Employee Payment And Benefits And Success Of Zappos

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In today’s highly competitive industries, companies are forced to find ways to separate themselves from their near peer rivals. Organizational success depends on it. Every strong company views their greatest resource as their workforce and the contributions they make daily in achieving strategic objectives. It is critical for a company to find and sustain top candidates to build a high-performance team. One way to successfully recruit desirable applicants is by offering a relevant and generous compensation and benefits plan. Pay and benefits may be the deciding factor between an employee signing with a company or going to their largest competitor. Human resource managers within the business are responsible for creating a flexible and attractive pay and benefits package that is appealing and comparable to market standards, but within fiscal limits. An organization’s competitive advantage is driven by their compensation strategy and its effect on employee motivation and retention.
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The success of Zappos is due to their happy employees. Zappos’ offers a generous benefits package. The company has a robust health plan where they pay 100 percent of the medial expenses for the employee and their family members. Additionally, they have pre-paid legal services, employee discounts, free lunches, and carpooling service (Zappos, 2016). Zappos also has a nap pods, “an employee library, mandatory weekly team fun, $50 monthly coworker bonuses and even free puppies” (Zappos, 2016, p.1). Zappos’ leadership offers unique benefits to keep their employees happy. Their compensation model is to incentivize employee development. Initially, salaries may be slightly lower than competitors but their wages increase as an employee develops professionally through experience or

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