Employee Motivation Through Fringe Benefits: Employee Favors or Salary Replacement?



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Fringe benefits are a frequent topic of discussion. After all, is it nothing more than a few well-intentioned little treats and favors that should keep employees happy or at least an effective means of motivation and employee loyalty - or even an adequate salary replacement?

Employee Motivation Through Fringe Benefits: Employee Favors or Salary Replacement? Employee Motivation Through Fringe Benefits: Employee Favors or Salary Replacement?

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Here writes for you: Marco De Micheli is Publishing Director of the PRAXIUM Fachverlag in Zurich and book author specialized in Human Resource Management. Profile

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There are many pros and cons

Overview

There are some arguments against it. With Fringe Benefits you often run the risk of building up an expectation, which weakens the effect more and more.

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A dependency can also occur; if they stay off or reduce their performance, frustration is the consequence and well-intentioned goodies quickly turn into disappointment. Generous fringe benefits can also lead to armchair stickers, for which such benefits are more important than the performance for Company and job.

Gieskanne does not work even with fringe benefits

Overview

To give all employees an obligatory book voucher before Christmas fails, the effect. Fringe benefits should be tailored to individual employee needs. The apprentice may appreciate a fitness subscription, older employees providing retirement savings or mothers with children flexible working time models, and prospective executives may find the leave of absence for management training interesting.

The job life cycle, gender, living environment, status of work and work, personal values ​​and career plans are just a few examples of possible criteria for different needs.

Congruence with corporate culture and HR strategy

Overview

Fringe benefits should be an expression of corporate culture and personnel strategy, reflecting and strengthening their values ​​and goals. Given this, this makes the culture and HR strategy of a company more tangible and credible, and strengthens the sense of togetherness, which contributes to greater authenticity not only within the company, but also in employer branding.

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For example, if a company puts the focus on work-life balance, measures such as sabbaticals, birth supplements, extended childcare, additional holiday weeks, father's leave, which generate great benefits both privately and professionally.

Creativity and uniqueness are needed

Overview

The more unimaginative fringe benefits are, such as the obligatory seniority gift or the corporate parking space for executives, the less effective they are and are considered goodies that are expected at the end of the year and are quickly becoming an unnoticed habit. Fringe benefits, which provide personalized value for employees, are more sustainable.

Therefore, it is often not gifts in kind or money, but holistically effective attentions related to business and job, which also strengthen and symbolize the corporate values. A strong impact can also be achieved if employees are involved in designing fringe benefits programs or even actively participate in their services.

Emphasis on emotional and social aspects

Overview

Target group-related, emotional and social fringe benefits, which also reach families, children or life partners, for example, with a focus on work-life balance, have a particularly sustainable effect.

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They have an effect beyond the company, incorporate the living environment and often also represent a social value inside and outside the company, which in turn strengthens the authenticity of employer branding. Long-term care for employees with older or sick family members are, for example, fringe benefits that have a lasting effect with high esteem.

Job and performance and no coupons count

Overview

As always fringe benefit concepts are designed, whose purpose is ultimately to relativize.

In the end, neither the new mobile phone nor the preferential rates on mortgages, but the interesting job, challenges and prospects, the superior ratio, the appreciation of the work and a good working atmosphere are the focus.

Conclusion: You should pay attention to these eight points

Overview

In my opinion, fringe benefits have a chance of succeeding and achieving the goals if the following aspects are taken into account:

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  1. Targeted at individual employee needs oriented use
  2. Congruence with corporate culture and values ​​and goals of HR policy
  3. Focus on emotional impact, quality of life and work-life balance
  4. Regular discussion and information and communication
  5. Focus on well-being and identification with job and company
  6. Periodic review for awareness, utility, impact and acceptance
  7. Creative also the employer-attractiveness strengthening fringe benefits
  8. Rather restrained use of material money and property


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  1. John

    Finge benefits are indeed a great way to motivate employees! Great contribution!

    • Simone Janson

      Thank you for your contribution!

  2. Job college

    Employee Motivation Through Fringe Benefits: Employee Favors or Salary Replacement?

    • Simone Janson

      Thank you for the recommendation!

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