CCP 04-19-2004 - Laserfiche WebLink

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. . . retain and motivate employees, In the past, employee benefits meant group health, life and disability insurance. In recent years, most private and public sector organizations have expanded their compensation and benefit programs to include things such as: service and achievement awards; "camaraderie-type" events like annual banquets, employee picnics and holiday parties; on-site daycare or daycare referral services; flex-time and work/life policies; payroll-deducted car and homeowner's insurance; medieal and daycare expense aceounts; and assistance with earpooling, transportation or parking. One reason for this expansion of benefit programs is that today's workforce is diverse and offering a wide range of benefits allows employees to choose the ones that are most important for them, For example, employees in families where both parents work sometimes prefer time off above other benefits, A single parent, however, may require family health insurance, Younger employees may value events where they can socialize with othcr employees. Another reason for expansion of employee benefits is the fact that studies continue to show that nearly all employees rank "recognition" as a key factor in a good work environment. Since "recognition" means different things for different people, employers who want to meet diverse needs offer a variety of formal and informal recognition programs. Researchers in intergenerational issues advise employers that each generation of employees value different types of recognition programs and no single effort will be valued by all of the generations prescnt in the workforce, Finally, in addition to the important goals of employee satisfaction and retention, many employers recognize the value of benefits that promote positive social interaction among employees, Employees who interaet together develop a "synergy" which often allows for better ideas, better eo operation, and higher productivity. On the opposite end of the continuum, a dysfunctional workforce with high interpersonal conflict may experienee lower produetivity, higher absenteeism and probably higher insurance claims. All of these faetors can negatively affect an employer's product and services. We think a eity eouneil, as an employer, eould logically conclude that expenditures for employee events, including food at employee meetings, really have as their primary purpose, the creation of a more productive work force that better serves the interests of the citizens of the community. Another way to look at these types of expenditures is to view them as a form of expected employee compensation similar to the analysis used in evaluating employee recognition events. To avoid the argument that expenditures on employee events is an unlawful gift, there should be an understanding, in advance, that these events are an expected form of compensation, If a city wants to implement such a program, it would probably be helpful to have the city eouncil review this issue as part of its annual budget discussion. Councils may even want to go as far as passing a motion specifying and providing that amounts spent on such events are additional forms of compensation to all employees. The key again, is that the employees have a reasonable prior understanding and expectation that if they are performing their job, they are earning the right to attend the employee event. 5