The modern benefits package: what employees really want

The modern benefits package: what employees really want.

In today's competitive job market, benefits packages have become a crucial factor in attracting and retaining top talent. Gone are the days when a decent salary was enough to keep employees satisfied. Modern workers seek comprehensive benefits that support their overall wellbeing, professional growth, and work-life balance. I recently did a poll to see what the most important part of a benefits package to people was and I have included the results in this article, which also explores the key components of a benefits package and highlights what the majority of people desire to be included.

1. Financial benefits

Bonuses, commission, and incentives: performance-based bonuses and incentives are highly motivating. They not only reward hard work but also align employee goals with company success. In a recent COREcruitment poll, this was ranked the most important part of a benefits package with 50% of the vote.

For those who work in sales roles focussed on winning new business, a commission structure is often preferred as it offers greater incentive based on their own personal performance and allows them to openly determine how much they can earn.

Bonuses are most commonly paid out annually and based on personal and business performance. However, with one of the most common causes of employee dissatisfaction being not getting paid a bonus due to businesses not hitting their targets, when the individual has performed well and hit their own personal targets, we are finding that businesses are now often splitting this into two separate payments to reflect personal performance bonus and business performance bonus. We are also seeing growing trend of bonuses being paid out bi-annually with greater incentive for the second payment, to keep driving productivity.

Pension: retirement planning is a major part of a benefits package and came second in a recent COREcruitment poll, with 26% of the vote. Employees want assurance that their future financial security is being considered and supported. Statutory pension of 8% (5% employee and 3% employer) is most common, however many businesses are not only matching monthly contributions, but they are also going well above and, in some cases, offering up to 15% monthly contributions.

Financial planning services: Employee Assistance Programmes (EAP) which offer access to financial advisors and planning services helps employees manage their finances more effectively, from budgeting to investing and debt management.

2. Health and wellness benefits

Private health insurance: private health insurance remains a cornerstone of any benefits package. This came third in a recent COREcruitment poll, with 14% of the vote deeming it most important. Employees look for comprehensive plans that cover medical, dental, and vision care. This is most commonly offered to the employee only; however, many companies are now offering this to include the employee’s direct family too.

Mental health support: with increasing awareness of mental health issues, employees now prioritise access to mental health resources. This includes coverage for therapy sessions, mental health days, and wellness programs aimed at reducing stress and promoting mental well-being.

Wellness Programs: wellness programs that promote healthy lifestyles are highly valued. These programs may include gym memberships, fitness challenges, nutrition counselling, and regular health screenings.

3. Work-life balance

Flexible working arrangements: the demand for flexible working arrangements has skyrocketed, especially in the wake of the COVID-19 pandemic. Employees appreciate options such as remote work, flexible hours, and compressed workweeks, which allow them to better balance personal and professional responsibilities. This came fourth in the poll with 9% of the vote.

Paid time off (PTO): generous PTO policies, including vacation days, sick leave, and personal days, are essential. Employees value the opportunity to take time off to recharge without financial penalties.

Parental leave: parental leave policies that support both mothers and fathers are increasingly important. Employees look for companies that offer substantial paid leave for new parents, recognising the importance of family time during critical life events.

4. Professional development

Training and education: continuous learning opportunities are a significant draw for employees. They seek companies that invest in their growth through professional development programs, tuition reimbursement, and access to online courses and workshops.

Career advancement: clear pathways for career advancement, including mentorship programs and leadership training, are highly valued. Employees want to know that their employer is committed to their long-term career progression.

5. Additional Perks

Employee Discounts: discount programs for various products and services, such as travel, entertainment, and technology, are popular. These perks enhance employees' purchasing power and overall satisfaction.

Onsite amenities: onsite amenities, such as free meals, wellness rooms, childcare facilities, and transportation services, can significantly enhance the workplace environment and convenience for employees.

Recognition programmes: regular recognition and rewards for achievements, whether through formal awards or informal acknowledgments, contribute to a positive and motivating workplace culture.

Conclusion

A well-rounded benefits package is essential for attracting and retaining talented employees in today's competitive job market. While health and wellness benefits, financial security, work-life balance, and professional development are critical components, additional perks and recognition programs also play a significant role. Employers who understand and address these needs will not only boost employee satisfaction and loyalty but also enhance their overall business performance. By investing in comprehensive benefits packages, companies can create a supportive and dynamic work environment that benefits both employees and the business as a whole.

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Date Published: 24th May 2024