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Mentor

One method is to combine non-monetary remuneration of employees with mentors. People who want to succeed on the path of his career, often looking guides who lead them. Mentors can call people who are experts in specific fields, people who have experience and want to share it, thus allowing to shorten the learning curve in the industry.

Due to the extensive knowledge and values \u200b\u200bthey provide, mentors can be a very valuable part of the salary. Not only to prevent from committing errors by less experienced staff but also inspire you to explore secrets of the profession.

mentoring programs in organizations are becoming more common in many businesses. Employers recognize the benefits that are associated with them. Due to the important role of the mentor in the development employee, Debra Moorhead on his blog on motivation, presented six key attributes that should have every good mentor:

first Authenticity - Mentor should be a practitioner in the areas that he teaches. A good mentor does not just show you the way that leads to the best solution, but also knows how to go through the steps leading to the goal. Does not indicate one direction, choosing a different path yourself by saying that you have to learn from mistakes. The reason for working with the mentor is to avoid the problems that he himself has experienced.

second Involvement - The mentor should be personally involved in the teaching of the learner. Should refer to the person that teaches how to see the work, what are its goals, what are its strengths and weaknesses and to know any other information that may be useful in further cooperation.

third listening skills - a good mentor is able to listen to concerns that a person sees the mentors, rather than strive for the speedy completion of conversation. The mentor should know what are the current tasks of the person whom he has under his wings to be able to ask the right questions to find out what are the improvements in the work.

4th Improving the - mentor should be aware that it is impossible to posiąście knowledge about everything. The world is changing very rapidly, so it should be open to new ideas and solutions.

5th appreciates the mentoring person - a good mentor should not assume that the person he teaches is not competent due to the fact that it comes to him for advice. He can see the potential and appreciate it.

6th Caring for development - mentor should feel responsible for how best to transfer knowledge and motivate person you care for development.

Looking at these values \u200b\u200bis worth checking prior mentoring program, who will tutor, and if possible to check whether it meets specified criteria.

[ http:// www.debramoorhead.com/blog/index.php/6-qualities-of-a-good-mentor ]

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What are Mental Health benefits for an employee? Salary

mental benefits are related to factors for which influenced by: job, position and place of work and which influence the level of employee satisfaction. The values \u200b\u200bderived from the work of the organization shape the motivation of the employee. The atmosphere inside the company, the work itself, supervisor and colleagues are just some elements that affect the changes in the "psychic benefits" of the employee. Ignoring and not be included as part of the psychological benefits of the fees may have the following consequences:

• cash wages must be relatively larger in order to motivate employees to administer and to remain in the organization,

• increased staff turnover in positions

• less dedication to work, more attempts to defraud the system and employers,

• reduced efficiency, workers do not attach importance to the work, improve the same number of errors [Tropman, 2001, p. 174].

basic problem of mental health benefits is the convergence of communications with his employer's actions, such as the quality of communication work to account for the number of employees. Mental health benefits may increase the motivation of workers at small additional cost. Value the benefits of mental organization is ambiguous. It is difficult to compare it with the funds and determine how do they affect the worker's employment.

second problem is related to the willingness of employees to own contribution in the final product, with the construction of which they are involved. In this way, the employee may even feel the fulfillment of the tasks which at first sight seem illogical [Tropman, 2001, p. 174]. Very well presented to Scott Adams, the famous comic series "Dilbert" przejaskrawiających everyday situations from the business world.

Source: http://grimmy.sahuagin.net:8080/ ~ tcovert/dailystrips/dailystrips-2007.11.25.html

figure above shows The third issue that I wanted to raise. This problem is postponed, which may be perceived by subordinates as an inappropriate for the post. The character is given by the head of Adams as a very intelligent and his hairstyle can show that he is one of the older people in the group. For this reason, it can be assumed that the position was due to seniority rather than other, more important qualities. According to the theory of Herzberg, one of the basic hygiene factors are company policy and governance, and relationships. With this theory shows that properly selected head and non-toxic atmosphere in the workplace, can have a dramatic impact on the relations within the organization.

[ Tropman, JE (2001). The Compensation Solution. Lexington: University of Michigan Business School Management Series]

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Mobile - a theory drawn from Tropman'a

Another dose of theory will deal with one of the components of remuneration which is paid mobile . This post is aimed at systematizing knowledge and theories contained in it are not compelling, however, are the basis of knowledge of each person having contact with the remuneration of workers. For this reason I recommend it only for interested in the subject.

variable remuneration which is moving, the remuneration paid in one sum. Examples may be paid for overtime or compensation in the form of an investment fund units. Due to the fact that it is paid off, there is no assurance that such compensation occurs again, or can occur on many occasions. There are three basic forms of remuneration, mobile: related to the additional work, the sharing of profits and as a stimulus to increased productivity [Tropman, 2001, p. 82].

The first form is moving salary allowances for extra-curricular work. His job over his duties, for which he gets more than the basic salary supplement. The simplest example would be a reward for overtime. Organizations to implement different policies: some require minor sacrifices, others are forcing employees to work beyond the mandatory hours, while others are working closely observing established working hours. The advantage for employers is that employees who perform extra-curricular work, employees are internally trained and put in place on the task at hand and not temporary workers, employed only during periods of demand. [Tropman, 2001, p. 82].

second form of motion compensation is profit sharing . An employer who decide to implement such an allowance shall be guided by a simple principle: the organization has more profits, the greater will be added to the employee. The most famous of this type are added managerial options for senior staff. For a group of middle-level employees, the ability to be an interim dividend. This approach gives a sense of indirect remuneration for the development of the organization but there is no direct correlation between employee productivity, as this additive is affected by many factors. On the other hand the organization of dividing the profits with employees, may share with them the loss. In this way, in times of economic slowdown, the organization can be a very simple way of salary savings. One of the most important aspects of the sharing of profits is that employees have the opportunity to understand that the totality of the resulting product (quality, productivity) is not the result of actions of individuals, Only departments or teams playing the same team, sharing in this way between them both defeat and victory [Tropman, 2001, pages 1982-1984].

final form of motion compensation is incentive to greater productivity . This allowance is something extra, paid for the achievement or motivate a particular purpose. This involves entering into a contract between employer and employee. For example, if an employee performs a certain job or achieve a certain goal, you will be rewarded in certain ways. Such an element of motivation can have great power, since it refers to an individual. The employee has a direct effect on the performance or failure of the task, and in the straightest line tasked determines his remuneration in the future, ie, the employee is in the self-interest. This approach is one way to convince employees to maximize productivity, and hence, higher profits for the organization. As in the previously described example of Jack Welch, who had a direct impact on the growth of GE, looking for ordinary workers should also take into account how generate a profit for the organization. In analyzing the situation in the opposite way, it can be concluded that employees who reduce the effectiveness of their work and have a fixed salary, give yourself a kind of a raise, because their reduced share of the work has no impact on their pay [Tropman, 2001, pages 1984-1985].

Returning to incentives to increase motivation to work, they can be divided into two types: Short-term and long-term . Short-term aim to motivate to perform a specific job within a specified period of time, eg within a month. Because of the possibility of verifying the implementation of work, remuneration for work done should be paid to the task. Long-term incentives are designed to maintain high productivity among employees, regardless of what we have currently occupy. An example of this can be a reward for an annual or a reward for being the best employee [Tropman, 2001, pages 1986-1987].

[ Tropman, JE (2001). The Compensation Solution. Lexington: University of Michigan Business School Management Series ]

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pyramid of success - John Wooden

John Wooden taught English in high school at age 24, after a short time realized that the system assessment, which it was imposed to assess their students, not help them understand the relationship between effort and success achieved. then remembered the words of his father "Never try to be better than anyone else, but never stop trying to be the best you can be." He reminded himself as his teacher of mathematics, which is put before them the challenge, it was based on the definition of success. Wooden recalled the time line verses, which have recently read:

At God's footstool to confess,
A poor soul knelt and bowed his head.
"I failed," he cried. The Master said,
"Thou didst thy best, That is success."

The above experiences have a significant impact on the definition of success, he created Wooden:

"Success is peace of mind, Which is a direct result of self-satisfaction in knowing you made the effort to do your best to That become the best you are capable of becoming. "

Creating a pyramid of success:

briefly above definition unsatisfactory, Wooden, quickly realized that it is insufficient. Need something more concrete, something that will allow him to better illustrate the ideas of success. For this reason, the next 14 years he spent in 1925 on identifying behaviors that it believes are necessary to in order to achieve success as defined by him. The result was a diagram of his research, which he called "The Pyramid of Success," which he completed in 1948. For decades, the initial assumptions persisted in an unchanged form, the wisdom contained in them has stood the test of time and in its original form is still as useful at the time of publication.

[http://woodencourse.com/woodens_wisdom.html]

recommend the views set out below a short lecture by John Wooden'a realized the needs of the portal ted.com

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Benefits for the American market - Examination of SHRM

Over time, Benefits, and their percentage of the total salary significantly changed. The increasing need for workers to more and more new additions to the basic salary from forcing employers to poszukiawania opportunities that would meet their expectations.

SHRM has published a report on the advantages of the American market. This report describes in detail as possible the whole spectrum of available benefits, and therefore it makes it possible to know not only the possibilities offered by the market but also the satisfaction of employees associated with each bene.

The study describes the advantages of the following groups:

1) Health care and social

2) Preventive health care and taking care of physical and mental

3) Finance and rewarding

4) Paid leave

5) Additional family-friendly

6) Flexibility

7) Uslygi personalized

8) Management of housing and assistance in transferring the employee

9) Missions

10) Other

The full report is available at www.shrm.org

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Motivation Employees - a new model

Encouraging people to perform tasks in the most efficient way , is one of the biggest challenges managers. Many researchers such as Herzberg, Maslow, Freud, or even Aristotle, wrestled with the puzzle to understand why people carry out tasks which they are entrusted.

The said researchers, however, were not able to use the technological achievements of modern times, enabling literally have looked into the man and his brain. Their studies were based on external observation of human reaction, but today it is possible to examine the many complex reactions such as neurological disorders of the body to external stimuli.

In post'cie possible that I wanted to bring the Harvard Business Review znalezionyw artykół "Employee Motivation - A Powerful New Model" Nitin Nohria developed by Boris Grosberg, and Linda-Eling Lee. As before, when using the HBR, I will try to translate the main wontki, due to restricted access to their base.

This article was presented model of smallpox in the 2002 book, written by Paul R. Lawrence and Nitin Nohiria'e a titled "Driven: How Human Nature Shapes Our Choice." According to her, there are four main motivators: possessiveness, the need for ties, willingness to learn, a willingness to defend . It is these motivators are the source of all our behavior.

It is difficult to argue with the well-known wisdom, saying that increasing the motivation of employees directly affects the health of the company. The problem is the determination of factors, behaviors that contribute in a positive way to improve employee motivation.

Research on which this artykół przeproawdzone were at 385 employees twóch leading financial and IT sector and a 300 fimrach located on the Fortune 500 By zdeterminować overall level of employee motivation have been examined factors such as commitment, satisfaction, dedication and a willingness to resign.

Due to the fact that these four motivators are a regular part of our minds, directly affecting the emotions and our behavior, they will be presented individually.

1. desire to have. We are determined to enter the posaidanie goods that increase our sense of wellbeing. We feel lucky if we meet this need and distress when deficiencies are noticed. This phenomenon involves not only material goods like food, clothing, houses, money, but also to experiences such as travel and entertainment. In addition, this group includes events that raise the social status such as promotion or a parking space. Willingness posaidania often results from comparisons to other people and what they have. This explains why people are not only interested in their own salaries, but also want to know how much others earn.

2. need ties. In the wild many animals tworzypary, group, herd, but only people make up organizations, associations and nations. The need to bond is associated with strong emotions. For positive emotions jnależy love, a sense of care, while the negative is the solitude and anonymity. In this work it is very important, because employees feel happy with pride przynajleżności the organization, but they lose their morale when the organization is cheating.

3. Desire to learn. People want to feel the meaning in what they do, so for example, try to strive to explore new theories. People are frustrated when they need to perform tasks that do not see the point, while tasks that enable them to boost their search for answers. Most important for motivating the workers at the employed is to allow the participation of Barnie in creating solutions that make sense.

4. Willingness defense. All naturally try to defend itself against the dangers of both our possessions, achievements, friends and ideas. In simple terms it can be concluded that rakcja in emergencies is reduced to the primitive principle of "fight or flight" response, among the common profile among the animals. Among the people not only manifested in the form of aggressive behavior, but also the desire to introduce and egekwoania certain rules, for example through the courts. Providing defense leads to a sense of security and confidence, while the shortage in this factor increases the fear and resentment.

I enclose below a table showing ways to increase motivation through these four motivators.

[ Employee Motivation - A Powerful New Model , N. Nohria, B. Grosberg, LE Lee , Harvard Business Review, july- august 2008]

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most valuable Benefits according to the staff - research Sedlak & Sedlak

looking great research on the advantages offered to employees on the Polish market, I found a study conducted by Sedlak & Sedlak.

Below the diagram taken from the above mentioned company.

As you can see most employees appreciate the flexible working hours, and in second place ranks as the ability to work from home. Also pay attention to the provision of childcare by the employer.

For collectors whole artykółu was invited to the wynagrodzenia.pl

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Benefits - Theory

Additional benefits are the special privileges enjoyed by employees of the organization or employees in certain positions. Richard Henderson in his book defines fringe benefits as "salary components, which provide access to a higher standard of living while minimizing the costs incurred by the employee" [Henderson, 1997, p. 529] .

Below, in Table presented a sample set of additional benefits for companies from Silicon Valley.

As is apparent from the examples above, the benefits Additional information: do not apply to an employee's basic needs, are not used to perform the task, nor are they necessary in private life. They only represent an attractive additional factor that increases the status or make life easier for the employee. Literature describes this element of pay as little problematic [Tropman, 2001, p. 148] .

James L. Hayes says that "good fringe benefits make sense. However, if the benefits are not consistent with the mission of the organization or individual productivity, a good manager should challenge These additional benefits. Often, additional benefits are as immaterial, and therefore attempt to measure or to assign specific values \u200b\u200bto them is meaningless, " [Hayes, 1978, p. 3] . It is clear that the additional benefits should be reflected in the performance of the employee. With inadequate management of additional services, may become the duty of the employer, rather than value added. Then they cease to function as salaries and incentives, what more can lead to conflicts if they are received by the employee was wrong bądź przyznane tylko określonym jednostkom w organizacji [Hayes, 1978, str. 3] .

Inną formą świadczeń dodatkowych są opusty na produkty firmowe. Takie praktyki mają za zadanie lepsze zrozumienie oraz polubienie przez pracownika produktu, w którego produkcji bierze udział. Według Tropmana, takie działanie ma wpływ na zwiększenie produktywności pracownika. Wydaje się to być sytuacją, gdzie obie strony odnoszą korzyści, pracownik ma możliwość kupienia taniej produktów firmowych, a pracodawca zwiększa produktywność pracowników bez ponoszenia additional costs. However, not every organization produces a good fit for sale to employees, an example may be the entire military industry, where the employer does not want any respect to such weapons got into the wrong hands. This is obviously a very extreme example but it illustrates well the situation in which an organization may find itself [Tropman, 2001, p. 148] .

[ Henderson, R. (1997). Compensation Management, 7th ed. New Jersey: Prentice Hall]

[Tropman, J. E. (2001). The Compensation Solution. Lexington: University of Michigan Business School Management Series]  

[ Hayes, J. L. (1978, Listopad Vol.67 Issue 11). Perks, fringes, and hard work. Management Review , strony 2-3]

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three basic strategies for building a basic salary

Mimo że powszechnie znane, uznałem że zamieszcze podstawowe strategie budowania płacy zasadniczej, gdyż wydają się one być wiedzą niezbędną.  A. Pocztowski w swojej książce wyróżnia trzy strategie wynagradzania, które mogą posłużyć do budowy płacy zasadniczej: wynagradzanie zależne od rodzaju wykonywanej pracy, według kompetencji oraz według efektów work.

regard to the first, ie reward depends on the type of work , one can say that this is a question approach, not taking into account the individual characteristics of the employee. It is based on rigid rules on company structure and pay particular positions. To determine the amount of remuneration is used such criteria as mental demands, physical demands, responsibility and working conditions. The only method to increase the income of the employee is or change to a higher position in the hierarchy, or periodic increase. Accomplishments, creativity and experience of the employee are subject to a subjective opinion in order to assess the difficulties of work. It is associated with that too little flexibility in conjunction with the productivity of the basic salary of the employee. Faster execution, or delays in the implementation of the tasks have little effect on the amount of benefits [Pocztowski, 2003, pages 364-365].

second approach - rewarding by competence, seems to be more personal approach. Unlike from the previous method, it focuses on specific units. In this case, the employer shall take into account the individual skills and knowledge of individual employees, which is directly linked in a cause and effect with respect to future results of operation. This approach seems to be more rewarding for the productivity of the worker, but it is not without drawbacks. The training of workers, and also learn new skills and knowledge, it is difficult to control and requires constant upgrading of remuneration. In addition, a situation complicated by rapidly changing The requirements for the work, as exemplified by the Internet and newer technologies used to build web pages. In this case, the skills that employers appreciate today, may become over time powszednimi or unusable. This approach seems to be particularly important in view of the organization and strive to improve and update the pay systems. The main aspects that should be met in order to implement this system of remuneration to the organization are: a small number of key competencies that affect the outcome of the work, the relative ease of their determination and high flexibility of employees and the need to continuously improve their skills [Pocztowski, 2003, pages 367-368].

last approach, which is rewarding by the effects of work, is linked to the financial effects of the achieved effects of individual, group and general effects of the organization. In this case, the contribution of labor to a large extent, it becomes negligible, while the remuneration is determined on the basis of the results. The essence of this way of thinking, is to motivate employees through direct their involvement in the affairs of the company and focused on achieving the desired objectives. Due to the direct connection with the effects of employee remuneration of his work, this should lead to greater incentives and lead to increased motivation to work. However, empirical research has shown many problems with this strategy pay. The most important of these include: insufficient impact on motivation and the difficulties associated with design, the current administration and the rising costs of salaries of such systems [Pocztowski, 2003, pages 365-367].

These three basic strategies based on key principles that influence the shaping of the organization wages, they are: the nature and effects of work done and the necessary competencies to achieve results. Due to the fact that all seem to be needed to achieve the desired result of wages, was a strategy that connects all of these features. This strategy is to pay according to the contribution to the organization. The basic of its features are: wide variety, flexibility and the ability to salary adjustment to achieve the goals of the organization, team and individual goals. It takes into account not only results but also the ways leading to the attainment of these objectives. This approach also relies on the breakdown of salary for each of its elements, thus leading to the treatment of basic salary as the main but not the only component of a wide range of components of remuneration. This approach is a result of improvement of other reward strategies [Pocztowski, 2003, p. 369].

As you can see, each of these approaches has its advantages and disadvantages, none are perfect. According to Myrna Hellerman and James Kochanski fits all "approach, " one-size-fits-all " gives great benefits in terms of salary administration within the company, but also transmit a negative message," Individual values \u200b\u200bhere do not count, at least not for the count us enough to put the effort in the individual rewards for success having an impact on the overall condition of the organization "[ed Lance A. Berger, 2008, p. 85]. For this reason, it is worth to be thought through basic salary and adapted to the worker.

[ Pocztowski, A. (2003). Managing Human Zaswobami. Warsaw: Polish Economic Publishing ]

[ Lance A. Berger, DR (2008). The Compensation Handbook. USA: McGraw-Hill Companies ]

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Flavours - Sample Plan Kafeteryjny

In order to illustrate an exemplary use of the cafeteria plan will be presented an example cited by Michael Armstrong. In his book, he described an example implementation cafeteria plan in the Lloyds TSB group operating in the banking sector.

Lloyds TSB has decided that the plan kafeteryjny was the best solution to integrate the terms and conditions prevailing in different acquired by a group of companies. The plan was to also be a tool to increase employee awareness of the value of compensation packages and the advantages they receive.

Group decided to introduce kafeteryjny plan, which called flavors (flavors). The name was suggested that the system will satisfy the appetites of all employees. An additional advantage of the plan would be to increase the participation of employees in the company's success by making them shareholders.

The main elements belonged Flavours:

• kafeteryjny plan - employees can choose from 13 additional benefits, from vouchers to shop for additional days off from work. It was possible to also receive the equivalent of the advantages of in the form of extra money in the monthly bill,

• incentive program at a premium in the form of shares - a tax benefit program to encourage employees to hold shares Lloyds TSB Group,

• savings scheme, namely to allow the purchase of Lloyds TSB Group shares directly using money from the salary in order to avoid the additional tax costs.

employees every month receive a sum that does not wliczała to salary. The amount of this benefit was dependent on the results of an employee in each year. Employees can use the allowance to purchase obtained the advantages of the offer, or the removal of the additive in the form of money. They also had the opportunity to devote half of salary to purchase additional advantages of either company's products at discounted prices. Alternative approach was also the resale of the advantages of being received back to us to give money for this. An example of such a transaction may be resold to five days leave.

Although employees have the opportunity to resell the existing benefits, their opportunities were limited. The base of the cafeteria plan was needed by the group Lloyds TSB insurance, death, and a basic pension plan, which could not sell. According to the company, they were basic and essential add-ons, which formed the core of the whole system presented Falvours cafeteria.

Another principle of the plan cafeteria was to maintain the greatest possible simplicity. Most of the extras that you could buy a basic complement, the mandatory accessories. In this way the system is allowed to build the corresponding employee cafeteria plan within the advantages of being mandatory. Most of the advantages of a complementary nature in relation to the core cafeteria plan, giving the possibility of building more complex and more relevant advantages of employment.

[Armstrong, M. (2007). A Handbook of Employee Reward Management and Practice, 2nd edition. Glasgow: Bell & Bain]

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Development Plan cafeteria

In the past, workers have little influence on the form in which they will be forwarded for consideration. Compensation was primarily monetary dimension. Only a few organizations, have the advantages of simple plans, which allow managers to a certain degree of customization packages received by subordinates. It seems that the main cost associated with the introduction of a flexible plan of organization benefitowego barriers were related to the administration, and also communication of these plans [Beam, et al, 2001, p. 444].

Development kafeteryjnej form of wages was only with "the more flexible employment, including by innovations in the sphere of wage workers. More flexible salary through the binding of some of its constituents with the economic situation of the company and its employees the work "[Pocztowski, 2003, p. 378]. In addition, the development of plans kafeteryjnych contributed to the use of new technologies and approaches to outsourcing, allowing the separation of responsibility for certain activities outside the organization [Beam, et al, 2001, p. 444]. According to research by the Chartered Institute of Personnel and Development in 2001, about 9% of workers had flexible plan kafeteryjny, in 2002, this figure rose to 12%. Employee Benefits Magazine and shows an increase from 9% in 2002 to 19% in 2003 [Hutchinson, 2004, p. 3]. Research These show the trend in the implementation of plans kafeteryjnych in organizations.

The authors of the book, "Employee Benefits " today, many organizations have introduced kafeteryjne plans, in which all (or nearly all) employees have the opportunity to design their own package benefitowego. These plans kafeteryjne possible not only to decide on the use of money allocated by the employer to Benefits but also to enhance its capacity to acquire the advantages offered by deducting a certain amount from salary [Beam, et al, 2001, p. 444].

addition to the classic cafeteria-based additives on Benefits provided by the employer, has developed the voluntary market kafeteryjnych plans. Unlike classic cafeteria, in the latter, the employee voluntarily transferred part of their earnings to use within the cafeteria plan. Such plans are not borne by the employer kafeteryjne additional costs associated with shopping. The role of employers in this situation is to provide preferential pricing for certain products, so you can use the discounts related to the purchase of group and the tax benefits they bring. According Coleman'a, in recent years the market of voluntary plans kafeteryjnych increased considerably. The main reason for this is that the staff realized the possibilities of reducing their costs and thereby increase the real value of their earnings [Coleman, 2006, p. 68].

Currently, there are solutions such as plans kafeteryjne with online access. Due to the complex kafeteriami administration of this type, so far they have been beyond the reach of small organizations. Expenditures for administration of such a broad and complex undertaking was too great. Slowly, however, appear on the market for the company outsorcowanie kafeteryjnych entire systems, so that the costs of holding such an asset in an organization tend to decline. Businesses for conducting online kafeteryjnych systems do not require sophisticated computer system within the organization. To manage the system online kafeteryjnym suffice theoretically a computer with Internet access [Coleman, 2006, p. 68].

[Beam, TB, & McFadden, J. a. (2001). Employee Benefits, 6th Edition. Chicago: Dearborn Financial Publishing]

[Pocztowski, A. (2003). Managing Human Zaswobami. Warsaw: Polish Economic Publishing House]

[ Hutchinson, P. (2004). Flexible Benefits. London: Short Run Press]

[Coleman, A. (2006, Vol 59 Iss 7). Flex takes the lead. Director , pages 1964-1968]

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What is a wage Intermediate - again a little theory

Over the years, the development of forms of remuneration, which is the intermediate wage, formed three main objectives of the remuneration in the form. The first of these is the willingness to supply part of their salary in a different way than in the form of salary.

The main reasons for this are the favorable conditions for the wage tax. The second objective is to increase security for the inevitable situation, such as pension or accident. Such a wage is often intermediate to force by law, such as health and pension contributions but the employer also has the option to increase its funding through additional contributions such as the third pension pillar. The third objective is to increase the purchasing power of the employee by allowing him to buy at a lower price for specific products. The employer has the ability to exploit economies of scale through Employee group purchases. By increasing the size of the purchase by buying multiple products from the same supplier, the employer is able to reduce the cost of buying the product desired by the employee. An example might be medical insurance. This aspect may also be used during the freezing of salaries. In this period the employer has the option to replace part of the basic salary for shopping group, thus without increasing the cost of maintaining the employee in the organization, increases the possibility of obtaining the goods desired by him. Such products include: sunglasses, health insurance, credit, etc.

[Tropman, JE (2001). The Compensation Solution. Lexington: University of Michigan Business School Management Series, pages 113-116]