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09/02/2015

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Jaque - I think (and have thought for many years)that #5 would be wonderful thing , and clearly, there is no longer any technological barrier to it.

Perhaps I am lacking in imagination, but I cannot see how you could possibly structure such a reward approach in the face of the dead hand of government regulation at the service of predatory agencies and the plaintiff's bar. Not to mention the adverse selection/moral hazard issues inherent to all forms of insurance.

Between ADA, FLSA, FMLA, ERISA and any number of other legal and regulatory traps I'm probably forgetting right now, no employer could offer such a program to its employees. And that's just in the US

I hear you Tony. But I think we should give it a try. Companies have increasing diversity --- age, sex, culture, values, etc. And the more diverse the less a standard packages work. Remember the old phrase -- One size does not fit all.

The good news is that with technology (if we aren't constrained by the current vendor off the shelf built-in constraints) we should be able to do a lot of simulations that will help lessen the chance of failure. And if we take it slow that will also help. At any rate I don't think we should throw out this option.

I did it in Hong Kong for a group of about 50 employees --- agreed it was a small population. And Hong Kong at the time was pretty unregulated (before China hand off). But even the little changes we made were appreciated and employees were active participants. A secondary benefit was that they came away with a better understanding of benefit cost.

So let's think positive. I think it's worth our best shot!

No real reason that total reward packages can't be customized just as health insurance plans were. Most workers have highly variable paycheck deductions already. Options exist for most goodies, too. Perhaps pay can be personalized as easily as performance standards. Compensation costs are better measured as a sum total than as separate discrete elements, anyway.

I predicted this for the future some years ago. Still like the idea and still believe it will come.

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