Employees are essential to a company’s growth. However, as employee turnover rates continue to increase, reaching 47% last year, the need for more applicants is also increasing.
Some companies are finding new ways to attract more applicants to their companies. However, it’s always good to go back to the two fundamentals: salary and benefits. Both have been there ever since people started to work formal jobs. Both have been the center of debate for many companies.
If you want to attract more applicants to your company, consider knowing about these fundamentals first.
Salary
Employee salary has been around ever since people have been working formal jobs. It was there before employers even offered benefits. It is one of the most important aspects of any job, as it is what workers rely on to live and support their families.
Back then, salaries were a lot different than they are today. For example, in the early 1900s, the average worker only made around $500 per year. Inflation has played a role in increasing employee salaries over time.
Today, the average worker makes around $50,000 per year. While this is much higher than in previous years, it’s still not enough to cover all living costs. This is why many people are now pushing for a higher minimum wage.
Advantages
Consistency
The main benefit of salary is its consistency. Employees know that they will receive a set amount of money every month, which can be helpful in budgeting and planning for the future.
Benefits, on the other hand, can be more unpredictable. For example, an employer may offer health insurance as a benefit, but the coverage and costs can change yearly. It can make it difficult for employees to plan.
Attractiveness
In hindsight, a higher salary is more attractive. Newer employees would certainly aim for a better salary than better benefits, as they can use it to save money. Generally, having a good salary can be a good choice for most employees starting in the industry.
Disadvantages
Costs
One of the main disadvantages of salary is that it can be expensive for employers. If a company wants to attract top talent, it may have to offer a higher salary than other companies. It can put a strain on the business’s budget, which may not be sustainable in the long run.
Benefits
Benefits are a more recent addition to the workplace. They were introduced in the 1940s to attract and retain employees. Benefits can include health insurance, retirement plans, and paid time off.
Currently, more and more applicants choose benefits over a higher salary. One of the main reasons is that employers offer more unique benefits.
Advantages
Uniqueness
More and more employers are now offering unique benefits to their employees. For example, the typical health insurance now provides dental coverage for employees. Many companies have found that dental health can affect employee performance, and they addressed it by giving employees free visits to the dental office. As a result, it has drastically improved employee performance, tardiness, and absenteeism by adding these unique benefits to their companies.
Can Give Necessities
Some employers are also now offering necessities such as phones and laptops as a benefit. This can be especially helpful for employees who can’t afford these items independently. It can make a difference, especially during the pandemic when people have started to work at home.
Disadvantages
Complexity
The main disadvantage of benefits is that they can be complex. There are so many different types of benefits, and each one has its own rules and regulations. This can make it difficult for employers to keep track of everything, and it can also confuse employees.
Additionally, some benefits may only be available to certain employees. For example, health insurance may only be available to full-time employees. It can create a sense of inequality among workers, leading to tension and conflict.
Inconsistency
Benefits and bonuses are highly controlled by company performance. For example, a company may give out more significant bonuses if it does well. However, if the company has a bad year, employees may receive no benefits or bonuses. It can be frustrating for employees who are expecting to receive certain benefits.
So which is better?
Ultimately, the answer to this question depends on what applicants are looking for a job. If they want stability and predictability, then salary is the way. However, if they’re looking for more unique benefits and perks, you might want to consider a job offering excellent benefits. By the end of the day, it’s up to employers to choose which option fits well for their current budget.
