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New research has found that candidates are more likely to take a job that offers good benefits over meeting salary expectations.
According to Robert Half’s 2023 Salary Guide, COVID-19 has pushed the desire for benefits to the forefront, and companies are taking advantage of this by enhancing their benefits on offer.
This is good news for small to medium companies (SMEs) that can’t afford to pay the bigger wages offer by large corporations.
“With many companies focused on cost management, businesses might not be in a position to award pay rises or higher starting salaries amid economic uncertainty,” said Nicole Gorton, director at Robert Half.
“While salary is a prime motivator and the main incentive of a remuneration package, offering a competitive salary is just one piece of the puzzle. Businesses are increasingly recognising the power of benefits to land, motivate, engage and keep their top performers.”
According to the salary guide, 63 per cent of managers have had a candidate accept a job offer due to the benefits offered. In reaction to this, 70 per cent of leaders are planning to enhance their benefits in 2023.
Ms Gorton continued: “Australian companies benefit from diversifying their incentives offerings beyond the purely financial aspect as professionals seek the complete package and place added emphasis on quality of life.”
The most popular benefits, as listed by Robert Half, are:
- Flexible work options (60 per cent)
- Mental health resources (55 per cent)
- Remote work options (52 per cent)
- Extra paid parental leave (50 per cent)
- Wellness programs (48 per cent)
- Training allowances (47 per cent)
David Jones, senior managing director at Robert Half Asia-Pacific, commented: “In a skills-short market, companies have traditionally focused on salaries to differentiate themselves and attract talent.
“But as priorities change across Australia’s workforce, businesses are seeing the opportunities to use sought-after perks and benefits as a way to attract top talent – especially smaller companies that are unable to match salaries offered by larger competitors.
“Perks and benefits like flexibility and hybrid working are also becoming increasingly recognised for their ability to address other business concerns that have plagued workforces in the past such as burnout, poor morale, and low staff engagement.”
The salary guide notes that emphasising benefits can actually help employers keep up with the rising cost of living, as many workers leave to find work elsewhere. In fact, 57 per cent of managers are opting for benefits to retain staff rather than increased salaries.
Robert Half revealed the actions organisations are taking to retain staff:
- Providing mental health support (55 per cent)
- Increasing salaries (53 per cent)
- Introducing salary sacrifice schemes (50 per cent)
- Offering one-off bonuses (59 per cent)
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Benefits include any additional incentives that encourage working a little bit more to obtain outcomes, foster a feeling of teamwork, or increase satisfaction at work. Small incentives may have a big impact on motivation. The advantages build on financial rewards to promote your business as a desirable employer.
Jack Campbell
Jack is the editor at HR Leader.
