Measuring the value of nonwage employee benefits: building a model of the relation between benefit satisfaction and value.

Abstract

Researchers have commonly assumed benefits that employees view as more valuable have a greater influence on their attitudes and behaviors. Researchers have used 2 common methods to measure benefit value: attaching a monetary value to benefits and using self-reports of benefit importance. The present authors propose that the 2 approaches are conceptually distinct and have different implications. They use a social exchange perspective to justify this distinction and integrate both approaches and benefit satisfaction into a more comprehensive model of benefit perception. Results suggest that both measures have practical applications depending on the nature of the exchange relationship between the organization and employees. However, this relationship depends on the specific benefit and on employee satisfaction with that benefit. Some benefits lend themselves to a monetary estimate, whereas others lend themselves more to a nonmonetary valuation.