Must Nonprofits Develop Employee Benefits That Substitute For Annual Raises?
By: Eugene Fram
A recent analysis in the Washington Post reports that a tsunami-style change is talking place in the manner in which United States’ employees are being paid—benefits are being offered in place of annual salary increases. (http://wapo.st/1MwoIBZ) Driving the change are the needs of substantial portion of millennials who appreciate immediate gratifications in terms of bonuses and perks, such as extra time off and tuition reimbursement. Employers like the arrangement because they can immediately reward their best performers without increasing compensation costs. Example: One sales employee spent weeks reviewing dull paper work, was very diligent in the process and was given three extra days of paid leave. She said, “I think everybody would like to make more, but what I liked about it was the flexibility.” (more…)