Over time, we’ve seen a shift in what employees value in their compensation package. While the basic salary is still important, many other factors have a large influence on potential employees. So, what are the most important aspects to focus on when developing your compensation package?
To start, we analyzed trends using data from 1996 - 2016 in the SHRM 2016 Employee Benefits Research Report, as well as the LinkedIn 2018 Workplace Learning Report. The data spreads across multiple employee age groups within the past two decades, and was taken from businesses globally, meaning it should be relevant regardless of the country you're hiring from.
While healthcare has long been considered an important factor in a compensation package, wellness plans and benefits have been gaining traction. Over the past two decades, 18 percent of companies have adopted health and wellness programs. These programs can include a wide array of benefits such as insurance support, health savings accounts, and reward-backed goal setting.
We’ve also seen a major increase in telecommuting and remote-work opportunities. Since 1996, the percent of companies offering remote options for employees has tripled from 20% to 60%. With the rising value of remote opportunities, it can be an important part of a job’s value proposition.
In the past 20 years, the percent of companies offering to pay for additional training and education for their employees has increased by 11%. And, rightfully so, as the experiences gained from a job is one of the most important factors for many employees.
In fact, a survey by LinkedIn found that “94% of employees would stay at a company longer if it invested in their career.” A lack of career development is the number one reason employees quit their jobs, with over 22% of workers citing it as their reason for leaving. However, if you emphasize career development and employee growth, then employee retention can increase drastically!
Great training leads to greater experiences, but many companies still overlook the training process. Effective training is essential not only to improve employee experience, but also to increase their effectiveness in their job. When coordinating a great training program, it’s important to remember the 4 M’s:
Micro: make it easily digestible, with short segments
Mobile: make it portable and convenient
Memorable: use small games or goals to make the training engaging
Measurable: analyze results to measure training success and continually improve
As industry trends have followed employee values, it’s important to adopt a variety of non-monetary strategies to improve your compensation package. Often the best talent isn’t won over by a small edge in salary, but rather a variety of offerings that improve their quality of life. A better value proposition leads to better talent recruitment, and long-term success that’s well worth the investment. While hiring, we encourage you to streamline your value proposition and focus on the great benefits your company can offer.