10 Statistics about Compensation & Benefits You Must Know
Posted 29-Jan -2020
Compensation and Benefits form an integral part of a business strategy and human resource management. Generally, salary is what comes in mind of the employees when they hear compensation. In the case of senior management, compensation is far more than just the monthly paycheck.
Benefits cover indirect pay such as health insurance, travel options, and various other perks given to the employees. Benefits are a crucial part of a job offer, especially in the case of senior-level positions. There can be a situation where two jobs offering the same salary package but may vary distinctly in the benefits category – making one a far better monetary proposition than the other.
According to various workplace studies conducted by different bodies such as CBI, SHRM, Aflac, and Addison Group, listed below are 10 revealing statistics about compensation & benefits.
1. 80% of employees suggested that they would prefer additional benefits or perks over a pay hike.
2. 55% of employees would prefer taking up a job with lower compensation but a more attractive benefits package.
3. It is found that 60% of women rate work-life balance and good health as two crucial parameters in a new job, while 48% of men tend to agree with them.
4. In the U.S., 57% of job seekers announce benefits and perks to be their top interests before taking up on a new job.
5. 72% of employees are happy at work, but 60% of them are still looking for better perks.
6. 70% of employees suggest salary transparency for higher employee satisfaction.
7. Women earn 24.4% lesser base pay than men on average.
8. 67% of employees indicated that they tend to not apply in a company where men and women were paid differently for the same work and position.
9. Only 65% of employees report compensation satisfaction.
10. 49% of employees in the U.S. would prefer a job switch to gain a significant change in compensation.
Why are the compensation & benefits important?
This function of human resource is primarily essential for two reasons –
According to a study by Lexington Law, 3 in 5 Americans are likely to accept a job they love with half their current salary over a job they hate. The same study explained that around 40% of workers pick passion and interests as a significant factor for deciding whether to accept or reject job opportunities.
Clearly, there’s something more than the money that matters to the employees for a long-term alliance with the organization. A strong correlation between pay and engagement suggests that more pay clarity means higher employee engagement.
Overtime pay, pension plans, stock options, and even free lunches come under the compensation and benefits plan. According to a study conducted by SHRM, 62% of U.S. employees reported health care benefits as crucial to them. Focusing on these perks and privileges can considerably increase employee engagement and retention.
Moreover, the indirect compensation benefits such as paid time off, flexibility, retirement benefits, and family-friendly benefits strongly encourage employee satisfaction with their company.