10 Employee Benefits to Attract & Retain Top TalentNovember 29, 2022
Benefit offerings can be an essential asset in your recruitment and retention strategy. Uncover which benefits can have the largest impact.
Attracting and retaining top talent can make or break your organization’s success. From the costly nature of turnover to overall productivity, retention impacts all areas of the business and should be a top priority for every organization.
For example, replacing an employee can cost up to two times that employee’s salary and can damage your organization’s employee morale. Employers have a strong impetus to attract high performing talent and keep them, so HR pros must be keenly aware of which benefits and perks resonate the most with their workforce. These will be essential for standing out in a competitive labor market and keeping your star employees at your organization.
How Can Benefits Help Attract and Retain Employees?
Competitive pay and health benefits have long been attraction and retention drivers. But now that employees are seeking a more holistic employment experience, you should think beyond the traditional to help you stand out in a highly competitive employment market.
By showcasing comprehensive and flexible benefits during the recruitment process, companies can demonstrate to employees the value they’ll receive if they accept an offer. But it’s vital the conversation doesn’t stop there — continue to highlight benefits throughout the employee journey. It could be the deciding factor for an employee on the fence about staying at your company.
Need some ideas? Let’s dive into the top benefits that can help you maximize your recruiting and retention efforts.
10 Employee Benefits to Attract and Retain Top Talent
Traditional salary, health insurance, and retirement benefits are still factors that employees consider when weighing career options. But many workers also consider other types of perks, including quality of life, work/life balance, and growth potential when they make decisions about accepting a new position.
Today’s employees expect comprehensive, flexible, and unique benefits from their employers so they can do their jobs well and lead fulfilling lives. Here are the top employee benefit offerings that make a difference to your prospective and existing talent.
1. Health Insurance
For many, health insurance is table stakes when making employment decisions.
Especially after the health challenges many families faced during COVID-19, employees are prioritizing health benefits more than ever. Health insurance premiums can be expensive, and access to health insurance through an employer can offset costs and provide a safety net many employees want.
2. Dental and Vision Insurance
Regular dental and vision care are recommended by major medical associations, and many employees have regular care needs that are not optional. Because three out of four people in the U.S. have vision correction, the costs for appointments, supplies, procedures, etc. can add up quickly without insurance.
Skipping appointments can impact employees’ health and wellbeing and, subsequently, job performance. For example, an employee with tooth pain may have difficulty concentrating. An employee with an outdated contact lens prescription may be more prone to making errors on documents. The stakes — and the costs — only get higher when employees have families at home that need regular dental and visual care.
Not every insurance plan includes dental and vision, so providing these benefits can set your company apart from others and show your employees you care about their needs. Offering dental and vision insurance can send a message to employees that their health is a priority.
3. Retirement Benefits
Planning for retirement is on a lot of employees’ minds as they want to secure a comfortable future for themselves and their families. While some employees have outside investments or alternative sources of income, many rely on wages from your company as the primary source for their retirement fund. Retirement benefits, such as a company-matched 401k, are something that many employees will look for in a job offer.
Companies can take it a step further by offering financial planning services to help employees navigate retirement planning. Many without financial education or a financially-savvy person in their family will appreciate the guidance to better manage their retirement funds and feel hopeful about the future.
5. Vacation Time / Paid Time Off
Paid time off (PTO) plays a major role by giving them time to spend with loved ones and take care of personal responsibilities. Having time away from work is essential to their health and wellbeing and can even provide a much-needed reset that enhances performance and satisfaction once they’re back on the job.
There are a variety of approaches to PTO. Some employers use an accrual system based on hours worked or allot a specific number of days per year. Unlimited PTO is also a growing trend amongst organizations in which there isn’t a cap on how many days off an employee can use. While unlimited PTO seems counterintuitive, studies have shown 72% of employees find it favorable. It also saves HR teams an estimated 52 hours per year in administrative time.
Employers can also get creative with the types of paid time offered, from floating holidays to paid volunteer time to parental leave and more. Understanding the needs of your workforce and talent market can help you cater your offerings to ensure your benefits package is enticing to prospective and existing employees.
The number of days or type of time off offered isn’t the only factor in determining how competitive your benefits offerings are – PTO should also be easy to request and track for employees. Using an employee self service portal can make it easy for employees to request time off and receive approval, all in one system and with real-time notifications.
5. Flexible Schedule
A flexible schedule can be an excellent selling point for many employees who need to balance work and home life, such as employees with young children at home. Allowing employees to adjust their schedules to include advanced studies or other responsibilities can make the work environment more attractive.
Additionally, when employees are allowed to work when and where they want, it can yield better productivity and performance. Some employees may work best in the evening; others need longer breaks in the middle of the day to care for children. Offering this flexibility can be a boon to employee morale and ensures you're not excluding otherwise stellar employees who have special life circumstances.
For companies that cannot offer flexible schedules, shift swapping can be a great benefit. Empower your employees with a modern shift management software that allows them to do that painlessly rather than old-school methods like phone trees (if your Gen Z employees even know what those are).
6. Remote Work Options
Work from home opportunities have become far more mainstream, and many employees appreciate the ability to work from home, even in a hybrid capacity.
Remote or hybrid employees can save time and money on commuting, check household tasks off their lists, and step out for a workout, all of which reduces their stress load. Fully remote employees may be able to move to a different part of the country where they can be closer to family, reduce costs, etc. while staying at your company. But it’s not only your workforce who benefits — employees with a better quality of life are more likely to stay at your company.
The company also benefits by cutting down on overhead by downsizing to a smaller office. And companies that offer remote options can draw from a wider talent pool, finding the best talent and team fit possible.
7. Wellness Benefits
Employees want their companies to view them as individuals and support all aspects of their lived experience. Health and wellness benefits can show employees you see what matters to them and support their wellbeing.
Some companies offer health club memberships or a discount on health club memberships. They may also offer things like chiropractor visits, yoga classes, or meditation sessions that can benefit staff and make for a less stressful work atmosphere. An Employee Assistance Program (EAP) can also help with a broad range of wellness topics by connecting workers with the necessary resources for challenges they may be facing.
8. Education and Career Growth Opportunities
Many employees are motivated by opportunities to develop new skills, cross-train, and set goals for professional development. Not only is it fulfilling for them, but lifelong learning has become even more important for today’s workers. Employees will leave a company if it fails to support their growth and development, whereas LinkedIn research found 93% of workers will stay with an organization that invests in their careers.
Consider offering benefits that impact the employee's career trajectory. Many employees will look for positions that can help them grow professionally. You can help with this process by offering tuition reimbursement or tailored learning opportunities for your staff.
Expand on internal development opportunities through a learning management system (LMS) . An LMS built into your HR software can transform employee development into a truly immersive experience. On-staff subject matter experts can record bite-size learning, employees can set and track goals, and quizzes can assess learning. If you use an HR suite with a mobile app, employees have the added benefit of being able to learn on the go.
9. Employee Savings Account
Employees are with their companies for more than a paycheck; they want a fulfilling experience that meets their personal and professional goals. Part of this is knowing their employment is a pathway to achieving life dreams, such as owning an investment property, taking a family trip to Disney, or buying a new car.
But these come with a hefty price tag that one paycheck will not cover. Companies can provide additional financial benefits for employees by offering an employee savings account.
A savings plan works like a 401k, but it might be used for anything, not just your retirement. Often these are used by employees for retirement, purchasing a home, or paying college tuition for children. The funds are matched by the employer, and they are taken prior to being taxed, so there is a tax benefit for the employee.
10. Flexible Benefits System
With flexible benefits plans, your employee gets to pick the exact benefits package that fits their individual needs.
This allows employees to choose their benefits based on their lifestyle instead of being locked in to a one-size-fits all plan. Younger workers might be more concerned with things like reimbursement accounts and student loans or tuition reimbursement. Employees who are more established in their careers might prioritize health and dental coverage, life insurance, and paid time off.
For the company, this means that you're able to cater better to your employees' needs for a happier workforce and, in turn, a more engaged company culture.
Showcasing Employee Benefits that Go Beyond Salary
Of course, to attract and retain top talent, salary is a consideration. A highly skilled worker needs to make the salary that they're worth, or they'll find a position to pay them the fair market value.
However, in the modern workforce, it is important to show employees their full value by offering both compensation and benefits that can improve the way your workers feel about your organization. Whether you offer a standard benefits package or something more flexible, both HR pros and employees win with a streamlined, automated benefits administration experience.
Contact us today to learn more about Paylocity’s benefits services.
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