Non-Monetary Compensation: Employers Helping to Create a Work-Life Balance

1280 Words Jun 8th, 2013 6 Pages
Non-monetary Compensation: Employers Helping to Create a Work/Life Balance

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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
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Some research shows the savings to go as high as $3.11 per dollar spent. That savings makes a large difference in company overhead. Studies show that on average over the last 10 years there has been a 100 percent increase on health insurance premiums. This translates into over 44% of payroll costs. Employers without wellness programs are spending money that could be used for increased salaries, incentives, and improvements. In a tight economy potential savings add up. As with anything, if there are positive benefits, there are negative ones too. Companies must research the potential downsides of non-monetary compensation. One potential drawback is employee morale. It is hard to believe that anybody would have a problem with working from home and free gourmet meals in the office cafeteria, but if everyone is not reaping the benefits of these perks then that could very well be the case. For example, not every employee in an office is going to be able to take advantage of flexible working hours. Generally executives and upper management receive that option and then maybe certain members of the general staff. Employees who are not eligible to work at home or work compressed work weeks may feel slighted or as though they are not trusted. Conversely, employees who are allowed some measure of flexibility in

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