Benefits Packages: The Key to Recruiting and Retaining Talent
This article was updated on September 18, 2018.
Benefits packages aren't as fun and flashy as offering a big salary to the job candidate, but they are critical for attracting and retaining talent. If you aren't already offering the following benefits, think about what your organization could accomplish if you did.
Scanning the news, it's hard to escape the topic of health care without going too far. So as job-seekers consider new gigs, one of the top items employers can offer in a benefits package is a top-notch health care plan.
According to a report released in 2016, the average deductible for employees who received their health plans through their companies rose from $303 to $1,077 between 2006 and 2015. Since so many employees don't even reach their deductibles, out-of-pocket spending has increased along with it. So lower-deductible plans can mean more money in a some job-seekers' pockets — without increasing his or her salary.
For those individuals who are likely to reach their deductible, employers who offer a choice of plans with high and low deductibles can also open themselves up to a wider talent pool.
In both cases, how much an organization contributes to the premiums for those plans is also key to how much of a perk they are for employees.
Providing employees with good health care can help ensure they report to work. If employees can see a doctor before a problem becomes serious, they won't lose as much time at work, which can help make your business more stable and profitable.
Salary is good for today; retirement plans are good for tomorrow. Gallup reports that 51 percent of nonretirees say they believe Social Security will not be able to pay them when they retire.
Employees value jobs that allow them to save for their retirement, so don't underestimate the value of a good plan.
After salary and benefits, flexible options like telecommuting are also very important. According to Gallup, 37 percent of employees say they have telecommuted, which is up from 30 percent a decade prior. Gallup notes that remote workers end up working longer hours and are more engaged with their jobs.
Offering flex time, or a variable work schedule, could help provide your business with a competitive advantage for attracting the best employees.
You hire people because you want them to work, but it's the time off that makes them want to work for you. Don't skimp on vacation if you want to attract the best talent and help ensure they return to the office fully refreshed. It's important to offer a competitive plan and encourage your employees to use it. If you offer vacation days but guilt-trip employees into working when they should be lounging on the beach, you likely won't retain them. They'll look for a better offer from a company that encourages time off.
Implementing the right benefits packages can help make a difference in your recruiting and retention. Don't underestimate their value.