What do your workforce want more than anything else from their employment?

Better work/life balance? More opportunities to grow and acquire new skills? Customised benefits packages? A sustainability-focused employer that provides equal opportunities?

These are all top-of-mind answers for employees and employers alike.

But there is one answer that will always come top of the list if employees are being honest: Compensation. 

Once again, The Office has this nailed on.

The fallacy of it all is that while more money in the bank each month does make life more comfortable for workers, it’s not going to solve all their problems or magically make them more productive in a sustainable sense.

Financial incentive as a way of generating greater productivity is a common practice (see: every sales department ever) but what about workers whose contributions aren’t directly tied to revenue?

Other financial bonuses can also work to give those with basic compensation packages (i.e. no commission) a reason to up the ante and ensure targets are met.

But ultimately throwing money at a problem is, more often than not, a short-term solution. 

Once a salesperson has reached a commission cap or the marketeer has completed their objectives to attain a bonus, their motivation to maintain productivity levels are going to drop.

However, pay is only one facet of what employees really need. And people are notoriously bad at differentiating between what they want and what they need.

Financial wellbeing as a baseline

For the better part of the last three years, ‘cost of living’ has become a staple in most people’s lexicon. 

As a result, more people have become aware of what is termed ‘financial wellbeing’ – the feeling of being in control and secure regarding personal finances.

But given the option of better financial wellbeing and a higher paycheck each month, the safe bet is that most will choose the latter.

This is where HR should be committing more effort and resources to educating employees on why financial wellbeing is so fundamental.

Poor financial wellbeing, and other mental health difficulties it can lead to, will often have a direct impact on productivity. If employees feel that they are not being adequately supported by HR or their employer, they may well seek out other opportunities instead.

This was a huge factor during the Covid-19 pandemic and led many employers to implement financial wellbeing support options within EAPs or benefits packages. 

But, with the pandemic in the past, financial wellbeing has dropped down the priority list for corporate decision makers. 

Even if your organization still offers this type of wellbeing support, ask yourself – is it still fit for purpose? What are the use stats among your workforce and is this producing the desired effect?

Although many workers may choose a lump sum payment as a bonus if given the choice, it may only be a sticking plaster against more serious, longer-term financial concerns.

Other alternatives are available

When it comes to what global employee expectations are in this space, the data is quite clear.

Research among 34,000 workers from 18 nations – published in ADP’s study, People at Work 2024: A Global Workforce View – shows 77% are expecting a pay rise in the next 12 months.

Asking the question of what employees would want as an alternative to a pay rise, different priorities were evidenced across global regions and countries.

For example, workers in the US prioritized extra paid days off (32%) as a one-off bonus. Other answers included flexible working hours, housing assistance or 401Ks.

Meanwhile, those in Canada would opt for a one-off financial bonus (35%) or extra paid days of annual leave (34%).

Across Europe there were a range of answers to pay alternatives; for employees in Germany (33%), the UK (37%), the Netherlands (41%) and Poland (44%), a one-off payment was the top answer.

Spanish employees said they would want a shorter working week (36%), while French (27%) and Italian (42%) workers would opt for grocery vouchers.

Workers in Switzerland, however, were adamant that only a pay rise (16%) would be satisfactory.

It’s clear that there is no one answer to the question of what employees want, or more importantly, what they need. Regardless, it’s clear that employees are looking for more – whether that is better remuneration or another form of compensation. 

Employees in Europe that are still feeling the cost-of-living squeeze will understandably opt for short-term financial incentives that can help lighten the load. It wouldn’t be a surprise to see a shorter working week become a more popular option going forward either.

At the end of the day, more money may not be the answer to everything, but it damn sure helps.