compare to cleaner worker. This is because the power stations can generate electricity as high

as 800,000 volts, which is capable of killing tens of thousands of people (Suhaimi, 2017).

Based on my research, most of the company just encourage their employees to take care of

their health instead of preparing best practices or programs such as mental health apps to ensure

their healthy lifestyle.

2.4 MULTI GENERATIONAL WORKFORCE

A workforce made up of members from different generations is referred to as

multigenerational. Nowadays, it is typical for businesses to have employees from four to five

generations working side by side. Although a multigenerational workforce generally has

benefits, but there are some challenges to overcome. It's possible that people of different

generations have different expectations for their jobs. People can carry out their responsibilities

in a variety of ways, learn from trainings, and expect to have their performance evaluated

(Boatman, 2021)

Additionally, each generation may have different ideas about what constitutes a

desirable benefit package. Continue, the wide range of available benefits demonstrates that

organisations are aware of the need to be resourceful in allocating funds toward those benefits

that have the greatest impact on a diverse workforce and to complement expensive benefits

with less expensive options that cater to a range of employee needs (Alight, 2021).

2.5 UNMOTIVATED WORKER

Failures are brought on by unmotivated workers. These include the departure of staff

and a loss in production. Employees who don't seem to care about their jobs or the organisation

are more likely to look for work elsewhere. It's possible that this person will give you only a

brief notice before leaving, giving you little time to identify and train a replacement.

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Unmotivated employees are also less likely to deliver their utmost effort. They might submit

poor work, miss deadlines, or work slowly. In the end, it appears that causing a sense of loss

aversion links wage growth with productivity. In the end, it appears that causing a sense of loss

aversion links wage growth with productivity Additionally, because employers do not increase

compensation and bonuses appropriately with the volume of work they assign, it is a little

harder for employees to enhance their performance and level of job effectiveness. Employees

are consequently unmotivated and unproductive in accomplishing their tasks, and the outcomes

they deliver are not promising (Alight, 2021).

3.0 RECOMMENDATIONS TOWARDS THE EFFECTIVENESS

3.1 ADOPT STRICT PROCEDURES AND JOB RESPONSIBILITIES

The organization's offer of benefits and services can be unfair and unequally distributed

among all employees. As a result, establish strict procedures and job responsibilities. This is

because the process of granting benefits, which must be fair and given to all staff without any

bias based on rank, can indirectly reduce the culture of favoritism. Furthermore, the presence

of job responsibilities and stricter procedures will result in professionalism that rejects the

benefits of favoritism, which clearly recognizes that it is not a reasonable method towards the

organization (Smith, 2013). However, on the other hand, the granting of benefits only involves

a few staff or individuals, such as the best achiever award, it must be detailed according to the

standard and the criteria must be met to qualify a person to be entitled to it, and the process

cannot be careless, but it must be more detailed so that it is fairer to all. Therefore, be fair in

the offering of benefits not only with strict procedures but also work responsibilities from the

employer, giving an explanation of the work evaluation method that leads to the bonus or other

form of reward so that the offer is made more fairly and no one is oppressed (Forbes Human

Resources Council, 2020). For example, in the provision of fuel card benefits, it must be given

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to high-level positions and have requirements in the expense of work travel, among other

things, but a fair procedure must be provided in the claim procedure, among other things. This

is because a high position does not entitle one to an easy process, and it is not fair to others.

3.2 HELPING THE EMPLOYEES TO UNDERSTAND THE BENEFITS

The use of benefits improperly by employees is a common problem for human

resources staff. Most of the time, this is brought on by employees' ignorance of the advantages

that are offered, despite the fact that the existence of such perks was a major factor in their

decision to accept a position with their company in the first place. According to the (Forbes

Human Resources Council, 2019) there are several methods that Human Resources (HR) team

can encourage their employees to use and understand their benefits. Firstly, communicate the

benefits regularly. Most of the employees know about the benefits during open enrolment or

when they have a life event. Regularly promoting the benefits will boost adoption and use.

Create a strategy that takes the channels, content, and calendar into consideration. Utilize

important months to promote certain initiatives and invite your Employee Assistance Program

(EAP) vendor to give a talk.

Other than that, ask for employee feedback. The HR team must do a survey on how

employees feel so that they can improve workplace culture and employee benefits. As a result,

company leaders establish a trusting environment where workers freely offer their honest

opinions by rapidly acting on feedback. Lastly, make it super easy. Employees won't use

benefits if there are too many procedures involved in enrolling in them or simply learning about

them. Unless it is a critical issue. Changing the procedure may be the initial step, but if that

doesn't resolve the issue, getting feedback is essential

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3.3 PROVIDING ADDITIONAL CUSTOMIZABLE AND ALLURING BENEFITS TO
ADDRESS HEALTH-RELATED ISSUES

Over time, businesses have realized that their employees are critical to their success

and one of their most valuable assets. Like any other asset, organizations should plan to insure

their asset. Therefore, all companies should have the Employee Health Insurance. An

Employee Health Insurance Policy is a major benefit, especially for individuals who cannot

afford individual health insurance. The employees are not required to pay a premium for this

plan. It is paid by the employer on behalf of the employee. Employees are thus provided with

free health insurance coverage. In addition, employee Health Insurance companies have

relationships with top-tier hospitals that provide excellent medical care. If the employee is

covered by the policy and needs to be hospitalized, they can be admitted to the selected

hospitals. In the absence of such coverage, medical care may be extremely expensive. Hence,

Employee Health Insurance is now common procedure for people-oriented businesses in terms

of hiring and retention. While the provision of such a perk may not be the main reason for an

employee to join or stay with the company for a long time, it can surely be a contributing factor

(Acko, 2022). As a result, this is why all organizations need to provide healthcare benefits for

the employees.

3.4 FINE-TUNE YOUR INCLUSIVE HIRING PROCESS

According to (Innes, 2021), it is simple to unconsciously hire people who reflect your

own image and to favour those who have similar experiences to your own. A more diverse

interview panel fosters a more equitable hiring process by bringing a range of viewpoints to

the table. Besides, it frequently produces candidates of a higher calibre than those found

formally or through existing networks. However, the best solution to overcome the challenges

which is a multi-generational workforce is by fine-tuning the inclusive hiring process.

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 Secondly, the benefit when they started to fine-tune the inclusive hiring process is that

it will complement high-cost benefits with low-cost offerings that appeal to employees with a

variety of needs. Additionally, it will give the biggest impact on a diverse workforce. Thus,

HR must be creative in allocating resources toward those benefits that have the greatest impact

on a diverse workforce. However, according to (Wallace, 2021) , to achieve the desired

creativity, you must plan ways to encourage employees to come up with original ideas by

rewarding them. Establish a society that values the creation of knowledge. Numerous studies

have shown that financial incentives have a positive impact on employees' creativity. The

studies also support the notion that rewards like bonuses, pay increases, profit-sharing, and

stock options encourage employees to come up with new ideas.

3.5 PROVIDE SPECIFIC SERVICE FOR THE EMPLOYEES.

Employee benefits are broken down into employee services. Think of them as benefits

of the work. They are made to draw in new workers and inspire loyalty in current ones.

Employee services can be just as attractive to some employees as employee benefits, but from

the employer's point of view, they frequently cost far less than benefits. The purpose of

employee services is to simplify the lives of employees while they are working for the

organization. There are several examples of services that companies should prepare for the

employees such as self-care. Back, head, and full-body massages are just a few of the on-site

spa treatments that many employees find valuable. It allows them to focus on their personal

care while saving them time.

Other than that, with flexible working hours, employees are able to organize their

schedules and maintain a work-life balance as a result. Last but not least, food and drinks. Free

food and drinks may seem like a tiny gesture, but they may be quite attractive to new

employees. Free drinks and food, including snacks and fruit, are things that companies can

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provide (Ahmed, 2019). Google company is one of the examples that provide free lunch on the

company’s office campuses. The company provides various cafes, restaurants, and well-

stocked micro kitchens that give free meals to Googlers. Rarely are Google employees more

than 200 feet away from a meal. Additionally, they can choose snacks to save for later. If free

food isn't enough, staff members can use the complimentary culinary classes to learn how to

make delicious meals. The objective of Google is to bring together various divisions and

encourage employee interaction (Soregaroli, 2022).

4.0 CONCLUSION

In conclusion, when looking for a job, the benefits offered by a firm as part of its reward

system might be very important. Benefits enable workers to cover medical expenses, put

money down for retirement, and take time off when necessary. Understanding the value of

benefits packages can assist managers in offering more complete benefits to attract and retain

exceptional employees as well as assist staff members and job hopefuls in determining their

priorities for a position. In addition, Employee benefits raise the value of working for a specific

firm and can enhance the health and quality of life of you or your co-workers. Candidates may

examine the advantages that each company provides when applying for employment and

consider those in addition to compensation when determining where they wish to work.

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5.0 REFERENCES

Acko, T. ( 25 October, 2022). 10 Reasons Why Companies Should Offer Employee Health
Insurance. Retrieved from Acko: https://www.acko.com/10-reasons-why-companies-
should-offer-employee-health-insurance/#1-employee-benefit

Ahmed, A. (4 September, 2019). Definition of Employee Services. Retrieved from bizfluent:

https://bizfluent.com/facts-5751008-definition-employee-services.html

Alight. (30 December, 2021). Understanding Today's Multigenerational Workforce: Benefits,

Challenges, and 9 Best Management Practices. Retrieved from AIHR:
https://www.aihr.com/blog/multigenerational-workforce/#Challenges

Alight. (2022). Five challenges HR departments face with employee benefits. Retrieved from
Alight: https://www.alight.com/blog/five-challenges-hr-departments-face-with-
employee-benefits

Ameritas. (17 November , 2021). 5 Reasons Why Employees are Confused About Benefits.
Retrieved from Ameritas: https://www.ameritas.com/insights/why-employees-are-
confused-about-benefits-and-what-employers-can-do-
2/#:~:text=Often%2C%20they%20are%20preoccupied%2C%20thinking,tend%20to
%20understand%20their%20coverage.

Andrea, & Boatman. (30 December, 2021). Understanding Today's Multigenerational

Workforce: Benefits, Challenges, and 9 Best Management Practices. Retrieved from
AIHR: https://www.aihr.com/blog/multigenerational-workforce/#Challenges

Azmi, W. (21 July , 2022). Employee Benefits in HRM: 9 Types, Objectives, Features 2022.
Retrieved from StartupHR Toolkit: https://www.startuphrtoolkit.com/employee-
benefits-in-hrm

Boatman, A. (30 December, 2021). Understanding Today's Multigenerational Workforce:

Benefits, Challenges, and 9 Best Management Practices. Retrieved from AIHR:
https://www.aihr.com/blog/multigenerational-workforce/

Dulebohn , J. H., Molloy, J. C., Pichler, S. M., & Murray, B. (2009). Employee Benefits:
Literature Review and Emerging Issues. Human Resource Management Review, 86-
103.

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Forbes Human Resources Council. (27 November, 2019). 12 Effective Methods To Encourage
Employees To Use Their Benefits. Retrieved from Forbes Human Resources Council:
https://www.forbes.com/sites/forbeshumanresourcescouncil/2019/11/27/12-effective-
methods-to-encourage-employees-to-use-their-benefits/?sh=52e0b74f22c7

Forbes Human Resources Council. (20 February , 2020). 13 Techniques To Ensure Employees
Feel Fairly Compensated. Retrieved from Forbes:
https://www.forbes.com/sites/forbeshumanresourcescouncil/2020/02/20/13-
techniques-to-ensure-employees-feel-fairly-compensated/?sh=42fd5189108e

Gierut, S. (8 November, 2019). The Top 11 Employee Benefit Challenges Facing Today’s
Businesses. Retrieved from Launchways: https://www.launchways.com/the-top-11-
employee-benefit-challenges-facing-todays-businesses/

Innes, S. (08 November, 2021). Fine-tuning diversity for great hiring results. Retrieved from
HeraldScotland: https://www.heraldscotland.com/opinion/19697650.fine-tuning-
diversity-great-hiring-results/

Jaffee, D. (06 April, 2021). How to Make Unbiased Hiring Decisions . Retrieved from
AlignMark: https://www.alignmark.com/2021/04/06/how-to-make-unbiased-hiring-
decisions/

Mack, S. (21 November, 2017). How to Make an Unbiased Decision in the Workplace.
Retrieved from Small Business - Chron.com: https://smallbusiness.chron.com/make-
unbiased-decision-workplace-26039.html

Smith, J. (25 October , 2013). How To Deal With Favoritism At Work. Retrieved from Forbes:
https://www.forbes.com/sites/jacquelynsmith/2013/10/25/how-to-deal-with-
favoritism-at-work/?sh=a558fda2a8ce

Soregaroli, C. (11 August, 2022). 11 Awesome Google Benefits and Perks for Employees.
Retrieved from PerkUp: https://www.perkupapp.com/post/11-awesome-google-
benefits-and-perks-for-employees

Suhaimi, K. (13 July , 2017). 11 Pekerjaan paling bahaya di atas muka bumi. Retrieved from
Iluminasi: https://iluminasi.com/bm/11-pekerjaan-paling-berbahaya-di-atas-muka-
bumi.html#:~:text=Bekerja%20di%20tempat%20yang%20dipenuhi,diri%20anda%20
dalam%20keadaan%20bahaya.

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Wallace, S. (16 December, 2021). The 10 Best Ways Human Resource Can Improve Workplace
Creativity. Retrieved from Spiceworks 1:
https://www.spiceworks.com/hr/engagement-retention/articles/the-10-best-ways-
human-resource-can-improve-workplace-creativity/

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