4 employee benefits that can make employers stand out in the talent recruiting game
Current and prospective employees are paying closer attention to an organization’s total compensation package, including benefits and perks.
Another by-product of the COVID-19 pandemic: People are caring a whole heck of a lot more about work-life balance, and an increasing number are switching jobs as a result.
Daniel Ruppel, CFP and TIAA financial planning strategist, recently shared with BenefitsPRO how employers can not only hold on to their current employees, but also lure away talent from others in this era of the “Great Resignation.”
It’s not just about salaries – both current and prospective employees are paying closer attention to an organization’s total compensation package that also includes enhanced benefits and perks. Here are some employee benefits that can make an employer stand out in this new War for Talent:
1. Retirement plans
“Most current and prospective employees recognize the value of retirement plan benefits, which can have a big long-term impact for them,” Ruppel says. “When employees provide generous matching contributions, that can end up being much more valuable than just having a good salary. That kind of retirement plan benefit has an opportunity to grow and compound over the course of a person’s career.”
Current and prospective employees also appreciate appropriate and reasonably priced investment menu options within an employer-sponsored retirement plan, and whether substantive support is available, he says.
“Some employers offer support through their plan administrators, as some guidance and long-term planning really can help keep employees on track of their goals, or put them back on track if they’re not going in the right direction,” Ruppel says.
A big focus at TIAA is lifetime defined benefit pension plans, he says. Such plans are not as popular as they once were, so employers that offer them or pension-like options within 401(k)s or 403(b)s “really stand out today.”
Employers can also provide options like a profit-sharing plan as part of retirement packages, as it gives employees a sense of ownership in the company and incentivizes them to perform at their best, Ruppel says. However, employees shouldn’t rely too heavily on that part of the retirement package, in case something negative should happen to the company and employees both lose their jobs and their retirement income.
2. Deferred compensation
“Compensation takes many forms – salary isn’t everything,” he says. “Deferred compensation can be very valuable, as it reduces taxable income today and enables a person to recognize it later when they retire and are likely in a lower tax bracket.”
Offering deferred compensation can be a differentiator for employers, particularly when combined with an attractive retirement plan and a host of other benefits and perks, Ruppel says.
3. Health savings accounts
“Health savings accounts can be very powerful as a long-term savings vehicle, even if sometimes a person uses some of the money accumulated within their HSA to pay for medical expenses,” he says. “There are tremendous tax benefits for money accumulated in those accounts over the course of a career, which can be available in later years as a supplemental retirement benefit.”
4. Student debt relief
All employers can stand out if they offer some form of student debt relief to their employees. Nonprofit and government employers should consider a student debt relief solution offered by TIAA in conjunction with fintech Savi, for those employees that qualify for the Public Service Loan Forgiveness (PSLF) program.
“The PSLF is a complex program that historically has been a bit of a challenge for individuals to understand the rules and manage the paperwork,” Ruppel says. “This solution can help employees work out an income-based payment and make sure they stay on track to maximize the benefit.”
Nearly 80 percent of nonprofit employees recently surveyed by TIAA and Savi said they would choose one employer over another because they provided access to a solution to simplify enrolling in PSLF and increase their likelihood of loan forgiveness. Respondents also said it would improve retention, positivity and loyalty toward their current employers.
“With this solution, eligible employees have the potential to wipe away a significant portion of their debt,” he says. “It’s can be a great differentiator for nonprofit and government employers that provide this benefit to their employees.”
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