Posted December 20, 2017
When considering a new job, many prospective employees compare the position’s salary alongside the benefits package. They look for plans that will help them take care of personal and family needs. Since benefits are vital to recruiting and retaining excellent employees, consider four reasons why employers need an effective benefits strategy.
- Match competitors’ packages – Employers typically spend more for employee salaries than benefits. Depending on the business size and industry, employers provide a different type of benefits at a wide range of costs. Know the types of benefits competitors offer to ensure you have similar, if not richer, coverage.Employers, on average, invest $11.18 per employee for benefits, reports the U.S. Bureau of Labor Statistics. Employers spend the most on legally required benefits, including social security, Medicare, state and federal unemployment coverage and workers compensation insurance.
- Support employees’ financial well-being – A PEW Charitable Trusts survey discovered that 98 percent of employees connect their financial security to their job and benefits compensation package. That’s why employees value health and voluntary plans that fit their needs.A primary financial concern for many employees is repaying their student loans. About 44 million American adults, or seven out of 10 college graduates, have a combined total of $1.34 trillion in loan debt. Some employers now assist employees by offering a student loan reimbursement benefit, such as the BenefitEd program available from Ameritas through its joint-venture with Nelnet.
- Enhance recruitment and retention – Hiring and keeping talented workers can be a challenging task for many employers. Replacing employees, especially experienced team members, can cost employers 1.5 to 2 times the person’s annual salary for hiring, training, and integrating new workers to their responsibilities.Paychex reports that benefits can influence employees to stay at a job. Although benefit preferences vary by employee group, overall the top choices are health insurance, sick days and work flexibility. One study also found that eight in 10 workers with student debts would stay with an employer that helped them pay off their loans. Learn more about student loan repayment programs at YouBenefitEd.com
- Increase benefits communication – Employees want flexible benefits that can be personalized to fit their needs. While a great benefits package can help keep employees at work, employers need a communications strategy to ensure workers understand and use their benefits coverage. It’s easy to create an effective communications plan by following the six-step process outlined in this blog