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Hi! I'm MIke Davis, and
we're back with non-monetary rewards.
We've done several things thus far,
we stressed the importance of non-monetary rewards in addition to cash pay.
The value of employees and employers and
we looked at the three of the most common and important non-monetary programs.
At least in my opinion that being recognition, learning and flexibility.
Now you may be wondering at this point what is why put it in here.
All right if I want to go back doing this how to do I do it and so
we have got some tips on design and administration.
And, in particular, what if you want it to be more informal or more formal.
And, no surprise, the word formal sounds formal, it is.
And that means that a formal program has got more rigidity, more paperwork.
But everything's more spelled out too, and I'll give you a suggested process.
So back to the model of non-monetary rewards from Zingheim and Schuster.
We're not going to do anything but reacquaint ourself with it.
And said, if want to to pursue any one of these items or
things like it that aren't listed but go in the cells.
There is a way to think about going through and doing it, and
that's what's going to follow.
So, first of all, there is no standard approach.
We've already learned that most companies have one or more non-monetary rewards.
And you can kind of put them into two buckets, there are some that are informal.
That are driven by managers or maybe the company, but in a less formal way.
Or again a more formal program and
those do tend to be driven by the company overall.
And the design and administration can also vary.
And think of it you can have a practice that is less formal
right it's just something we tend to do.
A program is something more formal, it's got guidelines and
objectives and a nomination process.
Or it can just be ad-hoc that lives somewhere in and
around practices and programs.
Is the fact that it's not standard bad, is it good,
well it's a little bit of both, and we'll talk about those.
So I already have said in a prior session I think informal non-monetary
rewards are really helpful.
They happen all the time companies might not even be aware.
I used to be head of HR of my company and
I had a person come up to me once and said.
Actually start an hour later and
go home an hour later to beat traffic to and from the job.
But you said, my boss told me,
don't let anybody else know because they probably won't let me do it.
I just thought that was terrible,
that was a great idea between a manager and an employee that met a specific need.
And all the work got done probably even more because we accommodated this
person's schedule.
So it can be a company culture but still not formal.
And generally these informal programs are done with great intentions,
can be a win-win like the example I just gave.
But it is heavily dependent on the manager.
And I'm sure as I'm going through this you're thinking of other examples that
you've either seen or been part of at your job.
3:06
So informal, there tends to not be much of a program design,
it's rarely written down.
It's a practice, it's at the discretion of the manager,
a lot of plusses, you can come up with an idea quickly.
You can sit down with your boss and before you know it you're trying it,
you don't have to get approvals from others.
The minuses to it, it can be inequitable,
you can have a boss that's really open to it, or one that's not.
A manager can say yes to one person, and not to you, or the other way around.
So there are ups and downs of the informal approach.
More formal, as we said before, is more formal,
it's methodical, it's probably written down.
Not listed here you probably had a group of people think about how to do it, so
it's not just a random set of ideas on a sheet of paper.
Probably has a coordinated approach,
there is somebody probably watching over it to make sure it's meeting its goals.
Again, there are pluses to this, it's more rigorous, it's more thorough.
You've thought through things that can go right and wrong,
it's probably more transparent.
But the minuses is, it's going to be slower,
you're going to have approvals, paperwork, rules.
And odds are you and the manager aren't going to be able to do
a flexible implementation of it if it's pretty rigidly laid out.
Now this is just a suggestion from me on how to go about doing a formal program
design.
This has seven steps, you might not have seven steps,
you might have them a little different.
But it ranges from just deciding I'm going to look into it,
what am I trying to do with the program?
Who's going to to be eligible, how does the eligibility happen?
Do you nominate, does your boss have to bring you forward?
Does it need approval, does the approval, the final decision on the program overall?
And then some method of looking at it on an ongoing
basis to decide if we want to do it.
So this could be a recognition program, a learning program,
a flexibility program, or really any other kind of non-monetary reward.
5:07
So the benefits of formal, yes, it is slower, and
that would probably drive a lot of people nuts.
But it has more involvement, which is a plus.
And it can be more equitable, more fair, better communication.
You got extra eyes that are going to help on that fairness and
just make sure it's done right.
Lot of details thought through and
you can improve something like this overtime because of the formality.
Probably plenty of others,
so, yes I started out with a negative that it's slower but there are benefits.
So the patterns in this, I don't think there's anything better or
worse between formal and informal, they're just different.
The best programs either way meet needs,
fit the culture, fair, and there's some positive impact on performance.
On the informal you have to rely on the manager, formal's a company program,
you get rigor and oversight.
So again, non-monetary rewards can be a source of great ideas.
Can be a source of winning solutions, and all you want to do are avoid mishaps.
Alan BensonAssistant Professor
Mike DavisSenior Lecturer
