I am considering upgrading my companies benefits package or giving everyone an additional 3% raise. What's more important to my employees?

Top Employee Response

I think most employees would prefer a 3% raise over a better benefits package.

a raise provides immediate gratification when a company is growing rapidly however other rewards are far more effective - understand motives and reward accordingly - Human capital departments need to be on overdrive all the time.

Upgrading the benefits package is most important. The pay is enough, if we can work at least 30 hours a week ????

That will depend. What benefit package? Currently, my company doesn't have any, so at this point, an additional 3% raise looks reasonable.

Both. Healthcare benefits are sorely lacking behind other companies. And unless you're in development, raises are inconsequential for the rest of the company. Rumor has it that it's normal for departments outside of development to get fractions of a percent to distribute across their entire department.

Depends on what information you have to make the decision. If you are retail, 3%. If you are an employer who relies on employee knowledge and experience, benefits may be a better option - but it really depends.

Improving benefits would be better. Specifically lowering or buying down our currently high deductible on our heath plan.

After several years of 2 - 2.5% raises, maybe an additional 3% raise would be better.

$$ are usually more important than a benefits enhancement.

Pay on time and with all the benefits that are due long term

Time off work and a raise. Americans are underpaid as it is.

Time off and more vacation.

upgraded benefits is more important

Benefits. They will likely get used to a 3% raise to the point they take it for granted in no time, but they will be more grateful for better benefits.

In todays economy 3% in pocket could make a huge difference. I would survey your workers though and find out if they are less insured than they'd like to be. Many scale back or go without insurance because they can't afford it. If you find that your employees are underinsured then go for the upgrade. If the majority are satisfied with insurance then put it towards a raise. Times are tough and it's admirable that you're looking to improve your employees lives.

"Upgrading benefits package" is too generic to really compare against. Is this a true one-to-one pay or savings for the employees or does one pay them more / save them more? Upgrading the benefits package may be most helpful to lower earning employees if this refers to health care. However, many employees may only look at the upfront dollar amount they receive versus investigate the true value of their benefits package.

Time off with family. Stress relief.

A raise. Let the employee decide how the money is spent. Most benefits that my employer offers are helpful, but some are simply useless.

Likely it’s the raise.

Wow that's a blanketed statement. Everyone is different. Try asking them.

Increase the amount of PTO they could get.

Both they would appreciate it

You’ll get a higher level of work by sharing with your employees

Depends on demographic. Single young people might prefer the raise. Most everyone else might prefer upgraded benefits.

Really good health nsurance is worth more than a 3% raise, so it's benefits.

It depends on your current benefit package. If it is under par, then fix that problem first. If it is moderate, then definitely the 3% raise.

Generally a higher salary is better, because more money can be spent for whatever is needed. Beyond a certain point, more benefits don't improve my situation. I can't pay my mortgage with them. But if the upgrade in benefits saves more then 3% of my salary in out of pocket cost for health insurance, for example, I might prefer the benefits.

A 3% raise across the board sends a specific message to employees that does not reflect performance or fair pay in the market place. I suggest you start with why you want to adjust pay and then take that action. You will need to have both fair/competitive pay as well as benefits that meet employee needs before you can see the benefits of employee retention, talent attraction, and employee engagement. The message regarding why is just as important as the action.

Pay raise is always a good choice. In comparison of my job role to other companies, our pay rate is comparable for our region, but our benefits are lacking. We’ve had jobseekers apply based on wages, then refuse after seeing our other benefits. We’re in healthcare, other local companies have better healthcare benefits than us.

You should ask your employees.

The raise is more important. Unless the benefits are more vacation.

These days benefits are so weak, it would depend on the impact on your employees.