What benefits are employees looking for the most?
Only 33% of employees in New Zealand are satisfied with their current benefits, according to a new report, and this could cost employers more talent as salary expectations increase.
The latest report from recruiting experts Hays revealed that more New Zealanders feel their work performance and the demand for their skills should mean higher compensation. But with some employers hesitant to raise wages, Hays managing director Adam Shapley said employers might need to rely on benefits to help retain talent amid a tight labour market.
"With a salary expectation gap evident, offering the benefits employees value can help reward and retain top talent in a competitive labour market," said Shapley in a statement.
What benefits do employees want?
According to the report, the most sought-after benefit cited by employees is training, either external or internal, followed by more than 20 days of annual leave, and then ongoing learning and development. The full list includes:
- Training, either internal or external (57%)
- Over 20 days of annual leave (55%)
- Ongoing learning and development (53%)
- Mental and physical health and well-being programmes (38%)
- Formal career paths (38%)
- Company car, car allowance, or onsite parking (33%)
- Budget for home office setup or supplies (33%)
- Financial support for professional study (29%)
- Share incentives (29%)
- Payment of professional membership fees (28%)
- Paid leave for professional study (22%)
- Payment of usage charges for employee-owned devices used at work, or salary sacrifice (20%)
Read more: What benefits can help avoid employee turnover?
According to the report, the benefit of having over 20 days of final leave reported a significant increase from being requested by 30% the year before to 55% this year, with Shapley attributing this to employees who are now putting premium on work-life balance and mental health.
"To care for their health and wellbeing they now want a job that offers more than customary annual leave," said the managing director. "If a person's time is as valuable as money, additional annual leave can add significantly to their overall package.
Interestingly, flexibility was absent from the list of benefits that employees demand. Shapley, however, suggests that this may be because employees are looking at it now as an "ordinary entitlement."
"For jobs that can be performed outside a central workplace, skilled professionals expect to work in a hybrid arrangement," he said. "After more than two years of hybrid working, it's no longer considered a benefit that can attract and engage staff but rather a minimum ordinary entitlement."
Advice to employers, employees
Shapley told employers that it is critical that the reconcile their offers with what employees’ value, especially when modernising benefits that would attract, reward, and retain staff.
"Training and additional annual leave are obvious improvement points. So is the provision of formal career paths, which 38% of employees want but only 20% of employers offer," said the Hays official.
For employees, Shapley said that if their salary increases did not live to their expectations, then benefits may enhance the compensation that they receive in exchange for their skills and experience.
His advice to them: "Consider what else you can ask for."
"In particular, think of your long-term career objectives. Additional benefits such as training, formal career paths and mental and physical health and wellbeing programs, for instance, could lead to a promotion and higher compensation long-term than a small raise here and now," he said.