SALARY..MORE IMPORTANT THAN PERKS

Salary remains core consideration for most employees, across generations, as they prefer a higher in-hand pay than any other components of their compensation, thanks to rising inflation and increasing cost of living, a report said. According to TimesJobs.com's latest Compensation and Benefit survey, employees prefer in-hand salary rather than medical facilities, post-retirement benefits and other perks. Traditionally, companies focused on long-term orientation such as provident fund, superannuation, company provided accommodation, leave travel allowance, loans etc. Now, employees prefer more cash-in-hand as it gives them the flexibility to spend as per their aspirations and lifestyle," SAP director-total rewards Kishore Sambasivam said. Moreover, in-hand salary matters more to the junior level employees than the mid or senior level as they do not want money locked up in a PF or superannuation benefit, the report said. "Employees at this level want to plan their investment strategies which may have a higher risk and return profile," Sambasivam said. According to the survey, almost 90 per cent employees prefer a customised compensation package. Their priority of what is more important to them depends on the stage of their career and their age. While salary remains core to all age groups, there is a marked distinction for other perks.
The Baby Boomer Generation (born between 1946 and 1964) prefer post retirement benefits such as PF and Gratuity, while, the Generation X (birth dates from the early 1960s to the early 1980s) prefer club memberships, car, and company housing.
The Youngest Gen Y Generation (birth years ranging from the early 1980s to the early 2000s) is eager to have it all with an equal balance of each benefit, be it Medical, Post Retirement or other perks.
About 87 per cent of employees prefer a customised compensation structure and organisations need to take that into account while designing benefits, the report said.
"Employees prefer flexibility in their compensation structure. This is dependent on the changing demographic profile, priorities, preferences, risk orientation, individuality and 'live-in-the-present' mindset," Sambasivam said.