Human Resource Cost - Essay Example

This paper gives an analysis of the results obtained from StopNShop Today Inc, especially on the competitiveness of its benefits package and the benefits it accrues from the package.

As much as any organization must conform its benefits package to the prevailing ones within the economy it operates, it is also ethical that organizations make their packages more attractive and above their competitors to retain the best human resources within the market (Barnow et al, 2013). The review report from StopNShop Today Inc's study review of its packages reveals an interesting trend within the organization. More weight is given to wages and salaries as it forms the core of the organization’s incentive to its employees. This is followed by the total costs incurred on benefits to the employees with the rest given very little weight. Of more interest are the allocation to retirement and the savings that come with it. It is the least area over which the company allocates its resources.
The figure below shows the percentage growth packages allocation within the United States for the period between January 2004 and January 2014

The trend within the U.S. economy is of greater interest and explains further the recent decision by major organizations to review their benefits packages (Barnow et al, 2013). As of the year 2004 towards the year 2008, the general cost allocation to benefits and remunerations was on a declining slope which gives a reflection of the economic times during such periods. Between the years 2008 and 2010, there was a steady increase in the general allocation of resources to benefits and remunerations. Such an action reveals that the companies were experiencing an economic boom and thus could easily afford to increase the allocation of their resources to benefits.

The general trend in the statistics available at the U.S Bureau of Statistics shows that most organizations do allocate between 40% and 47% of their resources towards the benefits of their employees with the percentage allocated to retirement also being minimal just like the StopNShop Today Inc organization (Barnow et al, 2013). This reveals a common practice by organizations in that they do not want to invest their resources in areas that offer no benefits to them. A company should only invest its resources in things that are beneficial to it. Priority should also be given to the areas that are more beneficial in terms of resource allocation with the areas that are least beneficial receiving the least allocation.

StopNShop Today Inc has allocated more resources to salaries and other benefits as opposed to things like leaves, legal benefits requirements, or even retirement (Barnow et al, 2013). The company has sufficiently addressed the needs of its employees making them more satisfied on the job while at the same time ensuring that it gets maximum benefit from the resources allocated to these courses of action. The report reveals that the company does not pay more attention to the afterlife of its employees the moment they leave the organization which is an area of concern. But of greatest concern is the usage of the company’s resources on issues that are beneficial to it and grow its business. Thus the report is more satisfying in its current state and nature.