Creating Competitive Employee Benefits

2021-08-06T23:36:25+00:00 August 6th, 2021|HR Policies, Recruiting, Uncategorized|0 Comments

One of the main factors job seekers consider when applying to jobs is the benefits package. Benefit packages are an excellent way to attract new employees because desirable benefits often provide additional monetary as well as quality of life value. 

Benefits have undergone major revamps in recent years as companies attempt to differentiate themselves from other businesses by offering unique and competitive perks. Since job seekers’ wants and needs keep evolving, let’s explore how companies can upgrade benefits to impress job seekers and contend with competitors, especially during The Great Resignation.

 

What are Employee Benefits

Employee benefits can be defined as compensation outside of salary or pay. Therefore, benefits are part of the total compensation package offered by an employer. They frequently fall into categories including insurance, savings, and recreational. Traditionally, some of the most common benefits in the United States include healthcare and investment-related perks such as…

● Health insurance

● Dental insurance

● Vision insurance

● Retirement savings/401K

● Stock

Health, dental, and vision insurance can save employees thousands of dollars per month compared to out-of-pocket costs. This is further exemplified when a companies’ health insurance plans can be extended to cover employees’ immediate family members. Additionally, it is standard for employers to offer a 401k matching program where they contribute 50% of what an employee puts into their account, up to 6% of their salary. This can result in thousands of dollars in additional income each year for employees. 

 

Benefits can also include less-stuffy items, including…

● Paid Time-Off

● Commuting/Travel reimbursement

● Gym Membership

● Tuition Reimbursement

These benefits are commonly negotiated on among employees and employers, especially if they are not already offered. This is because they are much easier to approve than more complex benefits like insurance and stock. 

 

How are Benefits Changing

Benefits have gone through tremendous changes in the past few decades. They transitioned from practical to fun and brag-worthy in the 2000s and now are headed towards flexibility.

In the 2000s, fueled by the advance of technology and the increase in startups, companies began offering flashy perks that would grab people’s attention. This was an attempt to make companies appear cool, fun, innovative, and desirable. Examples of these benefits and perks include beer on tap, fancy catered lunches, office ping-pong tables, on-site services such as hair salons and dentists, and more.

However, over the past few years, professionals are starting to shun these flashy offerings and are instead seeking out benefits that genuinely improve their lives and allow them to enjoy life outside of work. Some benefits professionals currently want to include more vacation days, extended maternity and paternity leave, flexible work arrangements, healthy snacks, and pet insurance. 

 

Examples of Innovative Benefits

Due to the COVID-19 pandemic, the demand for revamped benefits has increased since employees have been working remotely and have come to reassess what they value most from work and life. Below are two examples of companies leading the way in innovative benefits and what they offer employees. 

 

Bumble

The dating app company recently announced some new benefits to employees that focus on time away from work and include…

● 2 weeks per year, all employees are off

● Unlimited PTO (with guidelines on minimums to ensure employees take off enough time)

● WFH or office permanently

● 6 months off for the birth, adoption, or surrogacy of a child (maternity and paternity leave). Additionally, four weeks flexible working once returning to work to help with the transition back.

● 20 days off minimum for victims of domestic violence

● 15 days off minimum for grievance/compassionate leave (miscarriage, family death, etc.)

These revamped benefits revolve around time-off of work, which is of growing importance to professionals. The COVID-19 pandemic caused people to appreciate their time with family, friends, and life outside of work. Furthermore, as burnout and stress continue to rise since employees are seemingly always tethered to their computers and email, focusing on making sure employees have time to disconnect from work shows that the company has their employee’s mental health in mind. Lastly, these benefits do not cost the company money, but they go a long way in attracting employees. This is because it shows the company also cares about their employees’ well-being and as a person, not solely what the employees can produce at work. 

 

Salesforce

The cloud-based software company is notorious for having great benefits. Some that stand out include…

● 8 free counseling sessions with a qualified mental health professional either in-person or through a video call

● Free 30-minute legal consultation if you need legal advice or have questions – plus a 25% discount on any fees

● Reimbursement for up to $40,000 for eligible adoption, fertility, and surrogacy expenses

These benefits are twofold. They focus on saving employees money while helping them navigate stressful situations. Therapy, legal advice, and starting a family are all considerable expenses and can also carry a tremendous amount of stress. By offering these services, Salesforce shows employees they support them outside of the office by providing free services to help improve their lives. Employees want to feel seen as humans, not just workers, and these benefits help communicate the appreciation Salesforce has for its employees.

When updating your company’s benefits, it is important to remember that employees have lives outside of work. Show employees you appreciate their hard work and talent by considering benefits that will help them reduce stress and enjoy life. Lastly, keep in mind that benefits such as increased time-off or flexible working conditions will not incur additional costs for the employer. Now that’s what we call a win-win.

Is your company looking to hire fresh talent, or are you looking for a career move? If so, eNamix would love to talk with you! Contact us today at info@enamix.com to set up a consultation with one of our senior account managers.

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