Originally published in Matchr February 10, 2023
We are living in an increasingly competitive job market. Gone are the days when employers didn’t have to work too hard to secure the needed talent. Today, it’s a whole different ball game. Employers must consider competitive salaries, wages, and a range of employee benefits to attract and retain the best staff members.
More than just an add-on, employee benefits play an essential role in deciding a potential employee. They can also be a great way to show existing staff members your appreciation and help boost morale. This makes it critical for employers to understand the types of benefits that can impact engagement and retention and work toward providing the most appealing package to employees.
For many employees, health insurance is an expected benefit with a benefits package. Most people need health insurance, especially if they have families or health conditions. With the cost of healthcare, a lot of people aren’t in a position to pay out-of-pocket for their medical expenses.
Different companies offer different health insurance, but all employers in the United States are required to provide health insurance if they have more than 50 full-time employees. But regardless, offering this benefit to your employees can go a long way toward keeping them happy, healthy, and loyal to your company.
Dental and Vision Insurance
Along with health insurance, dental and vision insurance are additional benefits that many employees want as part of their insurance coverage. They may be purchased separately or as part of a health insurance plan, helping them stay healthy.
Typically, dental and vision insurance is an option on a group plan, which is more affordable than an individual plan. With these benefits, employees can cover their medical care – including their teeth and eyes – at a much lower cost than having to secure insurance on their own.
Though it’s not pleasant to think about, offers wage protection for employees if they can’t work for an extended period. Many employers offer disability insurance as an option for employees to protect their future.
There are two types of disability insurance:
Short-term disability covers circumstances or injuries that put an employee out of work for a short period, such as a few weeks or months. These situations could include surgery and recovery, a broken bone, or in some cases, pregnancy, and maternity leave.
If an employee’s circumstances extend their short-term disability insurance, they can pull from their long-term disability insurance to have financial security for three to six months. This may be necessary in the case of medical conditions that require ongoing care and multiple surgeries, cancer, or some mental health conditions.
Flexible Working Arrangements
Flexible work arrangements allow employees to choose when, where, and how they work. This allows them to create a better balance between their work and personal lives. Studies have shown that flexibility in the workplace can help reduce stress levels, leading to improved mental health among employees.
The ability to offer flexible working arrangements gives employers an edge in attracting top talent and retaining existing employees. Employees who feel valued by their employers are more likely to stay with the company for longer. In addition, having a flexible work schedule means that employees can make better use of their skills without worrying about taking too much time off or missing important deadlines due to family commitments or other personal obligations.
When employees feel supported by their employer through flexible working arrangements, it also positively affects morale in the workplace. This leads to improved relationships between colleagues and increased collaboration across departments which is beneficial for any business.
In the past, many businesses have stuck to traditional vacation arrangements that limited employees to a certain number of days off per year. However, more and more companies are beginning to offer unlimited vacation policies as an attractive benefit to lure in and retain top talent. Not only can unlimited vacation arrangements save on overhead costs, but they can also boost morale and improve employee retention.
Unlimited vacation arrangements provide employees with greater autonomy and increased job satisfaction since they do not have to worry about taking too much time off or running out of days due to unplanned absences. This improves morale by allowing employees to take the time they need away from work without any guilt or fear of repercussions. Employees are encouraged to take care of themselves, which can be incredibly liberating for workers who traditionally had to abide by strict holiday regulations.
Employee Wellness Programs
Healthy and engaged employees are essential to any successful business. Most companies understand the importance of employee wellness programs but may need to know how they can benefit the company. These programs can be part of a standard health insurance plan or added as a supplementary benefit.
Employee wellness programs allow employees to become more connected with each other on a personal level. This connection can help build relationships between departments within a company, especially if employees can participate in activities outside their regular duties. When morale is high, employees will be more productive and better at problem-solving – ultimately leading to better results for the company.
401K and Retirement Plans
Access to retirement planning services is an attractive perk that can help you attract and retain top talent in today’s competitive job market. It shows that you are invested in your employees’ well-being, both now and in the future. A retirement plan or 401k helps employees save money for their retirement while reducing their taxable income. In addition, many employers also offer matching contributions – a great incentive for employees to start saving early.
In addition to improving employee morale, offering a retirement plan or 401k can also benefit your business in other ways. For starters, having a good retirement plan gives you an edge over the competition in attracting top talent – a key factor in any successful organization. Furthermore, having an effective retirement plan also helps ensure that your most valuable employees stay with your company for longer, saving you time and money on recruitment costs.
Professional Development Programs
Investing in professional development is a great way for businesses to show their employees that they care about their growth, personal success, and long-term career prospects.
Employees engaged in their work are more likely to stay with a company and contribute positively to its success. Investing in professional development programs shows employees that the company cares about them as individuals and is committed to helping them reach their goals. This creates a sense of loyalty among employees and encourages them to stay with the company longer.
Professional development programs not only give employees new skills but also encourage them to take ownership of their learning process so they can develop professionally over time. This increases job satisfaction as employees feel valued by their employer, which leads to better retention rates overall.
Employee Share Purchases
An employee share purchase program is an incentive plan that allows employees to purchase company shares at a discounted rate. Employers will typically set up a trust fund that purchases company stock on behalf of the employee. Then the employee can use their salary or bonus as payment for the discounted shares. This program gives employees an additional reason to stay with the company – they are investing in the company’s future success!
Employees who feel like their employer values them are more likely to stay with that employer for longer. By offering an ESPP, employers create a sense of ownership among their employees, which helps build loyalty and keeps talented individuals from leaving for other companies. Additionally, providing employees with discounted stock options allows them to get involved in the business side without taking on additional risk or responsibility.
Customize Employee Benefits
Different generations have different wants and needs in the workplace. A Gen Z worker who’s freshly graduated may have different priorities than a Baby Boomer on the verge of retirement. If you offer a standard benefits package, each generation or individual employee could pay for benefits they don’t want without getting the benefits that matter most.
With customizable benefits, employees are empowered to use their benefits however they wish, rather than being stuck with a cookie-cutter plan. For example, offering health savings accounts (HSAs) and health stipends helps employees cover medical expenses, either in addition to or in place of group health insurance. Other options include tuition reimbursement, stipends for remote workers, and allowances for certain expenses, so they can choose what benefits are most beneficial to them.
No matter what benefits you choose to offer your employees; personalized packages provide sustainable benefits that give employees the options that they value most while also helping organizations of all sizes balance their own needs with employee needs.
Start Implementing Employee Benefits That Boost Morale and Retention
No matter the size or industry, employee benefits can majorly boost morale and increase retention rates. From 401k plans to professional development programs to employee share purchase plans, plenty of options can help you attract and retain top talent so your company can succeed in today’s competitive job market. Investing in the right benefits for your employees will show them that you care about their well-being and will also benefit your business in the long run. Start exploring these options today and see what works best for your team!