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In today’s competitive job market, balancing monetary and non-monetary perks is crucial for attracting and retaining top talent. This guide explores effective strategies to create a balanced benefits package that meets employee needs.
Did you know that 32% of workers are looking for a job change, with 15% citing low pay or lack of benefit as the reason?
Yes, Millenials and Gen-Z are not afraid of jumping organization to organization in search of an organization that not only values their work but also give them the benefits their hard work deserves.
American Institute of CPA reported in their press release that 80% of the workers will go for an organization offering benefits over the one that offered high salary but no benefits.
From a candidate’s’ perspective, financial perks are one of the most critical factors they keep in mind when choosing an organization. Employees don’t mind an undercut if the organization is offering a plethora of on the job perks like paid vacation, flexible schedule, etc.
The number of graduates passing every year from top-notch universities is increasing every year, but this also means that your rivals are gearing up to attract them before you or anyone else does. They are not recruiting candidates only on their skills and talent but selling the company’s vision to have an adept candidate pool on board.
One of the practices that proactive organizations are following is, leveraging candidates with monetary and non-monetary benefits, in pursuit of attracting and retaining the best available talent in the market.
What is crucial for the HR and talent acquisition team is to make sure that they have these benefits well thought and laid before they start with the interview process.
1. Monetary benefits, as the term suggests, is of financial worth, given to an employee for their exceptional performance. This should be a part of the compensation package as it helps boost the morale of the employee resulting in higher productivity. Monetary rewards don’t just mean handing over cold hard cash to the deserving employees, but it also entails bonuses, compensation, giving the employee the option to purchase individual shares in the organization for a certain number of years. Other forms of monetary rewards are merit pay, sharing a part of the profit, giving off vacation time, etc.
2. Talking about the non-monetary benefits, these are the rewards given as a recognition of achievement or completion of exceptionally hard work. It could be the employee complete a training program, completing research work pivotal to the organization’s standing in the market. Non-monetary awards can be healthcare benefits, flexible working hours, periodic training and education, a healthy working environment, complementary sabbaticals, traveling allowance, promotion, life insurance, etc. The psychology of the non-monetary benefits is such as that it adds value and is perceived as a considerable and thoughtful gesture on the part of the giver.
But organization need to find a perfect balance between both without going overboard and impacting the finances. There is a reason why big wigs like Google, JW Marriot made it to the list of top ten companies to work for in India.. It is their regular introspection of what the employees are looking for, how to offer them by striking the right balance.
Monetary benefits might only make an employee work for the reward and not do the right thing. This may give them a sense of entitlement, bringing down the morale of the entire team. Similarly, non-monetary benefits provided by the employer might not come from a thoughtful place. They might offer something beyond the bandwidth of the employer, which will end up doing more harm than good on employee’s motivation.
Tips to Balance monetary and non-monetary job perks for candidates:
1. Don’t make the mistake of going “one size fits all” approach in designing the perks. Devise a tailored incentive approach, be it monetary or non-monetary. Not doing so will make it impersonal and ineffective, defeating the purpose.
2. Offering benefits like flexible hours and work from hours will help in reducing the overhead operating cost for the organization.
3. Paid vacation become a liability for the organization, haunting them at the end of the financial year. This is why the organization should offer unlimited time off policy, which works well for both the employee who can be negligent in using paid vacation and for the employer by building their brand reputation.
Balancing the perks can get tricky along with ensuring the efficiency of the organization, which is why the organization consult HR outsourcing companies in India like Collar Search. We will ensure the HR team remains timely updated with the evolving demands of the candidate, guiding them on how to strategize perks and benefits without damaging the financial aspect and productivity of the organization.
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