When it comes to employee compensation, it’s not just about the paycheck. Today’s job seekers are shopping around for the entire package, and that includes a generous starting salary, health and financial benefits, and other company perks. When presented with two equally interesting job offers, the smart candidate will pick the company that offers above-average employee benefits. This makes sense, given the worker is about to invest a great deal of hard work in your company.
How to improve compensation with employee benefits
One of the trending ways that organizations are attracting high-level candidates and retaining their best employees is by increasing the scope of employee benefits.
For example, instead of offering a one-size-fits-all medical plan and retirement benefits, a company may offer employees a choice of plans from an array of benefits that meet their individual needs. This approach helps to curb waste in the benefits market (when employers pay for—but employees don’t use all—benefits) while personalizing the experience and leading to greater employee satisfaction.
Four ways to give compensation a boost with benefits
There are several good ways benefits can help employers improve their compensation packages. These improvements don’t have to cost your company much in terms of premiums or administration. Try adding a few to make your compensation package more substantial.
1. Use company-sponsored benefits in a group model. Group benefits can be paid for by the company and offered to employees who will use them for specific needs. A pre-paid legal plan is one example of such a benefit.
2. Offer an employee assistance program for on-demand support. EAPs cost pennies to administer, but they save employees much in terms of fees for counseling and other related services. EAP services also can be accessed by employers to help resolve complex employee relations issues.
3. Provide health savings and dependent care plans. Many employees choose high-deductible insurance plans, and they’ll likely value ways to offset out-of-pocket costs with pretax savings programs. Add flexible savings plans, health savings arrangements, and dependent care savings programs to boost compensation.
4. Offer low cost but creative “perks.” Considering the interests of your employees will allow you to think outside the box and add unique benefits to your compensation strategy. Update the workplace with special perks like new technology, aesthetic workspaces, and free beverages and snacks. This approach appeals to employees of all generations.
Each compensation package can use a little something extra to make it more attractive to candidates and to existing employees. Use the above ideas as you develop your compensation and benefits program this year.