Non-Monetary Compensation in the Workplace: Employers Helping to Create a Work-Life Balance
Non-monetary Compensation: Employers Helping to Create a Work/Life Balance
Prepared By:
Prepared For:
Laura Smagala, BSM 328
When job candidates discuss compensation packages with potential employers, the talk usually turns towards monetary compensation. Businesses have found that creating a balance between home life and work is just as important to their employee retention rates as their actual salaries. The reason for the shift in priorities varies with each employee, but the fact that the workplace is dominated by Generation Y employees that place a high value on their downtime is one reason. That very sentiment was echoed more than 10 years ago in a 1997 USA Today article that stated, “Workers born since the early 1980s (known as millennials, Generation Y or echo boomers...want a work-life balance...”(1). Another reason worth considering is that more households today are made up of two incomes. This new arrangement is in direct opposition to the traditional families of the past where women took care of the children and the home and males were the main breadwinners. Non-monetary compensation involves more than just flexible working hours. This paper will cover the different forms of non-monetary compensation, the benefits of utilizing non-monetary compensation to reward and retain employees, and the potential drawbacks of deviating from a traditional work environment. To begin, an employer should determine what aspect(s) of their company’s culture they are willing to alter in order to provide their employees with more flexibility. The most widely employed strategy is to give workers the opportunity to work a flexible schedule. According to a 2009 article in Forbes, a flexible schedule could entail compressing the regular 40 hour work week into four 10 hour days, changing the start and end times of an employee’s day, or allowing employees to work full-time or part-time at home. Employers
Prepared By:
Prepared For:
Laura Smagala, BSM 328
When job candidates discuss compensation packages with potential employers, the talk usually turns towards monetary compensation. Businesses have found that creating a balance between home life and work is just as important to their employee retention rates as their actual salaries. The reason for the shift in priorities varies with each employee, but the fact that the workplace is dominated by Generation Y employees that place a high value on their downtime is one reason. That very sentiment was echoed more than 10 years ago in a 1997 USA Today article that stated, “Workers born since the early 1980s (known as millennials, Generation Y or echo boomers...want a work-life balance...”(1). Another reason worth considering is that more households today are made up of two incomes. This new arrangement is in direct opposition to the traditional families of the past where women took care of the children and the home and males were the main breadwinners. Non-monetary compensation involves more than just flexible working hours. This paper will cover the different forms of non-monetary compensation, the benefits of utilizing non-monetary compensation to reward and retain employees, and the potential drawbacks of deviating from a traditional work environment. To begin, an employer should determine what aspect(s) of their company’s culture they are willing to alter in order to provide their employees with more flexibility. The most widely employed strategy is to give workers the opportunity to work a flexible schedule. According to a 2009 article in Forbes, a flexible schedule could entail compressing the regular 40 hour work week into four 10 hour days, changing the start and end times of an employee’s day, or allowing employees to work full-time or part-time at home. Employers
Cited: "Companies slow to adjust to work-life balance concerns of Gen Y." USA Today 08 Dec. 2006: n. pag. Web. 23 Mar. 2010. . “Reward/Penalty Plans for Wellness: Coming Soon to an Office Near You?”. Families USA (2008): 7. Mamula, Kris. "Wellness plans save big bucks for Highmark." Pittsburgh Business Times 08 Feb. 2008: n. pag. Web. 12 Apr 2010. . Schmitt, Emily. "How a Flexible Work Schedule Can Help You Strike The Balance." Forbes 16 Mar. 2009: n. pag. Web. 23 Mar. 2010. . Woods, Morrison. "Non-financial rewards gain value in retaining employees." San Antonio Business Journal (1997): 3. Web. 23 Mar. 2010. .