Businesses Expand Employee Benefits Offerings to Attract and Retain Top Talent
In today's competitive labor market, offering traditional benefits like healthcare is no longer enough to attract and retain top talent. Business leaders should consider expanding their definition of employee benefits to meet the unique needs of their workforce. By providing a diverse range of benefits, companies can boost morale, increase job satisfaction, and improve retention rates.
Looking Beyond Traditional Benefits
Traditionally, the employee benefit discussion within organizations focused mainly on health insurance costs. However, as the value and impact of benefits grow, more organizations are having regular conversations about them at the C-suite level.
While salaries remain a major factor for job seekers and employees, a robust benefits package can significantly influence a firm's ability to attract and retain employees. Employers who offer above-average benefits may have an advantage in the competitive job market.
For example, Verizon modified its employee compensation strategy to give employees more choices. This includes offering a stipend for personalized benefits such as pet insurance or telehealth and including non-traditional elements like flexibility in the workplace.
Understand Your Employees
While the approach to determining benefits may vary for each organization, a thorough understanding of the workforce can significantly impact program efficacy. IntelyCare, a healthcare staffing company with 50,000 professionals in its workforce, recognized its employees' unique goals and needs and developed specialized benefits to support them.
For example, the company's nurses take on extra shifts to pay off debt or save money to buy a home. As a result, the company crafted benefits that directly address these goals, such as savings plans, attractive mortgage interest rates, and the option to get paid within 15 minutes of finishing work for the day.
Thanks to its non-traditional approach to benefits, IntelyCare has seen retention rates increase by almost 100% and engagement rise by 40%.
Speak to Employees
Some organizations have a diverse group of employees due to their size. In these cases, it can be challenging to design a benefits package that meets the needs of everyone. The most effective approach is to ask employees what they value.
Verizon conducts quarterly surveys and gathers feedback from its employees through various channels. The company uses this data to tailor the benefits it offers.
For example, in addition to traditional mental health benefits, Verizon also assists caregivers with benefits such as providing backup care when an employee needs to take a break.
Must-Have Benefits
While offering traditional benefits such as healthcare and retirement plans is essential for companies to remain competitive, expanding their offering to include non-traditional options is the only way to differentiate themselves.
According to MetLife's 20th Annual U.S. Employee Benefits Trends Study 2022, certain benefits have become non-negotiable, such as flexible/remote work arrangements. Currently, 55% of employees surveyed feel this benefit is a must-have, up from 37% in 2020.
Next in importance is health and wellness, with 52% stating that access to such benefits is non-negotiable, compared to 26% in 2020.
In line with these expectations 51% of employees feel their employers should acknowledge the importance of their personal lives, up from 38% in 2020. The final must-haves are professional development and advancement opportunities at 45%, up from 38%, and setting boundaries on work hours at 44%, up from 27%.
The Importance of Adapting
As the job market continues to shift and evolve, employers realize that traditional benefits packages are no longer enough to attract and retain top talent. Many employees now prioritize company culture, flexible work options, and growth opportunities over more traditional benefits like healthcare or healthcare retirement plans.
As a result, forward-thinking companies are expanding their definition of what constitutes employee benefits, offering benefits that focus on employee well-being and career development in addition to traditional perks. By embracing an expanded approach to benefits, organizations can attract top candidates and improve overall employee satisfaction and retention.
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