The importance of other benefits beside the cash-in-hand component depends on which generation the professional belongs to.
Rising inflation and increasing cost of living have led employees to re-evaluate their priorities on how they are compensated for work and most employees, across generations, prefer a higher 'in-hand' pay compared to other components of salary, says a report.
According to a TimesJobs.com Compensation and Benefit study that surveyed over 1,000 employers, 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," Times Business Solutions Head of Strategy Nilanjan Roy said.
According to the study, nearly 40 per cent of baby boomers, 56 per cent Gen X and 41 per cent 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 per cent of the junior employees seeking more in-hand salary.
The importance of other benefits beside the cash-in-hand component depends on which generation the professional belongs to.
According to the 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 per cent 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 per cent Gen X and 23 per cent Gen Y workforce also seek retirement benefits from their salary package.
Meanwhile, organisations also give priority to different aspects of compensation and benefits depending on whether they are hiring a new employee or retaining an old one.
Overall compensation structure or CTC is what matters the most when hiring a candidate, say 58 per cent employers.
This is followed by in-hand (monthly) payout (20 per cent).
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 per cent employers.
This is followed by the overall compensation structure (16 per cent) and other benefits and perks (14 per cent).
"Organisations 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," Roy added.
Illustration by Uttam Ghosh/Rediff.com
