Employers shouldn’t jump straight to wage hikes to reward employees, benefits may work better in the long run
Employers looking to keep workers engaged and on board often offer pay rises but according to one new survey, an increased wage may not be the best way to go about it.
The US Employment Confidence Survey showed that the majority of American employees (79 per cent) would actually prefer benefits of perks to a pay rise.
Of those 79 per cent, the most preferred benefit is healthcare insurance (40 per cent), followed by paid vacation days (37 per cent), performance bonuses (35 per cent, paid sick days (32 per cent) and a 401(k) plan/retirement plan/pension (31 per cent).
Gender
Broken down by gender, more women than men said they’d pick perks over a pay rise – 82 per cent and 76 per cent respectively.
Age
Notable differences in opinion also appeared across varying age groups – a huge 89 per cent of millennials rated benefits above an increased salary but interest decreased as employees got older.
Eighty-four per cent of 35-44 year olds would opt for increased benefits over a wage hike compared to 70 per cent of 45-54 year olds and just 66 per cent of 55-64 year olds.
“This is a clear signal to employers that in order to compete in today’s labor market, it’s not just about salary and compensation, employers should be communicating clearly about non-traditional compensation,” says Rusty Rueff, Glassdoor career and workplace expert.
“Touting the benefits and perks offered can help win talent of different demographics, industries and occupations,” he added.
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The US Employment Confidence Survey showed that the majority of American employees (79 per cent) would actually prefer benefits of perks to a pay rise.
Of those 79 per cent, the most preferred benefit is healthcare insurance (40 per cent), followed by paid vacation days (37 per cent), performance bonuses (35 per cent, paid sick days (32 per cent) and a 401(k) plan/retirement plan/pension (31 per cent).
Gender
Broken down by gender, more women than men said they’d pick perks over a pay rise – 82 per cent and 76 per cent respectively.
Age
Notable differences in opinion also appeared across varying age groups – a huge 89 per cent of millennials rated benefits above an increased salary but interest decreased as employees got older.
Eighty-four per cent of 35-44 year olds would opt for increased benefits over a wage hike compared to 70 per cent of 45-54 year olds and just 66 per cent of 55-64 year olds.
“This is a clear signal to employers that in order to compete in today’s labor market, it’s not just about salary and compensation, employers should be communicating clearly about non-traditional compensation,” says Rusty Rueff, Glassdoor career and workplace expert.
“Touting the benefits and perks offered can help win talent of different demographics, industries and occupations,” he added.
More like this:
Should all employees be encouraged to chase leadership?
Unpleasant execs poisoning the workforce
$1.6 million rescreening slip-up for BMW