There are many factors that are considered when a person decides to accept a position with a new employer. Obviously, compensation is a major factor, but a big part of one's decision to accept a job is based upon the employee benefits package the company is offering. Therefore, it is essential that employers design their benefit offerings to be as competitive as possible in order to attract and retain a good workforce.
Most employers offer the basic fundamental benefits package which includes health insurance, dental insurance, holiday and vacation pay and possibly a 401k plan. Listed below is a look at these benefits and some ideas on how to make them more attractive.
Health and Wellness
Health insurance is an important benefit most employees want. The most common health benefit is prescription drug coverage which is now offered by 98 percent of companies. A great addition to this offering is preventive or wellness programs which offer bonuses and incentives for reaching health goals. A few examples include a smoking cessation program, wellness coaching and gym membership reimbursement.
Dental insurance is a more common coverage employers are offering today that can be made more attractive by offering ancillary services as part of the plan such as orthodontia, teeth whitening coverage and veneers.
Retirement savings plans
Approximately 92 percent of employers offer some type of employer-sponsored retirement plan such as a 401k or defined contribution retirement savings plan. Employers can consider doing an employer matching program to make involvement in the plan more attractive. In addition, offering investment assistance and retirement preparation advice from a financial advisor is a very useful resource for employees planning for their retirement.
Financial and compensation benefits
Employers looking to provide additional financial perks might consider implementing an incentive bonus plan which can be based on company profitability, productivity or meeting performance related goals. An employee referral bonus plan is a great way for current employees to recommend good candidates for open positions within the company which reduces recruiting costs.
Work/Life Balance
Employees today must juggle many responsibilities between work and home life. Offering flextime or telecommuting to employees is a great opportunity for employees to utilize which helps reduce stress and hopefully helps them focus more on work responsibilities. Compressed workweeks is another idea whereby employees can work longer days for a part of the week in exchange for shorter days which also helps with work life balancing.
Career Development
It is important for employers to encourage continued career development for their workers to keep them motivated and focused on career growth. Many companies today offer paid continued education classes, mentorships, professional memberships and off-site professional development opportunities. Another powerful benefit to offer is paid education tuition reimbursement which allows employees the opportunity to obtain a degree or certification they may not otherwise be able to afford.
Other ideas to spruce up a company's employee benefits package include the following:
Casual dress environment
Paid paternity and maternity leave
Stock options
Longer vacations or more PTO (paid time off)
Life insurance
Senior dental plans
Company sponsored daily or weekly catered lunch
Short and long term disability
One of the most critical components of running a successful company is keeping employees happy and providing them with a benefits package that will maximize their productivity. It is also essential in recruiting new employees in making the decision to choose your company as their employer. Listed below are five reasons for making your employee benefits package truly stack up:
1. Increase your appeal.
2. Minimize turnover rate.
3. Provide better morale within the organization.
4. Achieve and maintain healthier employees.
5. Overall better job performance.
Source: SHRM 2013 Employee Benefits research report.
