Intrinsic rewards, Cafeteria Compensation Style

Intrinsic rewards

Intrinsic rewards are the non-physical rewards. They cannot be seen or touched but are emotionally connected with the employees. In other words, intrinsic rewards can be defined as the feeling of contentment one finds in the completion of any task.

Intrinsic reward is directly related to job performance as a successful task automatically produces it. Higher the success rate, higher will be the rate of intrinsic rewards one receives.

Different people have different perception and therefore, there are various forms of intrinsic rewards, some of which are:

Sense of achievement

It takes lots of efforts, skills, and courage to perform any task and there is no better feeling than the joy one feels seeing his hard work pay off.

Words of praise from the seniors

Employees become more than happy when their seniors or supervisors speak few words of appreciation for them in front of peers or co-workers.


Everyone wants to be renowned at the place where they work. It is rewarding for employees when they are recognized by the co-workers and other members of the company for the work they’ve done. If implemented properly, employee recognition can benefit both employer and employees more than any monetary rewards.

Taking pride from the job

People try to avoid the credit when the jobs are wrongly done. But they feel proud of themselves when the work is perfectly done. Such feeling of pride plays a vital role in motivating them to give continuity to make even better outputs.

Work freedom or autonomy

When employees continue to make better output, supervisors may bother less to manage them. The freedom that employees receive to make their own decision and work as per their schedule is also a form of intrinsic reward.

Cafeteria Compensation Style

A cafeteria plan, also called a flexible benefit plan, allows employees to choose from a menu of optional benefits the ones that best fit their individual needs. Thus, employees can customize their benefit packages. In a cafeteria plan, benefits required by law (e.g. Social Security, unemployment compensation, workers’s compensation) and those mandated by company policies or labor agreements are supplemented by a list of other benefits to which employees can subscribe. Employees’s choices of optional benefits are limited only by the total benefit dollars available and the variety of benefits offered by the employer. Optional benefits that are often part of cafeteria plans include dental insurance, vision care, group-term life insurance, child care, and disability insurance. Many companies offer some form of cafeteria benefit plan to their employees, although smaller companies are less likely to offer flexible benefits than larger companies.


There are several variations of cafeteria plans, including core-plus plans and modular plans. Core-plus plans provide a set of mandatory benefits that are usually designed to meet the basic needs of all employees. In addition to legally-required benefits, medical insurance, long-term disability insurance, and retirement benefits are often included in the core. Optional benefits are offered to employees who spend benefit credits to select other benefits that best fit their needs. Modular plans usually package several different bundles of benefits that offer increasingly extensive arrays of benefits. The basic module might include only the legally-required benefits, basic health insurance, and life insurance. A second module might include everything in the basic module plus additional benefits. A third module might include everything in modules one and two and even more benefits. Employees would choose the module that best fits their needs and life situation.

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