What good is a high salary if it all goes to health care premiums and out of pocket expenses? Who needs an office with a view if you have to wait three years to opt into a 401(k)? The days of winning recruits solely by flashy salaries may be over
Ask anyone on the hunt for a job about compensation and they'll tell you it’s about the package, not the number. Those who are savvy know to ask about benefits. What good is a high salary if it all goes to health care premiums and out of pocket expenses? Who needs an office with a view if you have to wait three years to opt into a 401(k)? The days of winning recruits solely by flashy salaries may be over. HR professionals know that employee benefits are a key recruitment and retention tool. New recruits know to ask about a compensation package, not just compensation. A report by Glassdoor (an online site to compare and report salary) found that 60% of those actively looking for work say that benefits and perks are a major consideration in weighing job offers. They also reported that nearly 80% of those surveyed would take additional benefits over an increase in salary.
A 2016 survey showed that HR officers have changed their benefits significantly over the last few years. They have changed not only health care benefits, but also where and how employees work. They’ve also beefed up retirement savings and career development support. Some employers now include career coaching for all employees above a certain level. Many HR officers have also increased their employee wellness programs. One half of all HR professionals surveyed report that their in-house wellness programs have decreased their health care costs. They also saw drops in unplanned absences and increases in productivity. Along similar lines, many employers also now offer gym memberships to their employees. Sometimes health care companies offer discounts directly to their insureds. Where they don't, employers step in with the similar savings. Those employers who offered gym memberships stated that this benefit drove their health care costs down. With health care costs per employee nearing $15,000 per year, any perk that reduces health care may be one worth examining.
Employees rank benefits other than the expense of health care as ones that get their attention too - including flexible work hours, paid vacation and work-from-home options. Workers do prioritize health benefits (including vision and dental) but listed flexible work hours a close second with nearly 90% of respondents saying this benefit would impact their choice between jobs, regardless of salary. This was also closely linked to being able to work from home.
Employers also can attract more recruits by offering either more time away from the office. Two options are either paid vacation time or unlimited time off time. While paid vacation time can create liabilities and accrual systems that may cause Mary in accounting to faint, but unlimited time off does not. The later policy provides time off (with no ding to salary) provided work is completed and of good quality.
Many employers, nearly 52% of those surveyed, now offer tuition reimbursement to help employees gain knowledge they need to continue to grow the company. This benefit is attractive to Millenials and any employee concerned about how rapidly their industry is changing like IT or marketing. Over the recent past, more employers are beginning to find ways to help their employees with student loan burdens. Currently, only 3% of companies offer student loan assistance. This number may grow with the recent IRS guidance concerning contributions by companies to an employee’s retirement account that matches the amount they pay to student loan debt. This kind of program effectively makes it so that employees no longer have to choose between the two budget items.
Other new benefit options that employers are working on include disability insurance and hospital indemnity insurance – these items provide peace of mind to employees but don’t have the bite of the payment that health care benefits have. Another perk many employees find helpful is pet insurance, as the cost of pet care steadily increases.
Before leaping into the unknown, we recommend a thorough examination of your plan. Because we are experts in the field, we know the marketplace and know what your existing vendor is capable of offering. Through this examination, we can help you optimize the service you receive.get xpress proposal