It’s no surprise that companies wish to attract top talent to apply for their open roles. And if companies want to have the best talent on their teams, creating an excellent compensation and benefits package is a no-brainer.
Knowing what employee benefits are most sought after can make or break a compensation package. What you offer on your employee benefits package is a key factor for attracting the most skilled staff — especially now that over 70% of employers are offering benefits and perks that go beyond the normal health coverage and retirement plans.
When it comes to understanding compensation and benefits that will entice individuals you want, you must consider a few things:
- What other companies in your industry offer;
- What is the average generation of your employees;
- And, what your employees value most.
What Are Compensation and Benefits?
Compensation and benefits is a branch of human resources management that overlooks the added perks employees receive from their employers. It involves tangible and intangible rewards. Compensation refers to monetary rewards, such as salary and bonuses. While employee benefits usually refer to perks such as healthcare packages, retirement savings, and paid time off.
Employees often search for a job that not only offers a good salary but also gives them a well-rounded compensation package. That’s why employers who want to attract top talent have been going above and beyond to create unique perks. While there are still some companies that offer nothing more than the bare minimum, they are quickly losing popularity. The key to a successful business is having happy, motivated, and engaged staff members. And to encourage this job environment, you must provide employees with unique benefits.
Most Wanted Employee Benefits
While some employees are still satisfied with companies that provide the basics such as healthcare, retirement savings, and paid time off, the top talent is looking for a generous compensation and benefits package. Contrary to what most employers believe, you don’t have to spend an enormous amount of money to attract high-skilled employees.
A few of the most wanted employee benefits include:
- Flexible work schedule
- Remote work opportunities
- Free snacks and catering
- Recreation centers or gym memberships
- Mentoring and development programs
- Casual dress code
While the above list gives a reasonable understanding of what today’s workforce is searching for in an employer, don’t be afraid to think outside of the box and come up with benefits tailored to your team. Employers who put their foot forward and bring exciting, unique perks to the table will attract more talented employees.
Generational Values of Employees
The hottest benefits will vary depending on the age of the employees that you wish to have at your company. Employees aged 45 to 55 years old are more likely to value pay raises, bonuses, and retirement savings. Whereas, employees between 25 and 34, are searching for organizations that allow them to have work-life balance. Younger generations value compensation packages that offer wellness programs, student loan reimbursement, and flexible work schedules.
If you fail to consider what motivates your employees, your compensation and benefits investments will go down the drain.
Trending Compensation and Benefits
In 2020, companies that promote financial, mental, and physical wellness will stand out from the crowd — consequently, end up with the most talented recruits.
To help support your employees financially, ensure your wages are keeping up with inflation. Many employees are facing financial struggles due to the increase in healthcare costs and recent graduates worry about their student loans. Benefits like student loan repayments, tuition reimbursement, and 401K plans, help to reduce employees’ financial stress.
Companies with benefits that focus on improving employees’ work-life balance are also more likely to attract top talent. Work-life balance has never been more valued — and the tendency is that it keeps being more valued by employees every day. Perks such as wellness programs, healthy snacks, childcare, and flexible working hours are all great options.
Being inclusive with floating holidays allows people of different religions and backgrounds to celebrate what matters to them. It is important to show appreciation for various cultures, races, and religions. You can celebrate diversity by understanding that not all perks will be valuable to all staff and offering a wide range of benefits to ensure everyone is equally compensated.
Creating benefits that are unique to your organization and company culture will also make you stand out from the competition.
From “gamifying” everyday tasks to bringing in a coffee cart once a week, there are endless perks you can tailor to suit your workplace.
Using Benefits to Recruit
To recruit top employees, companies can leverage their compensation packages. Having a more appealing employee benefits package will set your company above the competition and draw in talented recruits. If you want to guarantee smashing compensation and benefits, this article will help you to get there. These are the five steps to build a talent magnet compensation and benefits package:
1. Design a Total Compensation Statement of an Average Employee
First, you’ll need to find out who your average employee is and what compensation and benefits he or she is receiving. And this can be any mid-level employee. A compensation statement gives both you and your employees a detailed insight into what they are being rewarded. To build her compensation statement, you must gather all information regarding the employee’s rewards over the past year. This includes salary, bonuses, commission, wellness programs, professional development, and any other added perks they have received while working for your company.
2. Use Your Compensation Statement to Attract New Talent
Once you’ve created a snapshot of your average employee benefits package, you can use it to market your company. If you’re happy with what you offer to your employees, you can add this information to the careers page of your website. With a digital version of the statement, you can easily organize your compensation package by how much it costs the company and the benefit type. Your best benefits can also be used as a tool when searching for suitable new employees, and during interviews, for example.
3. Include an Employee Benefits Overview in all Job Announcements
Once you know exactly what you can offer to new talent, don’t be afraid to show it off. More than 90% of employees believe that compensation packages are important when considering which company to join. Therefore, if you promote your perks, you’ll improve your chances of attracting incredible recruits. When including details about your compensation and benefits package in a job announcement, it’s vital to include the best of what you have to offer.
4. Highlight Unique Perks and Benefits
Consider offering benefits that no other organization offers its staff. You have to give candidates a reason to choose your company instead of other companies within your industry. You can either offer high compensation or creative and unique benefits.
Here are a few out-of-the-box ideas that are currently trending to get you started:
- Allow employees to bring their dogs to work
- Create a relaxing workplace by offering massages, yoga classes, and meditation sessions — even if once per month
- Encourage learning by giving out free books to your employees
- Offer mental health support to improve your employees’ well being
- Pick your best employees to send on a holiday for a few nights
Remember, when posting new job advertisements, be sure to mention the benefits and perks which are unique to your company.
5. Listen to Employees to Add Value to Your Strategy
Just because you created a brilliant compensation package two years ago, doesn’t mean that it is still going to offer value to employees today. You must keep in mind that employee benefits should be constantly evolving to fit the needs of your staff. At least once a year, you should assess employees’ interests, motivations, and pain points to optimize investments. Assessing your employee engagement levels through a survey is a great way to find if they still value the perks you offer. You want to know which benefits they currently value the most, what benefits they actually used, and if there are any new benefits they are seeking. Once you have their feedback, you can make the necessary adjustments to your compensation plan.
The Bottom Line of Compensation and Benefits
If you’re looking to stay ahead of the competition and bring in the most talented employees, you’ll need to put your thinking caps on and offer an irrefutable compensation package. Putting back into your employees is a sure-fire way to spark their motivation.
Also, don’t forget to listen to what your employees value the most. And be ready to adjust your employee benefits package if necessary.