50 Statistics on Employee Compensation & Benefits
By Eddy Team — October 11, 2024
Compensation and employee benefits are incredibly complex HR functions, and significant changes to the way we work over recent years have made these areas more difficult. Help is at hand, however; our diligent research has gathered some of the latest and most important compensation and employee benefits statistics to empower your planning and labor market responses.
Stats on Retention and Compensation & Benefits
The Great Resignation has contributed to a tough labor market where it’s increasingly hard to find and retain the best employees. It almost goes without saying that paying more will help to attract and keep key talent—however, the benefits offered by employers are very important too. Statistics demonstrate that paying more and offering better employee benefits can have an exponential return on investment.
46% of workers say salary or bonus is the greatest motivator for staying at their current company.
LeverA $1 per hour pay increase can result in a 2.8% increase in rates of retention.
Harvard UniversityA $1 per hour pay loss can result in a 28% increase in turnover.
Harvard University30% of employers plan to increase wages in 2023.
World Economic ForumTo retain employees in response to supply and demand pressures, 53% of businesses have plans in place to aid in the retention of employees.
Statistics Canada14% of employers plan to increase benefits to help with retention.
Statistics CanadaStats on Job Satisfaction and Compensation & Benefits
Offering higher wages and better benefits packages can not only attract and retain employees, but it can also increase job satisfaction. This in turn increases productivity and business profitability. Wellness and lifestyle benefits can also be major contributors to job satisfaction and more productive employees. These types of benefits can reduce stress and eliminate employee burnout.
Studies show corporate wellness programs return an average of $3 for every $1 spent.
Monster68% of workers making more than $150,000 per year reported being “very satisfied” with their job versus only 40% of employees making under $50,000.
CNBC60% of employees rate compensation as very important to job satisfaction, and 36% rate it as important.
SHRM25% of Americans do not believe they are well paid for their work.
CNBC54% of organizations are increasing pay in order to retain talent.
CIPDThere is an 83% gap between the benefits employees have and what they want when it comes to extended health and well-being support.
The Conference Board/Telus HealthStats on Compensation & Benefits When Hiring
New employees will be attracted to companies that offer competitive compensation and benefits packages. And when existing employees are well rewarded and have greater job satisfaction, they’re more likely to refer people they know for open roles.
Employees who are content with their employers’ time and location flexibility are over two times more likely to recommend their organization to other job seekers.
LinkedIn62% of employees say they choose their employer based on an attractive salary and benefits.
RandstadOne in five businesses are considering inflation when they set wages.
Statistics Canada69% of higher-income earners find their work meaningful versus 60% of lower-income earners.
CNBC64% of workers say a significant increase in income or benefits is “very important” when choosing their next job.
Gallup36% of companies are offering better pay and benefits to address recruitment difficulties.
CIPDStats on Pay Transparency
Transparency is critical in today’s workplaces. Employees want to be clear about what compensation they will receive and how this compares to their colleagues’ pay. This transparency can be an important factor in whether a candidate applies for a job or attends an interview. The statistics show that some companies are still way behind when it comes to pay transparency practices.
70% of employees want some form of pay transparency.
SHRM/VisierOne in six employers report a rise in applications after implementing pay transparency initiatives that disclose salary in job postings.
Wilson Towers WatsonOne-third of job candidates need to know the salary range for a role before deciding whether to interview.
SHRM/Adzuna62% of employers are planning or considering disclosing pay rate information in the future.
Wilson Towers Watson16% of companies that disclose pay rates see a greater number of candidate applications.
Wilson Towers Watson17% of companies practice pay transparency, but 41% discourage the discussion of salary information.
Time/Institute for Women’s Policy Research54% decline job offers based on salary.
SHRM/AdzunaStats on Equitable Pay
There is certainly no place in today’s workplaces for inequitable pay or pay discrimination, and this knowledge should be at the forefront of an employer’s wage and hiring decisions. Again, transparency of equal pay policies and practices is vital for fostering diversity and for attracting new employees. Unfortunately, we are still some way from seeing complete pay equity.
At the current pace, it will take another 132 years to achieve complete pay equity.
Fortune/World Economic ForumWomen still earn 82 cents for every $1 a man earns.
PayscaleWhite women in the US earn around 79% of what white men make, but black women earn only 63%, Native American women 57%, and Hispanic women 54%.
Time/American Association of University WomenFull-time LGBTQ+ workers earn 10% less than other workers.
Human Rights Campaign33% of North American organizations are already disclosing information on how they manage pay equity.
Wilson Towers Watson68% of women feel less knowledgeable about who makes compensation decisions compared to 75% of men.
VisierStats on Compensation & Benefits by Location and Cost of Living
Salaries and benefits do vary from region to region, and the local cost of living is a key factor in any differences. Rising inflation and growing costs of living mean that today, salary increases can lag behind.
71% of employers with workers in more than one location give regional pay differentials.
LinkedIn57% of organizations are applying a geographic pay policy.
Wilson Towers WatsonThe average salary increase is 3.4%, less than half the rate of inflation.
ForbesRegions with lower inflation have lower average expected pay increases for 2022; for example, Japan’s rate of inflation is 0.5% and the average pay increase is 2.6% versus 3.4% in the US.
RandstadOnly 50% of employers in the Middle East and Africa planned to increase salaries in 2022.
RandstadStats on Must-Have Benefits
In a changing world of work, employee expectations for benefits are changing. More employees would like to see wellness and lifestyle benefits, and many want flexible working practices. Still at the top of benefits must-haves, though, are health and retirement programs.
88% of employees rate health-related benefits as very important, and 82% rate retirement benefits as very important.
SHRM70% of employers view family care benefits as important.
SHRM52% of employees say flexible work practices will impact whether they stay at their organization.
Gartner56% of employees would trade a salary increase for certain perks.
TechnologyAdvice60% of people report benefits and perks are a major factor in considering a job.
HBR/Glassdoor88% of organizations offer programs to support emotional well-being, up from 66% in April 2021.
The Conference BoardSocial wellness and belonging activities are second most welcome according to 37% of employees and are only available in 67% of organizations.
The Conference BoardStats on Lifestyle Benefits
Lifestyle benefits go above and beyond medical, dental, and retirement plans and can include flexible work practices, additional leave, wellness programs, and even free lunches. Employees value these benefits greatly and will choose employers accordingly.
30% of employers report that advertising roles as open to flexible working is the most effective way to attract candidates.
CIPD86% of organizations have formal policies like paid time off, parental leave, and flexibility to support well-being, an increase from 65% in April 2021.
The Conference Board82% of employers say leave benefits are very important.
SHRM70% of employers are considering adding a Lifestyle Spending Account (LSA) to their benefits package.
MercerEmployer programs to support employee well-being increased by 22% in 2021 alone.
The Conference Board15% of employers plan to introduce or improve benefits.
World Economic ForumKey Takeaways to Improve Your Approach to Compensation & Benefits
The statistics make it clear: compensation and benefits play an enormous role in the way you attract and retain quality talent. If you expect employees to give their all, you have to be willing to pay them what they’re worth and provide the benefits they need and want. Here are a few things you can do to make sure your compensation and benefits are competitive.
1. Be Strategic About Compensation
Paying your workers right takes a lot of research and decision-making. Create a compensation strategy to guide your overall approach (will you lag, meet, or lead the market?), then benchmark individual jobs to make sure your salaries are attractive.
2. Be Transparent and Fair
If you’re not already, consider demonstrating your commitment to pay transparency by adding a salary range to job postings. This, combined with a solid compensation strategy, will ensure that all your employees are paid equitably. Use Eddy’s hiring software to create compliant job listings that include salary transparency.
3. Offer As Many Benefits As You Can
Research the different types of employee benefits out there, and offer whatever you can afford. Start with the basics—health insurance, dental and vision insurance, and paid time off—and build from there. Eddy’s platform provides a simple way to manage and track benefits while offering competitive packages to employees.
4. Integrate Compensation and Benefits with Payroll
Ensure accurate and timely payments by integrating compensation and benefits information into your payroll system. Eddy’s integrated payroll feature automates this process, ensuring compliance with tax laws and making sure employees are paid correctly and on time. With Eddy, employees can also easily view their paycheck and benefits information.
Ready to see how Eddy can transform your HR operations? Request a demo today to see how Eddy can help you attract and retain top talent with competitive benefits and compensation.
50 Statistics on Employee Compensation & Benefits
By Eddy Team — October 11, 2024
Compensation and employee benefits are incredibly complex HR functions, and significant changes to the way we work over recent years have made these areas more difficult. Help is at hand, however; our diligent research has gathered some of the latest and most important compensation and employee benefits statistics to empower your planning and labor market responses.
Stats on Retention and Compensation & Benefits
The Great Resignation has contributed to a tough labor market where it’s increasingly hard to find and retain the best employees. It almost goes without saying that paying more will help to attract and keep key talent—however, the benefits offered by employers are very important too. Statistics demonstrate that paying more and offering better employee benefits can have an exponential return on investment.
46% of workers say salary or bonus is the greatest motivator for staying at their current company.
LeverA $1 per hour pay increase can result in a 2.8% increase in rates of retention.
Harvard UniversityA $1 per hour pay loss can result in a 28% increase in turnover.
Harvard University30% of employers plan to increase wages in 2023.
World Economic ForumTo retain employees in response to supply and demand pressures, 53% of businesses have plans in place to aid in the retention of employees.
Statistics Canada14% of employers plan to increase benefits to help with retention.
Statistics CanadaStats on Job Satisfaction and Compensation & Benefits
Offering higher wages and better benefits packages can not only attract and retain employees, but it can also increase job satisfaction. This in turn increases productivity and business profitability. Wellness and lifestyle benefits can also be major contributors to job satisfaction and more productive employees. These types of benefits can reduce stress and eliminate employee burnout.
Studies show corporate wellness programs return an average of $3 for every $1 spent.
Monster68% of workers making more than $150,000 per year reported being “very satisfied” with their job versus only 40% of employees making under $50,000.
CNBC60% of employees rate compensation as very important to job satisfaction, and 36% rate it as important.
SHRM25% of Americans do not believe they are well paid for their work.
CNBC54% of organizations are increasing pay in order to retain talent.
CIPDThere is an 83% gap between the benefits employees have and what they want when it comes to extended health and well-being support.
The Conference Board/Telus HealthStats on Compensation & Benefits When Hiring
New employees will be attracted to companies that offer competitive compensation and benefits packages. And when existing employees are well rewarded and have greater job satisfaction, they’re more likely to refer people they know for open roles.
Employees who are content with their employers’ time and location flexibility are over two times more likely to recommend their organization to other job seekers.
LinkedIn62% of employees say they choose their employer based on an attractive salary and benefits.
RandstadOne in five businesses are considering inflation when they set wages.
Statistics Canada69% of higher-income earners find their work meaningful versus 60% of lower-income earners.
CNBC64% of workers say a significant increase in income or benefits is “very important” when choosing their next job.
Gallup36% of companies are offering better pay and benefits to address recruitment difficulties.
CIPDStats on Pay Transparency
Transparency is critical in today’s workplaces. Employees want to be clear about what compensation they will receive and how this compares to their colleagues’ pay. This transparency can be an important factor in whether a candidate applies for a job or attends an interview. The statistics show that some companies are still way behind when it comes to pay transparency practices.
70% of employees want some form of pay transparency.
SHRM/VisierOne in six employers report a rise in applications after implementing pay transparency initiatives that disclose salary in job postings.
Wilson Towers WatsonOne-third of job candidates need to know the salary range for a role before deciding whether to interview.
SHRM/Adzuna62% of employers are planning or considering disclosing pay rate information in the future.
Wilson Towers Watson16% of companies that disclose pay rates see a greater number of candidate applications.
Wilson Towers Watson17% of companies practice pay transparency, but 41% discourage the discussion of salary information.
Time/Institute for Women’s Policy Research54% decline job offers based on salary.
SHRM/AdzunaStats on Equitable Pay
There is certainly no place in today’s workplaces for inequitable pay or pay discrimination, and this knowledge should be at the forefront of an employer’s wage and hiring decisions. Again, transparency of equal pay policies and practices is vital for fostering diversity and for attracting new employees. Unfortunately, we are still some way from seeing complete pay equity.
At the current pace, it will take another 132 years to achieve complete pay equity.
Fortune/World Economic ForumWomen still earn 82 cents for every $1 a man earns.
PayscaleWhite women in the US earn around 79% of what white men make, but black women earn only 63%, Native American women 57%, and Hispanic women 54%.
Time/American Association of University WomenFull-time LGBTQ+ workers earn 10% less than other workers.
Human Rights Campaign33% of North American organizations are already disclosing information on how they manage pay equity.
Wilson Towers Watson68% of women feel less knowledgeable about who makes compensation decisions compared to 75% of men.
VisierStats on Compensation & Benefits by Location and Cost of Living
Salaries and benefits do vary from region to region, and the local cost of living is a key factor in any differences. Rising inflation and growing costs of living mean that today, salary increases can lag behind.
71% of employers with workers in more than one location give regional pay differentials.
LinkedIn57% of organizations are applying a geographic pay policy.
Wilson Towers WatsonThe average salary increase is 3.4%, less than half the rate of inflation.
ForbesRegions with lower inflation have lower average expected pay increases for 2022; for example, Japan’s rate of inflation is 0.5% and the average pay increase is 2.6% versus 3.4% in the US.
RandstadOnly 50% of employers in the Middle East and Africa planned to increase salaries in 2022.
RandstadStats on Must-Have Benefits
In a changing world of work, employee expectations for benefits are changing. More employees would like to see wellness and lifestyle benefits, and many want flexible working practices. Still at the top of benefits must-haves, though, are health and retirement programs.
88% of employees rate health-related benefits as very important, and 82% rate retirement benefits as very important.
SHRM70% of employers view family care benefits as important.
SHRM52% of employees say flexible work practices will impact whether they stay at their organization.
Gartner56% of employees would trade a salary increase for certain perks.
TechnologyAdvice60% of people report benefits and perks are a major factor in considering a job.
HBR/Glassdoor88% of organizations offer programs to support emotional well-being, up from 66% in April 2021.
The Conference BoardSocial wellness and belonging activities are second most welcome according to 37% of employees and are only available in 67% of organizations.
The Conference BoardStats on Lifestyle Benefits
Lifestyle benefits go above and beyond medical, dental, and retirement plans and can include flexible work practices, additional leave, wellness programs, and even free lunches. Employees value these benefits greatly and will choose employers accordingly.
30% of employers report that advertising roles as open to flexible working is the most effective way to attract candidates.
CIPD86% of organizations have formal policies like paid time off, parental leave, and flexibility to support well-being, an increase from 65% in April 2021.
The Conference Board82% of employers say leave benefits are very important.
SHRM70% of employers are considering adding a Lifestyle Spending Account (LSA) to their benefits package.
MercerEmployer programs to support employee well-being increased by 22% in 2021 alone.
The Conference Board15% of employers plan to introduce or improve benefits.
World Economic ForumKey Takeaways to Improve Your Approach to Compensation & Benefits
The statistics make it clear: compensation and benefits play an enormous role in the way you attract and retain quality talent. If you expect employees to give their all, you have to be willing to pay them what they’re worth and provide the benefits they need and want. Here are a few things you can do to make sure your compensation and benefits are competitive.
1. Be Strategic About Compensation
Paying your workers right takes a lot of research and decision-making. Create a compensation strategy to guide your overall approach (will you lag, meet, or lead the market?), then benchmark individual jobs to make sure your salaries are attractive.
2. Be Transparent and Fair
If you’re not already, consider demonstrating your commitment to pay transparency by adding a salary range to job postings. This, combined with a solid compensation strategy, will ensure that all your employees are paid equitably. Use Eddy’s hiring software to create compliant job listings that include salary transparency.
3. Offer As Many Benefits As You Can
Research the different types of employee benefits out there, and offer whatever you can afford. Start with the basics—health insurance, dental and vision insurance, and paid time off—and build from there. Eddy’s platform provides a simple way to manage and track benefits while offering competitive packages to employees.
4. Integrate Compensation and Benefits with Payroll
Ensure accurate and timely payments by integrating compensation and benefits information into your payroll system. Eddy’s integrated payroll feature automates this process, ensuring compliance with tax laws and making sure employees are paid correctly and on time. With Eddy, employees can also easily view their paycheck and benefits information.
Ready to see how Eddy can transform your HR operations? Request a demo today to see how Eddy can help you attract and retain top talent with competitive benefits and compensation.
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