Why benefits are more lucrative than higher salary?

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By: tiarajoseph11
on 15th Dec,2015

Let us find out the reasons behind a normal jobseeker or employee chooses “employer benefits” over “high salary”.
benefits-and-higher-salary

Searching for an employment requires dedication and patience. You probably will not find the suitable job in one chance. Getting a job with a perfect position is very hard for us. If you agree to compromise this issue, then you can't get the perfect salary. Practically, we’re ready to leave our choice of work, but it’ll be a big problem if we don't get our expected salary (unless you’ve received a letter from Apple).

Although the majority of people are looking for a good starting salary and dreaming about a big green bill in their eyes, we normally don't bother about what benefits we are getting now. But trust me!!! Time has changed. Benefits are now a better indicator for evaluating your job and the employer.

Look below to find out how the employee benefits are greater than the salary:

1. Employee benefits - Considered by employees and job seekers

An employee should consider below-given valuable categories while considering a prospective job:

  • Health care facility
  • Leave and vacation
  • Casual employee benefits
  • Performance bonus
  • Increment/pay raise
  • Retirement benefits

The health care facility is the most important category of benefits. An average employee would place the health care facility in his 1/3 of the benefit package. If we check a survey of past employment history, we’ll find strong data showing valuable health care was the key interest of new job seekers and employees.

Survey results showed average interest by benefit:

  • Health care facility = 32%
  • Leave and vacation = 25%
  • Increment/pay raise = 15%
  • Casual employee benefits = 10%
  • Performance bonus = 9%
  • Retirement benefits = 8%

2. Employee benefits - Considered on the basis of earning

Earning capacity has a huge impact on employees and job seekers while choosing various compensation benefits. A survey report says, low-income employees are more attracted towards health care facility in comparison to new job seekers.

Reports reveal that low-income group of employees (let’s say - income less than $90K per year) consider the health care facility as it gives them 35% of the value of their compensation. However, employees over $90K income per year, consider leave and vacation facility as their prime focus.

These stats suggest that an employee measures the degree of compensation benefits by their current earning level. Practically health care benefits and leave and vacation facility, both are the two big benefits which influence the employee's mind while accepting a job offer.

3. Employee benefits - Considered on the basis of gender

Survey report says, both male and female employees are equally interested to take advantage the health care facility as a high priority benefit. They also choose the leave and vacation facility as their second choice.

However, women employees are a little bit biased towards leave and vacation facility and give it a bit more importance. On the other hand, men employees give importance to the performance bonus a bit more than women employees. Practically gender differences have very little impact on selecting compensation benefits by employees.

4. Employee benefits - Considered on the basis of employed vs. unemployed

Several survey findings again reveal how employed and unemployed people give importance to the compensation benefits over normal salary. Unemployed and employed job candidates have significant differences while choosing any particular benefits. Mostly, they prefer health care benefits rather than the other facilities.

The majority of employed job candidates always give importance to health care, whereas unemployed job seekers are looking for a higher salary or an increase in monthly payment rather than health care. Apart from health care benefits, a survey also found that employed job seekers are very much interested in a pay raise. All other benefits have a similar value between employed and unemployed job seekers.

5. Employee benefits - Considered on the basis of career level

Employee’s career level (entry or beginner, mid-career, executive, management) plays a significant role in choosing between high salary and compensation benefits. Different job level employees have their different opinion while choosing various benefits. Similar to the above, a survey report about unemployed job seekers reveals that an entry-level job seeker searches for health care benefits. But as the experience grows, they’re also getting interested for a retirement benefit or performance bonus.

The mid-career employees give more importance to leave and vacation as compared to entry-level employees, executives and managers. However, the upper-level employees like managers and executives prefer performance bonus more over their subordinate employees.

6. Employee benefits - Considered on the basis of employees with children vs. employees without children

An employee with kids has a choice similar to job seekers without children. However, both have some differences in levels of benefits that both will consider while choosing a job profile.

Employees who don’t have kids are interested in a pay raise than those with kids. Those without kids also prefer employee benefits like - life insurance and disability insurance. Job seekers with kids prefer paid child care over those candidates without kids.

So, it is clear that the majority of employees along with job seekers prefer different types of benefits more than only salary while applying for a new job.

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