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The perk your employer is most likely to give you — and it’s not a raise

Dog-friendly places of work? Craft beer on tap? Or perhaps, just perhaps … A healthy 401(ok) fit.

Which perks are these days’s offices offering, and which of them do employees need? According to a brand new study, employers are transferring away from salary and focusing extra on “lifestyle” benefits. Luckily, so are employees.

Wages and salary now make up just 68% of employees’ overall repayment, according to a brand new research of Bureau of Labor Statistics information, by way of Bank of America BAC, +4.35%   Merrill Lynch.

That’s a dip from a high of about 72.5% of overall repayment in 2000.

At the same time, employers have larger different perks, Bank of America discovered. More than 43% introduced “wellness methods” to help workers fortify their fitness and health in 2017, up from 34% in 2010.

The shift toward non-monetary benefits appears to be line with what workers need.

• A survey of two,000 employees by way of content advertising and marketing company FRACTL discovered that 88% would consider a lower-paying process to get perks like higher medical insurance and extra flexible hours, Bank of America’s file said.

• The percentage of employees who say having paid time without work is “very important” larger to 63% in 2015, up from 53% in 2011, according to the Society for Human Resource Management.

• The top 3 benefits that employees need (so as) are medical insurance, vacation and paid time without work and a 401(ok) retirement plan, according to a Glassdoor research of more than 1,200 U.S. employees. Notably, Glassdoor did not directly ask about salary within the survey.

“In common, individuals are taking benefits into extra attention in an general repayment bundle,” said Alison Sullivan, a Glassdoor career tendencies expert. “Employers will have to be taking note of making sure they have a well-rounded repayment bundle.”

While workers aren’t getting pay raises, they are getting one-time bonuses. In 2017, one-time bonuses accounted for 12.7% of the upward push in overall exertions costs, and salary raises accounted for just 2.9%, Bank of America’s file said, citing analysis from the consulting company Aon Hewitt.

That’s excellent for employers: Offering employees benefits together with days off, flexible hours and health club memberships can also be more cost effective than elevating salaries. “We aren't shocked that companies are transferring in this course — now not simplest doe it help recruit talent, it is sensible for the bottom line,” the file authors wrote. And throughout financial downturns, halting bonuses is much more straightforward to do than reducing wages, the file’s authors noted.

Separately, Glassdoor has researched which perks most correlate with worker satisfaction with get advantages programs and located that medical insurance got here out on top. Close at the back of are vacation and paid time without work, pension plans, 401(ok) plans, retirement plans, dental insurance and maternity and paternity leave.

Flashier perks like loose food or get admission to to a company automobile completed a lot decrease, rating 16 and 19, respectively.

“At the end of the day, loose food and dog-friendly offices aren’t in reality enough to attract the top talent that these days’s process market calls for,” Sullivan said.