Total Rewards #2- Benefits
Benefits work best as a package that complements your compensation program.
There is no evidence that a “rich” benefit package provides engaged workers as long as your organization offers something similar to other employers in your area. There is some link between your health care coverage and retention, especially if your organization drastically lowers the coverage or raises the employee contribution.
Two benefits are important to attract candidates to take your job offer—health care and retirement. Most organizations contribute more than 50% toward family health insurance and at least 3% of pay to a defined contribution retirement account. If you offer less than this then you may have a hard time encouraging top candidates to leave their current position to join your firm.
Flexible hours or at least the flexibility to occasionally leave work to address personal needs is greatly appreciated as many workers have either children or parents that need assistance (or both).
Time off is also somewhat important to attract employees. Employees also expect a reasonable amount of paid time off – if you do not allow any vacation for the first year this may not be attractive to a new candidate.
Offer a competitive benefit package for your area and industry, and focus on the big three: health care, retirement and time off.
Contact us for a summary of benefits offered in WNY and USA
Image courtesy of Stuart Miles at FreeDigitalPhotos.net