Making incentive design more flexible. Possibilities and limits of the cafeteria system

Study paper from 2003 in the field of Business Administration - Human Resources and Organization, grade: 1.7, Europa-Universität Viadrina Frankfurt (Oder), language: German. Abstract: Today, it is important to design certain forms of compensation in a way that motivates employees to perform. In addition to traditional cash compensation, ancillary and additional benefits as well as company pension schemes play a crucial role. All these components are summarized under the term total compensation. A new design option for total compensation is the cafeteria system, which is presented in this paper. The aim of this work is to highlight the possibilities and limitations associated with the implementation of the cafeteria approach in a company. The individual problems are to be addressed.