(n.d.). Role & Importance of Employee Retention - HR Article. Retrieved May 22, 2010, from contentwriter.in: http://www.contentwriter.in/articles/hr/employee-retention.htm • Sinnott, G. C., Madison, G. H., & Pataki, G. E. (2002). EMPLOYEE RETENTION. New York State.
Under gain sharing pay programs, both the employer and the employee benefit from increased productivity. Therefore, gain sharing has often been referred to as a win-win pay program since it is an incentive strategy that ties pay to productivity. Gain sharing is a type of incentive plan designed to increase productivity by linking pay directly to specific improvements in a company’s performance. Gain sharing is used primarily when quantitative levels of production are important measures of business success. Gains are shared with unit/department employees on a monthly, quarterly, semiannual or annual basis according to some predetermined formula calculated on the value of gains of production over labor and other costs.
Corporations finance their investments by borrowing, by retaining, and investing cash flow, and by selling additional shares of stock to the corporation’s shareholders thus rotating cash and stabilizing the economy. Financial management assist shareholders in increasing their wealth by issuing stock dividends causing stock value to rise. Therefore, one purpose of why financial managers maximizing shareholders value is to bring together individuals, businesses, and government entities to produce and spend money while stabilizing the
This essay focuses on the impact of two specific employee involvement programmes i.e. employee ownership and representative participation on an organisations performance by drawing data from several empirical studies. Employee Ownership refers to workers becoming part owners of a company by being allocated shares in their respective firms in addition to their wages. Having a direct link between their effort and reward, employees are motivated into putting in greater effort as they have a larger interest in their employee’s profitability ( Bennett, 1997). A study of Polish Cooperatives was conducted in 1993 to derive the effect of employee ownership on a firm’s productivity.
The growing trend that employees reward by cash compensation when they meet or exceed performance goals set and in fact that subordinates tend to be more satisfied and motivated when rewarded by their supervisor (Yammatino et al., 1990). It is also evident that salary and remuneration system which accentuates variable pay, flexibility and achievements based on performance are now more applied by organization than emphasize on increase to base pay (Hewitt Associates 2006). Bonuses and allowances based on profit and accomplishments are widely used by the organization, especially compensation plan based on performance, called as merit pay plan. Likewise, individuals with more achievement oriented and entrepreneurial are found to be more concerned with competency
It will include how the company sell their products by minimizing the cost and maximizing the profits. Besides that, the ratios also show the company’s ability to measure the overall efficiency by generating returns for its shareholders. Thus, a higher value of profitability ratios means that the company is doing well and it is good at earning profits, revenues and cash flows. Profitability ratios are of little value in isolation. By comparing and analyzing the capability of competitors, the company can look at their own profitability compared to their competitors’ profitability because it will give them very useful and meaningful information.
To conclude, stock options are increasingly being used as incentives for employees in companies around the world. Statistics state that the increased use of stock options privileges has increased the work ethic of employees, thus increasing sales. Stock options are a good non-cash compensation for increasing the moral of employees, but one should note that the underlying tax regulations could be complicated.
The role business plays in society is to create wealth for shareholders, employees, and customers, as well as the society around them. Businesses have the responsibility to provide jobs, which allows employees the monetary freedom to purchase goods, thus stimulating the economy. Further, it is the responsibility of businesses to provide goods and services to customers in exchange for compensation. When the company is compensated, they are able to provide more jobs, as well as an enhanced version of the goods they are marketing. Finally, the role business plays in society is to provide profit to the owners.
Above and beyond, the return on equity ratio proves how much profit each ringgit of common stockholders' equity creates. ROE is also a sign of how much helpful management is at using equity financing to fund operations and grow the company. For the analysis, return on equity appraises how efficiently a firm can use the money from shareholders to generate profits and grow the company. Unlike other return on investment ratios, ROE is a profitability ratio from the investor's point of view which is not the company. More to the point, this ratio reckon how much money is produced based on the investors' investment in the company, not the company's investment in assets or something else.