News & Information

CCH® HR MANAGEMENT — 6/27/06

Workers starting to prefer flexibility to increased compensation

Even though three out of four (72 percent) U.S. workers claim to be very or somewhat satisfied with their compensation, a large portion (44 percent) of the same sample say they would change their mix of cash and benefits if they could. These findings come from Hudson’s Transforming Pay Plans: 2006 Compensation and Benefits Report. This survey, based on the responses of 10,000 workers, examines employee attitudes about traditional and non-traditional pay and benefit programs.

"The survey reveals a work force with shifting compensation demands that can be hard for employers to decipher and even harder to satisfy," stated Peg Buchenroth, managing director, compensation and benefits, Hudson Highland Group. "Though cash is still king, workers are coming to grips with paycheck-squeezing realities like higher healthcare costs and self-funded retirement programs. At the same time, they are placing much greater value on less tangible, lifestyle oriented benefits."

Given their choice of unconventional benefits, most employees would select a more flexible work schedule (33 percent) or additional family benefits (22 percent), including parental leaves and personal days, over job training (13 percent) or supplemental insurance (16 percent). "People are more interested in having a well-balanced life," added Buchenroth. "Many individuals find elements such as flex-schedules, telecommuting, on-site daycare or more personal time to have greater importance than cash. In fact, employees may forgo additional cash in order to have an improved work-life balance or better opportunities for career advancement."

For additional information on this and other HR topics, consult CCH Human Resources Management or Personnel Practices/Communications.

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