PayScale Study Highlights Engagement Value of Appreciation, Company Outlook

PayScale Study Highlights Engagement Value of Appreciation, Company Outlook

Chris Martin, Director of Research at PayScale, showcases the findings of a recent study his company conducted based on survey responses from more than 500,000 US employees. The study sought to gauge the impact of various criteria on employee engagement and intent to stay in their current jobs:

Two variables stood out from the pack for both outcomes: whether an employee feels appreciated at work, and whether they feel their organization has a bright future. Employees who feel unappreciated or who think their organization isn’t going anywhere are less likely to feel satisfied at work and more likely to plan on seeking a new job in the next six months.

Although they don’t align precisely, PayScale’s findings here underline a key insight from our Global Talent Monitor at CEB, now Gartner. This quarterly report provides workforce insights on global and country-level changes about what attracts, engages, and retains employees, based on data from more than 22,000 employees in over 40 countries. (CEB Corporate Leadership Council members can peruse the full set of insights from Global Talent Monitor.)

What our latest global data show is that while compensation is the most common driver of talent attraction both worldwide and in the US, other factors are nearly as important to employees in deciding whether to take a job, including stability (related to the future prospects of the organization) and respect. Indeed, respect has been growing in importance as a talent attraction driver over time, especially in the US, Southeast Asia, and India. When it comes to drivers of attrition (what compels employees to quit), compensation is outranked both globally and in the US by future career opportunity, while people management problems and a lack of opportunities for development are also common factors in employee attrition.

The other interesting finding Martin highlights from PayScale’s study concerns employees’ perceptions of pay practices:

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Both Pay and Health Benefits Matter to US Employees

Both Pay and Health Benefits Matter to US Employees

The latest “Getting Paid In America” survey from the American Payroll Association finds that 63 percent of US employees consider higher wages more important than better health benefits—more than the number who said so last year:

“A wage increase is easy for workers to understand. The value is clear and immediately apparent,” said Mike Trabold, director of compliance risk for Paychex. “In 2017, considering today’s unpredictable regulatory environment, the same can’t be said for better benefits.”

The annual APA survey asked, “What’s more important to you, better health benefits or higher wages?” Sixty-three percent of respondents indicated higher wages are more important than health benefits. The number of survey participants with this preference rose 12.5% from the 2016 results for the same question, which indicated only 56% of employees shared this sentiment.

Even if health benefits are less important than wages to American workers, our research at CEB, now Gartner, shows that they are still a priority. In fact, according to our Global Talent Monitor data, health benefits are the second most important attribute for US employees considering a potential employer. The first is compensation, which is consistently the leading driver of attraction worldwide.

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