Employers are offering more benefit options as they know it’s essential to attract and retain employees in today’s hot job market.
But the benefits landscape has changed tremendously in the past decade. No longer are health plans and vacation time the only thing employees want in a benefits package.
Work perks, the fringe benefits that go beyond traditional offerings, are on the rise. Millennial workers tend to favor “non-traditional” benefits like student loan reimbursement or tuition reimbursement, and paid personal days. Older workers still want strong benefits packages that have stood the test of time.
So what does a great employee benefits package look like? It’s going to depend on your workforce, but here’s what many would consider a modern version of “great benefits.”
Health Insurance
Everyone gets sick. More importantly, everyone worries about getting sick — especially if they have kids.
While Millennials are not as demanding when it comes to health benefits, you still need a good health insurance package. An older workforce, Generation X and above, require it. This can also include dental and vision insurance.
Paid Time Off
Whether you call it “vacation” or “PTO,” everyone wants a break now and again. Employees like their time off so they can recharge, and any benefits package that doesn’t include is at a disadvantage for recruiting purposes.
Retirement plans
Everyone wants something to show for their years of hard work. If you offer a 401 (k) plan for employees with an attractive match, that’s a hard thing to pass up when fielding multiple offers.
Family leave
Whether it’s having or adopting, a child or caring for an aging parent, employees need time to take care of their families. This category has grown from maternity leave to encompassing everything from adoption to parental care.
Commuter benefits
Do your employees ride mass transit or pay to park? Commuter benefits are an excellent offer to help them reduce the cost they are paying to get to work.
Commuter benefits allow employees to save money tax-free in their paychecks. With commuter benefits, they can save up to 40 percent on commuting costs. Employers benefit too because payroll tax costs can be reduced by up to 7.65 percent.
Here’s a real-life example. If you have a married employee living in Boston who makes $75,000 per year, they can save $882 per year with commuter benefits. Your payroll tax also decreases because the employee is not taxed on that portion of their pay. Whether you have 2 employees or 100, it makes sense to see if commuter benefit is an excellent perk to offer your employees.
More benefits are on the rise
While commuter benefits are a great option for employees, it’s not the only one. A recent survey revealed more employers are providing tuition assistance, life insurance, short term disability insurance, and providing new forms of health care such as telemedicine in 2018 as compared to 2017.
Diversification in benefits is a major trend
Many companies are no longer offering the basic package. As the competition to attract and retain talent become more challenging than ever, companies want to positively impact their employees’ lives.
One way to make yourself stand out in the marketplace is by offering a diverse selection of benefits.
Low-cost benefits your employees want
While they might enjoy free snacks and standing desks, a flexible work schedule could have a bigger impact.
Whatever options your company offers to employees, it’s best to have benefits that have a direct impact on their lives.
If your company doesn’t have the budget to enhance the benefits package, there’s still ways you can provide better benefits for your employees. The 3 perks that directly have an impact on your employees’ lives, and won’t cost you a lot are:
Flexible hours
This one is win-win because it costs you nothing and lets your employees have more control over their day-to-day lives.
Commuter Benefits
Employees who participate can save up to 40 percent on their daily commute, and companies save over 7 percent a year in payroll taxes.
Work remotely
Allowing employees to work remotely can be an effective way to help you retain or attract employees. A 2017 Gallup survey found 43 percent of workers said they worked from home at least some of the time. That was up from 39 percent in 2012.
