While salary can be a major factor in securing quality talent, an employee benefits package can certainly attract high-caliber job seekers as well. Making efforts to retain your talent, such as by offering a benefits package, can help encourage longevity.
It’s important to think about benefits strategically and do your research first. Given the various employer costs associated with most employee benefits, you’ll also need to factor in how much of an investment you’re willing to make with each of these offerings. Consider the following when developing and budgeting for your benefits package.
Research Potential Offerings
Health insurance is a top traditional benefit for many employees, so consider whether offering this would be worthwhile in your recruitment and retention efforts. A nationwide survey of 2,000 employees conducted by Paychex looked at the impact of benefits on employee retention, and found that affordable health insurance ranked first when respondents were asked which benefits would entice them to stay at their current job.
Certain types of non-traditional benefits may also be key in serving your business goals. A recent Paychex Pulse of HR Survey, which polled 309 HR decision makers, found that among non-traditional benefits, flexible scheduling is at the top, with 43 percent of employers offering this work setup. This benefit, along with a paid time off policy, financial wellness solutions, and others – particularly when paired with other traditional benefits – can help keep your business competitive in the industry. A perk such as an occasional free meal probably won't singlehandedly boost retention, but it may offer short-term benefits.
Some non-traditional benefits such as fitness memberships and childcare assistance can have a significant impact on employee satisfaction. You may be able to negotiate these offerings at a fraction of what they would cost your team members individually. In addition to keeping your employees happy, these perks can help reduce stress that can come with trying to find reliable childcare or affording gym access.
You can also beef up your employee benefits package with relatively low-cost offerings like monthly movie nights at the office, coffee in the break room, or prize raffles at a quarterly company meeting. While potential candidates likely won't take a job for the free coffee, these extra perks can round out your incentive package and demonstrate that your company cares about its team members.
Do Your Homework
Since health insurance is such an important consideration for many employees, you'll want to spend ample time understanding what plans insurance providers offer, and for what cost. Myriad changes in the health insurance market have more Americans, particularly business owners, focused on finding the right group coverage while managing costs. You’ll also need to decide whether to offer multiple plan options; it could help employees feel empowered in choosing the right level of benefits for their unique situation.
If you’re unsure how to navigate employee health care, consider connecting with your company's payroll provider. A reputable payroll service will have extensive contacts in the health insurance industry, help get your employees enrolled, and integrate any required deductions within your existing payroll system.
The benefits mentioned above are just some of the options you can choose to offer. By investing some time up front in developing an attractive employee benefits package, you can cultivate lasting relationships with your valued employees for years to come.