Question

The importance of indirect financial compensation (benefits like health insurance, etc.) has shifted over time in the American workplace. Before World War II health insurance and other benefits were almost never available to employees. In the second half of the 20th century those benefits became more important to workers. By the end of the 20th century and into the 2000s, the "gig economy" and other changes (401(k)s and Obamacare, etc.) have seemed to change the importance of benefits as part of the employment relationship. In your opinion (and therefore there really aren't any wrong answers), how important is the traditional benefit package to today's workers? What do you think the future of indirect financial compensation will be and will it be better or worse for workers?

Answer 1

Traditional benefit packages like retirement, insurance packages, health allowances, holidays and leaves are important to today's workers depending on their priorities and competitive options available in the job market. Some benefits like retirement and pension will appeal to employees as they are standard and provide them with quality of life after work. Other benefits like health insurance may not be attractive as there are many options available in market customized as per costs and needs of the employees and their families.

The future of indirect financial compensation will be towards flexible options and innovative benefits as part of indirect financial compensation to attract employees and their interest. Salary and direct compensation are often determined by market trends and past employment. Indirect compensation are a means for companies to provide benefits to employees when there are unpredictable job demands, competition and need to retain talent. The future of indirect compensation will be better for employees as it is oriented towards a more mutually beneficial, customized and competitive benefits to ensure employee loyalty and employee satisfaction.