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According to a 2016 survey conducted by the Society for Human Resources Management (SHRM), compensation and benefits are contributing more and more to employee job satisfaction.

The survey indicates that compensation is becoming increasingly important to employees’ overall job satisfaction. In the 2014 survey, compensation was rated fourth in importance to job satisfaction. However, the latest survey shows compensation as the second most important factor for job satisfaction, followed by benefits in third place. In first place is respectful treatment of all employees.

The survey shows compensation is especially important to millennial and Gen X employees, a large population of the workforce.

However, the survey shows less than stellar results for workers’ satisfaction with current compensation packages. For example, only 23 percent of workers indicated they were “very satisfied” with their current overall compensation.

As the job market improves, employers may want to review compensation strategies and make adjustments in order to retain (and attract) top performers.

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