Employers now need to go above and beyond (with benefits and more)

With the unemployment rate at only 3.5% and companies across all industries struggling to fill positions and retain current talent, employers are getting creative in their efforts to ensure that they remain competitive by providing incentives and benefits that stand out from the competition. The simple “two weeks off” and “five sick days” are no longer enough for most workers. The power of employment has shifted from the employer to the employee, and it is a great time to be job hunting!

After two years of working from home, some job seekers never want to go back to an office while others are demanding more flexibility to accommodate their personal lives. For those in HR, inspiration in benefits is not just a trend but a standard practice.

HR and benefits executives also understand that with 89% of employees occasionally encountering expenses that their paycheck cannot cover, financial wellness benefits can be the tool to improve retention and increase the quality of life for many Americans. The combination of a looming recession with a hot hiring market may be unequaled for the U.S. economy and this dynamic is creating a new world for employers. Workers are feeling the stress of higher prices in the short term and worrying about retirement in the long term and at the same time are empowered to search for alternatives to their existing job.

The companies that recognize the wants and needs of their employees and are thinking ahead to what will be of top importance for both financial and personal wellness, will be set up for success. Those that are not yet “tapped in” to their employees’ goals and desires, risk losing the talent while also struggling to attract new staff.

While basic benefits are a start, they are certainly no longer the benchmark for what talent might be seeking. It is not just employers that expect employees to “go above and beyond,” employees are now expecting the same from their companies.

Financial wellness benefits

“Above and beyond” will mean different things to different people, but for HR departments, it is more important than ever to listen and internalize what their people desire. Perks like company retreats, gym memberships and free office lunches are expected, however employers must think bigger. Amidst historical inflation, companies must adjust their benefits packages to support not only mental wellness but notably their employees’ financial wellness.

Related: Benefits beyond the basics: What’s needed to retain top-tier talent

To explain further, financial wellness is when an individual is able to meet current and future financial obligations while feeling secure about the future. While retirement and investment benefits can contribute to employees’ overall well-being, they often don’t provide comprehensive resources like targeted financial wellness benefits.

Financial wellness benefits give employees the tools to educate themselves and be ready to handle unexpected life events that may lead to financial troubles. Benefits can range from financial literacy resources, such as coaching, to credit score monitoring and loan services. By investing in such resources and services, employers can gain a competitive edge while making a positive impact on an employee’s personal finance and overall wellbeing.

For many employees it is not just about the fun perks, the added benefits, or the free food that will make them stay with a company. Many employees value feedback, including praise and recognition for a job well done, so they know that they are being appreciated and making a difference to the organization. Also, by setting clear goals and objectives, team members will have a better understanding of what is needed from them, so that they can make sure they are set up for success. Focusing on emotions and attitude is also vital, as employees don’t want to just be a “number,” but strive to be valued members of the team while knowing that their supervisors care about them, both in and out of the office.

Additionally, clearly communicating a company’s core values to employees is vital in helping staff feel included and ensuring everyone is working towards one goal. Employees want to work with an organization that they personally identify with.

As our work lives are changing in ways that we could never have imagined, even just since the beginning of 2020 when COVID hit, the role of a benefits/HR professional has also morphed into a new role with new responsibilities. Employers are taking unprecedented steps to attract and retain talent. By investing in employee financial wellness and improving employee wellbeing, employers can gain a competitive advantage and high retention rate. While the challenges may seem daunting, the potential for both employees and employers to succeed may never have been greater.

Einat Steklov is co-founder and CEO of Kashable.