Approximately one-quarter of employees in Europe (26%) are dissatisfied with their pay package, according to an international survey conducted by HR service provider SD Worx among more than 5,000 companies and 18,000 employees in 18 European countries.
The survey found that six out of ten European employees consider salary the most important factor when choosing an organization. At the same time, it’s also the main reason for leaving a company. Almost four out of ten (37%) employees are satisfied with their pay package as a whole, while around one-third (31%) are neutral.
Companies often offer other forms of payment in addition to a fixed salary, but these do not always correspond to employees’ wishes. For example, 40% would like extra leave days, but only 30% have this option.
Survey data showed that job security and financial stability are in second place (42%) after salary. This was closely followed by a good working atmosphere and good colleagues (41%).
Four out of ten employees find their salary package fair compared to other salaries on the market, while 27% are neutral on this point. The figures are very similar within the companies themselves: 43% consider their salary fair to what their colleagues earn, and 25% are neutral.
Meanwhile, 39% of employees feel that their organization provides sufficient communication about their reward policy and any amendments. In comparison, roughly the same number (37%) are satisfied with the transparency of their reward policy.
Bruce Fecheyr-Lippens, Chief People Officer at SD Worx, said in a press release, “It’s essential that companies think carefully about their reward policy. Nevertheless, only half of the organizations surveyed actually have a strategic salary plan in place.”
Fecheyr-Lippens added, “Salaries remain an important factor when choosing an employer and play a significant role in motivation and satisfaction. We are seeing an increasing degree of personalization in the employer/employee relationship. This is why it is important to tailor your reward policy to meet each employee’s unique needs as far as possible. Less than a fifth (18%) of employees can define the composition of their own salary package, while 42% would like to have a flexible cafeteria plan.”
SD Worx also found that total salary packages include more than just a fixed salary. On average, European employees receive seven different types of rewards.
Belgium, Slovenia, and Poland lead the way with nine types of reward, while the number is lowest in Italy (5), Spain (6), and Denmark (6). The most common types of remuneration that employees receive are a fixed salary (81%), flexible working hours (50%), and study or training days (39%). A quarter (25%) receive a variable salary.
When asked about their preferred type of remuneration, regardless of whether they receive it or not, 42% said a fixed salary, 41% selected additional leave days, and 37% cited flexible working hours. Just over three out of ten organisations (32%) offer extra leave days. Meal vouchers or meal allowances (24%) and supplementary health insurance (20%) also proved popular.