Cafeteria plan

As a cafeteria model ( also cafeteria system ) is defined as a form of compensation model in Human Resources. Intention of this model is to increase motivation by individual choice. The system is attributable to the cognitive choice theories in the motivation theories.

Here, the employee receives depending on the position a certain amount of points available that he can spend freely for services within the cafeteria system. The range is determined by the company. These direct benefits can include such as insurance, pension plan, employer loans, additional salaries, benefits in kind such as childcare, benefits such as sports programs, company cars, better office equipment, additional leave, training or special time services such as a sabbatical. Advantage of the system is the customization option to personal needs of the employee, disadvantage are limitations of the tax laws ( cash benefit ).

• Human Resources