How Important is Compensation and Benefits To Employees

The short answer to this question is: pretty important. Most companies today recognise that attracting the best people requires a commitment to a certain level of compensation and benefits. In fact, almost three-quarters of companies offer benefits packages that go beyond what is offered as standard in the average workplace. If you want to optimise your recruitment processes then it’s essential to understand the value that a robust compensation and benefits package has.

Do employees consider benefits important?

Recent research revealed that 25% of employees feel that benefits are very important and another 31% rated them as “moderately” important. A further 34% said that benefits were somewhat important. That’s a total of 90% of employees who consider benefits and perks to be important in some way when it comes to employers and opportunities. These benefits can range from gym memberships through to health insurance and catered food. It’s worth noting that if you’re trying to attract millennials into your business they are more likely to prioritise a work-life balance – i.e. benefits such as free wellness and flexible working – than older generations who tend to look for higher compensation.

How to use compensation and benefits in recruitment

A strong compensation and benefits package is an essential tool when it comes to ensuring that your business is able to attract the best people. There are a number of different ways that you can use this in your recruitment process.

  • Create a package that will sell your business as an employer. As opposed to simply offering a standard set of benefits and average compensation, take the time to create something that will appeal specifically to candidates in your industry or to the demographic you’re looking to attract. If what you’re offering is unique it will play a big role in helping your business to stand out.
  • Include the details in your job ads. The easiest way to leverage your compensation and benefits package during the recruitment process is to feature some of it as part of the job ad. You might want to highlight the benefits that all employees receive or those that set your business apart from what the competition can offer.
  • Create a representative example. Often the most effective way to illustrate the value of what you’re offering is to put together a representative example. Create a statement for the average employee at your business that includes gross salary, as well as any bonuses or commissions and then the value of all available benefits. You can use this to demonstrate exactly what your business offers.
  • Make sure what you are offering continuously evolves. It’s important to update and change compensation and benefits to ensure that you remain appealing and competitive. Often the easiest way to do this is to go out into the market and see what others offer, as well as speaking to your own employees to determine if there’s anything they would like to update or change.

A sound benefits and compensation package means a lot to employees. It is a strong asset that any business can use as part of the recruitment process.