Most practice leaders only think of money when they establish parameters for a new hire or when they consider changing their compensation packages with their employees. It is very important to realize that various components of typical compensation packages have very different levels of importance to different employees. Thus, when management wants to provide added incentives or when they need to change compensation packages, it is important to understand the 'currency' that is important to each type of employee.
For example, generally, a higher percentage of older employees will typically place greater importance on their benefits package such as retirement funds and health benefits, than solely financial compensation. In contrast, most younger people will place more importance on lifestyle and factors such as schedule and time off than purely emphasizing money in their compensation packages. And when confronted with choices regarding money and retirement or health insurance, younger people will typically prefer more money. Few have the vision to place great importance on retirement and health benefits at a younger age.
Therefore, management should seek to learn what factors their specific employees value most in order to utilize those factors as added incentive to attract and retain great team members. Contrary to the more seasoned generation that usually thinks of money first, many younger employees have differing priorities with which you can bargain to attract and retain them.
