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EMPLOYEES PREFER FINANCIAL REWARDS
Two in three employees prefer financial rewards over straight non-cash benefits or internal recognition, which is a sharp increase from 12 months ago, according to a survey by specialist recruiter Hays.
69 per cent of employees surveyed said they prefer financial rewards, with 16 per cent preferring non-financial rewards and 15 per cent preferring internal recognition.
Similar recent surveys by Hays found 42 per cent of employees surveyed said they prefer financial rewards, with 9 per cent valuing non-financial rewards. This shows a significant increase in the number of people preferring cash rewards.
“The way in which staff are rewarded for hard work or successful results is an important part of employee engagement and a successful employment relationship,” said Emma Charnock, Regional Director of Hays in Hong Kong.
“As this survey shows, financial rewards such as bonuses or an earlier salary review have become increasingly important to employees over the past 12 months. Consequently an effective reward strategy needs to incorporate cash components.”
Charnock says there are several reasons for this increased focus on financial rewards. “Business activity has increased and people are generally busier in their jobs. Coupled with the knowledge that we are in a candidate short market and given higher costs of living employees’ emphasis has moved to cash payments rather than non-cash benefits.
According to Hays, non-financial benefits are still important though. “Benefits such as subsidising housing and schooling are very high on the wish list while ‘softer benefits’ such as club memberships are still very attractive.
"It’s critical these days for any employer looking at attracting and retaining staff to consider how they compete with similar organisations in the types of benefits they offer."
However Charnock offers an element of caution in the use of rewards. “There should be a fair and equal system of processes for rewards and they need to suit the audience they are intended for.
“It’s also not just about the obvious rewards, financial or otherwise. Rewards are just one element of a good retention strategy and acknowledgement of an employee’s contribution, career opportunity, the provision of new challenges, the opportunity for training and development, salary reviews and the influences of strong management are all equally important elements,” she said.
1,881 people completed the online survey across Asia Pacific. The survey question asked, “Do you prefer financial (cash) rewards, non-financial rewards like a weekend away or gym membership, or internal recognition?”. The full results were: financial (cash) rewards - 68.65%; non-financial rewards - 16.31%; recognition internally - 15.04%.
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