One in three European employees ranks retirement support at the top of their list of desired salary benefits

For one in three European employees, employer-provided retirement support is one of the most desired compensation benefits in addition to gross pay. Specifically, this refers to pension plans offered by the employer and administrative support during retirement. As a result, long-term financial security ranks higher on the wish list than performance-based pay (29%) and pay based on skills and competencies (28%). These findings come from the HR & Payroll Pulse study conducted by the leading European HR company SD Worx, which surveyed 5,936 HR decision-makers and 16,500 employees across 16 European countries.

Employees are primarily seeking financial security 

The results show that employees are increasingly looking at remuneration in broader terms than just their gross salary. Long-term security is becoming more important, with pension support a clear priority. Employees in Ireland (47%), Germany (44%) and Norway (43%) in particular attach great importance to such a pension scheme.

Employers are responding to this trend. For example, 31% of European companies actually offer pension schemes to their staff, whilst in the UK this figure rises to almost double that: 59% of British employers offer such schemes. Ireland (44%) and Norway (41%) also score highly. Nearly a quarter of employers (24%) also offer pension advice. Initiatives that help employees cope with the rising cost of living are also increasingly part of the package (22%).

Flexibility and wellbeing are becoming increasingly important factors in attractive remuneration policies

Employees also consider flexibility and wellbeing to be important aspects of their remuneration package. Four in ten employees (40%) cite the ability to take extra days’ holiday as one of the most attractive benefits. However, only 16.5% of employees are actually able to do so, which points to a gap between expectations and what is on offer.

Flexible working hours are the most common benefit within the remuneration package: 27% of employees can (partly) set their own working hours. This is not too far off the 31% of employees who would like to have flexible hours. Health and wellbeing initiatives, such as a gym membership or regular medical check-ups (25.5%), hospitalisation insurance (23%) and life insurance (19.5%), are also sought-after benefits. 

Incidentally, freedom of choice is also gaining in importance: 22% want to be able to put together a flexible remuneration package based on their personal interests. To better cater to diverse expectations, 21% of employers are indeed already investing in flexible remuneration models.

Rewards are becoming a matter of trust and affordability

The results show that employers are taking an increasingly broad view of their rewards strategy. Just over half of organisations (52%) are exploring ways to make the remuneration package more attractive and valuable to employees, without increasing the employer’s total labour costs. In this way, non-financial benefits are becoming an important lever for better reconciling affordability and added value.

Remuneration is thus evolving from a purely financial instrument into a strategic system that links trust, affordability and engagement. Organisations that prioritise greater financial security, transparency, flexibility and well-being not only strengthen their position in the labour market, but also build a remuneration policy that is better equipped to cope with rising expectations and increasing regulation.