A global survey on pay rise alternatives has revealed the top things employees would be happy to accept if their organisation can’t afford the annual wage increase.
The research from ADP, with more than 34,000 employees across 18 countries, showed that the most popular alternatives for staff worldwide are a one-off bonus (39 percent), extra days of paid leave (37 percent), and a one-off payment (27 percent) to help with the cost of living.
The findings, published in the report titled “People at Work 2024: A Guide to Pay Rise Alternatives“, also showed results by region and country.
UK preferences
In the UK, almost two-fifths (37 percent) of workers would opt for a one-off payment to help with the cost of living. This was significantly higher than the global average of 27 percent.
One off payments were also particularly popular among women (42 percent) compared to men (33 percent).
UK workers said they were also interested in benefits such as paid for lunches, profit-sharing bonuses, and fuel vouchers.
Individual respondents highlighted a desire for “dental care for the family” and “the option to work remotely from another country” as other pay rise alternatives they’d consider.
Regional favourites
Regional data reveal that in Europe, 42 percent of Italian workers would accept grocery vouchers, while Germans preferred one-off bonuses (33 percent) over sabbaticals (7 percent).
In the Asia Pacific region, almost half (49 percent) of Chinese workers would prefer a one-off bonus.
Australian employees heavily favour pay rises, with 20 percent rejecting alternatives, compared to just 8 percent of workers worldwide that also said pay rises are a must.
Workers in India, in the South Asia region, said they would accept staff childcare vouchers, with 25 percent of workers plumping for this option.
Shorter weeks
In Latin America, almost a third (31 percent) of Brazilians said they would prefer shorter working weeks if a pay rise was not an option.
For North America, Canadians (35 percent) and Americans (32 percent) equally favour one-off bonuses and extra paid days off.
Other highly valued alternatives included flexible working arrangements, wellness days off and transport vouchers.
Pay rises remain key
However, in spite of positive sentiments about pay rise alternatives, 77 percent of workers around the globe said they expected a pay rise in the next 12 months.
Researchers said that this highlights the importance of addressing cost-of-living concerns directly.
Sirsha Haldar, general manager, UK and Northern Europe at ADP, said: “These findings will have strategic implications, as businesses navigate an inflationary environment. Understanding and implementing acceptable alternatives to pay rises can be crucial for maintaining employee morale and retention.
“Our research provides valuable benchmarks and actionable insights for HR leaders globally, making it an essential read for organisations striving to adapt to the evolving workforce landscape. I believe this report will provide employers and HR leaders with an in-depth understanding of current workforce trends and innovative compensation strategies.”
