Human resource professionals say they have noticed a trend that involves employees wanting more money instead of more benefits. Difficult recent economic times have led to other perks, such as flexible schedules, lateral promotions and bonus pay—but it seems that is changing and what employees really want now is more money in their pockets.
A recent survey by New York-based global benefits consulting company Mercer found that base pay was the most important part of the salary and benefits package for employees. The What’s Working report found U.S. workers showed lower satisfaction with base pay—with 53 percent satisfied. That number is down from 58 percent back in 2005 in that same study.
The survey also found due to the overall dissatisfaction with pay and benefits, one in three U.S. workers reported seriously considering leaving their company. That number (at 32 percent) increased from only 23 percent who were considering leaving in 2005. For employees ages 25-34, the number considering a move is even higher—at 40 percent.
HR experts say in today’s economy, instead of employees feeling just grateful to have a job (as has been the case in many recent years), with an improving economy, workers also want to make more money.
This recent trend is reportedly encouraging some companies to reconsider their salary and benefit offerings. In fact, some businesses are choosing to promote employees as a way to give top performers a significant raise, instead of only giving top employees the highest bonuses. This also means other employees who are not top performers would receive lower increases.
It’s expected companies will continue to come up with creative ways to reward their top employees. However, employees also still want to feel appreciated and rewarded—no matter how much money they make.
Modern Business Associates is an HR company that focuses on payroll and HR outsourcing. We routinely work with clients on employee pay trends. As a Professional Payroll and HR outsource organization, our clients rely on us to help them effectively deal with these kinds of topics.
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