It not just the kind of work and workplace preferences that separates Gen X and Y, it’s also how the two generations view compensation. That’s according to a new TimesJobs Study on “Cracking the compensation code”. While younger employees preferred transport and meal allowance over gratuity and PF, older employees were more interested in family health insurance. However, take home salary has emerged as one common preferred salary component according to the Study.
"While 'Take-Home' remains of prime importance in evaluating compensation, other factors, such as growth prospects, future earning potential, performance based allowances, ESOPs, housing, schooling, medical, and other benefits play an important role as well. TimesJobs has created a vast database of company reviews by genuine employees and industry scale salary benchmarking tools that give insights into a company's compensation philosophy, allowing candidates a transparent view into potential employers," says Nilanjan Roy, Head of Strategy, Times Business Solutions.
Here are some key takeaways from the Study.
- Cash-in-hand is the most preferred component of the salary. About 40 percent of baby boomers, 56 percent of Gen X and 41 percent of Gen Y seek better cash-in-hand from their salaries. The demand is higher at a junior level, with nearly 60 percent seeking more in-hand salary.
- The second most sought after compensation component was post-retirement benefit. While 38 percent of the baby boomers seek retirement benefits, the interest was a little less among Gen x at 26 percent and Gen Y workforce at 26%.
- Almost 90 percent of the employees prefer a customized compensation package.
Commenting on the importance of customizable packages, Mr. Roy notes, “Organizations must consider tailoring their compensation structure for employees. But to do so they must understand the unique attributes and aspirations of the different workforce generations. To effectively manage a multi-generational workforce, the employers must start by getting to know the expectations of their workforce”
The TimesJobs.com study on compensation and benefits surveyed preferences of compensation components among different generations and covered 1,000 employers.