Developing A Benefits Package.
Consistent with expectancy theory´s thesis that organizational rewards should be linked to each individual employee´s goals, flexible benefits individualize rewards by allowing each employee to choose compensation package that best satisfies his or her current needs and situation. Flexible benefits can accommodate differences in employee needs based on age, marital status, spouses' benefit status, number and age of dependents, and the like.
Employee Recognition Programs
Organizations are increasingly recognizing what we know: Important work rewards can be both intrinsic and extrinsic. Rewards are intrinsic in the form of employee recognition programs and extrinsic in the form of compensation systems.
Employee recognition programs range from spontaneous and private thank-you to widely publicized formal programs in which specific types of behavior are encouraged and the procedures for attaining recognition are clearly identified. Some research suggests financial incentives may be more motivating in the short term, but in the long run it´s non financial incentives.
An obvious advantage of recognition programs is that they are inexpensive because praise is free. It should not be surprising then that they have grown in popularity.
Despite the increased popularity of employee recognition programs, critics argue they are highly susceptible to political manipulation by management. When applied to jobs for which performance factors are relatively objective, such as sales, recognition programs are likely to be perceived by employees as fair. However, in most jobs, the criteria for good performance are not self-evident, which allows managers to manipulate the system and recognize their favorites. Abuse can undermine the value of recognition programs and demoralize employees.