Dive Brief:

• After base pay, employers are rewarding employees by offering career development tools and strategies – even more than other types of rewards, benefits and bonuses, according to a new research survey.

• The survey, from the Hay Group division of Korn Ferry, found that a significant 90% of employers surveyed employ four or more alternative methods of rewarding employees. They include career development programs, spot cash bonuses, health and welfare benefits, enhanced capital accumulation programs, gift/merchandise programs, community impact programs, additional paid time off and other benefits programs.

• More than 80% said alternative rewards are critical for being considered an employer of choice, remaining competitive and engaging employees – three major goals. And 87% of respondents also agreed that alternative rewards are an important tool in retaining the organization’s existing talent.

Dive Insight:

The Hay Group survey found that across all employee levels, career development programs are going to be expanded most among other options during 2016, as more than 50% indicate they intend to take that direction. 

Tom McMullen, rewards practice leader at Hay Group, said the findings underscore what his firm is seeing with its clients: a focus on putting together career development frameworks across the entire organization, from the staff support ranks up to executive levels. Even within top management jobs, leadership development opportunities are critical to successfully elevating employees to the C-suite or prep them for new functional roles, he added.

To top it off, Hay Group’s global employee opinion database reveals that a lack of career development opportunities is the number one reason why employees leave.