One sign of a healthy economy is when the U.S. adds 150,000 jobs in one month. In June, the U.S. added 213,000 jobs, which is 63,000 above the healthy economy average, according to The Balance.
In eight years, our unemployment rate has dropped from ten percent to under four percent, via the Bureau of Labor Statistics. This news presents a tough proposition for recruiters and human resources since the job market is highly competitive.
So how are businesses staying competitive in this crazy job market? Benefits.
More than 72 percent of organizations increased their benefit offerings to retain employees in the last year, according to a recent study by The Society for Human Resource Management (SHRM). The annual survey gathered data from U.S. employers on the types of benefits they offer.
They found that organizations are twice as likely to have more satisfied employees and report better business performance when they strategically approach their benefit programs, compared to those who don’t.
The statistics presented in the study were compelling, so we put together an overview for your consideration.
Health care benefits.
Benefits play a huge role in job satisfaction. So much so that 92 percent of employees indicated that benefits are important to their overall job satisfaction. There is also a relationship between benefits and retention, with 29 percent of employees citing their overall benefits package as a top reason to look for a position outside of their current organization in the next 12 months. However, changing your benefit strategy does not have to only involve health care. There are plenty of other types to consider for your organization.
If an organization increased their benefits in the last 12 months, chances are that they increased their wellness benefits. A staggering 44 percent of those organizations did exactly that.
You may be wondering: What do wellness benefits encompass?
Wellness benefits help reduce stress and anxiety in employees, which could be in the form of yoga or meditation. But, this benefit isn’t only for the yogis. Many companies also organized group fitness competitions, CPR/first aid training, and purchased standing desks to increase the wellness of their employees.
Paid leave benefits.
In another SHRM survey on job satisfaction and engagement, the 92 percent of employees reported that paid leave is important to their overall job satisfaction. However, that same study indicated that one-third of employees do not use all their vacation time because:
- they fear they will fall behind.
- No one can fill their shoes.
- They wanted to show how dedicated they are to their job.
Organizations can combat these fears by encouraging their employees to use their vacation time. Instead of just paid time off (PTO), you could consider rebranding some PTO days as paid sick leave. This gives employees peace of mind when calling out from work, knowing that they are not cutting into their vacation time. It may sound superficial, but would you be more inclined to stay home when you’re unwell knowing that you are only using your allotted sick leave?
Do you offer retirement benefits? According to this SHRM study, 93 percent of organizations offer a traditional 401(k) or a similar defined retirement savings plan. Roth 401k()s have jumped from 41 percent in 2014 to 59 percent in 2018, which the survey indicates is a sign of a healthy economy. With many organizations offering them to their employees, this is a benefit to consider when reworking your benefits strategy.
Financial and career benefits.
This benefit is an easy one to implement to show your workers how much you appreciate their work. This benefit could come in the form of an award, bonus, stock options, education assistance and so on. Two out of five HR professionals cite improvement in compensation as one of the most effective recruiting strategies. This satisfies the need to be recognized that many people desire.
Some organizations also offer life, pet health, or divorce insurance to their workers. Company-paid group life insurance is offered by 85 percent of organizations, making it the most common type of insurance benefit. About one half of organizations also offer their employees financial advice either on an individual or group level.
Professional and career development benefits.
According to the survey, the most common type of career development benefit is professional memberships, with 87 percent of employers offering it. This allows your employees to network and promote your company to other people. Helping an employee grow either within or preparing them to land their dream job will most likely create a respectable relationship between you and your employee- both being advocates and rooting for each other to succeed.
Moral of the story? It isn’t just about investing in your company, it is about investing in your employees They are the crux of your organization, and the reason you’re able to succeed. To start to gain knowledge of how your organization is fulling your employees’ benefit needs, try creating a survey for them to complete or hold a group or individual meetings to find out what they crave.
If you’d like to view the entire SHRM survey, click here.
Did you know?
PrimePay offers a wide range of benefit services.
To see what we offer or to speak to someone about how you can expand your benefits offering, click here.