In today’s competitive job market, attracting and retaining top-tier talent can be challenging. Winning over the best candidates requires a combination of perks, including a competitive salary, workplace flexibility, great leadership and sought-after benefits. According to Willis Tower Watson, 78 percent of employees reported that they were more likely to stay with an employee because of their benefits program.
While each business has its financial limitations when it comes to offering employee benefits, here are some of the most popular benefits that businesses use to attract and retain employees.
1. Medical Insurance
Medical insurance remains one of the most desired benefits among employees in all industries. Health care is expensive and for many people, unaffordable without employer-sponsored insurance. Employers can use this opportunity to offer generous medical benefits that help boost employee health and overall satisfaction. Also, consider offering other wellness benefits to enhance employee benefits packages, such as exercise programs, free gym memberships, weight loss programs, nutrition counseling and smoking cessation programs.
2. Dental & Vision Insurance
In addition to medical insurance, employers should consider offering both dental and vision coverage. Businesses that take a whole-person health approach to address the unique needs of employees often find that workers are more motivated and productive.
According to an annual Employee Benefit Research Institute Survey of employees, dental and vision insurance were among five benefits that have become increasingly common in recent years. With vision coverage, employees can undergo routine eye exams with a licensed ophthalmologist or optometrist. Dental insurance typically covers regular exams and other essential services.
3. Flexible Spending Account (FSA)
Employees that have health insurance through their job can benefit from a Flexible Spending Account. An FSA can be used to pay for deductibles, copayments, certain drugs and other health care costs. This type of account can also help reduce an employee’s taxes. Although FSAs are limited to $2,850 per employer, per year, these funds can be quite useful when faced with medical and dental expenses. A Flexible Spending Account can be a great addition to other health and wellness benefits.
4. Disability Insurance
Disability insurance provides employees with partial income helping them to continue to pay their bills if they ever become too sick or injured to work. Some employers offer both short-term and long-term disability benefits. With a short-term policy, employees receive immediate help after an incident. As some disabilities can last for years, long-term disability coverage is also essential. Offering disability insurance as part of a comprehensive benefits plan can provide employees with peace of mind.
5. Health Savings Account (HSA)
A Health Savings Account (HSA) is a type of savings account that allows employees to put money aside on a pre-tax basis to help pay for qualified medical expenses. Untaxed dollars in an HSA can be used to pay coinsurance, copayments, deductibles and certain other expenses. A High Deductible Health Plan (HDHP) is required to contribute to an HSA. In 2022, individuals with an HDHP can contribute up to $3,600 for self-only coverage or up to $7,200 for family coverage.
6. Life Insurance
Life insurance is a valuable asset that has a significant impact on a person’s financial planning. Employees who have access to life insurance through an employer can protect their loved ones with financial support upon their death. Businesses often offer group term life insurance as part of an employee benefits package. An employer may choose to pay for some or all of the premium costs. Employees typically have the option to purchase additional coverage at their own expense.
7. 401(k) & 403(b) Retirement Plans
Some of the most popular retirement plans offered by employers include 401(k)s and 403(b)s. Both types of retirement plans are named after sections of the tax code and are considered tax-advantaged retirement vehicles. The main difference between the two plans is the type of employer who is sponsoring them. Most 401(k) plans are offered by private, for-profit companies, while 403(b) plans are offered by government employers or nonprofit employers. Both 401(k) and 403(b) retirement plans offer Roth options.
8. Pet Insurance
Pet insurance is becoming more common in employee benefits packages as more businesses recognize the many benefits that pets can bring to their owners. Pet insurance is a type of health care policy for a pet that reimburses the owner for certain medical expenses.
If a pet should become ill or injured, pet insurance would help pay for all or a portion of the expenses. Similar to health insurance for humans, pet insurance requires a monthly premium. Some plans also require a deductible and may exclude preexisting conditions and certain illnesses.
9. Employee Assistance Program (EAP)
According to the Bureau of Labor Statistics, approximately 54 percent of all employees in the U.S. have access to an Employee Assistance Program (EAP). An EAP is a type of workplace service that helps employees cope with a wide range of stress-related situations. Employees are given access to an on-site licensed counselor or an outsourced third-party processional. Many types of benefits are offered under EAPs, such as assistance with legal issues, addiction treatments, stress reduction, work concerns, financial counseling, traumatic event counseling and child and eldercare issues.
10. Vacation/Paid Time Off
Some of the most sought-after benefits among employees are vacation days and paid time off (PTO). Providing employees with access to paid vacation and sick days allows workers to better maintain their physical and mental health. PTO can also help workers achieve a healthier work-life balance that allows them to stay productive at work while relaxed at home. According to the Bureau of Labor Statistics, more than 70 percent of employees in the U.S. currently have at least one form of paid time off.
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With a tighter job market, it has become increasingly difficult for employers to attract and maintain qualified professionals. Many organizations have already taken the necessary steps to improve their benefit offerings to appeal to a wider audience. To learn more about what benefits are most likely to retain talent, or to speak with an experienced benefits consultant about building a better benefits package, contact the experts at Business Benefits Group.