Four out of ten employees satisfied with their total pay package
Employee pay package preferences do not always correspond to what they receive
September 19, 2024
Six out of ten European employees consider salary to be the most important factor when choosing an organisation. 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 and one-quarter (26%) are dissatisfied. In addition to a fixed salary, companies often offer other forms of remuneration, but they do not always correspond to employees' wishes. As an example, 40% would like extra leave days, but only 30% have this option. What’s more, employees often don’t have a clear picture of the total value of their salary package, which is crucial when it comes to knowing how much they actually earn. These findings and more are the results of an international survey conducted by European HR service provider SD Worx among more than 5,000 companies and 18,000 employees in 18 European countries.
A fun working atmosphere, an attractive salary, opportunities to grow or job security – what makes a company attractive? For six out of ten European employees, salary remains the most important factor. Job security and financial stability are in second place (42%), 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 companies themselves: 43% consider their salary to be fair in relation to what their colleagues earn, and 25% are neutral.
37% of European employees are satisfied with the transparency of their reward policy
How do European employees view a reward policy? Four out of ten employees (39%) feel that their organisation provides sufficient communication about their reward policy and any amendments, while roughly the same number (37%) are satisfied with the transparency of their reward policy.
“It’s essential that companies think carefully about their reward policy. Nevertheless, only half of the organisations surveyed actually have a strategic salary plan in place”, says Bruce Fecheyr-Lippens, Chief People Officer at SD Worx. “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 personalisation 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.”
In addition, it is important to communicate clearly about the complete salary package. After all, if employees aren’t sure what their salary package entails, they can’t evaluate it correctly. Only a quarter of organisations offer a total reward statement, which means four out of ten employees do not receive a good overview of their overall pay package. Nevertheless, software is available that maps this information out in a user-friendly, clear manner.
Four out of ten employees want extra leave days
The total salary package consists of more than just a fixed salary. European employees receive seven different types of reward on average. 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.
“Remuneration is about more than just money or material things”, continues Fecheyr-Lippens. “Elements such as flexible working hours and a pleasant working atmosphere also count in employees’ eyes. I like to call this the ABC of a remuneration policy: Atmosphere, Benefits and Compensation. Money or added benefits aren’t the only reasons why people choose or stay with an organisation.”
But what do employees really want? Although study and training days are often offered, they rank fourteenth on employees’ wish lists (13%). “Nevertheless, research shows that development opportunities can actually be an important incentive for employees”, says Fecheyr-Lippens. “It is especially important that companies offer training in the right way. Again, it’s a good idea to tailor your training based on your employees’ specific needs.”
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.
About the international employee survey
SD Worx, the leading European HR service provider, assists organisations with their HR and payroll. SD Worx conducts regular surveys to find out what really matters to employers and employees. The analysis of the most recent survey, the ‘Navigator Series’, provides organisations with a compass to navigate the challenges set by HR and payroll. The survey was conducted in February 2024 in 18 European countries: Austria, Belgium, Croatia, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Poland, Romania, Serbia, Slovenia, Spain, Sweden and the UK. A total of 18,000 employees were surveyed. The results are weighted and guarantee a reliable representation of the labour market in each country.