Employee Benefits vs Salary Increases in 2016
When it comes to employee benefits vs salary, as many as 79% of employees prefer the perks that employee benefits can bring over getting a pay increase, says a recent study shared by Benefits Canada.
This confirms what we already tell most of our clients here at Benefit Strategies – custom tailored benefit packages can be as good as gold and worth as much as (or better than) a pay raise.
Most Preferred Employee Benefit Options
Of the employees who said they preferred benefits packages vs salary, the survey inquired about what they want in workplace benefits and in perks. The leading types of employee benefits vs salary included:
- Healthcare insurance benefits
- Vacation/ Paid time off
- Performance bonuses
- Paid sick days
- Retirement Plan/ Pension benefits
Other Employee Benefit Preferences
The study also uncovered that not all employees prefer employee benefits over pay raises. Both gender and age affect the benefits vs salary preference.
GENDER – More women (82%) than men (76%) prefer benefits to pay raises.
AGE – Younger employees tend to have a higher preference towards employee benefits vs salary than older employees. For example, 89% of survey respondents between 18 and 24 years of age preferred benefits, while only 66% of employees between 55 and 64 years preferred benefits.
Takeaways for Your Alberta Business
Although this study was done on American employees, many parallels hold true for Alberta and Canada workplaces. In order to be a competitive employer and maintain your valuable employees you will need to make non-traditional compensation a priority.
It is also important to recognize that not all employees value employee benefits the same. This can depend on demographics, industries, and occupations. This is why Benefit Strategies Inc. offers Employee Benefit Audits to help employers determine what their employees will find most valuable.
Furthermore, as Benefits Canada points out, employers must do an exceptional job of communicating their non-traditional compensation, such as employee benefits and paid vacations.
Have More Questions About Employee Benefits?
At Benefit Strategies Inc., we can help you review and understand all the available competitive employee benefits packages and provide you with innovative employee benefits consulting to find what will best suit your needs.
If you have more questions about implementing or enhancing employee benefits at your company in 2016, please call our Edmonton Employee Benefits Broker at 1-780-437-5070, or contact us online for a free Consultation.
