Two in three employees prefer financial rewards over straight non-cash benefits or internal recognition, which is a sharp increase from 12 months ago, according to a survey by specialist recruiter Hays Information Technology.
According to the survey titled 'Financial Vs Non Financial', 69 percent of employees surveyed said they prefer financial rewards, with 16 percent preferring non-financial rewards and 15 percent preferring internal recognition.
In a similar survey by Hays in April 2006, 42 percent of employees surveyed said they prefer financial rewards, with 9 percent valuing non-financial rewards. This shows a significant increase in the number of people preferring cash rewards.
Peter Noblet, regional director of Hays Information Technology said the way in which staff are rewarded for hard work or successful results is an important part of employee engagement and a successful employment relationship.
“As this survey shows, financial rewards such as bonuses or an earlier salary review have become increasingly important to employees over the past 12 months. Consequently an effective reward strategy needs to incorporate cash components.”
Noblet said there are several reasons for this increased focus on financial rewards with business activity increasing and people are generally busier in their jobs.
“Coupled with the knowledge that we are in a candidate short market and given higher grocery, petrol and mortgage costs, an employee’s emphasis has moved to cash payments rather than non-cash benefits,” he said.
According to Hays, non-financial benefits like; gym memberships or movie vouchers and can be utilised in addition to cash rewards and are useful in that they allow an employer to recognise and celebrate a staff member’s efforts and successes in a personal way, said Noblet.
However he said there should be a fair and equal system of processes for rewards and they need to suit the audience they are intended for as there is variation in what suits Generations X, Y and Baby Boomers. For instance paid maternity leave might be very significant for one group but not so useful for another.
“It’s also not just about the obvious rewards, financial or otherwise. Rewards are just one element of a good retention strategy and acknowledgement of an employee’s contribution, career opportunity, the provision of new challenges, the opportunity for training and development, salary reviews and the influences of strong management are all equally important elements,” he said.
Noblet said around 1,881 people completed Hays’ online survey and is a lead up to the annual Hays Salary Survey will be released on 1st June.
Money makes the world go round, says employees
By Lilia Guan on Apr 26, 2007 2:05PM