Almost all businesses require a dedicated team to help support them. However, getting the right team of employees together often takes much more than simply creating and advertising a job listing.
Most industries are quite competitive for organizations when sharing available talent pools. This makes it difficult not only to get more brand visibility when listing new positions but also to gain the number of applications needed to find the best fit for the business.
Standing out from the crowd requires businesses to think more about the value “they” can bring to employees, not the other way around. Offering competitive benefits packages is the perfect way to achieve this.
Why Benefits Matter More Than Ever
Although there is nothing wrong with businesses focusing on creating a competitive salary offering for employees, today’s job seekers are looking for something more from the organizations they engage with. Below are some of the reasons why benefits packages matter more than ever:
- Employee Security – There are a lot of uncertainties when searching for a new job. Applicants need to make sure they’re able to receive the compensation they’re hoping for and that the business they choose to work with will support them in other areas as well. Benefits packages that offer a wide range of health insurance coverage, disability insurance, or other important features can help assure applicants that both their financial and physical needs will be met when working with a specific employer.
- Competitive Advantage – Finding great employees is a numbers game for many businesses. Being able to get more applications submitted for job postings significantly increases the likelihood of finding a good fit. However, in order to achieve this, the business needs to stand out from the crowd of other brands. Offering benefits packages helps to achieve this, showing potential applicants that your business is willing to invest in its employees where other brands may not.
- Improved Credibility – Bringing in more talent for your organization is only one advantage of offering comprehensive benefits packages. When you show that you’re invested in your employee’s long-term success, it shows that your staff is more than just a means of improving your bottom line. This positive brand image can help to keep your customers more engaged and improve long-term loyalty.
- Better Employee Retention – A business must be able to attract higher-tier talent. However, if it cannot retain these individuals long-term, it will not see a return on its hiring efforts. A strong benefits package helps demonstrate a commitment to employees’ well-being and can be a powerful motivator for them to stay and grow with the business.
Key Considerations When Designing Your Benefits Package
Once you’re ready to start designing your benefits package, there are some effective strategies you can use. Below are some of the key things you’ll want to consider:
1. Get to Know Your Workforce
Knowing what’s most important to your workforce can help you create an optimal benefits package. To ensure that the benefits you offer leave the desired impact, consider varying factors such as age groups, marital statuses, and the types of positions.
For example, if your business employs younger generations, offering longer-term benefits like retirement planning assistance or professional development opportunities will resonate more than other benefit types. Another helpful strategy before implementing certain benefit offerings is to survey your employees and hear from them directly on what kind of coverage they would likely use more.
2. Research the Competition
To keep your benefits packages competitive, it’s important to research other brands to see what types of offerings they’re providing their employees. At the same time, you’ll want to benchmark what you’re thinking of implementing.
To help your business differentiate itself better, consider adding more flexibility to your benefits packages. For example, you could implement a tiered benefits program that provides employees with additional customization options based on their unique circumstances.
3. Balance Comprehensiveness with Affordability
Although trying to provide as many benefits as possible can be tempting, it’s still important to balance comprehensiveness with affordability. Take the time to carefully evaluate the costs of each benefit and prioritize those that will have the greatest impact.
4. Understand Legal Requirements
You should also consider any specific laws and guidelines governing employee benefits coverage in your region. This includes requirements related to health insurance, retirement plans, family and medical leave, and other employee benefits.
It’s important to keep your business regularly informed about any legal or reporting obligations it has in this area to avoid potential penalties due to non-compliance.
Essential Components of a Competitive Benefits Package
A well-rounded benefits package should address various aspects of employee well-being. Here are some essential components to consider:
Health and Wellness
Providing comprehensive health insurance is an important element of most employer benefits packages. This can include varying levels of coverage for preventative or emergency medical procedures and certain provisions for dental or vision coverage.
In addition to these more commonly used benefits, you can consider offering other benefits to support an employee’s well-being, such as access to Employee Assistance Programs (EAPs) or mental health counseling services.
Additional Financial Security
Benefits packages can be a great way to offer employees ways to create a more stable financial future. This can be achieved by offering retirement savings plans with employer-matching contributions.
Other ways to incorporate valuable offerings into your benefits package include providing access to life insurance policies and disability coverage. These can be very important for individuals with families who want to provide financial protection in the event of illness or injury.
Better Work-Life Balance
Another important element when offering a competitive benefits package is scheduling flexibility. This can range from offering fully remote or hybrid working arrangements to reducing work weeks during the summer or slower seasons.
The amount of paid time off (PTO) you provide is also an important consideration. While there may be minimum amounts of PTO required depending on where your business is located, this doesn’t mean you can’t extend the amount you offer. Providing additional time off throughout the year allows employees to rest and recharge and can improve team morale.
Communicating the Value of Your Benefits
Once you create an optimal benefits package for your business, you should leverage it to help you attract more qualified talent. You should also make sure that current employees are aware of all the benefits options and why they can be valuable to them.
Here are some tips you can follow to do this:
- Be Transparent: When explaining your benefits, use clear, easy-to-understand language. This will help current or potential employees better understand the type of coverage they’ll have access to, eligibility requirements, and overall premium costs.
- Leverage Multiple Channels: Take advantage of the opportunity to promote your benefits offerings wherever you can. This can be on your company website, job descriptions, or when creating a LinkedIn profile for your business. Channel diversity is important as this will help give you the most positive brand exposure.
- Decision Support – It’s important to ensure that current employees get the full value out of your business’s investments. To do this, educate them effectively on all their options and provide them with decision-support tools to make more informed decisions about their benefits. These might include online premium calculation tools or connecting them with benefits call centers for personalized support when making coverage decisions for themselves and their families.
Leverage Your Benefits Offerings to Help Grow Your Team
Benefits packages are a powerful tool that can help you source and retain more qualified talent for your business. By making smart investments in the physical and financial security of your employees, you’ll ensure you’re business is competitively positioned in the market while being able to grow successfully.
Frank Mengert continues to find success by spotting opportunities where others see nothing. As the founder and CEO of ebm, a leading provider of employee benefits solutions. Frank has built the business by bridging the gap between insurance and technology driven solutions for brokers, consultants, carriers, and employers nationwide.
Team stock photo stock image by Owlie Productions/Shutterstock
