Final answer:
The question deals with the Business topic of employee retention and compensation in a college context. It involves understanding the different strategies organizations use to retain employees, including adapting to generational preferences and offering competitive compensation and benefits packages. The importance of investing in human capital through continuous training and development is also emphasized.
Step-by-step explanation:
Employee Retention and Compensation
The ability of an organization to keep its employees, known as employee retention, is a critical aspect of business management. Organizations that specialize in retaining employees often adopt hiring practices aimed at reducing firings and maximizing hirings relative to the company's size. Employee retention strategies especially need to cater to the motivations and expectations of different generations, such as millennials and Generation X. Unlike previous generations, these groups may have less inherent loyalty to a single employer and value meaningful work, regular feedback, and rewards.
Compensation and Benefits
Another key component to employee retention is compensation and benefits. A comprehensive compensation package includes:
Salary and benefits
Health benefits
Retirement plans, including pension insurance
Employer payments to Social Security
Unemployment and worker's compensation insurance
Other benefits like Medicare
Employers offering pensions are obligated to contribute to the Pension Benefit Guarantee Corporation, securing some pension benefits for employees in case the company fails to pay. Organizations are encouraged to invest in human capital through not only compensation but by providing growth and development opportunities, ensuring fair supervision and feedback, and maintaining professional relations.