Tailoring Employee Benefits Packages is the Future of Employee Retention!

Why Tailoring Employee Benefits Packages is the Future or Retainment With a number of different individuals working within one organization, it makes sense to tailor your benefits packages to suit your employee’s needs. And according to recent studies, it makes even more sense if you want to retain your staff long term. Today’s organizations are made up of numerous types of people, from different generations, backgrounds and lifestyles which all have a critical impact on the benefits packages they are searching for from their employer. The problem doesn’t stop there. Not only do your employee’s have different requirements, their requirements are going to change throughout their lives during the time under your employment so you need to be flexible to accommodate their needs across the entire employee life cycle. According to a recent 2017 Workforces Report conducted by Lightspeed/GMI on behalf of Aflac, the following statistics were highlighted: • 81% say improving their benefits package would make them happier employees. • 66% say a benefits package offering is extremely or very important to their job satisfaction and employer loyalty. • 75% are at least somewhat likely to accept a job with slightly lower pay but better benefits package. • 47% say improving their benefits package is one thing their employer could do to keep them in their jobs. • 33% have left a job due to the benefits offered. Stats like that are definitely worth taking notice of! Want to know what types of benefits packages should be considered within your organization? Some of the highest ranked benefits to be included within a comprehensive benefits package are … Health Insurance Considered the most desired benefit, health insurance is the foundation of a comprehensive benefits package to attract and retain top candidates. “Health insurance is an appreciated employee benefit. Sought after employees will not consider accepting a job that does not provide health insurance coverage as an employee benefit.” (Susan M Heathfield, www.thebalance.com) Health insurance is also easily tailored to suit each individual’s needs dependent on age, lifestyle factors and the different stages in their life so it can be easily implemented and maintained over the years. Vacation and Time Off This is a very attractive employee benefit that can be used to help retain staff by increasing the amount of paid vacation and time off with each year of continuous years’ service. There are also options for employees to ‘buy’ extra vacation days which doesn’t have to be granted, but gives the employee an extra bit of flexibility. Career Transition Support With the ever continuing flux of of employees moving jobs on a more regular basis many companies are now tailoring specific benefits packages to their executives as a contingency plan if the organization every has to lay off employees. More commonly known as outplacement services, this career transition support system has several benefits for job security providing a peace of mind for both employees finding that next role and for organizations to protect their brand. Retirement Plan Retirement security has become a more important issue with the retirement age steadily increasing and 1 in 4 U.S. employees now expect to be working beyond the age of 70. Having an attractive retirement plan in place has gained considerably more retention value since 2009 and can be tailored to the seniority of the role or length of service of the employee. Dental Insurance A highly sought after benefit due to the high costs of going to the dentist, it also promotes oral health and actively encourages employees to visit the dentist regularly. Something to consider; if staff are maintaining their oral health, it could result in less days off of work for emergency dentist appointments later on down the line and your employees will be grateful for it. Maternity and Paternity Leave Paid family leave is an important way to highlight that the organization is investing in them, which makes employee’s feel appreciated and in turn has a positive effect towards retainment. “When Google increased paid maternity leave, the rate at which new mother’s quit dropped 50%” according to this article by Quartz. I’m sure the same could be said about Paternity Leave. Adding a shared parental leave policy can really add value to your Company and although businesses may be wary of the costs of having employees out of the workplace for longer periods of time, the benefits would far outweigh the issue when staff actually return to work afterwards. Sick Days Although as employers we hope that sick days are kept to a minimum, employees that know they will be covered financially if something unexpected happens gives them the added security to focus on their role. The amount of sick days can also be tailored to the amount of continuous service an employee has with an increment added as each full working year passes. A great retainment incentive. So, don’t just stick with the standardized packages and lose out on retaining quality staff. Move with the times, bespoke the benefits to suit your employees on-going needs and look at the initial added costs to implement and manage these comprehensive benefits packages as a great return on investment later on! Joe Flanagan is the Senior Career Advisor at Velvet Jobs – Outplacement Services helping both organizations and employees in transition. He is also a specialist in recruitment and job search issues. When he's not trying to help reduce the unemployment rate you can find him traveling the globe in search of that next adventure. With a number of different individuals working within one organization, it makes sense to tailor your benefits packages to suit your employee’s needs.  And according to recent studies, it makes even more sense if you want to retain your staff long-term.

Today’s organizations are made up of numerous types of people, from different generations, backgrounds and lifestyles which all have a critical impact on the benefits packages they are searching for from their employer.

The problem doesn’t stop there.  Not only do your employee’s have different requirements, their requirements are going to change throughout their lives during the time under your employment so you need to be flexible to accommodate their needs across the entire employee life cycle.

According to a recent 2017 Workforces Report conducted by Lightspeed/GMI on behalf of Aflac, the following statistics were highlighted:

·       81% say improving their benefits package would make them happier employees.

·       66% say a benefits package is extremely or very important for job satisfaction and employer loyalty.

·       75% are at least somewhat likely to accept a job with slightly lower pay but better benefits package.

·       47% say improving a benefits package is one thing employers can do to help keep them in their jobs.

·       33% have left a job due to the benefits offered.

Stats like that are definitely worth taking notice of!

Want to know what types of benefits packages should be considered within your organization?  Some of the highest ranked benefits to be included within a comprehensive benefits package are:

Health Insurance

Considered the most desired benefit, health insurance is the foundation of a comprehensive benefits package to attract and retain top candidates.

“Health insurance is an appreciated employee benefit. Sought after employees will not consider accepting a job that does not provide health insurance coverage as an employee benefit.”

 (Susan M Heathfield, www.thebalance.com)

Health insurance is also easily tailored to suit each individual’s needs dependent on age, lifestyle factors and the different stages in their life so it can be easily implemented and maintained over the years.

Vacation and Time Off

This is a very attractive employee benefit that can be used to help retain staff by increasing the amount of paid vacation and time off with each year of continuous years’ service.  There are also options for employees to ‘buy’ extra vacation days which doesn’t have to be granted, but gives the employee an extra bit of flexibility.

Career Transition Support

With the ever continuing flux of of employees moving jobs on a more regular basis many companies are now tailoring specific benefits packages to their executives as a contingency plan if the organization every has to lay off employees.  More commonly known as outplacement services, this career transition support system has several benefits for job security providing a peace of mind for both employees finding that next role and for organizations to protect their brand.

Retirement Plan

Retirement security has become a more important issue with the retirement age steadily increasing and 1 in 4 U.S. employees now expect to be working beyond the age of 70.  Having an attractive retirement plan in place has gained considerably more retention value since 2009 and can be tailored to the seniority of the role or length of service of the employee.

Dental Insurance

A highly sought after benefit due to the high costs of going to the dentist, it also promotes oral health and actively encourages employees to visit the dentist regularly.  Something to consider; if staff are maintaining their oral health, it could result in less days off of work for emergency dentist appointments later on down the line and your employees will be grateful for it.

Maternity and Paternity Leave

Paid family leave is an important way to highlight that the organization is investing in them, which makes employee’s feel appreciated and in turn has a positive effect towards retainment.

“When Google increased paid maternity leave, the rate at which new mother’s quit dropped 50%” according to this article by Quartz.

I’m sure the same could be said about Paternity Leave.  Adding a shared parental leave policy can really add value to your Company and although businesses may be wary of the costs of having employees out of the workplace for longer periods of time, the benefits would far outweigh the issue when staff actually return to work afterwards.

Sick Days

Although as employers we hope that sick days are kept to a minimum, employees that know they will be covered financially if something unexpected happens gives them the added security to focus on their role.  The amount of sick days can also be tailored to the amount of continuous service an employee has with an increment added as each full working year passes.  A great retainment incentive.

So, don’t just stick with the standardized packages and lose out on retaining quality staff.  Move with the times, bespoke the benefits to suit your employees on-going needs and look at the initial added costs to implement and manage these comprehensive benefits packages as a great return on investment later on!

 

Joe Flanagan is the Senior Career Advisor at Velvet Jobs – Outplacement Services helping both organizations and employees in transition. He is also a specialist in recruitment and job search issues. When he’s not trying to help reduce the unemployment rate you can find him traveling the globe in search of that next adventure.


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