Maintenance of Human Resources and 3 Important Aspects of It

Introduction

Human resources represent the most valuable asset of an organization, and their effective maintenance is crucial for both individual and organizational performance. Maintenance refers to the processes that ensure employees remain motivated, satisfied, and committed to organizational goals. This includes compensation planning, incentive programs, and the provision of benefits and services that collectively enhance the employee experience (Cascio, 2010). The integration of these elements fosters organizational stability by reducing turnover, improving morale, and ensuring sustained productivity.

Read More: Personnel Psychology

1. Incentives

Incentives are rewards intended to motivate employees to achieve specific performance targets. Aamodt (2015) distinguishes between financial and non-financial incentives, noting that both play essential roles in sustaining employee motivation. Financial incentives, such as performance bonuses, profit sharing, and stock options, provide direct monetary benefits, while non-financial incentives, such as recognition, job enrichment, and flexible work arrangements, offer psychological rewards.

Cascio and Aguinis (2018) argue that incentive systems are most effective when tied to measurable performance criteria and organizational goals. For instance, a sales team may be motivated through commissions tied to sales volume, while knowledge workers may respond better to recognition and career development opportunities. By carefully designing incentive programs, organizations can balance extrinsic and intrinsic motivators, thereby fostering both short-term productivity and long-term engagement.

2. Compensation Plans

Compensation systems form the backbone of human resource maintenance. Compensation typically includes base salary, merit pay, and variable pay elements such as bonuses. Cascio (2010) emphasizes that compensation must satisfy two critical criteria: internal equity and external equity. Internal equity ensures that employees perceive fairness in pay relative to colleagues within the organization, while external equity ensures competitiveness with market standards. Failure to maintain these forms of equity often leads to dissatisfaction and higher turnover.

Compensation System

Strategic compensation planning also serves as a tool for aligning organizational and individual objectives. Aamodt (2015) notes that compensation systems should be transparent and merit-based to promote trust and fairness. When compensation reflects performance and contribution, employees are more likely to remain engaged and motivated to achieve organizational goals.

3. Benefits and Services

Beyond direct pay, organizations provide benefits and services to enhance the quality of work life. These include health insurance, retirement plans, paid leave, and wellness initiatives. Cascio (2010) argues that benefits are not merely supplemental but are integral to retaining a committed workforce. For instance, comprehensive healthcare plans not only support employee well-being but also reduce absenteeism and improve morale.

Elements of Compensation

Services such as childcare, transportation assistance, and employee assistance programs address employees’ non-work needs, thereby reducing work-life conflict (Cascio & Aguinis, 2018). Aamodt (2015) suggests that benefits and services can significantly influence organizational attractiveness in competitive labor markets, where talented employees often consider benefits alongside salary when making employment decisions.

Conclusion

References

Aamodt, M. G. (2015). Industrial/organizational psychology: An applied approach. Cengage Learning.

Cascio, W. F. (2010). Managing human resources: Productivity, quality of work life, profits. McGraw-Hill Education

Cascio, W. F., & Aguinis, H. (2018). Applied psychology in human resource management. Pearson.