Benefits offerings surge in job postings, study finds

The number of job postings on Indeed.com that include at least one employer-sponsored benefit has increased by more than 50% over the past four years as companies seek an edge in a competitive hiring market.

“Especially in sectors where benefits are not commonly offered, advertising benefits in job postings can be an excellent recruiting tool, setting a company apart from competitors,” according to a Hiring Lab report.

However, this recruiting tactic may be less important in other sectors, including tech and other professional/knowledge worker industries, where job seekers may expect benefits to be offered. “In other words, benefits may be more commonly included as part of a negotiated compensation package in some sectors, and a low share of postings with benefits explicitly offered in these sectors probably does not mean benefits aren’t offered at all,” the report said.

Nearly 6 in 10 postings advertised at least one benefit in May, up from less than 40% in January 2020. Although this increase is widespread, sectors that typically pay the least have the largest share of postings that include at least one benefit, even as they tend to offer fewer benefits overall. As of May, 62% of postings for jobs in low-wage sectors advertised at least one benefit, compared to 57% of postings in middle-wage sectors and 58% in high-wage sectors.

Medical and insurance-related benefits are the most commonly offered benefits among the four main categories explored in depth. The second-most common benefit type is retirement benefits, including 401(k)s, followed by leave benefits (including paid time off) and family related benefits.

“These four categories are not only more common across sectors but also are the kinds of benefits that may be largely assumed or expected by job seekers in many professional roles, including in the education and tech-related industries,” the report said. “However, with the exception of family benefits, sectors traditionally thought of as more generous with benefits — including many tech sectors — generally are not among the sectors with the highest share of postings mentioning these benefits.”

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Whether a company showcases its included benefits in job postings depends greatly on both the sector that company works in and the type of benefit offered.

“While the majority of all job postings advertise at least one benefit, professional and high-remote sectors are less likely to include benefits in their job postings, with the exception of unexpected benefits, like parental leave,” the report concluded. “The inverse is true for high in-person sectors, where benefits are less likely to be assumed by job seekers. Companies that don’t include benefits in their postings in low-remote sectors may be missing out on an opportunity to stand out from the crowd and attract applicants, while professional sectors might garner more attention by offering more-unexpected benefits.”