Salary vs benefits: Why your EVP needs both

Hello and welcome back to my newsletter! I write about the future of work, flexible working, startups, and DEI. If you’ve been forwarded this newsletter,? join over 30,000 people and subscribe here!

This week, I want to talk about how important it is to prioritise salary and workplace benefits to attract top talent. In today’s financial climate, it’s no secret that people care about money—now more than ever. When designing your Employee Value Proposition (EVP), finding the right balance between salary and workplace benefits is crucial. Sure, free snacks and gym memberships are nice perks, but if your employees are struggling to make ends meet, these benefits won’t have the impact you’re hoping for.?

To truly stand out and create a compelling EVP, you need to prioritise competitive salaries while also offering benefits that genuinely improve your employees’ lives. This guide will help you strike that perfect balance, ensuring you attract and retain the best talent in the market.

In this newsletter, we'll look into how to strike that perfect balance, ensuring you attract and retain the best talent in the market.

?? Insight of the week: salary transparency stats

?? Why salary transparency is important

?? What workplace benefits are most important to candidates?

?? How to embed salary and workplace benefits into your EVP

?? The best companies for? benefits and salary compensations

?? Discover your EVP pillars with our 2-minute EVP quiz

?? This week’s must-read blogs

Insight of the week

In the last 3 months, only 16% of job descriptions have included salary transparency, while 66% of Flexa users are looking for jobs with clear salary information.

This gap highlights a significant disconnect between what job seekers want and what is currently being offered.

Salary transparency is increasingly important to candidates, as it helps them make informed decisions and ensures there are no surprises later in the hiring process. Companies that adopt transparent salary practices can better align with the expectations of job seekers and attract top talent who value honesty and clarity.

??Why salary transparency is important

Our latest data reveals that salary ranks among the top three priorities for job seekers, closely followed by flexibility and company culture. But why is salary transparency so important? Here are a few reasons why.

1. Financial security with the rise in cost of living

With the cost of living steadily increasing, financial security is a top priority for job seekers. Salary transparency allows candidates to make informed decisions about their job choices based on their financial needs. When potential employees see clear, upfront salary information, they can better assess whether the position will meet their financial requirements, reducing stress and increasing satisfaction from the outset.

2. Builds trust from the start

Transparency in salary information creates a foundation of trust between the employer and the employee right from the beginning. When companies are open about their compensation structures, it signals honesty and integrity, which are crucial for building a strong employer-employee relationship. This trust can lead to greater employee loyalty, higher engagement levels, and a more positive workplace culture.

3.Attracts aligned talent?

Clear salary information helps attract candidates whose salary expectations match what the company is willing to offer, ensuring a better alignment from the start. This reduces the likelihood of wasted time and resources on mismatched candidates and increases the chances of hiring individuals who are genuinely interested and satisfied with the compensation. By focusing on these three aspects, companies can effectively leverage salary transparency to improve financial security for employees, build trust, and attract the right talent.?

??What workplace benefits are most important to candidates?

When you’re crafting your Employee Value Proposition (EVP), workplace benefits play a key role. But it’s important to think about the benefits you’re offering candidates and if they’re going to make an impact on their lives.?

Looking at our candidate preferences over the last 6 months these are the top 5 benefits candidates want.?

WFA schemes : WFA schemes allow employees to work from any location, whether it's their home, a café, or even another country. This flexibility enhances work-life balance and can attract candidates who value the freedom to choose their work environment, leading to increased job satisfaction and productivity.

Part-time opportunities:? Part-time opportunities allow employees to work fewer hours than the standard full-time schedule. This flexible working arrangement is crucial for candidates who need a better work-life balance, such as parents and carers and those pursuing other interests. It helps attract a diverse talent pool and retain employees who might otherwise leave the workforce.

Unlimited leave: Unlimited leave policies allow employees to take as much time off as they need, provided they meet their work commitments and responsibilities. This benefit promotes trust and autonomy, showing employees that their well-being is a priority. It can lead to higher job satisfaction and reduced burnout.

WFH allowance: A WFH allowance provides employees with a stipend to cover expenses related to working from home, such as internet costs, office supplies, or ergonomic furniture. This benefit helps employees create a comfortable and productive home office setup, showing that the company values and supports their remote work experience.

4-day week: A 4-day week involves employees working four days a week instead of the traditional five, typically with the same pay and workload expectations. This innovative approach can significantly improve work-life balance, reduce stress, and increase productivity. It’s an attractive benefit for candidates looking for more time to pursue personal interests or spend with family.

How to get the balance right:? Embedding salary and workplace benefits into Your EVP

1. Benchmark your salaries

• Conduct market research to understand the average salaries for roles in your industry and region. You can use tools like Figures to do this.?
• Use salary surveys, industry reports, and professional associations to gather data.
• Ensure your salaries are competitive to attract and retain top talent, and adjust them regularly based on market trends.

2. Understand your employees needs???

• Conduct surveys and focus groups to gather feedback on what benefits are most valued by your employees.
• Use this feedback to tailor your benefits package to meet the specific needs and preferences of your workforce.
• Use data backed insights to guide your decisions about what employees want. Sign up to find more about our upcoming FlexaInsight platform which will help you do this.?

3. Quality vs. quantity: understand the impact of your benefits before introducing them

• Assess the potential impact of new benefits before rolling them out company-wide.
• Focus on the quality and effectiveness of benefits rather than simply offering a large number of perks.
• Evaluate which benefits will have the most significant positive impact on employee satisfaction, productivity, and well-being.

4. Shout about both to attract the right people?

Once you’ve set your salaries and benefits, it’s important to showcase them effectively to attract the right talent. Candidates on Flexa can search for jobs based on specific benefits and competitive salaries. By listing your roles on Flexa, you position yourself to reach these candidates who are actively seeking the benefits and compensation you offer.

By strategically embedding both salary and workplace benefits into your EVP, you can create a compelling and competitive offering that attracts and retains top talent, builds trust, and meets the diverse needs of your workforce.

?? The best companies for benefits and salary compensation?

At Flexa, we believe that true inclusivity is reflected in the voices of those who experience it firsthand. That’s why when a company joins Flexa, we ask employees to rate their employers on various pillars, with workplace benefits and salary compensation being one of them. During our Flexification process, one of the ways we assess companies' work practices is through an employee survey.?

We ask employees questions to evaluate various aspects of their workplace such as “How do you feel about your company's benefits?” and how satisfied are you with the benefits on offer at your company?" and “Do you feel satisfied with the salary you are on given your experience, expertise and the value you bring to the company?”

Here is a list of 8 companies that are not only paying their employees well but also giving them the benefits they need.

Amplience

People & Transformational HR

Circle?

Boxclever

Amplifi?

ProfitAbility

Hurree

Oliva Health

?? Discover your EVP pillars with our 2-minute EVP quiz

Have you ever stopped to think about what makes up your EVP and the different areas that define you as a company? Whether you have given it a little thought or none at all, our EVP quiz can help. This quiz is designed to help you identify your most valuable EVP pillars so you can shout about them to retain top talent. Once you complete the quiz, you will be shown your EVP tags as per the below example. These tags will highlight your company mission and values, work culture, and working environment.

When you become a Flexified company, these tags can feature on your profile to help you retain top talent. Candidates can also use these EVP pillars to search for companies, making it easier to attract aligned talent. You can take the EVP quiz here.

?? This week’s must-read blogs

How to incorporate your benefits package into your EVP

What is an Employee Value Proposition (EVP) and why is it important?

Insights from our candidate data: what job seekers want in 2024