4 Vital Items Your Employee Benefits Package Needs to Remain Competitive

Build a Standard Employee Benefits Package That Keeps Candidates Interested

Drawing top talent is a goal every employer should have. In competitive job markets where there are more businesses vying for the best of the best, it’s not always easy. So, how can you make a compelling offer to coveted job candidates?

One of the most influential factors that candidates consider when looking for a job is benefits. While a competitive salary is a must, the benefits you offer have the most sway at the end of the day. If you haven’t reviewed your benefits package recently, you should — and there’s no better time than the present.

To help you remain competitive, here are the top four benefits to include in your incentives package:

401(k) Plan

Saving for retirement is a top priority for many employees. After all, people work hard so they can have a stable financial future. Offering a 401(k) plan is a way you can help them accomplish that goal. Not only that, but it’s one of the first things prospective job seekers look for in an employee benefits package. If you don’t offer it, you’re already putting yourself behind in the competition.

Nowadays, the vast majority of companies offer 401(k) plans. However, many new and smaller companies may not have the resources to do so. Even if you can’t offer 401(k) matching, it is still valuable to provide a 401(k) savings package where employees can easily start building their retirement fund.

Start by offering at least a basic 401(k) plan, but once you are in a position to do so, offering 401(k) matching is a great incentive for employee retention, in addition to other more advanced benefits, like employee stock options (ESOPs).

Health Insurance

Healthcare is a major cost that individuals must take on if their employers don’t provide it, which is why it is one of the top considerations for candidates. A solid selection of healthcare plans should be a main aspect of your benefits package. If possible, you should have several options available that incorporate dental and vision. Additionally, you should ensure that the cost to employees is as low as possible. If you can offer a healthcare option that requires no employee contribution, even better.

Paid Time Off (PTO)

Workers today are passionate about their health, ability to travel, and work-life balance, particularly in the age of hybrid work models. As an employer, it’s important to recognize this need and offer a reasonable amount of PTO.

While some companies offer unlimited time off, there are other happy mediums where you can meet employees in the middle. According to the Bureau of Labor Statistics (BLS), the average PTO in the US is 11 days after one year of employment. When deciding how much PTO to offer, the general rule of thumb is to at least meet this average.

Another aspect of this benefit should be increasing the number of PTO hours accrued each year. Increasing PTO by one or two days for every year an employee is with the company is generally the standard nowadays.

Keep in mind that employees need time off for rest, relaxation, and to attend to personal matters and illness. After all, you don’t want to have a virus go around the office that has half your workforce out for a week.

Life Insurance

Many workers have others they are responsible for, whether it be a spouse, children, or even sometimes their parents. As such, a priority for them is ensuring that their family members will be taken care of financially if something should happen to them.

One way you should meet this need is by offering a life insurance policy as part of your standard benefits package. This is just one way to demonstrate that you’re invested in your employee’s well-being and have their best interests in mind.

In addition to basic life insurance, you can give your employees the option to invest in a higher-tiered life insurance plan that might cost them a little money out of pocket each month but provides them with even greater peace of mind.

Strengthen Your Benefits Package

When reevaluating your benefits package, it’s important to keep in mind that it’s a tool you can use to help attract and retain the best possible staff. With a strong benefits package, job candidates will be more inclined to join your team and stick with you.

Happy employees are loyal and hardworking, so it is in your best interest to provide what they want and need to feel valued in the workplace. If you already offer these four benefits, good on you. You may also want to consider what other perks you can offer to further set your company apart from the competition and secure top talent for years to come.

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[Editors’ Note: To learn more about this and related topics, you may want to attend the following on-demand webinars (which you can view at your leisure, and each includes a comprehensive customer PowerPoint about the topic):

1. It’s So Hard To Say Goodbye: Minimizing Risk When Terminating Employees
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This is an updated version of an article originally published on March 25, 2021.]

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