Employee Compensation In The 20th Century

In the early part of the 20th century, employee compensation was minimal to nonexistent. With a few exceptions most employees were only rewarded in respect of the hours they worked. Any other kind of compensation that had to do with old age, poor health or death was entirely left to the hands of the employee or his family. Vacations if allowed at all were without pay. In 1940 and 1950 we can notice an increase in the acceptance and usage of employee benefits as a form of reward in addition to direct wages. During the end of 20th century this growth resulted in new types of employee benefits being added and existing benefits being expanded. Furthermore employers now had to make more difficult decisions on the method in which these benefits
were funded and provided.
The definition of the term employee benefits include different types of non-wage compensation that are provided to employees in addition to their normal salaries. These benefits differ from company to company and from industry to industry. Some of the most commonly used benefits are retirement benefits, group insurance, sick leave, maternity leave and vacation.
Many companies take these benefits under great consideration and use them as a tool to secure a solid economic environment for their staff members. In a strong and competitive environment they can be used in order to recruit new employees or retain important assets that are already apart of the company. Generous employee benefits can result in a general satisfaction amongst staff members which most of the times lead to increased productivity and make the company itself stronger and wealthier. On the other hand poor employee benefits can result in many disadvantages from dissatisfaction to demotivation and most important to profit loss.