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In the “old days,” even before many states required a salary range be included in any public job announcement, candidates would rarely ask about their employee benefits package—benefits like paid time off, healthcare, family and medical leave, and office stipends (in post-pandemic days). Salary was by far the most important thing a job-seeker wanted to know. How times have changed.
Today, candidates ask about employee benefits as often as they ask about the salary. Salary and benefits are crucial factors for job candidates; however, their importance can vary based on the individual, their priorities, and their personal situation.
Of course, the primary reason most people work is to earn a living. A competitive salary ensures that individuals can meet their basic financial needs, cover living expenses, support their family, and plan for the future. While salary addresses immediate financial needs, benefits contribute to long-term financial stability. Health insurance (which grows more expensive every year), retirement plans, and other benefits can provide a safety net in case of unexpected events or expenses.
A competitive salary reflects the value that an employer places on an employee’s skills and experience. Benefits, such as health insurance, dental coverage, retirement plans, and paid time off, add to an overall compensation package. Candidates evaluate the total compensation offered by considering both salary and benefits.
Work-life balance is also considered more often these days. A good salary allows employees to maintain a reasonable work-life balance by affording time for personal and recreational activities. Flexible working hours, telecommuting options, and paid time off contribute to a healthy work-life balance. These benefits can enhance job satisfaction and overall well-being.
On the hiring side, competitive salaries help attract top talent to an organization. Salary is often one of the first criteria that candidates consider when evaluating job opportunities. In the nonprofit world, candidates can look at IRS 990 forms to learn not only the budget of the organization but also what its leadership is paid. Indeed, a comprehensive benefits package is crucial for retaining employees: companies offering attractive benefits can retain experienced staff and foster employee loyalty.
Fair compensation can contribute to job satisfaction, making employees feel valued and motivated. And benefits like healthcare, wellness programs, and professional development opportunities also contribute to overall job satisfaction. Employees who feel supported and appreciated are more likely to be motivated and engaged and have longer tenures.
Naturally, candidates differ, each facing unique situations in their lives. Some prioritize a high salary to meet immediate financial goals or support their lifestyle choices, while others may place greater importance on benefits such as health coverage, parental leave, or retirement plans—especially if they have long-term considerations like starting a family or planning for retirement.
When hiring new staff, employers should weigh both salary and benefits packages carefully. Both are critical factors candidates consider when evaluating job opportunities, and a balanced compensation package is often key to attracting and retaining top talent.
What is most important to you these days—salary or benefits? Why? I’d love to hear from you.
Looking to assess your organization’s compensation philosophy? Reach out to DRG!
