August 2022 Volume 20, Number 8 | |||||
How to Use Benefits to Improve Talent Acquisition and RetentionWith over 4 million more job openings than employees to fill them, the task of talent acquisition and retention has become a significant challenge for many companies. However, according to financial advisor Jeanne J. Sutton, employers should explore ways to get creative with the standard benefits they provide. Changing the Status Quo It’s a given that employees usually want more benefits than what’s offered with standard health insurance and retirement solutions. This means companies that provide the extras employees are looking for will win the competition for talent, explained Sutton at the SHRM Talent Conference & Expo 2022. What Can Companies Offer? Sutton explains that employers have few options to spice up the benefits they offer without going over their budgets, from allowing flexible work schedules and assisting with student debt to instituting four-day workweeks and offering immediate access to earned pay. What Can Companies Offer? Sutton explains that employers have few options to spice up the benefits they offer without going over their budgets, from allowing flexible work schedules and assisting with student debt to instituting four-day workweeks and offering immediate access to earned pay. Flexible Work Schedules After working remotely for two years, many employees don’t want to return to strict schedules and onsite work. Instead, they want a more flexible approach and the option to work remotely at least part of the time. Earned Pay Access As inflation makes life more challenging, an increasing number of hourly employees want to be paid every workday. Many large corporations are now paying their workers at the end of their shift. Employers who hope to compete for this talent pool should consider taking a similar approach. Retirement Employers can also allow new employees to contribute to a 401(k) immediately and automatically enroll them in a plan, even if a year of employment is required before matching contributions begin. Many companies have also increased their matching contributions from 50% to 100%. Sutton also suggests rewarding tenure with bonus contributions and even setting up emergency savings accounts that can be funded from payroll deductions. Paid Time Off Employers might also consider allowing employees to carry over unused paid time off from one year to the next or convert it into cash. Another option would be to funnel that cash straight into a 401(k) contribution or towards student debt. Transitional Retirement One way to keep older employees on board and attract retirees is to allow a reduced schedule. Older employees could transition to a 30- hour workweek, for example, instead of completely retiring. Many would be willing to take a pay cut in conjunction with a reduced work week as long as they continue to have access to health insurance. Childcare Employers could encourage employees with young children to return to work to return to work by providing additional financial support. Some examples include partial or complete coverage of childcare for when the parent is away from home, subsidies for summer camps, paying for travel companions so employees traveling on business can take their children with them, and even complimentary shipping of breast milk. Student Debt Sutton also cited assistance with student debt as an effective way to attract and retain talent, especially if employers make matching contributions, which are not taxable up to $5,250 per year. Another option is for employers to funnel the matching contributions into an employee’s 401(k) or an employer- sponsored 529 plan, which would allow employees to cover the cost of their spouse’s student loans. Four-Day Workweeks
Sutton is supportive of four-day workweeks as studies show that productivity does not decline when implemented effectively. According to one survey, one-third of the participating employees considered a four-day workweek an important benefit. |
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This Just In ... Portions of CAA Healthcare Price Transparency Requirements Already in Effect Big Increases in Voluntary Benefits Participation DOL Issues Mental Health Parity Act Enforcement Warning How to Use Benefits to Improve Talent Acquisition and Retention Zillennials Challenge Traditional Workplace Conventions
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