Employee Benefits vs Higher Salaries
Jillian Monique Maguad
Ginyl Tronzon
In the current competitive job market, organizations must strategically attract and
keep top talent. Compensation strategies are very important in this effort, frequently
posing a dilemma: should businesses focus on increased pay or extensive benefits for
employees? Although higher salaries provide immediate financial advantages, a
comprehensive employee benefits package can result in increased job satisfaction,
loyalty, and long-term success for companies. This position paper suggests that the
most successful method for attracting and retaining talent is a comprehensive
compensation approach that emphasizes both financial and non-financial rewards.
Some people claim that benefits packages are intricate and hard to comprehend,
resulting in a belief that they are less valuable than a higher salary. Benefits provided by
KBI in 2023.
Offering extensive benefits showcases an employer's dedication to the overall
health and wellness of their workforce. This may encompass health insurance, dental
and vision care, mental health assistance, and wellness programs. These advantages
can help alleviate employee stress, enhance general health, and foster a more positive
work atmosphere. According to a recent research conducted by the Society for Human
Resource Management (SHRM), workers who are content with their perks tend to be
more involved and efficient in their job duties (SHRM, 2023).
Some people believe that offering benefits packages to employees can result in
them feeling entitled, which may lower productivity and accountability. (KBI Benefits,
2023)
Employees who feel appreciated and backed up are more inclined to stay with
their employer. Having a comprehensive benefits package can foster loyalty and
decrease turnover among employees, resulting in cost savings for companies by
reducing the need to hire and train new staff. According to research conducted by the
U.S. Bureau of Labor Statistics, employees who receive benefits are inclined to remain
with their employer for an extended duration (U.S. Bureau of Labor Statistics, 2023).
Some claim that increasing salaries is a better method to inspire workers and
enhance productivity. (KBI Benefits, 2023)
Increased feelings of security regarding their health and finances can lead to
employees being more engaged and productive in their workplace. Perks like vacation
time, flexible schedules, and chances for growth can empower employees and enhance
the atmosphere of a workplace. Research conducted by the Harvard Business Review
determined that companies providing robust benefits packages experience increased
levels of employee engagement and productivity (DeNisi & Murphy, 2017).
In conclusion, receiving higher salaries brings instant financial advantages, a
complete employee benefits package delivers lasting value for both workers and
companies. By prioritizing the health, commitment, and involvement of their employees,
businesses can establish a more favorable and efficient workplace, resulting in higher
productivity, lower staff turnover, and eventually, improved achievements. Businesses
should take a comprehensive approach to rewards, focusing on both monetary and non-
monetary perks in order to recruit and retain high-caliber employees. This method will
enhance both employee contentment and dedication, as well as support the
organization's sustained prosperity.
