Innovative Benefit Practices
Fortune 500 companies intact a highly successful and innovative benefits practice supporting their dominance against competing companies. Benefits practices that integrate incentive and pay systems with corporate values and operations determine employee retention and company longevity. Leave programs do not play a significant role in the overall success of company business practices. I have 15 years of experience within the U.S. military and intimately understand the benefits practices. The research indicates that top company innovative benefit practices would support the current recruiting and retention crisis within the Department of Defense (DoD). These practices also reflect Biblical values that build faith-based effort and performance.
Discretionary Benefit Practices
Martocchio (2020) describes benefit practices as company expectations linking reward and compensation systems with company values and operations. Top-performing and most desired Fortune 500 companies operate under an innovative 50/50 rule. Benefits, rewards, and compensations are 50% of achieved results and 50% of the innovative and skilled effort provided to accomplish the company mission (Dominick et al., 2021). Higher levels of business success, retention, and value dedication develop from employee alignment and engagement with the leadership of the organization (Shrotryia & Dhanda, 2020). These benefits are not mandated by law but solidify the buy-in and commitment employers need to grow through innovation and expansion. State and Federal laws require companies to offer mandatory benefits like leave.
Leave & Vacation Practices
Since the Family and Medical Leave Act (FMLA) passed, several states and municipal governments have enacted legislation requiring businesses to offer paid family and sick leave (Martocchio, 2020). The likelihood of company success is higher for businesses offering stability benefits, healthcare insurance, reimbursement for education, and retirement programs. Company exit rates are not caused by businesses that offer flexible perks, monetary options, holding shares, bonus compensation, and paid sick and time off (Boudreaux, 2021). Therefore, leave and vacation benefits (outside what is legally required) do not substantially impact employee performance or commitment. My experience with military leave/vacation would suggest the Department of Defense (DoD) agrees with this information. However, I would disagree based on the current retention results.
Challenges with U.S. Military Benefits Practices
Martocchio (2020) informs readers that company benefits must be financially sustainable, match the values of the business, and meet the desire/needs of employees to be effective. As an Active-Duty military member, many benefits encompass special pay and allowances based on rank, time in service, and specific careers. We also receive additional compensation based on the danger/deployment location and mission (Armey et al., 2022). These incentives ensure a higher pay rate compared to the civilian sector. However, these benefits are not maintaining a suitable military force given the current concerns of lower retention and inadequate recruiting numbers. Additionally, many Departments will likely miss their recruiting goals for the 2023 fiscal year. The DoD would probably see improved recruiting and retention of military leaders, and Congress advocate for the 50/50 rule. The rule has achieved great success through the top 500 companies and mirrors Biblical values.
Biblical Integration & Conclusion
God defines diligent effort as a discipline and grants blessings to those who give their best work (Pro, 10:4, NIV, 2022). Discretionary benefits can vary between companies. The most successful companies build a 50% effort to 50% performance measure to ensure business success and retention. Building employees through effort-based performance creates an element of faith-based work. The art of Christianity is accepting human nature and striving to be Christ-like (2 Pet 1:5, NIV, 2022). The DoD would benefit from adopting the innovative half-effort/half-impact measurements for benefits. Recruitment and retention would likely increase. Employee job satisfaction would also improve, over overtime.
References
Armey, L., Kniesner, T. J., Leeth, J. D., & Sullivan, R. (2022). Combat, casualties, and compensation: Evidence from Iraq and Afghanistan. Contemporary Economic Policy, 40(1), 66-82. .
Boudreaux, C. J. (2021). Employee compensation and new venture performance: Does benefit type matter? Small Business Economics, 57(3), 1453-1477. .
Dominick, P. G., Iordanoglou, D., Prastacos, G., & Reilly, R. R. (2021). Espoused values of the “Fortune 100 best companies to work for”: Essential themes and implementation practices. Journal of Business Ethics, 173(1), 69-88. .
Martocchio, J. J. (2020). Strategic compensation: A human resource management approach (10th ed.). Upper Saddle River, NJ: Pearson ISBN: 9780135175910.
New International Version (NIV) Bible. (2022). BibleGateway.com. .
Shrotryia, V. K., & Dhanda, U. (2020). Development of employee engagement measure: Experiences from best companies to work for in india. Measuring Business Excellence, 24(3), 319-343. .
