Of All the Means to Create Incentive with An Employee, Employee Benefits is Still King
A shrinking workforce, higher operational costs, and many overseas economies on the rebound, employee benefits have gone from an employee incentive to a employer necessity
Attracting and retaining talented professionals is not always about money.
Your ability to offer key benefits will appeal to potential employees and generate loyalty and a sense of pride with your current employees.
A well thought-out benefit plan can improve productivity as employees are more effective when they are assured of security for themselves and their families.
When employees take pride in their employer and the way their employer treats them, turnover is reduced.
When in negotiations with a prospective employer, the candidate has 3 things in mind…
- What can you do for my family immediately?
- What can you do for my family in the near future? and
- What can you do for my family in the long term?
Each benefit you offer will be considered within this context — salary, of course, is an immediate benefit…
Immediate Benefit: Health Insurance
The most valued benefit is health insurance, according to the Employee Benefits Research Institute.
Approximately 98% of respondents offer
- long-term disability
- short term disability and
- accidental death and dismemberment insurance
according to the Society for Human Resource Management’s 2012 survey.
With that many employers offering the basics, you must find a way to make your benefits distinct.
Offering several different deductible options, differing plans with lower premiums from a larger number of providers can make your organization more appealing.
With Obamacare looming, businesses are scrambling to find health insurance plans to avoid paying penalties.
Near Future: Financial & Compensation Benefits
Benefits such as sick days, vacation days, and holidays are offered by 99% of employers.
Peak potential candidates interest in your company by offering a unique work environment.\
Flexible work hours or the ability to work from home is very common.
Working remotely is very popular and can give an employee an immediate sense of trust.
Other programs to note…
- Preventative health and wellness benefits such as smoking cessation programs, health assessments and wellness assessments are on the rise in the last 4 years — from 72% in 2009 to 77% in 2013
- 61% of organizations offer undergraduate educational assistance, and
- 59% offer graduate educational assistance
A 2012 study by SHRM revealed the maximum reimbursement allowed for tuition expense on average is $4,980.
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Long Term: Retirement Savings and Planning Benefits
According to the SHRM study, 92% of employers offer defined contribution retirement plans.
Establishing an employee retirement plan may offer tax benefits.
Often, employer contributions to retirement plans are generally tax-deductible.
Also, your business may be eligible for a tax credit for establishing a qualified retirement plan.
The United States Department of Labor Employee Benefits Security Administration has a website to help you choose a retirement plan to suit your business needs.
If you are one of the 86% of small businesses that have 10 or fewer employees and are not offering retirement plans, click here to view more stats about small business retirement obstacles and potential ways to solve them.
The Last Word
Everyone everywhere — and we are talking globally — is struggling to find the resources that have the skill sets needed for the opportunities they have available.
This is compounded by a shrinking workforce in most countries as well as emerging countries, who have the most resources, are finding they don’t have skill sets as well.
It has become both a employer’s and an employee’s market — and being honest on what you can do and offer as an employee, as well as what you can offer as an employer, is going to pay dividends down the road, even if it means some pain today.
Learn to leverage however you can to obtain the best benefits for your employees — insurance co-ops are starting to rise in number, see what you can gain there.
But the most important thing you can do for any employee, at any level, is provide appreciation — this is the number one request from all employees.
After all, anyone may make more someplace else, but the luster of that fatter check will wear off soon if appreciation is not being provided.
What Are Your Thoughts?
✔ What research and/or services can The HRIS World do for you and your company when it comes to employee benefit programs or even employee retention?
Please share your thoughts with us and our audience in the comments section below! You can always reach us directly from our contact page should you have any questions or you can reach the author via email, social media, or by leaving a comment…
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Garrett is the publisher, editor, writer forThe HRIS World Research Group, which includes The HRIS World, The HRIS World Research, The HRIS World Jobs, The HRIS World News, and The HRIS World Videos
With more than 20 years in roles as a client executive sponsor (#thwCES), project manager as well as functional / technical lead, Garrett is sought for his expertise for project insights, thought leadership, and team management globally.
He has been involved in large-scale and complex implementations since 1991 and has recently moved his operations to be with his wife in Brazil.
Garrett has had the pleasure of working with some of the greatest talents in the industry, and constantly shares his experiences and knowledge through content and webinars.
He maintains his fluency in Portuguese, German, French, and English with his various endeavors and contacts..
When not working, you will have to be adventurous to stay up with him as Garrett loves motorcycling, gunnery, boating, sailing, flying, and sports fishing -- and accompanying his wife on her various likes
About The HRIS World Research Group
The HRIS World blog, which is read by more than 50,000 from more than 160 countries monthly, manages to have more than 550,000 pages viewed monthly. 40%+ of the audience are decision-makers in their organization (and about half of that being C-levels!).
As CEO for CGServices USA Inc, he focuses on multi-provider, multi-line implementations consultation for HRIS systems
Council and Education Member of Gerson Lehrman Group Council, helping institutions of the world leaders meet, engage and manage experts across a wide range of sectors and disciplines.
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