What makes a good employee benefits package?
Key takeaways
These four pointers will help you create a good benefits package that attracts and retains employees.
Although some economists say the “great resignation” is over, new research from Microsoft and LinkedIn suggests that nearly half (46%) of professionals say they’re considering quitting in the year ahead—higher than the 40% who said the same ahead of 2021’s great resignation.
If this shows us anything, it’s that employee benefits are more important than ever. That’s because among employees who say their benefits package meets their needs, 82% intend to stay with their employer.
This begs the question, what makes a good employee benefits package? Here are four pointers to keep in mind.
1. Offer benefits your employees really want
Even great benefits are useless if your employees don’t use or appreciate them.
What benefits do your employees want? The best way to find out how your employees feel about your current offerings and changes they’d like to see is to simply ask. An employee benefits survey can give you valuable insight into the benefits your employees would like to see added or removed in the future.
2. Ensure your benefits meet the needs of your employee demographics
Do your employees skew younger or older, or do you have a multigenerational workforce? Do you have a diverse workplace? Are you in an industry that is dominated by one gender? Benefit needs vary significantly across life stage, race, gender and socioeconomic position, and your benefits package should adapt accordingly.
Related: 5 employee benefits that help support diversity
3. Make sure your benefits are affordable for your employees and you
Health care costs are rising—and so is inflation. This influences the benefits that your employees can afford, and offering too many expensive benefits can impact your ability to provide your employees with other things they care about like salary increases.
Employers who want to enhance their benefits packages while managing their bottom lines should consider voluntary benefits. Critical illness insurance, accident insurance, hospital insurance, and life insurance are a few examples of voluntary benefits. These products enhance the total benefits package you offer employees and can help safeguard employees from the financial impact of critical illness, injury, or loss of life. Direct cash benefits can help protect employees from draining accounts, dipping into 401(k)s, and filing for bankruptcy due to a medical condition.
4. Communicate well about your benefits
If your employees don’t understand their benefits, know what’s available to them, or know how to take advantage of them, then they won’t appreciate them.
That’s why communicating the details of your employee benefits package to your employees should be an ongoing, year-round endeavor. The more employees know about and understand their benefits, the more likely they are to use and value them.
Targeted delivery channels based on employee preferences are essential when communicating about benefits. Whether through emails, texts, webinars, printed materials, or online resources, it’s important to communicate with employees in a manner that will reach them when they are available. In addition, communications should be available in employees’ preferred languages.
Final thoughts:
Employee benefits are a crucial part of your compensation package. By offering desirable benefits that meet your employees’ needs and communicating about them well, you’ll level up your ability to attract and retain talented employees.
Want more? Check out our blog, Here’s how employee benefits education impacts your bottom line
Optavise is your benefits partner
Optavise is a trusted partner, guiding employers and their employees through healthcare choices including voluntary benefits, benefits administration, and year-round advocacy services that reduce costs and increase benefits engagement.