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Survey: employees prefer long-term benefits over short-term cash

Apart from pay, employees in Latvia are most motivated by long-term benefits from their employers such as health insurance, additional holidays, and contributions to a private pension fund, according to a survey commissioned by Luminor bank.

Short-term benefits, such as a company car or paid-for telephone bills are less attractive, the survey suggests. 

When asked to assess additional motivating factors for work, excluding pay, on a five-point scale, employees in Latvia considered health insurance to be the most important (4.3 points), followed by additional days of paid leave (4 points). 

Employees in all the Baltic States mentioned the employer's contributions to their old age in private pension funds as another important bonus. Latvians awarded it 3.9 points, with the same true in Estonia and Lithuania. 

Employees in Lithuania valued short-term benefits slightly higher (3.54) than employees in Latvia and Estonia (both 3.50).

"The growing interest in long-term benefits from employers is a positive sign that people are increasingly thinking about their future well-being, not just about short-term income and benefits,,” said Anželika Dobrovoļska, Luminor Pension Product Manager who unsurprisingly explained the research showed the importance of private pensions.

Employees who have reached the age of 50-59 and especially women consider the employer's contributions to the private pension fund to be more attractive. Almost half (47%) of young people surveyed would choose enhanced employer contributions at the 3rd pension level instead of a salary supplement if offered an exra 80 euro pension contribution or a 50 euro pay rise.

The Luminor survey was conducted in April 2021 in cooperation with the research center RAIT Faktum & Ariko, surveying more than 1,000 private sector employees aged 18 to 74 in each of the Baltic countries.

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