Would you rather have 10 dimes, four quarters or a one-dollar bill?
If you ask a child, he or she might go with the 10 dimes because the more you have of something, the better it seems. Counterintuitive though it may be, the same can be said for adults. Studies have shown that people are more likely to fish for smaller denominations than break a $50 bill – even when the value spent is the same.
According to this theory, called “The Denomination Effect,” people prefer using smaller denominations over big bills in large part because they are happier when they have more options, like coins and smaller bills, to choose from instead of breaking a larger bill.
Having those options seems to open up more possibilities, even when the money is the same.For the enterprising human resources manager, this simple concept presents a unique opportunity to maximize both employee and employer happiness.
Rather than taking a one-size-fits-all approach to their company’s benefits offerings, HR decision-makers can pursue comprehensive benefits packages with customizable features.
That way, employers won’t end up on the hook for over-the-top insurance and employees can pick the benefits that fit their preferences, leading to a happier workplace.
And while salary is still important in helping keep current employees and recruiting new talent, workers are increasingly looking beyond the paycheck and into benefits packages and perks as key drivers for staying with or joining companies.
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