eeks to maximise the value of workers’ activities for the company while at the same time ensuring that workers themselves are fairly and positively rewarded for their contribution. Employee rewards can give the managers options to encourage some behaviors and discourage others.
Remuneration in the form of salary constitutes one of the key elements of the contract which workers sign with an employer. The importance of additional employee benefits lies in providing opportunities for all workers to experience the higher level areas of self esteem fulfilment. Some jobs are very boring, such as factory work, for example, and so there is not very much opportunity for workers to feel valued in their jobs. An effective benefit system builds loyalty to the company and can also distinguish competing organisations from one another, and mark a company out as an attractive place to work. A well judged reward system contribute to HRM strategic goals such as better punctuality and lower absence levels, which in turn increase company productivity. The happier workers are, the more likely they are to do good work, and so there is also a financial incentive to reward employees.
Genentech is building on its business reputation as a health-focused company by offering very high levels of employee benefits. There is a strong moral message behind the package that they offer their workers, namely the importance of achieving a healthy balance between work and other areas of life such as family and recreation. The watchword for their strategy is “respect for employees” (Case Study), and the logic behind the company’s thinking is that by offering support which respects the whole life of each employee, there will be a corresponding respect for the company coming back from the employees. Workers value their families very highly, and by including family oriented benefits like childcare and even adoption assistance and pet insurance, Genentech is demonstrating an awareness of wider