The right level of salary, benefits and incentives can go a long way to attract the right type of person and, perhaps more importantly, retain your current people.

The demand for software developers is at an all-time high, and things don’t look like they will change any time soon. Salaries have increased across the board, and software jobs have practically all gone remote. This has affected the types of benefits and incentives being offered.

So, what should be offered to attract and retain people, besides attractive wages?

There is a fine balance that needs to be achieved between offering similar things to what others are offering, but at the same time offering some things which are unique to your company.

While incentives and benefits may sound the same because they are intended to motivate employees and strengthen their bond to the company, there are some important differences between one and the other.

Incentives are given after a milestone is achieved or when an employee has hit specific targets or engaged in work practices that are encouraged. Benefits, on the other hand, are provided from the moment an employee joins the team.

Another important thing to note is that while the right incentives and benefits can boost morale and productivity, as well as increase collaboration, each employee is different, and the incentives and benefits provided should reflect this. The stage in one’s life, the interests, and nationality, amongst other factors, affect a person’s requirements. For example, while Health Insurance or Parental Leave may be considered perks in the USA, free healthcare and parental leave are available in most European countries, so they may not be desireable.  Offering an à la carte menu from where employees can choose their own benefits or rewards can reflect this diversity.

With Benefits, things have changed with Covid. Previously benefits focused on making life in the office more bearable. Daily meals, game rooms, onsite gyms, nap rooms, a pet-friendly office, casual dress-code, and the like. “Allowing” remote working and flexible hours were also considered to be a perk, rather than a given. Today, benefits need to support work-life balance and at the same time promote a sense of belonging with people working remotely.

Such benefits could include a profit-sharing or stock option plan, corporate discounts, corporate social responsibility and volunteering initiatives, team-building days out, and similar.

Incentives can be delicate territory for employers. Depending on what is to be rewarded, benefits can motivate and engage, or do the opposite. It can promote teamwork or destroy it. Typically, incentives and rewards are in the form of cash gifts, gift cards, paid vacations, paid musical or sport events, or preferred gadgets.

Of course, nothing beats other non-monetary factors which can make working life rather more enjoyable. Providing positive reinforcement goes a long way to motivate people and gain their loyalty. People who feel involved and see a clear path for advancement in a stable company are bound to stay and will feel free to reach out and ask for better conditions rather than just resign when a more attractive monetary option comes their way.