Dive Brief:
- No matter how many creative perks show up in America's workplaces, core benefits including health insurance, 401(k) retirement plans and vacation and paid time off (PTO) remain the primary drivers of employee satisfaction with overall benefits packages, according to a new study.
- The study, Which Benefits Drive Employee Satisfaction?, from Glassdoor Economic Research, the research arm of Glassdoor, evaluated five key benefits: health insurance, vacation and PTO, 401(k) retirement plans, employee discounts and maternity/paternity leave.
- No surprise that health coverage crushed other benefits as the top benefit increasing employee satisfaction, based on Glassdoor's rating system. Right behind healthcare came 401(k) retirement plans, with vacation and PTO finishing third.
Dive Insight:
Glassdoor reports that the findings support another recent survey that found health insurance, paid time off and 401(k) plans are the top benefits employees say they would prefer over a pay increase. Along those lines, four in five U.S. workers in the new survey say they prefer new benefits or perks to a pay raise.
What benefits didn't have much impact on employee satisfaction? Interestingly, maternity/paternity leave and employee discounts fit the bill. Glassdoor speculates that while generous parental leave plans are a clear trend, those benefits are used by a small percentage of employees, so they don't affect overall benefits packages satisfaction as much.
Dr. Andrew Chamberlain, chief economist of Glassdoor, Inc., says the company's latest research affirms that the "flashiest or trendy" benefits aren't always better. Hard to argue with Chamberlain's view, as investing in core benefits programs, especially healthcare coverage, will always deliver the most leverage – and satisfaction – with current and potential employees.