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How Important are Salary and Benefits to Employees?

How Important are Salary and Benefits to Employees?

Some believe that employees “job hop” because the pay is not aligned with their needs or industry standards. However, job hopping often occurs because employees value career growth within their field of work, according to Andrew Martins. HR leaders at top companies take into consideration all the things that employees look for in an employer beyond pay.

More to Life Than Just Money

Many have come to realize that money is not the most important factor job seekers look at when considering a job. The world of work has changed due to the increased importance of technology, rise of new industries, and changing office demographics. These significant changes mean that salary and benefits are now just one of many key features of any job.

Concerns about maintaining a healthy work-life balance, flexible working hours, and the ability to work remotely are a few factors that have led many to reevaluate the importance they place on money. According to The Guardian, many people now prefer the prospect of a “good life with a standard amount of money” over a life driven by money.

A sense of fulfillment and opportunities to grow within an organization have also become important aspects of work. Company culture is now a primary concern and is something that many industry leaders have sought to improve by investing countless resources into ensuring they offer a good work environment.

Job Satisfaction and Employer Reviews

With the rise of employer review sites, employees now have a channel to voice their opinions on various aspects of their jobs. As a result, job satisfaction has become a widely debated topic now that employees have a dedicated platform to share their feedback.

Employees care about job satisfaction above all else, and it seems that neither salary nor benefits contribute to job satisfaction as significantly as other factors. Therefore, an employee’s opinion of salary and benefits may not affect their overall review of a company or the likelihood they’d recommend it as a potential employer.

What This Means for Employers

A careful analysis of employee reviews from Glassdoor’s Top 10 Best Places to Work of 2020 helped Barometer research what it is that happy employees value the most. As previously mentioned, salary and benefits correlate the least with overall company rating. Perhaps unsurprisingly, leadership was the most significant dimension for review scores. That is, if leadership was mentioned in a positive light, the reviewer likely viewed the company positively as well.

The second most important aspect was the opportunity for up-skill training. Employees value the opportunity to learn more and obtain new skills, and companies that offer such opportunities received better reviews than those that simply paid their employees well. 

While salary and benefits are the least important of the 5 categories we identified, that doesn't mean it should be eschewed entirely. Reviewers that mentioned their salary negatively ranked the company lower and were less likely to recommend the company to others. 

Achieving success can be as simple as emulating the successful. Our research uncovers what exactly employees prioritize and how this can shape their opinion of their employers. Our data can also help employers better understand what successful companies do and where they focus their efforts. The lessons we learned from Glassdoor's Best Places to Work can be applied to any workplace. See what you can learn and apply to your company by downloading our research here!

Preparing to change compensation at your company? Read this first.
What Drives Glassdoor Company Ratings?
Published by Simon Deignan June 24, 2020
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