Employee retention is crucial to a company's success, however many workers spend a year or two at a company before moving on.
This phenomenon is making it difficult for companies to successfully hire talented staff. However, the good news is that there are a few things that businesses can do to help them in their recruitment efforts.
One of these methods is by offering enticing benefits packages. Here's what you need to know about how employee benefits affect your ability to hire.
Understanding the Effect of Employee Benefits on Competitive Advantage
There is a lot to understand about employee benefits. First, look at how they increase your company's competitive advantage. Benefits have long been tied to a successful compensation package, and are one of the things that set companies apart.
In fact, roughly 60% of employees consider their benefits package as part of their decision as to whether or not to accept a job. For headhunters and hiring teams, this makes the importance of offering competitive benefits critical. It's linked to their success in getting new talent in the door.
On top of that, nearly 80% of employees would prefer better benefits to a raise. This goes to show just how important offering good benefits is to successful talent acquisition efforts.
Better Benefits Lead to a Stronger Reputation and Better Retention
While you may think that the salary you're willing to offer your employees is the only attractive aspect of the job, this simply isn't the case anymore. In fact, the companies that have the best benefits are far more likely to attract and retain the best talent.
Experts say that companies that offer good benefits have higher employee satisfaction rates. They also have higher morale. On top of that, they tend to have better employee retention than companies that offer smaller benefits packages.
It's not just your retention that's affected by your benefits packages. It's your reputation, too. A stronger reputation can lead to better and more successful recruitment efforts.
Individuals looking for jobs value the reputation of the company they're applying for. They're highly likely to accept a job offer from a business that is highly regarded. In contrast, they are less likely to do so from a company that shows little appreciation for its employees.
Companies that invest more money in employee benefits packages are far more likely to have a better reputation. That's because they've shown through their benefits that they care about the well-being of their employees. This makes them far more attractive to potential employees.
Know Which Benefits Employees Are Looking For
Part of creating successful benefits packages is understanding what people want. To compete with other businesses, you need to know what your employees are looking for and expecting in a benefits package.
While some companies, such as Google and Facebook, go above and beyond with their benefits packages. That isn't possible for everyone. But, there are still many different benefits that employees expect and desire.
Employee Healthcare
Health benefits are one of those most sought-after benefits. And, they also tend to be the most complex. Some businesses choose to offer dental, vision, and healthcare packages. Others only offer health services.
The Affordable Care Act has made healthcare much easier for businesses to offer and employees to attain. Under the ACA, every company with 50 or more employees must track their employees for full-time status. They are required to offer full-time employees health care coverage.
Companies that don't do this can face big fines. That's why many companies count on ACA tracking and reporting software to help them stay compliant.
Retirement Packages
Another benefit many employees look for in a retirement plan such as a 401(K) or another benefits plan. These plans have a huge impact on the likelihood that an employee will stay with a company for the long term.
This is partly since employees are more likely to retire from a company that offers retirement benefits. Otherwise, they may be able to find retirement packages from a different company.
Remote Work Benefits
Remote work used to be a fairly uncommon benefit. However, in the aftermath of the covid-19 pandemic, the ability to work remotely has become the norm.
In fact, employees now expect remote work to be a possibility thanks to its proven success during these unprecedented times. Remote work can make an employment package far more attractive as it can offset time and costs associated with their commute.
Education Benefits
There are several reasons why continuing education has been on the decline. This is namely thanks to numerous free online learning resources, such as YouTube and other platforms.
However, many executive-level positions still require university degrees. Companies that offer tuition reimbursement programs or job training are more likely to acquire and retain valuable employees.
This is because employees feel that their company is giving back to their employees and cares about their advancement. In fact, education benefits are currently the third highest-rated employee benefit.
Boosting Your Hiring Ability Through Employee Benefits
Employee benefits packages are critical to the success of your hiring efforts. They're what make your company attractive to potential employees. And, they're what show your future recruits how you treat people who work for you.
On top of that, they're critical for employee retention once you've got your recruits in the door. Having well-rounded benefits packages can help boost satisfaction and even job performance.
For anyone who already has an established benefits program and is looking for assistance with ACA compliance, Points North can help.
We help you with both tracking eligibility and reporting to employees and the IRS at year-end. Staying on top of ACA requirements is made easier, faster, and more accurate by using our software.
Give our team a call and we'll help you manage your federal and state ACA requirements. Comply with regulations and improve your hiring and retention rates by creating a well-rounded healthcare plan with our successful team.
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