Citation:
Afonso D, Franco-Santos M, Gomez-Mejia L. (2021) Revisiting benefits design approaches: the strategic value of identity-based benefits, The Journal of Total Rewards, Volume 30, Issue 1, Spring 2021, pp. 71-80
Abstract:
When designing benefit offerings, organizations often frame the task as a trade-off:
should we follow the market (do what others do) or should we rather focus on our
employees’ preferences (let them choose)? In this paper, we contend that framing
the problem as a dichotomy underplays the strategic role of benefits and ignores
alternative approaches that could be more meaningful and effective. In the past,
using benefits to communicate strategic intentions has proven a challenge. Based on
recent research applying anthropomorphism ideas to organizations, we suggest an
additional approach, which considers an organization’s identity in designing benefit
offerings. With stakeholders increasingly expecting companies to position
themselves as distinct players within a complex societal and environmental context,
the concept of identity-based benefits presents itself as a powerful tool for
sensemaking about “who the organization is” and for creating a fruitful connection
between the organization and its stakeholders.