Non-Monetary Compensation and Employee Retention

This paper will examine the relationship between non-monetary compensation and employee retention.

Compensation describes all forms of pay and rewards established to attract, retain, and motivate a workforce with skills and aptitudes appropriate to meeting the specific objectives of an organization.  

The effective HR professional will understand that for rewards to be effective, they must meet the demands of the employees whose behaviors they seek to influence, whether that behavior is performance or retention oriented and that alignment of employee goals with the long- and short-term goals of the employer will create a win/win scenario for all parties involved. This balance between types of compensation and employee/employer needs defines the total compensation philosophy.

Top line findings include:

• flexible working schedules
• elder care
• subsidized housing
• paid leave (sick/holiday/personal days)
• subsidized utilities
• tickets to events (ball games, concerts)
• magazine subscriptions
• boots and clothing
• laundry service
• company parties
• use of company vehicle
• free meals at work
• cellular phones/pagers
• child care

Compensation describes all forms of pay and rewards established to attract, retain, and motivate a workforce with skills and aptitudes appropriate to meeting the specific objectives of an organization. Non-monetary compensation refers to many different factors such as recognition, rewards, and perks like flexible work scheduling.  

Performing the Research

Participants

The participants in this study will be the employees and managers at Agency X. The agency has offices in six locations, spanning five Florida counties.   It consists of six personnel levels which ascend in the following manner: support staff (6 employees), case management staff (22 employees), team supervisors (3), program supervisors (3), Program Director (1), and Executive Director (1). There are five departments. The organization has some volunteers that will not be ncluded in this research study.

Instrumentation

The first data collection method being employed is employee record review. The researchers will be seeking information on retention rates and reason for separation that pre and post date the initiation of a non-monetary recognition program. The interview process will be conducted on a minimum of 10 agency employees with representation from each personnel level and department. Interview questions will include determination of participation in the non-monetary program and its effect on their continued employment with the agency.

The survey, which was designed on Zoomerang.com, will be distributed to a minimum of 10 staff members with representation from each personnel level and each department and office site.  

Overall Benefits

1. Opportunity

• An opportunity to do the best work of your life
• Choice of challenging projects
• Spending a majority of your time doing what you're good at/like
• Promise of job rotations
• A chance to supervise
• Opportunity to take risks, make decisions, and stretch you brain
• A chance to work with/on the latest technology

2. Flexibility

• Choice of schedule
• Choice of team members or co-worker
• Ability to work at home periodically
• Approval authority
• Opportunity for self management
• Pick your own title
• Offer opportunities for more pay based on results
• Job sharing opportunities

3. Other

• Developing a plan to keep them on the leading edge of knowledge
• A self-development plan
• Opportunities to be mentored by a senior person
• Lifestyle benefits
• Showing them their work will 'make a difference'
• Opportunities for internal exposure and public recognition
• Open access to company information
• Give then the latest equipment/software
• Opportunity for increased (or decreased) travel
• Relief from control policies or procedures
• Offer security and stability (a contract with a minimum term)
• Offer to sponsor their Visa application
• Offer their spouse/significant other a job
• Outline where they can reasonably expect to be in two years

4. Their manager

• Offer a plan for honest, frequent two-way communication
• Opportunities for being recognized and rewarded for their performance
• Periodic meetings with management
• Ask them how they like to be managed
• Explain how you will treat them like a mature adult

Smart managers utilize the non-monetary aspects of an offer to their best advantage. Most people are in jobs that contain large areas of tedium and the mundane. Use that as an opportunity to offer them a job that is significantly different.