Compensation and benefits have a substantial impact on an employee’s wellbeing. High compensation increases employee motivation while a low amount of compensation results in reduced employee morale in the workplace. Nonetheless, I believe employee benefits are more important than salary. Benefits reduce employee expenses to a greater extent hence alleviate stress and give an employee peace of mind.
The most critical work benefit I would consider while accepting a job offer with low compensation is health insurance. The high cost of sudden health emergencies can affect any additional amount of salary earned. Studies indicate that medical bills are the leading cause of bankruptcy for many individuals ( Laundon,2019). Medical insurance covers doctor’s appointments, emergency visits, necessary medical procedures, regular checkups, and various surgical procedures making health insurance is the most valuable benefit to an employee. Also, retirement benefits are valuable as they impact both the future and the present life of the employee. A retirement savings plan is an effective way that motivates employees to save money. An employee who receives a large sum of money either monthly or annually without a retirement saving plan might find it difficult to save due to the high cost of living.
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Apart from the work benefits, the condition and terms of employment are also crucial. Irrespective of the salary, a permanent job has numerous advantages. Permanent employment offers stable salaries, which enable an individual to borrow loans and mortgages without fears ( Urbancová & Šnýdrová, 2017). A permanent job also offers numerous advantages such as job security, career development, and advancement programs, lifestyle planning, and paid holidays, sick, parental, or personal leaves.
In conclusion, it is essential to consider the benefits, perk, terms, and conditions of employment instead of salary alone. Employment benefits such as health insurance and retirement saving plan are essential in the wellbeing of an employee; hence low compensation can still be worth
References
Laundon, M., Cathcart, A., & McDonald, P. (2019). Just benefits? Employee benefits and organizational justice. Employee Relations: The International Journal .
Urbancová, H., & Šnýdrová, M. (2017). Remuneration and employee benefits in organizations in the Czech Republic. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 65(1), 357-368.
