In the wake of the Great Reshuffle—the mass movement of workers to jobs that prioritize their needs—and macro trends like the tight labor market, attraction and retention are top of mind for employers.
In fact, according to our 2022 Attraction and Retention Benchmarking Overview, over 75% of employers consider attraction and retention to be among their business's top five challenges.
As a result, many employers are expanding and enhancing their comprehensive benefits offerings to remain or become more desirable to employees.
In this article, we outline the top employee benefits that support the health and wellness of your people and are integral to your attraction and retention efforts.
Different Types of Employee Benefits and Perks Employers Should Know
Telemedicine
Easy access to health care is critical to everyone. Many people have turned to telemedicine for their health benefits over the last two years, and it’s not going away anytime soon.
Telemedicine is convenient for employees and can also help employers; for example, it cuts down on the time employees may otherwise spend away from work commuting to physical doctors’ offices. Medical benefits also support employee health and productivity, positively impacting employee morale and satisfaction.
Especially as health concerns surrounding COVID-19 linger, employers must offer employee benefits like telemedicine that align with a modern health insurance plan. Otherwise, workers are likely to seek out employers who provide more organizational-oriented benefits through a hybrid and inclusive employee perks program.
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Flexible PTO
Just like flexibility around scheduling, flexibility in terms of paid vacation days and paid time off has also become a highly sought-after and important benefit. The fact is, not everyone celebrates the same holidays, and not everyone will require the same number of sick days as everyone else.
That’s why flexible PTO, one of the most common employee benefits, can be a big win. It gives everyone a set number of hours or days of paid time off to spend as they choose. Employees can use it for holidays, birthdays, or wellness benefits like mental health breaks.
This approach supports better work-life balance, increases employee morale, and allows people to feel more in control. After all, who better to decide what type of time off they need than the individual employees themselves?
Hybrid Work Arrangements
Alternative work models, such as remote and hybrid work, are also in high demand. During the pandemic, workers grew accustomed to these flexible options, and many want to keep them as part of the benefits for employees that matter most.
Where possible, it’s beneficial to consider allowing remote or hybrid work to those who prefer it. It has become one of the top types of benefits that support employee satisfaction and retention, especially when combined with other employee assistance programs and flexible arrangements.
Competitive Compensation
The Bureau of Labor Statistics reported in June that inflation is at 9.1% year over year, its highest level since 1981. As a result, the prices of daily essentials have greatly increased. Many employees now expect more competitive compensation packages to help with the rising cost of living and to complement the many employee benefits you offer.
Based on our research, 83% of employers found compensation a top priority during the hiring process, and one of the more sought-after elements of a great employee benefits plan. It pairs well with insurance benefits, such as life insurance, health insurance plans, and retirement benefits like a 401(k) or retirement plan, all of which help build a stronger, more secure future for your team.
In response, employers who are able may want to consider increasing salaries to at least partially match the inflation rate proactively, or during their annual salary reviews. Alternatively, employers can offer stipends for essentials such as groceries and gas if salary increases are not in their budgets.
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Career Development Opportunities
Employees are interested in securing a job where they have the skill set and want to develop new skills. 41% of employers consider addressing current and future skills gaps a top-three attraction and retention challenge.
If employees feel they are unable to advance their professional development within their current roles, they are likely to seek out new ones. Thus, many employers now offer their employees different opportunities to help teach new skills and develop various existing skill sets.
Employers may consider providing more career development opportunities to help retain workers who wish to expand their skills and career opportunities.
Mental Health Plan Support
Consider offering simple perks like financial planning assistance (as financial stress often contributes to poor mental health), employee discount programs (where employees can receive gym memberships, stress-reducing massages, or acupuncture at a lower cost), and EAPs to support your employees.
Reviewing the offerings that your organization provides is essential to creating a culture that supports employee mental health.
Student Loan Assistance Program
Student debt is a growing issue among newer workforce members, such as Generation Z, and these employees are looking for help mitigating it. Some employers are introducing repayment assistance; many companies that already offer the benefit are increasing contributions and expanding eligibility.
Because student loan repayment is such a significant issue for many employees, especially as inflation continues to drive up the cost of living, employees are prioritizing employers who help alleviate this added burden.
Read Also: Employee Benefits Strategies
Plan Your Employee Benefits Package With Melita
Various labor market trends are driving employees to demand better benefits packages. Employers can offer various benefits to attract and retain workers, including those that provide significant value to themselves and their families and help lessen the effects of inflation through competitive compensation and student loan assistance.
Employers should consider expanding attractive benefits offerings such as these to improve their overall attraction and retention efforts and the happiness and engagement of their business.
At Melita, we understand that building a thriving workplace starts with the right support. Our outsourced HR services are designed to help you stay competitive and compliant. From employee benefits solutions and payroll outsourcing to full PEO consulting services, we partner with you to create a seamless, scalable HR experience tailored to your people and business goals.
Book a consultation today to learn more about employee benefits or start planning for employee benefits. One of our HR and Benefits solutions advisors will help you understand your needs and build the perfect program for your organization.
