---
title: "Mid-Autumn Festival and National Day Approaching: How Do You Plan to Distribute Employee Benefits?"
description: "Management is about managing people, aiming to smooth work, achieve goals, and reduce problems. It is not top-down command but communication, negotiation, investment, and exchange. Salary is not simply payment by work, nor can it be a complete equivalent exchange, as the standard is set by the boss and may not match market rates. Salary is a management tool to influence employees' thoughts and behaviors, and its form can be optimized. This article suggests diversifying compensation beyond cash, extending management to employees' families, and using a portion of salary to purchase benefits for family members to build a triangular management relationship."
author: "潘文富"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2017-09-21"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/v8BPzFWjNSq4TCe9IbPJBQ"
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# Mid-Autumn Festival and National Day Approaching: How Do You Plan to Distribute Employee Benefits?

> Management is about managing people, aiming to smooth work, achieve goals, and reduce problems. It is not top-down command but communication, negotiation, investment, and exchange. Salary is not simply payment by work, nor can it be a complete equivalent exchange, as the standard is set by the boss and may not match market rates. Salary is a management tool to influence employees' thoughts and behaviors, and its form can be optimized. This article suggests diversifying compensation beyond cash, extending management to employees' families, and using a portion of salary to purchase benefits for family members to build a triangular management relationship.

Management is about managing people, aiming to smooth work, achieve goals, and reduce problems.
Management is not top-down command but communication, negotiation, investment, and exchange. The labor-capital relationship is a basic transaction formed by the exchange of workload for salary.
**Paying wages is not simply payment by work, nor can it be a complete equivalent exchange.** After all, the standard for 'payment by work' is set by the boss, which may not align with actual market conditions, and employees may not fully accept it; they tend to prefer higher rather than lower pay.
Salary is actually a management tool to influence employees' thoughts and drive their behavior, or more simply, to win their loyalty. Therefore, in the matter of paying wages, besides the amount, the form of payment itself offers much room for optimization. If done well, it can enhance the influence of salary on employees' thoughts and behavior. Here are some ideas to expand in salary design and distribution.

**1. Diversification of Compensation**
Compensation should not be just money; money is the most basic form of benefit, but other forms should also be reflected, such as:
1. Regular learning opportunities to enhance employees' professional skills and industry value;
2. Annual team activities, such as trips or team-building, to strengthen group cohesion;
3. Collective participation in social welfare and charity activities;
4. Company assistance in employees' personal affairs, such as children's schooling or hospital appointments;
5. A good office environment and facilities for employees' daily needs;
6. Distribution of welfare goods.

**2. Extending the Management Line**
The conventional management line is just the boss managing employees. However, consider extending the management line to employees' homes, incorporating their family members into the management system. The structural relationships are as follows:

**1. Mutual Support Between Employees and Their Families**
First, every employee has a family background (unless the boss only hires someone like Sun Wukong born from a stone). Employees have responsibilities to their families; the salary they take home is meant to support the family. In this sense, the salary the boss pays is for the entire family.
The boss pays the salary to support the family, and in turn, the family supports the employee's work in various ways: family members take on household chores so the employee can focus on work and rest, or they tolerate the employee's overtime and lack of time with family. Moreover, family members encourage the employee to work hard and stay with the company.

**2. Transparency of Salary Information**
As family members, they naturally care about the employee's income (especially the spouse). However, not all employees truthfully report their salary; it's common to underreport or not mention it at all. Some employees, due to limited ability, lack of effort, or deductions for mistakes, may not want to explain the real reasons to their families and instead blame the boss for being stingy, saying, 'I work so hard, and they pay so little.' This can lead to misunderstandings among family members, who may think the boss is too cheap, undervalues the employee's work, or that the employee joined the wrong company. They might curse the boss or even advise the employee to take advantage of the company. In some cases, they might urge the employee to quit. Sometimes, employees planning to leave may deliberately claim the boss underpays them to gain family support for their job change.
Considering employees' families is important because family members are the true managers of employees; the boss is only the second manager. To effectively manage employees, it's necessary to ally with the first manager (the family) to form a triangular management relationship, thus achieving effective management:
This triangular relationship not only stabilizes employees through positive influence from their families but also adds a safety constraint, reducing the risk of misconduct and sudden resignations. To establish this, it's essential to connect with employees' families and introduce communication and benefit-sharing mechanisms.

**3. Let Employees' Families Also Enjoy Salary Benefits**
Salary is not paid to the employee alone but to the entire family. How can salary be distributed to the whole family? Directly splitting the money? That would likely cause employees to argue with the boss. A mutually acceptable approach is needed.

**1. Separation Ratio**
Traditionally, 100% of salary goes to the employee. Now consider extracting 2-3% to be given as family salary, with a cap of 5%; more would upset employees. This is already quite generous; in ancient times, bosses paid at most 60% to the employee, with the rest going to the family.

**2. Budget Setting**
When creating the annual salary budget, include the family salary amount. Before making each payroll, set aside the family salary so it doesn't appear on the employee's payslip; otherwise, employees might think the boss is using their money for favors. Instead, let employees believe the family salary is an extra contribution from the boss.

**3. Usage Form**
The 2-3% extracted as family salary amounts to only a few dozen yuan, or at most a hundred or so. How to spend it? Giving it directly to family members is impractical due to the small amount and the awkwardness of, say, having parents come to the company to sign for a few dozen yuan.
A simpler approach is to buy goods and distribute them as welfare items along with the salary.

**4. Selection of Welfare Goods**
Some bosses might say, 'We've given welfare goods before, but the effect was poor, and employees found it troublesome, saying it's better to just give cash.'
It's important to clarify that cash in the salary is for the employee, while welfare goods are family salary for the employee's family. Therefore, the selection should consider the family, not the employee. Generally, for parents, purchase daily necessities like rice, oil, salt, sauce, vinegar, and tea; for spouses, items for spiritual life; for children, children's food and toys. These items are low in value, practical, and widely applicable.
If employees are local, the goods can be distributed with the salary; if items are heavy or employees' families are in other places, use courier delivery.

**5. Purpose of Distributing Welfare Goods**
First, let employees' families directly feel the benefits. In traditional views, welfare distribution carries emotional company sentiment, which both employees and their families appreciate. This effectively promotes goodwill toward the company and the boss.
Besides employees carrying the goods or courier delivery, the boss or senior managers can personally deliver them. Of course, delivering welfare goods is just an excuse to visit and maintain contact with employees' families. As long as there are two or three meetings a year, employees won't dare to fabricate their actual salary amounts.
Ultimately, this forms a triangular management relationship among the boss, employee, and employee's family, strengthening positive drivers and increasing negative constraints. So, the same salary given to one employee, no matter how much, is not much; but if it can be shared with the entire family, the motivational effect is much greater.

*The author is a private business owner who has operated a family-owned distribution company for many years, concurrently serving as a business manager and trainer in several manufacturing companies. Research focuses on internal management of small and medium-sized private enterprises, with main topics including personnel management, cost control, management backend setup, and integration of veterans into private enterprises. The author continuously breaks down over 400 topics related to internal management of private enterprises and keeps updating materials and solutions.*

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