Employee benefits now play a bigger role in hiring new employees than ever before. It’s getting harder to find and keep the proper personnel, especially given how active the labor market is right now. The top candidates have numerous possibilities, as do good candidates. Therefore, businesses must offer competitive compensation that includes alluring employee benefit plans in order to entice such workers.
Competitive employee benefit plans are usually a key consideration for employees when making judgments regarding job prospects. How can you, as a hiring manager, leverage this knowledge to entice top talent?
The connection between recruitment of talent and their benefits
Salary may be the reward for work, but the demand for employee benefits has skyrocketed. 80% of workers, according to a Glassdoor survey, favor new benefits above pay increases.
Candidates are in a good negotiating position, particularly for sought-after positions. They might receive several offers, each with a different wage and set of benefits. Benefits offer a competitive edge for their capacity to offer a better working environment and boost job satisfaction, even though they might choose the higher wage offer if there is a significant gap between offers.
Competitive employee benefits
Employee perks are a crucial factor for workers to consider when choosing a job. Most jobs come with standard benefits like health insurance and paid time off, but optional benefits can give your company a competitive edge over other employers.
Let’s examine some employee benefit examples and the reasons you need to think about including them in your employee benefit plan.
Health insurance is a standard perk for most jobs, as was already mentioned. Additionally, it’s the #1 benefit that job candidates seek, particularly if they have families.
Regular doctor’s visits, hospital stays, prescription drug coverage, help for mental health, vision, and dental care are all commonly covered by health insurance. Candidates are seeking comprehensive health insurance policies that assist with healthcare costs, while specifics may differ. Having additional family coverage is a bonus that demonstrates how much your business values its workers and their families.
Paid time off
The majority of employee benefit programs include paid time off. Employees can achieve a balance between work and personal life and prevent burnout by taking use of paid time off, sick leave, vacation time, vacation time, or maternity leaves.
Additionally, having various forms of leave and time off means that workers won’t have to spend scheduled time for multiple purposes. Employees on leave without pay, for instance, won’t have to use up all of their vacation or sick time if they need time off to grieve a loss.
401(k) and retirement plans
Traditional pensions have grown less frequent over the past few decades as a result of businesses shifting the burden and risk of retirement savings to their employees through the use of 401(k) plans.
Additionally, from a list of options provided by their company, employees are responsible for selecting the exact assets inside their 401(k) plans. These options frequently consist of a range of mutual funds for stocks and bonds as well as target-date funds, created to lower the risk of investment losses as the employee gets closer to retirement.
Offering a 401(k) plan demonstrates that an organization is trying to find and keep talent rather than just causing a high turnover. Businesses are demonstrating that they are reliable workplaces with room for expansion.
Employee wellness programs
Employee wellness programs demonstrate an investment in employee well-being, much like 401(k) plans do. To encourage employees to take care of themselves, wellness plans offer access to health and wellness programs like gym memberships, personal training, and other wellness possibilities.
Prioritizing self-care can help people feel less stressed and be more effective at work. Because they can utilize it right away, this employee advantage is also more perceptible, particularly for younger staff.
Dental, vision, and life insurance coverage are examples of ancillary employee benefits. Health insurance plans don’t cover life insurance, whereas the first two can be. You can provide these benefits on a voluntary basis without an employer contribution if your company does not include them in its standard benefits package.
Employees can benefit from better pricing through an employer scheme than the individual market, and it won’t cost you anything. Pre-tax deductions are also permissible under voluntary plans, giving both the company and the employee tax advantages for auxiliary services.
Tuition reimbursement or student loan repayment assistance
Candidates seek out chances to advance in their careers and learn new things. Without incurring significant debt, they can enhance their abilities and achieve their career goals by taking advantage of training and learning opportunities offered by the employer or through tuition reimbursement.
Flexible schedule options
Work-life balance has become more prevalent in the workplace, replacing the “hustle culture.” Many workers balance obligations from work and family as well as continuing their education. They also have busy schedules. These workers look for jobs that offer flexible work hours, remote work, or hybrid work together with plenty of paid time off so they can balance all of their obligations appropriately.
Giving employees flexibility enhances their work-life balance, which in turn increases their efficiency and productivity. Because they are aware that their employers care about them and their goals, employees are also more content with their work, which contributes significantly to employee loyalty.
Younger job candidates place a high value on community service, even if it is less of an employee benefit than a component of business culture. Candidates seek employment with organizations that support the community or participate in recurring charitable activities.
Additionally, job prospects are seeking employment with organizations that offer paid time off or flexible scheduling expressly for volunteer work. It can be difficult for employees to juggle the responsibilities of work, school, or family on their own, leaving little time for voluntary activity. Paid time off guarantees that they can offer their time and talents without getting sick of themselves or losing hard-earned money.
Attract talent with a competitive employee benefit plan
Younger workers entering the workforce recognize the significance of a competitive employee benefits plan, especially with health care, asset and income protection, and growth prospects. Other variables that contribute to attracting talent include fair compensation and positive business culture. Consider how you may make your employee benefit plan more useful to candidates if you want to attract and keep the best employees, and then make the required adjustments.