Job seekers have a lot of factors to think about before they accept a new position.
A hefty salary is often their number one priority, but other benefits like health care, 401(k) plans, paid leave, and professional development opportunities are also important. All of those factors together make up the concept of “total rewards,” and the idea that compensation is about a lot more than just the number on your paycheck.
The picture becomes even more complicated for companies now that there are five generations in the workforce. That means employers often need to consider the specific compensation and benefit desires of different groups of employees. For example, retirement funds are top of mind for Gen Xers and millennials. But Gen Z values things like vacation time and work-life balance so much that they’re willing to take lower-paying jobs that offer these perks.
Fortune sat down with Jeremy Yonan, the vice president of total rewards at Indeed, to get his take on the biggest trends in compensation, how companies can attract superstar employees, and how today’s job seekers can get the most out of workplace offerings.
This interview has been edited and condensed for clarity.
Fortune: What are people asking for in their compensation packages? Are there new trends you are seeing?
Yonan: Wages are cooling, but expenses are still rising. So what if anything can employees get to maximize the relationship with their employer? There are multiple levers.
Additional PTO, depending on your organization and structure, has both a monetary value and a real well-being impact. One extra week of vacation is like a 2% raise in disguise. Think about additional PTO as a way to shop around as you are looking for that next stop.
Some organizations, within the last five or six years, have been moving towards student loan repayment programs. Because the U.S. government has enacted SECURE 2.0, there are avenues [in which] employer retirement plans can reallocate that match towards student loan repayments.
There’s also a professional development stipend. This is one of the biggest, most important things somebody can [use to] take control of their own career. Upskilling is one of the best long-term investments, and many companies have budgets for them. They just don’t necessarily advertise them.
Then there’s wellness and lifestyle spending accounts. These are monthly contributions similar to a flexible spending account (FSA) or dependent care spending account, but geared more towards lifestyle. A lot of companies are really embracing wellness strategies, and if you do demonstrate some progress towards that strategy, that’s where you can start participating in these lifestyle spendings. Most of us are already doing the simple things. We eat healthy, we go to the gym, we take daily walks, stuff like that. All you have to do is record it and then submit it to your employer.
There’s an unwritten currency, and it’s called time. It’s increasingly what people value most, especially if you have dual working parents and childcare [responsibilities].
Speaking of childcare, there’s a growing number of members of the “sandwich generation”: workers who are taking care of both young children and aging parents. How are employers showing up for them?
When we think about tailoring total compensation strategies for this group, it’s really about acknowledging the dual caregiving burden and providing flexibility, financial support, and emotional well-being resources.
Resources like geriatric care management services, elder care navigation benefits, or stipends to offset home care costs can be incredibly valuable. Options like compressed workweeks, remote work, or flexible hours help caregivers manage unpredictable responsibilities without sacrificing career progression. Consider offering caregiver leave that goes beyond FMLA requirements—paid time off to care for aging parents or attend medical appointments. There’s also Dependent Care FSAs, Employee Assistance Programs (EAPs), and education and support groups.
There’s been a lot of debate around return-to-office mandates. How are they fitting into salary and benefit negotiations today?
We’ve all seen the headlines: “As RTO mandates return, it’s becoming a bargaining chip for employers, so you have to get your butts back into the office.” But they don’t work, and it leads to attrition.
I think that these are mostly lagging indicators that the company will ultimately suffer in productivity and performance, because they’re losing and turning over all these employees. Blanket RTOs post-pandemic is just not a productive way to streamline.
It’s important to do your research first, and even though a company might be completely remote or have hybrid flexibility, it’s important to have that conversation upfront with the recruiter to truly understand whether that’s something that is still in a test phase.
