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What do employees want from remuneration?

Learn why paying competitive salaries can be key to attracting and retaining a motivated, committed, and hardworking team – and how best to do so!

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When making strategic decisions around fair compensation, employers need to consider the multifaceted reality of remuneration. It’s not as simple as the size of someone’s salary. After all, money does not necessarily equal happiness.

There are many factors to take into account when determining what employees want from their remuneration packages, and how employers can ensure that they are hiring and retaining a  dedicated, engaged staff.

Key factors for consideration

Quality of life

While money can’t buy happiness, it can certainly help along the way. As the cost of living rises globally - by 7.4% in 2023 - workers need to feel supported by their employer. While there is plenty more for employers to consider when strategising remuneration, Euronews notes that new research by Indeed and Glassdoor, drawing from millions of  employee reviews, salaries, and conversations from around the world, shows that a higher salary is the main driver for workers seeking new roles.

When aiming to attract and maintain a committed workforce, ensuring you’re offering a competitive salary is the number one priority. Workramp highlights that 64% of workers view an increase in income or benefits as “very important”, when considering applying for a new role.

Feeling motivated and valued

Glassdoor found that higher salaries motivated 45% of employees to work harder, while a Harvard Business Review study corroborated these findings.

Similarly, the feeling that they belong and are valued in their place of work is proven to increase employee productivity and commitment – with a recent study finding that employees who felt a sense of belonging showed a 56% increase in performance.

A key way to ensure that your workforce feels appreciated is by fairly compensating your employees. The Harvard study also reveals that paying higher salaries improves employee job satisfaction, making them less likely to seek out other opportunities, saving the employer money by reducing staff turnover.

Availing of benefits

Another way to ensure that employees feel motivated and valued is by offering attractive benefits.

RTE notes that pensions, healthcare, training and upskilling support, paid leave, discounts, and paid parental leave are just some of the benefits that can be offered as part of attractive remuneration packages, as the market becomes increasingly competitive.

As noted above, 64% of employees state that benefits contribute significantly to their job satisfaction.

Enjoying flexibility

4 Corner Resources notes that flexible schedules reduce work-related stress by 20% and increase  job satisfaction by 62%.

In the wake of remote working becoming the norm during the COVID-19 pandemic, a staggering 98% of workers would prefer to work remotely at least a portion of the time.

According to Forbes, studies show that employees working remotely benefit from increased amounts of exercise and healthier work-life balance. Studies show that not only do people who work remotely get more exercise and have better work-life balance, but 88% state that their job satisfaction has increased since working remotely.

Salary benchmarking can help

What is salary benchmarking?

Salary benchmarking is a service offered by global employment solutions providers like Mauve Group. Our team of experts will benchmark remuneration against the local average in the location(s) in which you wish to hire.

How can salary benchmarking help your business?

Taking into account factors such as the local cost of living, our team will deliver a comprehensive data-driven report – allowing you to make informed decisions, to offer competitive remuneration packages and maintain your competitive edge in the global marketplace.

Paying competitive salaries can be key to building a motivated, committed, and hardworking team. Speak to our team about how our Salary Benchmarking service can help you.