Placing collectively compensation packages is among the principal duties of the HR perform, however the perfect practices and techniques look loads totally different in the present day than years previous. Whereas wage is nonetheless the most essential element on the subject of placing collectively a suggestion letter, advantages play an more and more vital position for employees who’ve come to anticipate extra from their employers.
“You have to pay competitively, but that’s table stakes,” Ron Seifert, workforce reward and advantages chief at Korn Ferry, an organizational consulting agency, tells Fortune. Enterprise leaders have to “understand how to differentiate yourself from a benefits perspective,” he says, together with different components like bonuses and inventory incentives.
Fortune spoke with 5 compensation professionals to unravel what staff actually worth—and demand—from their pay packages in 2024. Retirement plans and employer contributions are a basic, however different perks are shortly changing into the brand new must-haves.
Caregiving help has change into more and more in style as millennials have youngsters and a “sandwich generation” of employees with growing old mother and father attempt to sustain with burgeoning prices and duties. Psychological well being advantages have additionally change into a post-pandemic mainstay. The identical is true for tuition help packages, particularly for youthful Gen Z employees.
And though they’re not technically a part of compensation, distant and hybrid work insurance policies get a particular point out. About 63% of U.S. staff stated having a distant schedule was the most essential half of a job to them, above wage, work-life stability, and having an excellent boss, in keeping with a 2023 survey from FlexJobs. Staff need the liberty to make money working from home a lot that they’re even ready to take a pay lower.
“People are willing to take less salary if they’re allowed to be remote or have a very heavy hybrid, mostly at-home type schedule,” Brandi Britton, govt director of Robert Half, a administration consulting agency, tells Fortune.
You’ll be able to learn extra concerning the new guidelines on the subject of placing collectively the perfect compensation packages right here.
Emma Burleigh
emma.burleigh@fortune.com
Across the Desk
A round-up of an important HR headlines.
Morgan Stanley is betting huge on AI—the corporate is rolling out a brand new inner instrument that helps staff extract solutions from throughout the corporate’s total analysis database. NBC
The brand new boss of Boeing pledges to “fundamentally” rework the aerospace big’s tradition following a strike final month that continues to be ongoing. The Guardian
Workplaces throughout the U.S. are in the course of the “Great Stay”—employees aren’t leaving their jobs, and it’s making many individuals to really feel caught of their roles. Enterprise Insider
Watercooler
Every part you might want to know from Fortune.
Get savvy Job seekers are utilizing AI to try to outsmart the hiring course of, and recruiters are beginning to catch on. —Orianna Rosa Royle
Don’t name them lazy. Gen Z is extra probably than different generations to work via lunch. –Jane Thier
ABBA is mad. Well-known musicians joined collectively on Tuesday to signal a letter protesting using their music to coach AI. – The Related Press
