Bringing your dog into the office is one of the many perks that employees can negotiate for in place of a raise. Image: Flickr / lachlanhardy / CC-BY
When a company’s fortunes turn for the better or worse, employee benefits are usually the first to change. Companies with improving sales are more likely to offer benefits, while companies with dropping sales are most likely to cut benefits. Employee benefits, however, can be surprisingly effective in keeping employees happy.
Basics of benefits
Employee benefits can vary widely from company to company, but on average benefits end up costing a company from 20 to 40 percent more than a base salary. A $50,000-per-year salaried employee’s basic benefits may cost a company from $12,500 to $20,000. When offered a $10,000 per year raise in place of benefits, however, almost 60 percent of employees chose benefits. When that amount was upped to $20,000, 48 percent of employees still chose benefits instead of cash.
Why employees like benefits
Employee benefits and perks can make a huge difference in employee satisfaction. Companies end up on the list of the best companies to work for, including Forbes and CNN Money, repeatedly because of the benefits and perks they offer. Retirement and health insurance are considered basic benefits, but some companies offer everything from flexible schedules to sabbaticals, life coaches, in-office massages, even auto maintenance. Benefits and perks offer the kind of working environment employees are looking for, and more often than not are rated as more valuable than their cost in both employee retention and employee satisfaction.
Negotiating a benefit-raise
It can be difficult to ask for a raise in a tough economy. Rather than asking for more financial compensation, asking your employer for additional perks or benefits can be much more effective. Sponsored gym memberships, flexible hours, additional paid time off, bringing your pet to work, a different work schedule or work-at-home days could all be perks that an employer may be willing to offer. If you want to ask for perks rather than a raise, you should still approach the request in the same way – outline why you feel you deserve them, what the perks would cost the company and what kind of standards could be applied to the perks.
Sources
Fool.com
Benefits Canada
Emerald Insight
Sanofi-Aventis Healthcare Survey
Web MIT
JobSearch.About.Com
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