Salary v/s Benefits: What the millennials want?

Great pay, leaves and free food, there was a time when these were enough to lure people to apply for a job. Times have changed. As the younger generation step into adulthood and take on responsibilities their priorities have changed and they want a compensation package that suits their evolving needs. It’s not just salary alone but benefits too that help retain talent. 

As reported by The Predictive Index, benefits like health insurance package, maternity/paternity leaves, retirement benefits and flexible work schedules prove to have better impact than salary and other superficial perks. Unlike the older generations, the millennial aren’t cash-strapped and their main concern today isn’t money but a better lifestyle. The idea of working from the comfort of their home, having flexible working hours, vacations, ability to spend time with family, health benefits that relieve some of the burden that the younger generation faces and allows them a better work/life balance is what makes them happy. In fact, 83% of employees today are willing to change their job based on benefits alone.

Benefits that Employees Want

While the first thing, that comes to mind when we talk of employee benefits is health insurance, benefits boil down to more than just being able to afford a doctor.  While a competitive health insurance is a valuable part of the compensation package, here are some other benefits that companies should consider if they want to retain their employees trust and loyalty:-

Leave Travel Allowance/Paid Leaves/Vacation – We all like to take time off from work but it’s a plus when it’s offered by the company. Paid leave or allowance to go on a holiday, to unwind after months of grinding, can really help boost employee morale. Benefits like this that enhances work culture and offers better employee experience is sure to attract and retain talent.

Remote Work – This is one of the benefits that every millennial wants. Generation Z today, don’t like to be chained in their cubicles with their heads drowned in the computer, the entire day. Rather, they like to have things their own way. The idea and the freedom to work from the comfort of their home, park or coffee shop appeals to them. This way they can work the way they can focus best on their work.

Flexibility - Everyone has a set timing at work which they need to adhere to. This is done so it becomes easier to track the work done on a daily basis. While discipline is indeed important, some degree of flexibility that allows employees to have a breather or attend to some important matters can have a positive impact on their work life balance.

Financial Planning – The employer needs to understand that millennials of today want a good lifestyle. They would welcome any advice and guidance on how to hold on to their finances to fulfill their life’s goals like children’s education, purchasing a home, saving for future etc. Financial planning sessions which tell them about certain savings plans would surely interest them and they would be likely to adopt them and stick to it.

Training and Development – Professionals today are constantly on the lookout for new opportunities to grow and develop their skills and knowledge. Nothing better if they can get it at the workplace! Skill development sessions, training programs in latest technologies and developments will help them stay abreast with the industry. This way you will have a workforce that is prepared and set for any new advancements or development. Also, these initiatives contribute positively towards employee engagement.

Healthcare – Another important area especially in today’s scenario, when employees are becoming more and more aware of their health and well being. Including health and wellness programs in the policies are more of a necessity for employers now. While it may not be possible to set up an on-site gym for all companies, organizing yoga sessions on weekends, weight management sessions, providing healthy snacks, gym membership vouchers are some of initiates that employers can consider.

Benefits or Higher Salary ?

Higher compensation package sure helps attract the best talent but that alone isn’t enough to retain them in today’s competitive age. For an employee to stick with an organization, for a long time, has to feel satisfied. Benefits play a key role in employee satisfaction. Young professionals today seek benefits that help make their life easier and help them afford a good lifestyle. Specific, tailor made benefits that cater to the demands of life today is what employees seek and what employers should offer. That’s not to suggest though that salary isn’t important. A comprehensive package that includes great pay and benefits are in order. While a great pay signals that the organization is financially strong and profitable, benefits indicate that the organization is invested in its people. It cares for its workforce and that’s what employees want. If they feel valued and cared for, they will be motivated to give in their best and won’t think about applying for other jobs. After all, happy employees are the most productive ones. !

By Prabha Rajan CEO & Founder at HR Inc Consultants

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