The Great Resignation still exists, with more employees than ever leaving their employers. Some strike out on their own and others wait for better opportunities. If you want to attract and retain the best workers, you have to figure out what employee benefits they care most about and how to offer them.
Even if your business has a tight budget, you can offer numerous employee benefits. The key is figuring out which ones attract top candidates.
What Are the Four Major Types of Employee Benefits?
Gartner recently polled American workers. Based on responses, they predict a 20% voluntary turnover this year, with about 37.4 million people quitting their current jobs. At any given time, several of your staff may consider leaving for a different position or to start their own businesses.
One thing that can tilt their decision in favor of staying is excellent employee benefits. If they open their own brand, they’ll have to pay for insurance and won’t have paid time off (PTO) for vacations and family events.
The four major types of employee benefits include:
Most companies offer the above employee benefits. You can stand out from competitors by offering the basics plus some unique perks. Here are some of the things you should offer to attract and retain ideal candidates.
1. Employee Assistance Programs (EAPs)
EAPs offer additional help to employees outside of traditional health insurance. For example, you might offer counselors for big life changes or enlist the help of counselors to help people with various mental health issues.
Employee benefits that fall into the category of EAP can include emotional support, help finding child care, retirement planning and legal guidance.
2. Paid Time Off
Studies show over 50% of Americans don’t use all of their PTO each year. Businesses should encourage days off so people can maintain a healthy work/life balance.
Some companies choose to go with an unlimited PTO policy. However, you may find some workers take even less time off when the days aren’t defined, so use such a policy cautiously and be clear on your expectations that they do take a break.
3. Onsite Perks
Employee benefits you can offer that may not cost you a ton of money to implement include onsite daycare, a workout room or snacks in the break area. Small things that make the office a pleasant place to work can make the difference between keeping workers and losing them.
All other things being equal, if someone relies on daycare and has the benefit of seeing their child on lunch breaks, they are more likely to stay in your employ to take advantage of the perks.
It costs companies about $4,000 to recruit and train a new hire. In addition, you’ll wind up losing momentum when transitioning to a new employee. Your onboarding process can make a difference in how well the person fills the role and how comfortable they feel.
You should also provide ongoing training. Invest in your employees and they’ll feel as though they’re a vital part of the company. You should also provide clear paths to promotion without them feeling as though they’re being overlooked due to favoritism or personal connections.
5. Health & Life Insurance
Employees expect to receive health insurance when taking on a position at your company. You can expand their benefits by also offering life insurance. Other options include disability or cancer insurance.
It’s important to get the best plan possible. If the deductible is so high the employee pays thousands out of pocket every year, they may seek work with a different company simply to save on medical costs.
You should also consider adding vision, dental and mental health insurance options for your workers. Some companies now offer pet insurance for their employee’s fur babies.
6. Tuition Reimbursement
Many companies now offer tuition reimbursement if the employee takes courses related to their current position or something applicable to the company. You have to decide what works best for you.
Some companies pay for any type of education, even cosmetology school. Others pay only for business courses or specific classes they provide a list for. Other brands offer their own training programs or certification programs.
7. Phone & Internet Reimbursement
If your employees work from home or make calls from time to time, you may want to consider employee benefits such as reimbursing for cell phone and internet costs. You can either cover the entire cost, up to a certain amount or provide the phone.
There are various legalities and tax issues with each option, so speak to your accountant and business attorney to ensure you’re complying with regulations and not putting yourself in potential legal jeopardy.
8. Retirement Plans
According to Annuity.org, the average retirement age in the United States is 62 but the number will go to 67 for anyone born after 1959. A retirement plan might not be something most 20-somethings think about initially, but most millennials and Gen-Zers are aware they need to start putting something back as soon as possible.
You can offer a 401k, a contribution match up to a certain amount or percentage and other perks for your employees. Providing excellent retirement options may be the thing that attracts and keeps the best workers.
Other Employee Benefits
The above employee benefits should make your company an attractive place to work. However, there are many other things you can add that might not typically make the list but will help your brand stand out as a stellar environment.
For example, you might offer an option to bring your pet to work, provide job sharing opportunities or support new parents with nursing stations and the option to bring a young child to work for a few months.
The more perks you can provide, the more likely you are to retain your employees. Over time, you’ll gain momentum and rapid growth for your brand.
About The Author
Eleanor Hecks is the Editor-in-Chief of Designerly Magazine, an online publication dedicated to providing in-depth content from the design and marketing industries. When she's not designing or writing code, you can find her re-reading the Harry Potter series, burning calories at a local Zumba class, or hanging out with her dogs, Bear and Lucy.