TimesJobs unveils what various workforce generations seek from an ideal compensation package
July 21, 2016: Compensation conversations have been the tipping point for the Indian workforce for the longest time. Every workforce generation, which includes baby boomers, Gen X and Y have different preferences in compensation components basis their unique requirements.
Preeti Jhakar, a young marketing professional in an advertising agency, opted for transport allowance and meal allowance over gratuity and PF money while joining the company. Whereas for Brijesh Mathur, a 45 years old IT head getting a better coverage in health insurance for the family was the priority when negotiating his package.
This has been corroborated by about 70% of organizations, which say that there is a distinct difference in preference for compensation components among various generations, in the TimesJobs.com Compensation and Benefit study that surveyed over 1,000 employers. However, even as take-home salary has emerged as the common preferred salary component among employees across generations there are distinct differences in other perks desired.
“While ‘Take-Home’ remains of prime importance in evaluating compensation, other factors, such as growth prospects, future earning potential, performance based allowances, ESOPs, housing, schooling, medical, and other benefits play an important role as well. TimesJobs has created a vast database of company reviews by genuine employees and industry scale salary benchmarking tools that give insights into a company’s compensation philosophy, allowing candidates a transparent view into potential employers,” says Nilanjan Roy, Head of Strategy, Times Business Solutions.
Rising inflation and increasing cost of living has led employees to re-evaluate their priorities on how they are compensated for work. The TimesJobs survey indicated that most employees, across generations, prefer a higher ‘in-hand’ pay as compared to other components of salary.
Nearly 40% baby boomers, 56% Gen X and 41% Gen Y workforce seek better cash-in-hand from their salaries. The need for greater cash-in-hand component is more at the junior level, with nearly 60% of the junior employees seeking more in-hand salary.
Securing the future
A deeper look at the results shows that importance of other benefits beside the cash-in-hand component depends on which generation the professional belongs to. According to our survey, baby boomers, owing to their proximity to retirement, give more importance to post retirement benefits after the in-hand salary in their compensation and benefits package. Nearly 38% baby boomers seek retirement benefits.
Interestingly, post-retirement benefits are the second most sought compensation component for Gen X and Gen Y workforce as well. Nearly 26% Gen X and 23% Gen Y workforce also seek retirement benefits from their salary package. This bursts the popular notion that the younger workforce generations are not concerned about securing their future and only want quick monetary benefits from their job.
According to the TimesJobs.com survey, organizations also give priority to different aspects of compensation & benefits depending on whether they are hiring a new employee or retaining an old one. The theory of ‘one size fits all’ does not apply here as managers have to factor in business needs to decide what matters more.
Overall compensation structure, CTC as we call it, is what matters the most when hiring a candidate, say 58% employers. This is followed by in-hand (monthly) payout (20%).
However, when retaining employees monetary components take a back seat. It is in fact, career growth paths, which matter most while retaining employees, say 56% employers. This is followed by the overall compensation structure (16%) and other benefits and perks (14%).
A TimesJobs poll further shows that almost 90% employees prefer a customized compensation package. Their priority of what is more important to them depends on the stage of their career and their age.
“Organizations must consider tailoring their compensation structure for employees. But to do so they must understand the unique attributes and aspirations of the different workforce generations. To effectively manage a multi-generational workforce, the employers must start by getting to know the expectations of their workforce,” says Nilanjan Roy, Head of Strategy, TimesJobs.
TimesJobs.com, a flagship business of Times Business Solutions (TBS), is a platform to help competent professionals make smarter career decisions. With over 25 million registered jobseekers across the board and more than 60 million page views every month, it is fast becoming the most preferred career portal among the candidates.
TimesJobs is leading in the recruitment and employment space with its pioneering and dynamic divisions because it successfully meets all the needs of the jobseekers. Its major platforms include:
Also, TimesJobs has the largest collection of jobs in the market, which ensures that whenever and wherever there is a great opportunity, jobseekers will discover it on the platform.
In the recruitment market as well, being the biggest platform for competent professionals who think of their careers first, TimesJobs has become the destination of choice for recruiters who seek to engage with the right talent.