Don’t wait: Benefits considerations employers need to make now to attract and retain talent
Employee benefits play a key part in differentiating an employer in the competition for talent.
After two years of regular conversations and sentiment surveys with business owners, I continue to hear a common theme – their sights are set on rebuilding their businesses from the impacts of COVID-19. Top of mind for many in this recovery is a new era in employee recruitment and retention. As workforce expectations have evolved, employee benefits can play a key part in differentiating an employer in the competition for talent. According to the latest findings from the Principal Financial Well-Being IndexSM (WBI), businesses plan to boost employee benefits in a proactive response to the ongoing challenges of the pandemic and a competitive labor market.
Related: Strategies to attract and retain talent in 2022’s tight labor market
Business leaders have remained adaptive to constantly changing environments as much of the workforce remains at home. Evolving benefits to meet employees’ needs is becoming even more critical. As small and medium-sized businesses (SMBs) move forward, many employers plan to increase training and education benefits to retain current employees and caregiving benefits to attract new talent.
Greater focus on “upskilling” for employee retention
Training and education benefits have surged in recent months amid a tight labor market. According to a recent study by the American Staffing Association, 80% of currently employed U.S. adults consider an employer’s professional development and training offerings as a key consideration when accepting a new job. Investing in talent through training and education demonstrates a commitment to employees and makes them feel valued.
Learning is becoming a core expectation of employers by their employees. The good news is training and education are more accessible than ever before. Digital learning opportunities have increased the available options (i.e., LinkedIn learning, Master Class). According to the World Economic Forum (WEF), upskilling efforts could boost global GDP by $6.5 trillion and lead to the creation of 5.3 million net new jobs by 2030. Additionally, by 2025, half of all employees around the world will require reskilling. Through digital learning options, employers can more effectively offer continuous education opportunities by utilizing hybrid delivery methods, interactive modules, scenario exercises, and customized program hubs.
Caregiving responsibilities remain a challenge for employees
Additional caregiving responsibilities due to the pandemic were cited as a top reason why employees are choosing to leave their current job(s) in our latest WBI survey. For many, it has caused them to drop out of the workforce altogether as the childcare crisis has accelerated across the country. Providing necessary childcare support can help individuals remain in — or reenter — the workforce.
Caregiving responsibilities aren’t solely related to childcare. It also applies to caring for someone who is ill or aging parents. Creating a culture where employees are comfortable asking for what they need to help better balance home and work is one straightforward approach to help address this challenge.
Understand what employees need and want
An agile approach to benefit programs can boost the employee experience, and thereby employee performance. In addition to providing employee benefits that a workforce wants, it’s equally important for employees to be aware of the benefits offered. If a business is providing a set of benefits that employees are aware of and are using, they are more likely to appreciate them and remain engaged.
Regularly checking in with employees—through surveys, small group discussions, individually, or in other ways consistent with the company culture—to understand what is top-of-mind. In particular, meeting with employees one-on-one on a regular basis can be a useful gauge of employee satisfaction. According to Gallup, employee engagement and regular one-on-one meetings are connected. These discussions highlight ways in which employees are contributing to the organization’s success and reinforce the value of their contributions.
As leaders have one-on-one conversations, be sure to gather the themes emerging from these discussions. What are they hearing from employees? Do employees need more flexibility in their workday? Would they benefit from help accessing mental health benefits? Are there opportunities to upskill or cross-train employees?
Understanding how benefits are currently serving employees can help uncover potential gaps. Adding or changing benefit programs, adjusting perks, and effectively communicating any changes can help close these gaps and increase employee satisfaction. Matching employee needs with relevant benefits plays a critical role in being an employer people want to work for, a necessity in this time of intense competition for talent.
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