Employee Rewards Why Salary Isn't Enough?

The rewards between the employees work as "checkpoints" before the collaborators.

The battle to attract and retain top talent is intensifying, and many companies still think salary is the winning card. However, when competitors are able to match the money you are being offered, what happens?

With a shortage of talent and too many other organizations competing for them, attracting talent takes much more than salary.

benefits as a reward

Workplace benefits serve to establish a long-term commitment between employer and employee, showing that the company cares and values ​​them as individuals. On the other hand, a salary alone communicates little about the organization and how staff are viewed.

A survey by CV-Library showed that money is no longer the top priority for today's workers, with the vast majority (81.9%) saying they would take a pay cut if it meant achieving their dream within the company.

According to the study, career development and happiness at work are much more important to employees. In addition, employment benefits were desired by more than half (54.4%) of those surveyed. So we can see that salary is not a priority for employees.

In fact, a 2015 US study revealed that salary should only be about 70% of a worker's total compensation, typically about 30% of their package is made up of the benefits they receive.

It is essential that companies differentiate themselves from the competition by offering staff a great benefits package, this gives talented candidates a more complete picture of the company. Today, more and more employees expect much more from their employer and will consider what the company has to offer on top of salary.

What about employee welfare?

Wellness benefits like gym membership are increasingly valued by employees as the general population becomes more aware of their health and lifestyle choices.

The 2016 Capita Employee Benefits Insight Report revealed that 44.8% of employees value a company for the quality of the health and wellness packages it offers.

Interestingly, almost half (48.8%) of the highest paid earners, who receive more than $942,948 pesos per year, said they would evaluate their employer or its commitment to employee well-being, showing that even for staff with higher salary remains a priority.

Wellness benefits bring a number of rewards to the company, including:

• Productivity increase
• Decreased presenteeism.
• Reduced absence rates (where the sick person arrives at work, however their performance is poor)
•  Better brand reputation
• Reduction of billing and hiring costs.
• Creating a happier and less stressed work team (stress is one of the main causes of sickness absence)

Reaping benefits

The key to taking advantage of the benefits offered by your company is to provide the correct ones, that is, the ones that the employees really require and of course, this means that you must know exactly what they are looking for.

Here's how to ensure your company and employees get the most out of the benefits you offer:

Consult with your staff: Really ask your staff what they are looking for in a benefits package and take this into account when considering what benefits to offer. It is important to treat your employees as customers, discover their needs and act to satisfy them.

Adapt benefits:  Businesses today are faced with a diverse workforce from different generations, genders and cultures. The staff values ​​a variety of benefits that address your specific needs. For example, while younger generations may choose benefits like gym memberships, older generations might prefer health insurance. In the end, tailoring benefits will ensure that workers are more engaged with the benefits offered.

Communicate: It's more important than ever for organizations to create highly-accepted and relevant benefits, as salary changes mean higher cost implications for businesses.

Having effective communication with your workers will help you understand what types of benefits they are looking for according to their needs.

conclusion

Benefits remain an important way to attract talent, plus they work to keep staff turnover low.

While some companies understand the value of employee benefits, many employers are still hesitant to make this valuable investment.

If the benefits provided to employees do not achieve a substantial ROI, it is often because those benefits are not meeting the needs of staff or because they are not adequately communicated to workers.

It's clear that benefits are part of what an employee wants, but the potential of these benefits can translate into outcomes such as a more motivated workforce, reduced absenteeism, and more engaged staff. It's up to companies to start putting the benefits of staff first.