Cafeteria Model Services

Increase employee satisfaction through the cafeteria model the cafeteria model is a form of a compensation model in human resources. Objective of this model is to increase the motivation and satisfaction through individual choices for employees. The cafeteria model, the employees involved have a certain amount of points available, which can spend it individually for services within the cafeteria model depending on the position. This, range of services provided by the company. In general distinction is made between direct (insurance, employer loan, additional salaries), benefits (child care), benefits (sports programs, company car, additional leave, training) as well as special time services (sabbatical) in the services offered. The cafeteria model consists of the three basic components of choice range, choice budget and periodically recurring choice. The cafeteria model brings among many benefits for businesses, and some a few disadvantages. Advantages of the cafeteria model: improving employee motivation and employee satisfaction comes first.

Of employees from a larger range of additional services can choose to increase its performance. The company can use a such remuneration system on the one hand encourage the acquisition of new personnel and on the other hand reduce the turnover rate by a binding of existing employees at the company is forced. Also, consistent transparency with regard to the granting of additional performance within company is created by using a smaller range of services as well as the definition of minimum terms for certain services. Disadvantages of the cafeteria model: the biggest problem of the cafeteria model is that the desired arrival effect fully comes to fruition, since the awarded benefits on the part of the staff easily as a matter of course be considered. Remedy this creates a comprehensive employee information in combination with continuous communication. In terms of a successful and thus targeted cafeteria model, it is in the best case on the part of the company to comply with some conditions.

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