In today’s tight employment market, employers are looking at creative ways to attract and retain top employees. Salary is no longer the only component when an applicant considers where to work.
A tried-and-true method to stand out among other employers is to offer a desirable benefits package to employees. Employee benefits come in many shapes and sizes and continually take on a new look to accommodate a changing workforce. Employers embracing these new ideas are ahead of the curve. Here’s a look at the most common trends in employee benefits—old and new—to help you stay up to date and gain a competitive edge in hiring the best candidates for your company.
Enhance Traditional Benefits by Adding Soft Benefits
A trend to help elevate an employer’s benefits package is to enhance a traditional benefit offering by adding more
soft benefits, such as additional paid time off, a relaxed dress code, and flexible work hours. According to a recent study conducted by Growmotely,
74% of professionals expect remote work to become standard. Having this option can help you gain a competitive edge in today’s market. Additionally, non-traditional benefits that help the employee with their non-employment-related needs are gaining momentum. These offerings include tuition reimbursement, gym memberships, travel stipends, auto and home insurance, identity theft coverage, and pet insurance.
Oldies but Goodies
Let’s not forget the traditional benefits that have been around for a long time but are still just as important. Short-term and long-term disability insurance provides income replacement when an employee can’t work due to illness or other qualifying conditions.
These plans are affordable, and an employer can enhance their benefits package by covering 100% of the premium for employees. Communicating the value of an employer-paid disability benefit is critical. If employees face a qualifying disability and can’t work, they’ll continue receiving income—essentially “free money.” This support can ease stress and help recovery.
The 401(k) plan is also receiving more attention. Employers are encouraging participation by matching contributions and setting automatic annual increases. Easy access to 401(k) balances helps employees see their savings grow, reinforcing the value of employer contributions.
Health Insurance – The King of Employee Benefits
Health insurance rules the roost in the employee benefits package. With costs rising annually, the more employers contribute to monthly premiums, the more attractive they become to candidates. High-deductible plans with HSAs are growing in popularity, and regular employer HSA contributions provide an additional advantage.
There are countless ways to design an employee benefits package. Employers who understand what candidates value—and strive to meet those needs—gain an edge in attracting top talent.
In this transformative era, our team at LBMC Employment Partners is here to simplify the complexities of employee benefits. For best practices and personalized guidance, contact us today and discover why we’ve earned the title of the Nashville area’s Top Employee Benefits Consultant for 2021, 2022, and 2023.