There’s an ongoing debate about whether monetary compensation (salary) or non-monetary (perks) matter more to employees. In an ideal world, professionals would enjoy perks while being properly compensated, but that’s not often the case. Companies usually prioritize one over the other when recruiting new employees and retaining the workforce they already have. This blog post will explore both sides of the debate.
Understanding Employee Motivation
Employee motivation should be at the heart of the discussion regarding working conditions. It is often the deciding factor for job satisfaction. Many people are motivated by money – they want reasonable compensation for their time and efforts.
Other common motivation factors include job security and the opportunity for advancement and promotions. Continued lack of recognition for a job well done or a long tenure of service is often a major reason people leave to seek employment elsewhere or change careers entirely.
That’s not to say perks aren’t a motivating factor. For instance, one attractive perk for high-end professionals is access to transportation via one of the best private jet companies.
One motivational theory that comes into play here is Maslow’s hierarchy of needs. According to this theory, after individuals have satisfied their basic physiological needs (such as food and shelter) through salary, they move on to fulfill higher-level needs such as social recognition and esteem. That’s where employee perks come into the picture.
Why Salary is Important
Financial stability consistently remains a top priority for most employees in all sectors of the workforce. Along with commute, salary is among the most important factors when considering job offers. A substantial salary represents how much an organization values its employees.
Employers must offer competitive salaries for their industry and routinely review them against market benchmarks. Failure to offer a competitive salary could lead to high turnover rates and even harm a company’s reputation.
In some cases, it might be beneficial for individuals to seek the advice of an employment law firm during negotiations to guarantee a fair agreement has been reached.
Why Perks Are Necessary
While salary will always be a significant factor, there’s no denying that attractive perks can give a company a competitive edge when recruiting new talent. Perks such as remote work schedules and additional vacation days show that an organization cares about their employees’ work-life balance.
Additionally, growth opportunities such as workshops and mentorship programs can help foster a positive culture inside the company. Top-tier talent is more likely to accept job offers from companies they see a long-term future with, including advancement in their careers.
In short, perks can be a powerful motivator because they help meet higher-level needs in Maslow’s hierarchy. However, at a certain point, both perks and salary lose their effectiveness in keeping employees motivated.
Finding the Right Balance
Companies must find the right balance between salary and perks that suit both the organization’s budget and employees’ preferences. For instance, an organization with limited financial resources can offer a range of perks that employees would find difficult to find elsewhere.
On the other hand, a company with greater financial capabilities can afford higher salaries but may lack unique perks. Both types of organizations can offer meaningful employment experiences through disaster relief and other humanitarian efforts. Learn more about humanitarian charters here.
If you’re not sure whether your employees favor perks over salary, ask! Honest employee feedback will provide valuable insight into what truly drives your company’s success.
In essence, both salary and perks matter to employees but at different stages of their motivational journey. Salaries should never be ignored, but perks can help companies retain top talent.
Organizations should be mindful of the perks vs. salary debate when designing their compensation packages, as both have their unique advantages.