If your first impression reading the headline was something along the lines of “there’s no way benefits could ever trump salary,” then you might be surprised.
Of course, salary increases and bonuses will always top the list of ways employees prefer employers to show appreciation for their hard work and service. However, that doesn’t mean that a comprehensive benefits package isn’t also a compelling form of compensation, too.
In fact, according to 2022 research from McKinsey & Company an integrated benefits ecosystem would be a win for employees and employers alike.
The report states: “A recent McKinsey survey found that over the past five years, the importance of ancillary and voluntary benefits has increased across the board in relation to talent attraction and retention. In fact, many Americans say benefits are as important as salary—if not more so—when evaluating job opportunities.”
Another nugget from the aforementioned McKinsey report noted that “an integrated benefits experience offers wide-ranging and compelling advantages for all stakeholders; employers can reduce administrative burden and costs, streamline decision making, and create distinctive employee experiences to attract and retain quality talent, helping their organizations grow more effectively over time.”
Workers Received Fewer Raises in 2023
According to a recent survey of 1,500 full-time employees by BambooHR, just over 40% of employees have not received a salary increase in the past 12 months. For those employees who did receive a raise, the salary increase was 4.6% compared to the 6.2% average in 2022.
What’s more, the BambooHR survey found that women were significantly less satisfied with their salary, with 27% expressing frustration with their compensation compared to 15% of men.
Another critical component of the survey was the role of employee benefits as an element of total compensation.
A whopping 56% of employee respondents reported that their employers have introduced new or improved benefits, while only 28% say their benefits have been removed or reduced.
Additionally, over half of employees believe employers who fail to provide essential benefits should compensate their workers more, up from 45% in 2022.
In the researchers’ concluding findings, they wrote that “higher pay isn’t always the answer” while advising employers to communicate regularly about other forms of compensation–increased flexibility, matching 401ks or expanding benefits packages—when salary increases are not an option.
There’s no denying that 2023 has been a tough year for employers nationwide, with a struggling economy and lukewarm marketplace at best. In these hard times when employers want to recognize and reward talented employees, consider taking a hard look at overall benefits packages.
Are there benefits that your workforce is currently not using? What would be better or speak to the problems or concerns your workforce faces daily?
The best starting place is simply to ask. After all, comprehensive benefits are only as good as the workforce that utilizes them.
Employee Benefits Should Complement Your Caregiving Workforce
As a reminder, an incredible 1 in 5 adults in the U.S. provide uncompensated care to loved ones. For those 1 in 5 caregiving adults, caregiving typically requires 24 hours of work per week, and about 60% of caregivers have jobs outside the home. As a result, 61% of those caregivers report at least one work-related work consequence, such as leaving early, retiring sooner than planned or arriving late.
Caregivers across the nation are in crisis and requesting help and support from employers via employer-sponsored benefits. To learn more about how Cariloop’s end-to-end digital platform and licensed Care Coaches can support caregivers at all stages of life, review our Solutions and contact us today.
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