Growing a business successfully hinges on bringing in more qualified talent. But, considering the competitive nature of most of today’s industries, acquiring great employees can be a significant challenge.
Although offering competitive salaries is certainly a factor in attracting more job candidates, today’s job seekers often want more than just financial compensation. They also want job security and a sense of value from their employers.
A thoughtfully designed benefits package can be a powerful tool for businesses. By showcasing a wider range of available employee perks, companies can significantly improve their ability to attract and retain valuable team members.
Identify the Priorities of Target Candidates
Before putting together your employee benefits package, it’s important to understand the actual needs of your ideal job candidate. This involves researching your competitors in the industry and analyzing what they’re offering their employees.
It’s also important to consider the demographic makeup of your current employees and the candidates you’re targeting. For example, younger generations, Gen Z, are frequently looking for employers who help them prioritize more balanced work-life integration. This is why, when designing your benefits, you might want to explore options that are a bit more unique than the standard offerings.
Must-Have Benefits for a Strong Employee Value Proposition
When researching potential benefits to offer as part of your hiring packages, most organizations commonly consider several traditional options. These include:
Comprehensive Health Coverage
Many job seekers look for health insurance packages when considering new employment options. The quality of these benefits can be a major deciding factor.
Health plans typically fall into categories like HMOs (Health Maintenance Organizations) and PPOs (Preferred Provider Organizations), though state laws will likely dictate which ones are more applicable. Each type will offer varying degrees of coverage and ways to share healthcare expenses between the employee and the employer.
Retirement Savings Options
Many prospective employees are looking for long-term stability in their career choices. A benefits package, particularly one that includes retirement planning options, is a key factor in attracting these dedicated individuals.
Companies frequently offer 401(k) plans to their employees to help them save for their future. These plans allow employees to set aside a portion of their pre-tax income for retirement. A significant advantage of these plans is the potential for employer-matching contributions. When employers match a certain percentage of employee contributions, it helps to increase the employee’s savings and can help them build a more substantial retirement fund while also benefiting from tax deferral.
Flexible Time Off Options
Generous vacation policies have also become a common inclusion in employee benefits packages. A well-designed Paid Time Off (PTO) program can signal to potential employees that the business prioritizes a healthy work-life balance.
Although PTO structures differ across organizations, some businesses are finding success by offering uncapped vacation days. Although this modern approach is not perfect for every organization, it shows more trust in employees to manage their time effectively. It offers them greater control over their schedules and allows them to complete tasks when they are most productive.
Methods for Communicating Benefits Offering Value
A well-designed benefits package can be a powerful tool for attracting and retaining top-tier employees. However, its impact is diminished if its value isn’t clearly communicated. Effectively showcasing the complete value of your company’s offerings is crucial. Here are some strategies you can consider to help you achieve this:
- Ensuring Clarity in Employee Benefits Communication – When explaining employee benefits, clarity is key. While experienced employees might understand their options quickly, others may need more guidance. This is why it’s crucial to present all benefit details in a straightforward and accessible manner, ensuring everyone understands their choices.
- Using Different Communication Methods to Provide Benefits Information – Effective communication requires various methods of delivering information. Consider using a mix of written materials, online resources, presentations, or individual consultations with benefits call centers to help answer all employee questions directly. You can also leverage benefits technology to send targeted messages through multiple channels like email or text messages, making sure that employees get important details about their benefits regardless of whether they’re in or out of the office.
- Equipping Employees with Benefits Resources and Tools – Understanding all benefits options can be overwhelming for some employees. To help streamline this process, be sure to offer employees helpful resources and interactive tools like benefits coverage and premium calculators. These resources help them identify the most suitable coverage for their specific needs and will ensure they can maximize the value of the offerings provided to them.
The better your employees understand the benefits available to them and how they can be used, the more this will lead to a greater appreciation for the company’s investments, both their physical well-being and the financial security for them and their families.
Maximizing the Impact of Your Employee Benefits Programs
Investing in a comprehensive employee benefits package is mutually beneficial for all staff members and the business as a whole. It helps businesses to attract and retain high-performing employees while simultaneously communicating to staff that their professional growth and personal welfare are a high priority. By taking the time to put together a competitive offering, you’ll help your business maintain a healthier culture while putting it on a path to long-term success.
Author Bio: Frank Mengert
Frank Mengert continues to find success by spotting opportunities where others see nothing. As the founder and CEO of ebm, a leading provider of employee benefits solutions. Frank has built the business by bridging the gap between insurance and technology driven solutions for brokers, consultants, carriers, and employers nationwide.