Employment Perks versus Monetary Compensation

There is a growing trend indicating that U.S. employers are re-evaluating how they compensate their employees. Employers are finding ways of using perks and benefits instead of monetary compensation. The motivation could be driven by the fact that these perks cost less than pay raises. Another plausible explanation is employers have learned what makes their job and company appealing through use of these creative perks. Employees forego exploring job changes because they like the perks their current employer offers.

There is a (logical) split among employees in their view of these creative perks. Those at the lower end of the pay scale may not be as interested because they have more immediate financial needs. But, for those who are earning more, the perks have more appeal. For these higher earners, their reward for continued employment could be additional vacation time, flex time, increases in certain employee benefits, stock options, and so on. Perks that affect work-life balance and lifestyle seem to be more appealing to these higher wage earners.

Brian Howard is the author of The Motivated Series of Job Search Books.

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