Translating Time to Cash: Monetizing Non-salary Benefits Shifts Employment Preferences

Abstract

When considering whether or not to accept a job offer, employees often focus too much on salary and not enough on other non-cash benefits that might best promote long-term happiness, such as having more paid time-off. How can we help employees recognize the value of non-salary benefits? One reason that employees may focus too much on salary is because the value of non-salary benefits is difficult to determine. In four studies (N=1,981), we examined whether listing the monetary value of non-salary benefits (e.g., paid time-off) could help individuals better recognize the value of these benefits, thereby shifting their employment preferences. Consistent with this hypothesis, placing a monetary value on non-salary benefits shifted employment preferences. For example, in Studies 1a & 3, participants were more willing to choose a job with a lower starting salary and more paid time-off. In two additional studies (N=1,004), when organizations listed the value of non-salary benefits, these organizations were perceived as providing greater work-life balance and caring more about their employees. In sum, highlighting the monetary value of non-salary rewards can increase the attractiveness of a job offer and help organizations more adeptly signal their empathy toward employees.

Winning the War for Talent: Modern Motivational Methods for Attracting and Retaining Employees

“…This concern translated into a greater number of applications even when the employers' total compensation-that is, salary plus benefitswas lower than competitors who offered a similar compensation package, but did not provide a detailed description of their benefits plan. 25 Following from these results, it becomes clear that in an era where an increasing number of employees-junior and more experiencedseek meaning, purpose and social contribution, an organization's ability to offer employees more than a transactional relationship based on money and tangible rewards can distinguish it from its competitors (see also Baeten & Verwaeren 26 and Brown & Reilley 27 for similar arguments). Thus, organizations should focus on clearly communicating the purpose and meaning behind the tangible rewards that they offer.…”