Flexible Rewards From a Strategic Rewards Perspective

Abstract

Flexible reward arrangements (e.g., flexible benefit plans) have been around for a rather important period of time. Although some authors have examined the antecedents and consequences of adopting such plans from a theoretical perspective, empirical studies are rather scarce. Furthermore, there is a need to apply a strategic rewards perspective to flexible reward plans in order to help firms to move from “best practice” toward “best fit.” This article interprets the results of a survey held in Belgium and the Netherlands regarding the prevalence and perceived outcomes of adopting flexible reward plans within a model of strategic alignment of reward management.

The Carrot or the Stick? Investigating the Functional Meaning of Cash Rewards and Their Motivational Power According to Self-Determination Theory

“…[111][112][113][114] This research suggests that it is not using money per se to reward employees that is detrimental and that money in and of itself that is negative or evil, but that it is how it is used and how individuals perceive it-the subjective meaning employers and employees attribute to itthat matter. 115,116 Most importantly, it raises the question as to whether or not some compensation practices may give rise to less favorable or beneficial outcomes if not wellintended, well-communicated or wellreceived by the workforce. 117 Our research bridges the gap between two distinct literatures, from social psychology and from the organizational incentive community, [118][119][120] and compels researchers to rethink their conception of cash rewards and investigate them with the new focus to understand how to better leverage the objective and subjective components of compensations systems in place to bring employees to perform more and be more healthily motivated.…”

Revisiting the Use of Cash Rewards in the Workplace: Evidence of Their Differential Impact on Employees’ Experiences in Three Samples Using Self-Determination Theory

“…This research suggests that cash rewards offered by employers should be better presented as symbols of acknowledgement and recognition for employees' contribution. [86][87][88] When offered as a token of appreciation, cash rewards should be more likely to be perceived as informative. Initiatives leveraging informative rewards to signal appreciation and recognition for workers' contribution could constitute an opportunity to convey organizational values, becoming valuable tool at employers' disposition to attract and retain talent.…”

Benefit Communication and Its Effects on Employees’ Benefit Level Satisfaction: The Multiple Mediating Effects of POS and Benefit Comparison

“…Finally, previous research on benefits has been mainly focused on North American firms where such benefits are an established and usual component of employees' compensation, and studies focused on continental Europe are scarcer (Baeten & Verwaeren, 2012). Therefore, it can be interesting to analyze this issue in countries where the state offers broad social coverage, and, consequently, benefits have not traditionally been an important part of employees' compensation.…”