Employee Values, Expectations, and Reward Systems

Introduction: Universal Employee Values and Expectations

Employee values and expectations vary from individual to individual, though some universal values and expectations can be generalized across most industries. Among these more broadly shared expectations are the desire for good pay and benefits, job security, and work-life balance opportunities.

When developing a reward system, it is vital that an organization incorporate these universal employee values and expectations so that the outcome of the system is genuinely beneficial for the employees involved. It is also in the best interests of organizational planners to assess individual employee values and motivations in order to devise a reward and recognition program that focuses on independent employee needs, rather than lumping all employees into the same category.

Good employee relations and effective reward systems depend on the ability of HR management and supervisors to recognize employee values and expectations, and to allow employees the opportunity to express themselves openly and honestly. A philosophy that puts employees first — recognizing them as a corporation's most important asset — generally results in a successful environment where this can be accomplished (Denton, 1992).

A corporation must demonstrate its commitment to employees through deeds and actions rather than simply voicing its intentions (Denton, 1992). Among other things, employees value the opportunity to advance within the company and expect that a robust job-posting system will be available to keep them informed of internal opportunities (Denton, 1992). In addition, employees value a thorough training and orientation program that communicates the corporation's values, so that employees can structure their own goals around those of the company.

Key Employee Values: Pay, Security, and Work-Life Balance

Employees also value recognition of consistent performance relative to their peers within a firm (Zenger, 1992). This suggests that employees desire evaluations and recognition that are individualized rather than purely comparative.

Work-life balance is another significant value. The ability to work effectively while also caring for children — and accessing adequate child care assistance — is increasingly important. Firms that offer benefits in this area are typically more competitive and experience lower turnover (Champion-Hughes, 2001). Employees also expect their employer to provide adequate medical coverage, particularly as the health care crisis continues to grow (Champion-Hughes, 2001).

Among the top-ranked categories in a survey measuring employee satisfaction and expectations were the following: good benefits, job security, good pay, job recognition, and family-friendly benefits (Champion-Hughes, 2001). Most of these factors rank roughly equally in general surveys; however, among individual employees each factor is weighted differently. Some employees prioritize a family-friendly atmosphere, while others are more interested in good benefits, pay, or job security.

Other studies suggest that employees expect pay to be linked to individual capabilities, and that a compensation and reward system providing incentives for individuals to develop their skills is most likely to generate improved results and contribute to overall employee satisfaction and a productive work environment (Risher, 2000). It may therefore benefit employers to develop reward and compensation systems that take individual skills, abilities, talents, and contributions into account.

Employees also value personal feedback regarding their performance and efforts, particularly when they have worked diligently on a significant project or body of work. Employees who receive recognition for a job well done are more likely to contribute to an organization's success than those who do not, and feedback is often more important than monetary rewards (Moses, 2001). Additional valued rewards include independent bonuses, flexible or additional vacation days, opportunities for advanced skill training, and even commemorative plaques that recognize loyalty and service — particularly when given in recognition of team efforts (Moses, 2001).

Individual Motivation Categories and Reward Design

To craft a successful reward and recognition system, an organization must work to understand the personal values and motivators of individual employees. Employees can be grouped into several broad categories based on what drives them.

One category consists of employees motivated by opportunity (Moses, 2001). These employees are more likely to express interest in learning, training, and advancing within the company. A reward system that offers mentorship programs, tuition assistance, or internal promotion pathways will resonate strongly with this group.

Other employees are motivated by authenticity — the desire to express their personality and personal values within the workplace (Moses, 2001). These individuals typically seek a flexible work environment that allows for some personal freedom. Many organizations have adopted cultures that encourage independent expression and creativity, making them particularly appealing to employees who value authenticity. Workplace culture plays a significant role in attracting and retaining this type of employee.

Still others may be considered lifestylers, interested primarily in establishing work-life balance (Moses, 2001). They are individuals looking for the opportunity to enjoy their work while also having time for their families. A reward and recognition system that offers additional vacation days, flex time, flexible scheduling, or child care bonuses and discounts may prove most beneficial for employees in this category.

Other workers seek mentoring and accountability, as well as opportunities to participate in corporate events and decision-making. They may be more responsive to bonuses or pay incentives and may be independent thinkers looking to excel within the organization. These employees may desire the opportunity to develop solutions, engage in problem-solving, and contribute to the organization from a research and development perspective.

Conclusion: Building an Effective and Inclusive Reward Program

Regardless of the work environment, all employees need to be recognized for their personal achievements. Job security and good benefits are important values and expectations that virtually every employee shares. Ultimately, however, an employee who feels valued and respected is more likely to remain with an organization than one who does not.

Employees should also be given the opportunity to make suggestions to top management regarding organizational improvements. Providing employees with an outlet to voice their concerns and opinions about structuring the reward and recognition system — as well as broader organizational operations — fosters a sense of ownership and engagement. Many of the greatest ideas for organizational success come from employees working closest to day-to-day operations. Employers who recognize this are more likely to experience long-term organizational success and to develop reward programs that are meaningful and impactful.

There is no one-size-fits-all solution to a rewards and recognition system. However, an employer who makes the effort to evaluate individual employee values and expectations — and who designs a program responsive to those findings — is more likely to succeed in building a motivated, loyal, and productive workforce.