Look Beyond Salary

Many Americans who leave their jobs to improve their financial situation fail to consider their total compensation package when making the decision, according to a consumer survey.

The survey by the National Association of Insurance Commissioners (NAIC) found that many job-hunters consider only salary and end up in worse shape after taking a new job because they overlooked the value of total compensation including benefits.

According to the NAIC survey, 40 percent of voluntary job switchers cited “improve my financial situation” as a key influence on their decision to quit. However they encountered problems when they took a narrow view of what affects their financial conditions.

While 73 percent of job switchers spent some or significant time thinking about salary, only 41 percent spent as much time considering insurance benefits, and less than 30 percent thought as much about out-of-pocket costs or insurance coverage effective dates before making the switch.

According to the Bureau of Labor Statistics, insurance benefits can average nearly 10 percent of total compensation.

The NAIC survey found that ignoring the benefits component can be costly. Nearly 25 percent of job switchers surveyed said after accepting a new job, insurance-related changes either “slightly or greatly worsened” their overall financial situation.

“We urge consumers to consider all the financial implications of a job change, including insurance. Total compensation is more complex than salary alone,” said Adam Hamm, NAIC president and North Dakota insurance commissioner.

Young people are particularly likely to jump jobs after just a few years in employment. Some 60 percent of Millennials are expected to leave their employers within the first three years, according to The Jacobson Group. So what can organizations do to keep employees, young and old, engaged? Here are a few things that The Jacobson Group recommends.

Offer desirable perks and benefits, and develop a comprehensive rewards strategy that encompasses several components, including performance recognition, work/life balance and career development opportunities.

Fast track high-performing employees. If you want to keep young, talented individuals within your company, make sure you are placing your best and brightest on the road to success.

Foster an inviting and inclusive culture. Don’t overlook the importance of employee morale.

Engage in community service and volunteer activities. Employees that find their work to be fulfilling and meaningful are much more connected to their employer.

Topics Talent