Between 2021 and 2022, the US was in the midst of the “Great Resignation,” a period of high job turnover in which employees sought better opportunities. Along with that, market competition rose and the battle for top talent became more and more intense.

Companies are looking for new and innovative ways to attract and retain top talent and avoid the high rates of turnover we’ve seen in recent years. Salary is part of it, but the secret weapon is employee benefits.

Benefits have always held value for employees as part of a competitive compensation package, but the specific benefits have changed. The right combination of benefits can help your company stand out to the top candidates.

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Attracts a wider pool of talent

Employee benefits used to be a one-size-fits-all package. Now, candidates are looking for versatile benefits packages that they can cultivate to suit their individual needs. If you offer personalized benefits packages, you can make your company appealing to a wide variety of candidates.

For example, someone with a chronic health condition or high medical expenses may want a health savings account (HSA) to set aside pre-tax funds for their qualified medical expenses, while someone with no health concerns may prefer a high-deductible plan with a low monthly premium for basic medical care.

This extends beyond just healthcare, however. Some candidates may be seeking opportunities to advance their careers, such as tuition reimbursement or on-the-job training and mentoring. Offering these benefits can appeal to ambitious professionals looking to further their skills and knowledge.

Demonstrates your company culture

A positive company culture is a crucial part of increasing employee engagement and retention. Employees who feel connected to the company culture are more likely to be engaged in their work and invested in long-term business success.

When you offer benefits that extend beyond the standards like healthcare and life insurance, you show that your company values the holistic health of its employees and is committed to a supportive work environment beyond just professional contributions. For example, offering mental health days or wellness programs gives current employees and new hires a sense of what’s important to you.

Benefits that cater to diverse needs, such as childcare services or paternal leave, can also make your employees feel valued and included. These benefits reveal a commitment to an inclusive workplace that supports all employees.

Another aspect of your company culture that attracts both talent and customers is corporate responsibility. You can weave these values into your benefits package by nurturing a culture of “giving back” and making a positive impact on society. Volunteer time off, matching charitable donations, and creating sustainability programs can attract candidates who share these values and ideals.

Improves brand image

A strong benefits package can help your company’s employer brand and reputation within your industry. Companies that offer comprehensive and attractive benefits packages are often revered as some of the best places to work, setting benchmarks for others to follow. This positive image can go a long way toward attracting top talent – and keeping them loyal to your company.

Better yet, employees are likely to discuss their positive experiences with benefits, both within their networks and on platforms like Glassdoor or Indeed. Positive reviews and word-of-mouth referrals from current employees can attract new talent and build a strong employer brand that appeals to top talent.

Increases employee morale and loyalty

As mentioned, employees are more likely to stay with a company that keeps them engaged and makes them feel valued. Comprehensive benefits contribute to higher job satisfaction by addressing more than just the basics. Instead, they cover virtually every aspect of an employee’s life, from their health and well-being to their financial stability, family needs, and future career goals.

Satisfied employees are more committed to their employer, reducing turnover rates and your costs for recruitment and training. In addition, investing in employee well-being through benefits creates a positive work environment that fosters loyalty. Long-term benefits, such as career development opportunities or tuition reimbursement, show employees that the company is invested in their future and wants them to succeed.

Leads to better productivity and performance

Benefits that support mental health, physical wellness, and financial stability can lead to higher productivity. For example, employees who have access to mental health support are better equipped to handle stress and remain focused on their tasks. If they begin to feel overwhelmed or burned out, they know they have support and where to turn for help.

Other initiatives related to health can help with productivity and performance. For example, fitness programs and wellness initiatives can improve employees’ physical health, reducing the number of sick days they take and enhancing overall performance. Mental health resources can help employees manage stress and stay positive, which can directly enhance their work performance and creativity.

Creates a competitive edge

It’s one thing to offer a comprehensive and attractive benefits package and another to make it simple and convenient for employees. Best-of-breed benefits technology can simplify the administration of benefits, making it easier for employees to understand what’s being offered, educate themselves on their options, and access their plan details. This not only helps employees but reduces the administrative burden on HR teams and improves overall efficiency.

On the HR side, benefits technology often includes data analytics tools that help organizations track benefits usage trends and gather insights. This data can help you make decisions about which benefits employees appreciate and which benefits offer a good return on investment. With these insights at your fingertips, you can ensure that your offerings align with employees’ needs and preferences – while keeping an eye on your bottom line.

The ROI of employee benefits

Employee benefits have the potential to attract the best talent on the market and build a happier, healthier, more engaged workforce. Instead of thinking of benefits as a bonus for employees, you should view them as strategic components of your total compensation.

Employee benefits play a role in shaping your company’s image to prospective candidates, positioning your company as the employer of choice. You can attract and retain the talent you need to reach your business goals, scale, and succeed. Benefits contribute directly to your company’s growth and sustainability, and tailoring them to meet the expectations of discerning candidates can improve your hiring outcomes and overall company health.

Create a benefits package that draws talent in

A diverse and comprehensive benefits package does more than provide support to employees. It attracts top talent, keeps employees satisfied and committed to your company, boosts your brand reputation, and offers a competitive advantage. When you invest in benefits that are the best for your employees, rather than sticking with the industry standard, you can create a compelling value proposition that attracts top talent and fosters a thriving, engaged workforce.

About the Author

Frank Mengert

Frank Mengert continues to find success by spotting opportunities where others see nothing. As the founder and CEO of ebm (https://getebm.com) a leading provider of employee benefits solutions, Frank has built the business by bridging the gap between insurance and technology-driven solutions for brokers, consultants, carriers, and employers nationwide