The focus on individual compensation & benefits has been gradually shifting towards a more collective approach. Rather than solely emphasizing personalized reward packages and comparing salaries to market rates, organizations are now realizing the significance of strengthening the group as a whole. In this blog post, we will explore the emerging trend of collective benefits and delve into the key takeaways from a comprehensive study conducted by the New Pay Collective and Figures, shedding light on how companies can reimagine their approach to employee benefits.
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read this summary of the main trends
we extracted from the report.
Trend 1: Benefits Extend Beyond Traditional Perks
While some organizations limit their understanding of benefits to perks like mobility options or retirement plans, a broader perspective is needed. Employees and job seekers view benefits as more than just standard offerings; they encompass flexible work conditions, opportunities for personal and professional growth, and a sense of purpose. The study conducted by the New Pay Collective examined not only traditional benefits such as pension savings, healthcare, and mobility but also explored aspects like flexible working hours, remote work policies, family support, and participation in sustainability projects. It's important for companies to consider these additional dimensions when designing their benefit packages.
Trend 2: Health, Activity, and Mobility: Shifting from "Me" to "We"
The study revealed that community, daily physical activity, and personal development are currently high priorities on the benefit agenda. In the realm of health and wellness, digital companies are focusing on stress and crisis management programs that combine physical activity, community engagement, and mental health support. Considering the prevalence of workplace stress, these types of support services are increasingly crucial. The study found that 44% of participating companies offer services related to mental health, with the percentage rising to 82% for larger organizations. However, smaller companies are less likely to provide such benefits, with only 10% incorporating them. Wellness initiatives such as yoga, massages, meditation, and health counseling are popular, and 96% of these services are available to all employees based on individual demand.
Furthermore, nearly a quarter of the surveyed companies stated that their employees have the opportunity to engage in physical activities during working hours. While dedicated sports facilities are relatively uncommon (11%), internal sports events like company runs, sponsored employee competitions, or corporate sports teams are gaining popularity. The era of restaurant vouchers seems to be waning, with only 16% of respondents offering this benefit. However, shared meals remain a unifying social element, with 42% of companies practicing communal dining.
Sustainable mobility solutions are also gaining traction, as larger companies (55%) are exploring alternatives to traditional transportation benefits. Initiatives such as providing leased bicycles or e-bikes (44%) and subsidized tickets for public transportation (37%) are becoming more common. E-cars and parking slots with charging stations are still relatively rare (13%). The provision of company cars, often seen as a status symbol, is offered by only 27% of digital companies, which are typically located in urban areas.
Trend 3: Training and Development Vary with Company Size
When it comes to individual development opportunities, the line between a benefit and a business necessity becomes blurred. Attending events and conferences can be seen as a personal advantage if it is not a common practice in other organizations. Personal growth and training rank high on the list of preferred benefits in the digital industry. Larger companies tend to invest more extensively in their workforce's long-term professional development through comprehensive learning programs. In contrast, smaller companies often rely on one-time events, knowledge-sharing formats, and ad-hoc trainings.
The survey revealed that 90% of employers support their employees' attendance at conferences, while 57% provide access to learning platforms for self-paced trainings (e.g., LinkedIn Learning, Udemy). Half of the companies surveyed also offer mentorship programs to foster professional growth and knowledge sharing within the organization. These programs help employees connect with experienced mentors who can guide them in their career development. Additionally, smaller companies often encourage cross-functional collaboration and knowledge exchange as a way to provide ongoing learning opportunities.
What we learned from the results?
The shift towards collective benefits signifies a changing mindset within organizations, acknowledging that a thriving group leads to individual success. By broadening the definition of benefits and focusing on holistic well-being, companies can create a positive work environment where employees feel valued, supported, and motivated. From promoting health and wellness to providing opportunities for personal growth and fostering a sense of community, organizations can reimagine their benefit packages to prioritize the power of "us" over "me."
As companies continue to adapt to evolving employee needs and expectations, understanding the significance of collective benefits becomes paramount. By embracing this trend and aligning benefit packages with the desires of the modern workforce, organizations can attract and retain top talent while cultivating a strong sense of unity and purpose.
Remember, it's not just about the individual perks and rewards; it's about fostering a collective culture that uplifts and empowers every member of the organization.
Author: Sarah Maximilian
Pictures: YellowBC, Figures, Unsplash