Benefits And Drawbacks Of Non-Monetary Compensation
Benefits and Drawbacks of Non-Monetary Compensation
Fogleman (2001) of Kansas State University stated this, "It's important to give a lot of consideration to your business's compensation structure because it ultimately reflects how employees are valued." Unfortunately, most managers are asking: "What do I have to pay to
?" The question what should be asked is: "What do I want my compensation package to say?"
Elements of a successful rewards system
Non-monetary Compensation. Includes benefits that do not involve tangible value.
Direct Compensation. Employee's base wage.
Indirect Compensation. Everything from legally required programs to health insurance, retirement, housing, etc.
The fact that businesses use non-monetary methods of supporting and acknowledging employees in an excellent idea; however, they must be supported by the executives and management of the organization. If, as in my case, the corporation does not back up what it has promised, there is no point in offering such a compensation program. In my place of employment, both monetary and non-monetary methods of compensation are used. The monetary compensations, although they are slow in arriving, encourage me, as an employee, to complete a task at the best of my ability. For example, when I have a "special show," a showing of a movie at a designated time for a group of people who have rented out the theatre, I receive a guaranteed thirty-five dollars. That money is included on my bi-weekly paycheck. Even though it takes a month or two to get the compensation, I know that it will be arriving.
On the other hand, when I am promised non-monetary compensation for a job or task to be completed, I have to remind the district manager and the home office about their "promises." At one point, I was told that I could have an extra week of paid vacation if I agreed to not collect monetary compensation for showings of the film The Passion of the...
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