The United States is currently nearing full employment with the unemployment rate under 4%. Such a hypercompetitive labor market calls for innovation and creativity in luring and retaining top talent. A new study that sheds light on how employees value benefits may help employers maximize the “bang for the buck” of benefits packages offered to prospective and current workers.
An article published by Bloomberg highlights a National Bureau of Economic Research working paper that reveals which benefits employees prefer, and actually assigns a dollar amount that employees are willing to forgo in the form of wages in exchange for each benefit. The study’s data (displayed below) shows that in many cases American workers are willing to forgo “substantial” earnings in exchange for specific non-wage benefits that more than offset the equivalent cost to the employer of offering such benefits. Continue Reading