With unemployment at an all-time low, employers in every industry are having a hard time finding and recruiting capable employees. And even when they do find the “right fit,” sometimes new hires don’t show up for the first day!

As the workforce changes (welcome, Generation Z), so have employee expectations about benefits packages. The “standard” benefits package (health insurance and two weeks of vacation a year) is no longer enough to find (and keep) quality employees. It’s not unusual to hear of companies that have beer on tap, on-site childcare, and even meditation rooms.

For companies to attract and keep quality candidates, 2020 may be the perfect time to adjust their benefits packages. However, not every company can afford an on-site masseuse, but that may not matter. Offering benefits that employees want, need, and will use, is far more important than providing benefits that “sound cool” but don’t really benefit anyone.

Benefits and Perks

Before you open up the floodgates to a parade of Chihuahuas to come to your office, know that there is a difference between a benefit and a perk.

A benefit is a form of indirect compensation beyond regular salary and wages. While benefits are not usually cash payments, in some cases (like a bonus), they are. In general, benefits are considered an “extra,” and employers are not required to offer them. That said, some benefits are required by law. Examples include Social Security and Medicare payments made on behalf of the employee, and time off to vote and serve jury duty.

However, most employers offer benefits to attract and hire quality candidates. Typical benefits include:

• Paid vacation time
• Life insurance
• Retirement benefits
• Disability insurance
• Gym memberships
• Incentive or bonus payments
• Health insurance (when not required by law)
• Tuition reimbursement

Employee perks, on the other hand, are an added bonus on top of the benefits package. These are additional benefits that companies offer as an incentive to work for the company. Perks can include:

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• A company car
• Summer Fridays
• Standing desks
• Flexible or remote work arrangements
• Game rooms
• Relocation assistance
• Paid parental leave
• Unlimited vacation
• Volunteer opportunities
• Catered lunch and snacks

As you create a benefits package, keep in mind that whether it’s a perk or a benefit, it is probably taxable. The IRS has a comprehensive guide to what is and isn’t taxable to help guide you as you create your benefits and perks package.

What Do Candidates Want Beyond Salary

Taxable or not, employees consider the overall employment offer—which includes the benefits package—when contemplating a job offer. For some potential hires, the perks and benefits are more important than the salary, which means they may accept less salary in exchange for better benefits.

But no matter how amazing the benefits package is, salary remains an essential aspect of any job offer. Offering too little—even with a comprehensive benefits package—may not be enough to stay competitive in a tight labor market. And, even when times are tough for job seekers, a low salary may mean your employees are less happy, which, in turn, makes them less productive and more likely to leave your company when the economy improves.

There are studies that say the “perfect” salary is between $60,000 and $95,000 and that anything else is “gravy.” But, where your employees live, their student loans, and the rising cost of housing (among other things) may mean that the “perfect salary” doesn’t go as far in some markets as others. A sabbatical, for example, doesn’t help the staff pay their bills.

Salary will remain a crucial aspect of any job offer. However, looking beyond salary, what are job seekers looking for in a benefits package in 2020 and beyond?

Culture

Corporate culture is one of those buzzwords that seems to never go away. But a company’s culture can go a long way toward recruiting, hiring, and retaining staff. In fact, creating a corporate culture that people identify with and support is easily one of the more important things you can do to help with your recruitment efforts.

Creating a rich benefits package gives candidates a glimpse into the company culture and can be a powerful recruitment tool. Offering benefits that employees want and need demonstrates that the company values their employees as people, and is willing to contribute to their well-being.

However, a benefits package is only one part of creating a culture people want to work for. Many employees seek a culture of engagement—meaning they want to work someplace where they feel their voice is heard and their opinions matter. While it’s not always easy, allowing staff to air their concerns and contribute to the solutions helps them feel empowered and more connected with the company. This, in turn, makes them more loyal and productive employees.

Diversity and Inclusion

Another important cultural aspect that job seekers want from their next job is a company that has diversity and inclusion initiatives. This means seeking out, hiring, and retaining candidates from a variety of backgrounds, races, and experiences.

Not only will a solid, well-managed diversity program help employers hire and retain staff, a diverse workforce benefits the company’s bottom line. Several studies have found that a company with a substantial diversity program is perceived more positively by clients and by potential candidates. This, in turn, leads to more candidates interested in working for that company, and it helps employees stay more engaged and productive.

Positive Onboarding Experience

Creating a positive onboarding experience helps new staff feel welcome and comfortable during the first few months on the job. To create that experience, though, it’s important to do more than introduce the new staff person and send them to a few orientation and training sessions.

A positive onboarding experience includes outlining to them what’s expected of them, not just in the first few weeks on the job, but the first few months, and even the first year. Employees want to know what the future may hold for them at the company, so share with them what their potential career path is and what they need to do to advance themselves professionally. The onboarding experience can also include connecting them with a mentor (that isn’t their supervisor) that can help guide them through the job and the company.

While this may seem a bit extreme given that candidates ghost employers all the time, a positive onboarding experience helps ensure that new hires show up and keep showing up for work. And, no matter what the economy looks like, employees who had a negative onboarding experience say they are less likely to remain at their jobs or recommend the company to other people in their network.

Transparency

While not everything should be shared with the entire company in the name of transparency, most new hires expect employers to be more transparent than ever. Not only do they expect employers to be transparent and communicative about the hiring process, they also expect the same effort regarding the promotion process.

Candidates and employees want and expect employers to explain what criteria they use for hiring and promoting people. They want employers to lay out clear career paths, and explain not only what an employee needs to do to advance their career, but how the company will help them achieve this goal.

This level of communication and openness helps employees trust their employers, which helps employees feel that they are part of the larger corporate picture. By not keeping employees in the dark, they are more likely to feel that they are an important part of the company and integral to the company’s success.

Social Responsibility

A solid corporate social responsibility plan can help with recruiting and retention in many ways. One study found that 51% of people won’t work for a company that doesn’t have strong social or environmental commitments. And 70% of workers say that they are more loyal to a company with a social responsibility policy.

However, having a social responsibility policy isn’t enough. Working for a company that supports and believes in a cause is a good start. But merely donating money to the cause is not enough; having the opportunity to support the policy is what really matters to employees.

Allow employees to engage directly with the cause. For example, creating opportunities during the workday for employees to volunteer for the cause means more to employees than one large donation at the end of the year.

There may also be causes that are important to staff for personal reasons. A donation matching program helps support staff and the causes that are important to them. If that’s not possible, simply allowing staff to volunteer for the causes they believe in during work hours goes a long way toward fostering employee loyalty.

Student Loan Repayment

This is different than the familiar tuition assistance perk. Employers offer tuition assistance to help employees further their education and advance their careers at the company. While a generous perk to offer current employees, given that the average student loan balance in 2019 was $35,359, many job seekers aren’t interested in advancing their education until they pay off their current student loans.

Employer assistance in paying back student loans is an increasingly popular perk. While not yet as common as other perks, there are a growing number of companies offering this perk, and a growing number of ways to administer the benefit.

Family Benefits

The Family Medical Leave Act (FMLA) requires companies with more than 50 employees to provide 12 weeks of unpaid leave for qualifying life events. However, the key word is “unpaid.” And, not all companies have to offer FMLA leave to employees, leaving many staff in a bind.

Offering paid leave beyond FMLA leave (or in addition to it), is a sought after benefit for job seekers and employees. And it won’t just take the form of paid parental leave. As employees expand their families with children, they may also find themselves having to care for aging relatives. Employers that allow staff to take a paid leave to assist with any family member will find themselves at the top of many job seekers’ lists.

Beyond paid leave, there are other forms of family benefits employees want as well. Back-up child care, adoption assistance, even fertility assistance are becoming desired benefits. And, as some people choose not to have children, companies are expanding benefits to include fur-babies too, including pet insurance or paying for pet daycare.

Flexible and Remote Work

A standard 9-to-5 workday is becoming a thing of the past. Thanks to faster Internet connections and a global economy, more and more employees are looking for jobs that can accommodate their lifestyle with flexible work options.

FlexJobs 2019 Super Survey found that 30% of workers that left a job did so because it did not offer flexible work. And that same survey found that 80% of employees would be more loyal to their employers if they offered flexible work options. As if that weren’t enough, 69% of respondents said that flexible work was one of the most important factors they considered when evaluating a job offer.

But having flexible options doesn’t only mean working different hours. Flexible work includes remote work options. Companies that seek top-level talent pay top-level salaries (with excellent benefits). But in some markets, that salary may not be enough to cover the rent.

Allowing employees to live where they want helps companies in two ways. First, without geographical restrictions, you can tap into a vast talent pool that isn’t limited by zip code or community options. Plus, you don’t have to pay for relocation expenses. Second, contrary to popular belief, remote employees tend to be more productive than their in-office counterparts.

It’s not just employees reporting that they feel more productive when they are allowed to work remotely. A Harvard Business School study measured the productivity of U.S. Patent Office employees who were allowed to work from home and live anywhere. Compared to their in-office counterparts, the work-from-home employees were 4% more productive.

Offer the Right Benefits

It’s great to have office happy hours, free-flowing beverages, and even office pets. But not everyone wants to hang out with their office mates or has a Fluffy or Fido to bring to work. While that doesn’t mean employers can’t (or shouldn’t) offer these things, offering benefits that matter to job seekers will help employers attract and maintain a wide and well-qualified talent pool for their hiring needs.

Fortunately, you don’t have to wait to get your new benefits package in place before you work on your talent pool. FlexJobs has a pool of unique and hard-to-reach job seekers, like millennials and digital nomads, who are ready to work today. Discover a better way to recruit remote talent!
 

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