The rise of the gig economy over the past decade has made job seekers far more selective when deciding on a place of employment. Today, as your company builds its workforce, there is a corresponding need to spell out all the benefits you offer. While a competitive salary is still the top priority for job searchers, a comprehensive benefits package’s added value can’t be overstated. If your company hopes to recruit and retain top-notch talent, take some time to compare what your company offers with what applicants are seeking.
Choosing the right package for your employees will require dedicated research time along with a clear-eyed willingness to consider what your current plan may be lacking. To help you get started, here are ten popular benefit categories for your checklist.
1. Matching Contributions to 401(k) Plans
Tax-advantaged retirement savings are easily one of the employee’s top five concerns after salary. A 401(k) matching plan means that your company agrees to match an employee’s contributions taken out of pretax earnings. Most employers choose to cap matching gifts, typically at a certain percentage.
For example, your company might agree to match 100% of employee contributions up to 4%. An employee earning $50,000 annually would mean a potential matching contribution of no more than $2,000/year. Again, that amount may vary based on employee participation. If your company doesn’t offer this benefit, consider adopting a small business 401(k) plan that meets applicant expectations and your financial realities.
2. Life Insurance
Any unexpected loss of life causes tremendous grief and turmoil. Most job seekers will want to protect loved ones from the added burden of financial hardship. Employers can show they care by offering their new hires a few life insurance options.
There are two main types of life insurance: term and whole. Term life insurance remains in effect for a predetermined amount of time. There is no payout if the employee doesn’t die during the policy period. On the other hand, whole life insurance pays out as long as the plan is kept up-to-date. Learning the advantages and disadvantages of each can help you make the right choice for your company.
3. Worker’s Compensation Insurance
In addition to physical injury and pain, workplace injuries can cause financial suffering as an employee cannot work. Companies can make themselves more appealing to job applicants by offering more than the minimum. The lone exception of Texas requires employers to provide workers comp.
Workers’ compensation plans provide employees with financial protection and medical care for workplace injuries. If an employee is injured on the job, that employee receives income and help with medical expenses. Companies that go above and beyond what the law requires to offer reassurance to job seekers, especially those in higher-risk occupations.
4. Disability Insurance
Like workers comp, disability insurance protects an employee’s income in the event of illness or injury. Employees are entitled to a portion of their monthly income if they cannot perform their duties.
Disability insurance is also called “disability income insurance” or “income protection.” Monthly payouts are proportional to an employee’s income from their illness or injury.
5. Stock Options
Stock options offer employees the benefit of receiving or purchasing company stock. Giving employees a chance to invest in their company is a great way to increase workplace engagement. Financially speaking, as the tide comes in, everyone’s boat is lifted.
Employers can offer two primary types of plans: stock options and stock ownership. A stock option plan gives employees the right to buy company stock. On the other hand, stock ownership plans typically involve making direct stock contributions to an employee’s retirement plan.
6. Relocation Reimbursement
Relocation reimbursement plans help employers attract and secure needed talent outside their local community. When an employer identifies a valuable addition to their team, they may sweeten the deal by reimbursing relocation expenses.
Some employers go beyond traditional “moving expenses” and offer mortgage assistance, apartment subsidies, and more. Knowing what to include in a relocation reimbursement plan can help create the most enticing benefits package to lure potential employees.
7. Commuter Benefits
Commuter benefits are excellent incentives in metropolitan areas with public transportation systems. Employers can provide pretax transportation credits, train tickets, or subway passes.
Learning about commuter benefits plans will help create one that is relevant to your workforce. Learning about commuter benefits programs will help make one suitable for your workforce. Such perks are a benefit for employees and employers alike. They help employees keep more earnings while reducing the number of properties employers must allocate for parking.
8. Unlimited Paid Time Off
Unlimited paid time off (PTO) began as a way for startups to compete with larger companies offering higher salaries. This vacation policy allows employees to take days off for any reason as long as managers approve the request.
Unlimited PTO, though, does require a great deal of employer-employee trust and effective workload management. Still, if you lead a company with some flexibility, this might be an enticing benefit.
9. Paid Volunteer Days
Paid volunteer days are an effective way for an employer to demonstrate a socially conscious organization. This benefit functions much like a paid vacation day, except employees spend time serving the community. Employers often partner with local food banks or homeless shelters and suggest possibilities for employee volunteer days.
10. Office Happy Hours
Office happy hours can be a fun way to help employees relax after a long week. Allowing employees to share food, beverages, and work jokes helps build team camaraderie.
Employers that don’t offer office happy hours should consider them — they tend to cost much less than other benefits. They’re also fairly easy to implement. Of course, you’ll want to sign up for some designated drivers, so offer non-alcoholic beverages at every event.
The Advantage of Offering Unique Employee Benefits
Developing an employee benefits plan that mixes unique perks with standard offerings will make your employees feel valued. Skilled applicants will be attracted by a holistic approach that supports financial, physical, and mental wellness. When seeking top candidates, anything that differentiates you from competitors can be helpful.
