AmCham Hungary organized the fourth session of its HR Masterclass focusing on compensation and benefits and their role in employee retention on May 4.
The discussion of the guests, Katalin Ivanov (Schneider Electric) and Csaba Tóth (LEGO Group), was preceded by a short introduction by dr. Róbert Dobay, who, based on Gartner’s Research, highlighted that employees’ perception on salary is influenced by several factors such as work-environment, or psychological factors including the degree of autonomy, work relationships and well-being.
Therefore, Dr. Dobay, as well as the guests during the discussion moderated by Vilmos Benkő (Salarify, former President of AmCham) stressed that compensation, though salary a significant role in employee retention, alone cannot satisfy employee needs.
On the other hand, in addition to other well-known motivating factors such as flexible working hours or welcoming work culture, compensation including bonuses makes an important factor to motivate employees. As we could learn at the previous session, attractive salary and benefits are ranked in the top three deciding criteria for employees in terms of perception of employer offer in Hungary (based on the Randstad, employer brand research 2022).
Speakers also noted that besides bonuses, and higher paid holidays, there should be a strong focus on benefits that reflect the values of the company such as paid parental leave, family leave schedule, or paid family care days off or sabbatical leave. These represent a high added value for most employees offering the opportunity the better balance family responsibilities or for example to enhance academic qualifications with their careers that has a strong benefit on employee retention especially on the long term.
To offer attractive and competitive wages and benefits as a company, it is essential to stay up-to date with market trends and related regulations, as well as the needs of the employees. For the latter a survey or an employee forum might be an ideal platform.
Find here the photos about the event, and more information on the final, closing session of our HR Masterclass on May 11 when we will discuss how to effectively manage cultural change.