2002-08-14 CC Packet - Laserfiche WebLink

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purpose and recommended that the city discontinue expending public funds for employees' social events. The OSA' s report relied on an Attorney General's opinion from 1966, finding that "Any public benefit that might result from the proposed social event is too remote and speculative to justifY this expenditure as being one for a public purpose." With regard to both the Auditor and Attorney General's view, we offer a couple of observations. First, as discussed above, the question of whether a public purpose is served by expenditure of this nature, is largely a matter properly left to the discretion of individual city councils. As discussed at the beginning ofthis memo, the concept of public purpose is an evolving concept that can change over time. Perhaps in 1966 the idea of expending city resources on events designed to promote a happy and productive work force, was not seen as a reasonable employment practice. However, in today's work environment, most human resource professionals would agree that employee job satisfaction, and ultimately productivity, depends on more than just the salary an employee receives from their employer. All employee benefits are basically a form of employee compensation that, like all other forms, are designed to attract, 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; medical and daycare expense accounts; and assistance with carpooling, 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 other 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 present 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 interact together develop a "synergy" which often allows for better ideas, better cooperation, and higher productivity. On the opposite end of the continuum, a dysfunctional workforce with high interpersonal conflict may experience 5