‘Take-home’ is the most important salary component for most employees across generations, who prefer a greater in-hand salary than other professional or performance-based perks that they may get, finds a new study.
According to a TimesJobs.com Compensation and Benefit study that surveyed over 1,000 employers, take-home salary has emerged as the common preferred salary component among employees across generations. However, there are distinct differences in other perks desired.
“While ‘Take-Home’ remains of prime importance in evaluating compensation, other factors, such as growth prospects, future earning potential, performance-based allowances, ESOPs, housing, schooling, medical, and other benefits play an important role as well,” Times Business Solutions Head of Strategy Nilanjan Roy said.
According to the study, nearly 40% of baby boomers, 56% Gen X and 41% Gen Y workforce seek better cash-in-hand from their salaries.
The need for greater cash-in-hand component is more at the junior level, with nearly 60% of the junior employees seeking more in-hand salary.
The importance of other benefits beside the cash-in-hand component depends on which generation the professional belongs to.
According to the survey, baby boomers, owing to their proximity to retirement, give more importance to post retirement benefits after the in-hand salary in their compensation and benefits package.
Nearly 38% baby boomers seek retirement benefits.
Interestingly, post-retirement benefits are the second most sought compensation component for Gen X and Gen Y workforce as well.
Nearly 26% Gen X and 23% Gen Y workforce also seek retirement benefits from their salary package.
Meanwhile, organisations also give priority to different aspects of compensation and benefits depending on whether they are hiring a new employee or retaining an old one.
Overall compensation structure or CTC is what matters the most when hiring a candidate, say 58% employers. This is followed by in-hand (monthly) payout (20%).
However, monetary components take a back seat when retaining employees. It is in fact, career growth paths, which matter most while retaining employees, say 56% employers. This is followed by the overall compensation structure (16%) and other benefits and perks (14%).
“Organisations must consider tailoring their compensation structure for employees. But to do so they must understand the unique attributes and aspirations of the different workforce generations,” Roy added.
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