Business owners understand their success relies on their ability to hire and retain highly-skilled industry professionals. After all, employees are the backbone of every company. To achieve this, you must provide competitive employee benefits. Employees' benefit preferences constantly change, meaning complacent enterprises can miss crucial hiring opportunities if they fall behind trends.
Explore why competitive benefits are essential for business success, some of today's more popular benefits and suggestions on how companies can execute aggressive plans.
Importance of competitive employee benefits
Following the global pandemic and rising medical bills, healthcare costs are on everyone's minds. A recent Society for Human Resource Management survey showed 89% of American workers deemed health-related benefits the most crucial employer benefit, followed by 81% for retirement savings and paid leave.
The great resignation only further underscored the importance of offering competitive employee benefits. If your business does not give today's workforce what they are asking for, top talent will find another employer that does.
Candidates may look at your organisation's employee turnover and see red flags. For one thing, your business may have garnered a poor reputation for employee recognition, work-life balance and workplace toxicity. It could also come down to a sub par benefits package.
A resignation is costly for companies, taking months to advertise, hire and train someone new to fill a role. Of course, leaving a position unfilled could become an even more significant financial burden in lost revenue. Competitive employee benefits can lessen the blow.
Enterprises will find it worthwhile investing additional time and resources into attracting and retaining talent. Excellent benefits increase job satisfaction - happy employees are more productive and driven to reach business goals. Greater morale and job performance also enable companies to build a positive brand image, making the company far more attractive to job candidates and current staff.
Key elements of a competitive employee benefits package
A competitive employee benefits package delivers more than health insurance and retirement plans - workers want and often need more than the basics. Some of the most critical benefits employees expect include the following:
- Health benefits: Medical, dental, and vision insurance and employee assistance programmes
- Retirement and financial benefits: generous pension plans, financial planning assistance, life insurance, disability insurance and employee ownership plans
- Time off and leave benefits: extra paid holiday over the statutory minimum, and generous sick pay and parental leave
A competitive employee benefits package should offer more than the basics expected of a business. For instance, a Health Savings Account (HSA) benefit appeals to many employees. A worker makes tax-free contributions to their HSA account and uses the money to pay for medical expenses not covered by their insurance plans. Some out-of-pocket costs could include addiction treatment, mental health services, fertility treatments and prescriptions.
Other perks you might consider to set your company apart from the competition include:
- Remote or hybrid work opportunities
- Flexible work schedules
- Unlimited unpaid time off and additional paid time off
- Sabbaticals
- Tuition assistance and reimbursement
- Gym and fitness membership discounts
- Adoption benefits
- Employee discount programmes for products and services
- Relocation assistance
Additionally, some companies provide at-work perks, such as a casual dress code, free snacks, transportation assistance, on-site wellness classes and childcare, nap rooms, and bring-your-pet-to-work policies.
Legally-mandated employee benefits
Legally, businesses must pay employees the minimum wage and for overtime. Additionally, employers must provide the following:
- Statutory pay and leave for new and expectant parents
- Redundancy pay
- Statutory sick pay
- At least 5.6 weeks' holiday per year (pro rata) and limits on the number of working hours
- Access to an auto-enrolment pension scheme (or equivalent company pension)
- Employers can be fined for non-compliance.
Strategies for implementation
With nearly 37.4 million American workers estimated to have quit in 2022, enterprises must quickly develop a strategy for implementing competitive employee benefits packages. Here are four tips for success.
Understand employee needs
Younger and senior-level professionals may need or want different benefits, so it is best to give them options. Understandably, company leaders may struggle to appease everyone and stay within budget.
Companies must understand what employees want to create a competitive benefits plan. Guesswork rarely works. Asking employees what they want is the best approach. It also removes the risk of offering benefits people will under-utilise.
Benchmark against competitors
A robust employee benefits package gives your business a competitive edge for recruiting top talent. Have you researched what benefits your competitors offer their employees? If you're competing for skilled candidates, you'll want to match most or all of their benefits plans.
It would be best if you delivered superior medical and retirement benefits. However, you can make your organisation appeal to the masses by adding benefits others do not. If your biggest competitor doesn't offer commuter benefits or unlimited unpaid time off, consider it for your deserving employees.
Likewise, many workers want flexi-working opportunities as big-name companies pull back on remote options. You will retain your current workforce and have hundreds applying for jobs with a work-from-home policy.
Communicate benefits to employees
According to an International Foundation of Employee Benefit Plans survey, only 34% of employees fully understand their benefits packages. Meanwhile, 52% and 15% comprehend their plans moderately or minimally.
Often, employers communicate benefit offerings during open enrolment periods. However, employees often require more clarification about their benefits the rest of the time.
Human resource specialists should engage employees regularly regarding benefits. Simplicity is key, though. Workers need a digestible breakdown of information - from medical insurance to discount programmes - to take full advantage of their plans.
Regularly review and update the benefits package
Employee benefits are not one-size-fits-all and will require modification as employee preferences and needs change. Businesses must review their current offerings and update their benefits packages to stay competitive.
Analyse how many employees participate in particular benefits programmes and make necessary changes to cut costs. You should revamp your benefit plans if you see competitors include more intriguing perks.
Benefits matter to today's workforce
Companies shouldn't skimp on delivering competitive employee benefits in today's business landscape. With a strategy to attract and retain talent, enterprises can keep up and progress within their industries.
Copyright 2023. Featured post made possible by Eleanor Hecks, founder and managing editor of Designerly Magazine. She's also a web design consultant with a focus on customer experience and user interface.