Benefits of Companies Offering Individualized Packages

  • On March 24, 2022

More employees nowadays ask their employers or look for companies that allow them to have exceptions to the rule. Seeking personalized arrangements that differ from their co-workers, such as remote work to a tailored schedule or a reworked job that is better aligned with their interests and goals.

But managers are struggling to create and execute individualized packages for each employee under their belt, or whether to even consider them. Used to offering a one-size-fits-all benefits package, this traditional setup seems easier and fairer. A personal package leads to managers worrying they are making a mistake by offering such a package and will result in tension and resentment from other employees.

However, data is indicating these deals can make the workplace a fairer environment, and make it more likely that employees do their best work. More people recently are switching jobs, and personalized deals can help bosses hold on to valued employees by giving them opportunities and arrangements they can’t find with another competitor. The best managers realize that one size doesn’t fit all and that employees thrive under the conditions best for them. When you don’t allow exceptions, your employees will be less productive and less happy, leading to them looking for other opportunities.

Individualized packages may inspire new practices and policies that help the whole company. These deals are about more than money and work hours, as they can shift the focus to how jobs are structured or work is done, capitalizing on the uniqueness of individuals. Research indicates that workers who are offered a specialized package for their growth and advancement can experience increased workloads. Yet bosses are often blind to the idea of reduction, meaning removing non-critical tasks from a person’s responsibilities. Adding tasks, no matter the redundancy of them, tend to be preferred by managers because adding sounds better and less disruptive than taking something away. But reducing irrelevant tasks can help support the new deal you offer employees and will be especially appreciated by valuable workers. As a result, bosses should be open if an employee wants to drop tasks that aren’t critical, that someone else can do more easily or that interfere with career development.

Since these specialized packages create exceptions, companies new to the idea cannot anticipate the benefits and costs behind it. So, companies should negotiate the offer as an experiment or pilot makes the process easier, letting the company and employee revisit deals over time to see how well they are working and redesigning or sunsetting them accordingly. Having this process in place also gives co-workers a greater sense of fairness, since a process exists to address potential problems. 

To avoid privacy concerns and maintain trust, managers should be clear about the circumstances that warrant a package. Too many follow the policy of “don’t ask, don’t tell,” but secrecy undermines the trust and fairness of those outside negotiations. Learn and grant the basic requirements for individualized packages from conversations with employees and at group meetings. Then, if several people want something that cannot be given to all, consider whether turn-taking might be appropriate, such as rotating opportunities.

Transparency is also crucial when you give one employee an individualized package but must turn down another’s request. Your explanation should be clear and justifiable. If you would grant flexibility were performance or if reliability is not an issue, tell the person so. Instead of “No,” consider saying “Not yet” and layout the work behavior the person must demonstrate to justify a special deal, then follow-up. And if real constraints exist on how many special arrangements you can grant, make clear to all employees the conditions that warrant making an exception to the rule. You need a clear policy based on principles and stick to them. Special arrangements for workers in good standing, seniority or exceptional needs are universally viewed as legitimate.

When workers perceive the process as fair, they are more likely to view your decision as fair even if it isn’t what they wanted to hear. No one needs to feel embarrassed for obtaining a special arrangement, or jealous or angry of others who do, when they know that they were obtained via an open process available to all.

Granting a deal that goes against your organization’s values or rules of conduct is unlikely to be acceptable to peers, as it can be perceived as favoritism and resulted in a lot of resentment. Even more so, be careful about rewarding people who use these individualized packages as a bargaining tactic. Co-workers often resent someone who gets more money after threatening to quit, while their salaries stay the same. Rewarding people for mobility alone also affects the loyalty and contributions that others continue to make without a raise in pay, making the entire situation more unfair. And, of course, rewarding employees who repeatedly try to get special deals is a surefire way to create even more co-worker resentment. The benefits of individualized packages are numerous, but managers do have to be careful depending on the company and their workers. 

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