Compensation & Benefits Statistics
Table of Contents
Table of Contents
Compensation and benefits are incredibly complex HR functions, and significant changes to the way we work over recent years have made these areas more difficult still.
Help is at hand, however; our diligent research has gathered some of the latest and most important compensation and benefits statistics to empower your planning and labor market responses.
Companies with great pay and benefits have better retention
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 benefits can have an exponential return on investment.
Job satisfaction is closely linked with compensation and 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 work time. These types of benefits can reduce stress and eliminate employee burnout.
Offering competitive compensation and benefits will help you attract job candidates
New employees will be attracted to companies that offer excellent 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 and candidates value 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 transparency practices.
It’s important to pay all workers equitably
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.
Compensation and benefits vary depending on 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.
There are some benefits that employees view as must-haves
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.
Lifestyle benefits are increasingly popular
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.
Using Compensation and Benefits More Strategically
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 up to scratch.
- 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.
- 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.
- 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.
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