Do you have a 'competitive-enough' employee benefits package for 2024?

“We offer a benefits plan” is included in most job ads. Another expression is “We offer a competitive salary.”  Potential applicants might read that as meaning “We do not pay more than we absolutely have to pay.”  Why is it important for employers to offer a robust benefit plan if they want to attract and retain the best talent/?

1. Salaries are expensive. You can hire the best, but it is going to cost you. The best example is professional sports. According to Statista, the average salary in the NBA and WNBA for the 2022/23 season was $10 million per player. Players are usually on contract, then become free agents, looking for the best deal for their next contract. You are running a business, not a sports team, but you know talent costs money.
2. Salaries are subject to upward pressure. If you follow your industry in print and online, you know some publications produce “annual salary surveys” giving an idea what competitors are paying. Websites like com and Glassdoor.com help applicants determine how much they should be asking for, especially in a tight market for specialized jobs. Employers feel pressure to pay more to hire new people and raise pay to retain good people.
3. It is expensive to replace an employee. Gallup reports the cost of replacing an employee can be 1.5 to 2 times their annual salary. If you cannot retain the people you hire, it will cost a lot more in time and money to fill those empty seats.
4. Money won’t cure stress. The tech industry is known for paying well, but the job can be very stressful. Business Insider reports only 39% score working at Intel as a low stress job. E-Bay followed at 36%. If the job is stressful, companies need to offer other incentives, like benefits, to attract and retain employees.
5. Early retirement is an attractive benefit. Law enforcement is a unionized profession. It is also a high stress career. Generally speaking, you can retire after 20-25 years of service. The opportunity to retire at a younger age and collect a pension can be attractive.
6. Flexible work hours are the most desirable benefit. It’s really popular! Forbes, quotes an Adobe report indicating 84% of those surveyed would like some degree of flexibility. The work is still getting done, the employee is still working from the office, but the hours vary.
7. Employees want and need help in saving for retirement. The Forbes research indicated 93% of employees want retirement planning help. This includes both employer contributions and providing advice. Your company likely provides a 401(k) with a match, but do they provide advice?
8. A good health plan is a desirable benefit. Robert Half reports after salary, health benefits are the most important factor for people deciding where to work. You have a health plan. How does it measure up against your competitors? How much choice do employees have?
9. Working from home is attractive. This is different from flex time. Employees are working regular hours and are reachable during the business day, but the phone rings in their house. This gives employees another benefit: the elimination of time lost to commuting and the related expenses. Forbes reports 28.2% of employers have moved to a hybrid work arrangement. This delivers benefits in areas like reducing the stress and expense connected with childcare and “creates” those extra hours in the day because commuting time is taken out of the equation. . The work is still getting done, even if most of the employee’s job is done in front of a computer terminal.
10. Paid time off supports the quality of the employee’s lifestyle. This includes vacation days and sick days. According to Forbes, S. private sector workers get 7.6 paid holidays annually and federal workers get 11 days. American workers get 11 vacation days on average, increasing to 15 after five years. A vacation allowance that increases over time can be a strong factor supporting employee retention. A liberal vacation policy can positively influence hiring.

Related: Why overlooking benefits in hiring is an epic fail

The “war for talent” has been raging for decades. Employers need to attract high quality candidates and retain employees. Benefits can play a major role.

Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor” is available on Amazon.