Not yet a Member?
HR Magazine is highlighting the next generation of HR leaders.
Is your employee handbook ready for the New Year? With SHRM’s Employee Handbook Builder get peace of mind that your handbook is up-to-date.
30+ HR education programs, including 4 NEW programs on hot topics, are available for registration.
Join us in Chicago for the latest trends and technology in talent management, and what to expect in the future.
Health insurance, 401(k) plans and vacation/paid time off are the most valued rewards
Improving traditional core benefits could be the best way to increase employees’ satisfaction with their rewards mix, new research suggests.
The three offerings with the greatest effect on how employees rate their benefits are health insurance, 401(k) retirement plans and vacation/paid time off. Among these, health insurance was by far the biggest driver of employee satisfaction, according to a new study, Which Benefits Drive Employee Satisfaction?, from Glassdoor Economic Research, the research arm of career website Glassdoor.
At organizations where employee ratings of the employer-provided health coverage increased by 1 star (out of 5), there was also a statistically significant increase in average employee satisfaction with the overall benefits package.
Source: Glassdoor Economic Research
*Denotes that the increase in the overall benefits rating was statistically significant.
Notably, 4 in 5 U.S. workers report they prefer new benefits or perks to a pay raise. This finding supports a recent Glassdoor survey that found health insurance, paid time off and 401(k) plans are among the top benefits employees would prefer over a pay increase.
Benefits with Narrower Appeal
Two benefits that did not seem to have a significant impact on overall employee satisfaction were maternity/paternity leave and employee discounts.
“Though many employers have added generous maternity/paternity leave plans, it is possible benefits that are not used by a large subset of employees do not impact overall benefits package satisfaction,” the researchers suggested.
“We know benefits and perks are an important recruiting tool in today’s challenging hiring landscape, and this study shows that the flashiest or trendy benefits aren’t always better,” said Andrew Chamberlain, chief economist of Glassdoor. “Investing in core benefits programs like health care coverage, retirement plans and paid time off will go far with new and current employees. Other benefits, like maternity/paternity leave, are important to recruit and retain smaller subsets of employees—like new parents—though we saw little impact on overall satisfaction related to benefits that don’t touch a wide variety of employees.”
He advised, “Employers who have well-rounded compensation plans that include core benefits, fair and competitive pay, and desirable perks stand to attract and retain top talent.”
A separate Glassdoor Economic Research study, The Best Industries for Benefits, found that the best benefits packages, according to employees, are found in the finance and technology industries.
Stephen Miller, CEBS, is an online editor/manager for SHRM. Follow him on Twitter @SHRMsmiller.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Your session has expired. Please log in again before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
HR Education in a City Near You
SHRM’s HR Vendor Directory contains over 3,200 companies