FSA Friday - 1/25/19 - Money still talks, but less loudly than before
Here's a sentence we never thought we'd write: Money might not be the primary reason people stay at a company anymore.
Notice we didn't say "compensation," though. As we've discussed in this column a lot over these past 6-8 months, benefits packages are becoming just as important to young employees as the cash in their paychecks. Considering this generation's need for more security and stability, this didn't come as much of a surprise.
What was more surprising is that companies are now investing more in developing these workers, rather than just throwing money at them each year to keep them content in their roles. Let's take a look at one headline that highlights this new trend.
Companies invest less in raises, more in benefits - Kayla Webster, Employee Benefit News
According to a global survey from consulting firm Korn Ferry, American companies are projected to increase employee salaries by 3% in 2019 -- consistent with the past three years of growth.
While there are obvious variables that affect salary -- role, industry, region, etc. -- one constant is that today's employees aren't seeing the same rate of pay growth as they did even a few years ago. Sure, some roles, like IT and development positions, are seeing increased growth, due to the rapid advancements in tech. But those companies don't seem to be handing out the same raises to other departments.
Instead of offering raises across the board, companies are turning to better benefits packages to retain their teams and attract new talent. And it seems like this strategy is paying off, with workers boosting their benefits packages a little more each year, with less overall expense (and increased ROI) for the company.
What are these benefits? Well, we're not just discussing gym memberships and better parking here. Instead, companies are finding creative ways to improve talent levels within their ranks, while also preparing employees for life outside their walls, if and when they decide to move on.
From on- and offsite trainings, to professional certification and licensure courses, and even in-house mentoring, employees aren't just learning from their daily tasks, but also from all areas of a company. Not only does this improve worker morale, but also creates an environment that encourages longer-term tenures with the company.
If we've learned anything about today's workforce, it's that growth opportunities are front and center. This gives employees a chance to achieve growth without having to change companies every few years.
The article goes into much more depth than we could here, but it's a quick six-minute read, well worth your time.
FSA Friday is a weekly roundup of the latest topics, tips and headlines to keep you updated on all things flex spending. It appears every Friday, exclusively on the exclusively on the FSAstore.com Learning Center. And for the latest info about your health and financial wellness, be sure to follow us on Facebook, Instagram and Twitter.