Attract and Maintain Your Top Talent by Reevaluating Employee Benefits

Attracting and maintaining top talent can make or break your organization, especially in today’s competitive job market.

“The best workers do the best and the most work. But many companies do an awful job of finding and keeping,” said McKinsey & Company, highlighting research that showed superior talent can be up to eight times more productive than the average employee.

While a competitive salary is important, many job seekers and employees place equal or even greater value on the benefits package offered by their employer.

“Employees will always take more money if you offer it. But pay alone isn’t necessarily all it takes to attract and keep good employees,” says Forbes. “In a survey of employed workers and employers, Forbes Advisor found that 40 percent of employers say workers leave their job to find a role that offers better employee benefits.”

At Dean & Draper, we understand that as a business owner or HR professional, reevaluating and optimizing your employee benefits can be a game-changer in your talent management strategy.

The Power of Benefits in Talent Acquisition and Retention

Companies are starting to understand the power of benefits in talent acquisition and retention with the Forbes survey finding that 62 percent of businesses have changed their benefits offerings in the past year.

Basically, the status quo is no longer an option for many businesses.

“Being flexible with pay rates and company benefits is a necessity. No longer are canned benefits and pay structures acceptable or being sought after,” says the Forbes Human Resources Council. “Offer your staff members what other organizations cannot.”

Inc. reports that free office snacks aren’t going to cut it in attracting and retaining top talent.

“An impressive employee benefit package can have a huge impact on recruitment and retention. In a competitive market, it's not surprising to hear that potential employees may be weighing multiple job offers--and the deciding factor could be what benefits are being offered to them,” writes Mandy Gilbert, founder and CEO of Creative Niche.

Key findings from the Forbes survey found that:

• Just over half of American workers (54 percent) report being content with the benefits their current employer offers.
  
  
• 1 in 10 workers would take a pay cut to have access to better benefits.
  
  
• Over 30 percent of 18 to 41-year-olds would like pet insurance as an available benefit.
  
  
• Nearly 40 percent of 42 to 57-year-olds are focused on mandatory paid time off from their employer.
  
  
• Over 80 percent of employees older than 42 are looking for jobs that include employer-covered healthcare.

Healthcare Remains the Most Attractive Benefit

As much as the workplace benefits environment has changed in recent years with flexible working arrangements, remote jobs, and benefits such as pet insurance and mental health resources becoming more important – healthcare remains the most attractive benefit when recruiting and retaining top talent.

The Society for Human Resource Management (SHRM) in its 2024 SHRM Employee Benefits Survey found that healthcare benefits remain at the top of the list with 97 percent of employers providing some form of health plan coverage.

SHRM called healthcare benefits “the cornerstone of employee satisfaction” while noting:

• Healthcare benefits remain paramount, with 88 percent of employers deeming them "very important" or "extremely important."
  
  
• Traditional health plans, such as Preferred Provider Organization (PPO) plans, are the most prevalent, with 82 percent of employers offering this option.
  
  
• Additionally, 63 percent of organizations provide high-deductible health plans (HDHPs) paired with health savings accounts (HSAs), health reimbursement arrangements (HRAs), or flexible spending accounts (FSAs).
  
  

“If you've heard it once, you've heard it a thousand times (but for good reason!)--one of the best ways that companies can capture the interest of top talent is with comprehensive extended health coverage, which is easily the most sought-after benefit in 2024,” wrote Gilbert. “In fact, extended health coverage is so important to employees that I have often seen top candidates willing to negotiate in terms of salary if it means getting a more comprehensive extended health care package.”

Inc. explains key coverage areas of extended health care packages could include:

• Dental coverage.
• Vision coverage.
• Prescription drug coverage.
• Emergency medical travel coverage.
• Hospital stay: semi-private or private room.
• Medical supplies and equipment.
• Chiropractor.
• Physiotherapist.
• Massage therapist.

Dean & Draper can help you decide what health care plans are best for your company including PPOs, health maintenance organizations (HMO) plans, point of serve (POS) plans, HSAs, and cafeteria plans (which allow individual employees to decide from a menu where they would like their healthcare benefits go to).

Top Benefits Potential Employees Are Looking For

Healthcare benefits may be at the top of the HR wish list, but there are many other benefits that companies can offer to employees, including (but not limited to):

• Retirement Plans: 401(k) plans, especially those with employer matching, are highly valued for long-term financial security.
  
  
• Life Insurance: Providing peace of mind for employees and their families, life insurance is an increasingly important benefit.
  
  
• Paid Time Off: Generous vacation days, sick leave, and personal days are crucial for work-life balance.
  
  
• Flexible Work Arrangements: Options for remote work and flexible hours have become increasingly important, especially post-pandemic.
  
  
• Professional Development Opportunities: Employees value companies that invest in their growth and career advancement.
  
  
• Mental Health and Wellness Programs: With growing awareness of mental health issues, support in this area is highly appreciated.
  
  
• Parental Leave and Family-Friendly Policies: Comprehensive maternity and paternity leave, as well as support for working parents, can be a significant draw.
  
  
• Student Loan Repayment Assistance: For younger employees burdened with educational debt, this benefit can be extremely attractive.
  
  
• Pet Insurance: As pet ownership rises, coverage for furry family members is becoming more popular.
  
  

“A competitive job market comes with a need for organizations to provide equally competitive benefits offerings. As organizations face labor shortages, those who adapt their total compensation and benefits packages with creative and modern offerings put themselves in better positions to attract and retain talent,” says SHRM.

Reevaluating Your Current Benefits Package

To ensure your benefits package remains competitive and meets the evolving needs of your workforce, it's crucial to regularly review and update your offerings.

Here are some comprehensive steps to consider:

• Conduct Employee Surveys: Understand what your current employees value most and what additional benefits they desire. Use a mix of quantitative and qualitative questions to get a well-rounded view of employee preferences and needs.
  
  
• Analyze Industry Trends: Stay informed about what competitors in your industry are offering. Attend HR conferences, read industry reports, and network with other professionals to stay up to date on the latest benefits trends.
  
  
• Identify Gaps: Compare your current package against employee feedback and industry standards to spot areas for improvement. Look for benefits that are underutilized or those that employees frequently request but aren't currently offered.
  
  
• Benchmark Against Competitors: Conduct a thorough analysis of what other companies in your industry and region are offering. This can help you ensure your package is competitive and identify any unique benefits that could set you apart.
  
  
• Consider Demographics: Analyze the demographics of your workforce. Different age groups and life stages may have varying benefit preferences. Ensure your package caters to the diverse needs of your employees.
  
  
• Evaluate Usage Rates: Look at how frequently your current benefits are being used. Low utilization rates might indicate that a benefit isn't valuable to employees or that it's not being communicated effectively.
  
  
• Assess Cost vs. Value: For each benefit, consider both the cost to the company and the perceived value to employees. Some high-value benefits may be relatively low-cost to implement.
  
  
• Gather Exit Interview Data: Review feedback from departing employees. Understanding why people leave can provide valuable insights into potential gaps in your benefits package.
  
  
• Stay Compliant: Ensure your benefits package is up to date with all legal requirements and regulations. This includes both federal and state-specific laws.
  
  
• Consider Flexibility: Assess whether your current package offers enough flexibility to meet diverse employee needs. Consider options like flexible spending accounts or cafeteria-style plans.
  
  
• Review Communication Strategies: Evaluate how effectively you're communicating your benefits to employees. Even the best benefits package can be undervalued if employees don't understand what's available to them.
  
  

Dean & Draper can help you thoroughly reevaluate your benefits package, ensuring that you're offering a competitive, valuable, and well-rounded set of benefits that will help attract and retain top talent in your industry.

Strategies for Improving Your Benefits Package

Once you've identified areas for improvement, consider strategies such as offering a range of options to meet the diverse needs of your workforce or implementing a cafeteria-style plan that allows employees to choose the benefits that matter most to them.

Navigating the complex world of employee benefits can be challenging. This is where an experienced insurance broker like Dean & Draper can be invaluable. We can help you design and implement a competitive benefits package that meets your employees' needs while staying within your budget.

Contact us today to discuss the best options for building a customized employee benefits program that helps you attract and retain top talent.