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Mo' Benefits, Mo' Employee Love?

Written by: PeopleKeep Team
January 23, 2016 at 11:05 AM

Apparently, Mo' Money may actually mean Mo' Problems when it comes to employee raises. 

43_how-to-save-money-on-health-benefits.pngAccording to a recent Glassdoor survey, nearly four in five (79 percent) employees
 would prefer more benefits or perks to a pay increase. The most preferred benefit is healthcare insurance, followed by vacation/paid time off (37 percent), performance bonuses (35 percent), paid sick days (32 percent) and a 401(k) plan/retirement plan/pension (31 percent). 

Benefits/Perks Valued More Than Pay Raises

Looking at those employees who reported they prefer an increase in benefits/perks over an increase in pay, the following highlights the specific benefits and/or perks that employees would prefer:

  • Healthcare insurance (e.g., medical, dental): 40 percent

  • Vacation/Paid time off: 37 percent

  • Performance bonus: 35 percent

  • Paid sick days: 32 percent

  • 401(k) plan, retirement plan and/or pension: 31 percent

  • Flexible schedule (e.g., work from home): 30 percent

  • Office perks (e.g., free lunch, casual dress): 19 percent

  • Employee development programs (e.g., on-the-job training, professional development): 19 percent

  • Tuition reimbursement: 18 percent

  • Employee discounts: 17 percent

  • Gym membership or wellness programs: 16 percent

  • Stock, stock options and/or equity: 16 percent

  • Paid parental leave (e.g., maternity leave, adoption assistance): 13 percent

  • Childcare assistance (e.g., on-site childcare, financial assistance): 13 percent

  • Commuter assistance (e.g., company shuttle, commuter checks): 9 percent

  • Diversity program: 3 percent

Venus Differs from Mars and Millenials Differ from Boomers

More women (82 percent) than men (76 percent) prefer benefits/perks to a pay raise. In addition, younger employees aged 18-34 (89 percent) and 35-44 (84 percent) prefer benefits/perks to pay raises when compared to those aged 45-54 (70 percent) and 55-64 (66 percent).

What Glassdoor Says

“As the U.S. economy continues to expand and job market confidence continues to rise, there is no doubt it is a job seeker’s market. 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. Recruiters should take note that touting the benefits and perks offered can help win talent of different demographics, industries and occupations,” said Rusty Rueff, Glassdoor career and workplace expert.

What We Say

The key to a good compensation package is maximum take-home value.  In order to maximize an employee's total compensation package, you must leverage benefits and perks that provide better value than cash raises. At Zane Benefits, we offer the following:

  • Healthcare benefits (e.g. monthly allowance for health insurance)

  • Vacation/Paid time off

  • Performance bonuses

  • Retirement benefits

  • Office perks

  • Tuition reimbursement

  • Gym membership or wellness programs

  • Stock options

According to this survey, we are not doing well enough to compete for the very best talent. So, in 2016, we must find a way to improve benefits / perks. Here are some ideas we are considering in 2016:

  • Unlimited / flexible PTO

  • Flexible work schedule (e.g., work from home)

  • Employee development allowances (e.g. monthly stipend for on-the-job training, professional development, books)

  • Pre-negotiatied employee discounts at national and local service providers

  • Commuter assistance / transportation stipend (e.g., monthly stipend for transit passes)

What do you think about our approach to benefits / perks in 2016?

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