If you manage the employees benefit programs at your company, you probably have been busy. That’s because 51 percent of workers have said their employers are adding benefits or increasing what’s available in the programs they already offer during the last part of 2021 and the first part of 2022.
Having those new and existing benefits available to employees has come in handy to the companies that made those changes. Benefits have surged in importance because the business world continues to cope with The Great Resignation.
People continue to resign in large numbers, with more than 4.5 million people resigning from jobs in March 2022 — a record. The total number of people who have resigned in 2021 and 2022 is more than 60 million.
At first, people left because they waited until the pandemic was over. Workers also felt burned out, depressed, and wanted something different in their life. Others wanted to continue working remotely rather than go into the office.
But as one wave left, another wave of resignations followed. Now people want their needs met by their employer, and great candidates hold more leverage in the hiring process.
Candidates and employees want all kinds of benefits: remote work, wellness programs, mental health coverage, financial wellness, and on-demand pay, among other benefits in demand. Companies have had to reevaluate their benefits plans, including deciding whether to add one or multiple benefits at once. With the changes in the workforce, it appears to make sense to have as many benefits at your fingertips as you try and hold on to valued employees. Many companies are adding as many benefits as they can afford. Companies that don’t are left to compete with less to offer employees and candidates in the new environment.
Is your company still considering whether to add benefits to your plan? Here is some information to help you sort it out.
The importance of benefits
Benefits can be expensive. Glassdoor reports that benefits like health insurance, retirement packages, and paid time off make up about a third of the compensation package, and that figure is rising. They do add to the total compensation workers receive. The U.S. Bureau of Labor Statistics says benefits cost employers $12.20 per hour and makeup 31 percent of total compensation.
But benefit costs do not seem so expensive when compared to the costs of recruiting a new employee. It costs more than $4,000 to hire someone new and takes on average 42 days to do it, according to the Society for Human Resource Management. There’s also lost productivity as positions remain unfilled and staffers need to dedicate time to the search and interview processes.
Benefits make companies competitive for talent
Benefits are great differentiators among competing employers for new talent. A good benefits package with health insurance, retirement, a wellness plan, employee meal benefits, and other perks can help companies separate themselves from the pack.
Happy employees will stay at a company longer too. It’s easier to retain employees who are engaged with your company. Having a strong benefits package helps.
Your company branding is also extremely important. Like it or not, benefits are part of it as employees will share benefit plans with friends and compare with other plans on the internet.
Companies are exploring multiple benefits
To remain competitive, it’s essential that your company have a good benefits package. In the past, that might mean work perks like M&M’s in the employee lounge, but not anymore. Instead, the focus has moved to big picture benefits like health insurance, retirement, time off, wellness plans, and more.
Instead of impressing employees with a list of benefits and work perks, there’s more depth in the benefits list as companies focus on mental health, meal plans, commuter benefits, on-demand pay, micromobility commuting, and more.
Multi-benefit solutions can help
With so many benefits available, it can be challenging for benefits managers to figure out what additions would make the most sense for their company. At Edenred, we’re a multi-benefit provider that offers several solutions that can help businesses increase their positions as employee benefits leaders.
Our offerings include:
- Commuter Benefits – Employees save money tax-free from their paychecks to spend on qualified commuting Businesses save because payroll taxes decrease.
- Micromobility – Commuting is changing, and Edenred offers shared mobility options that can be integrated into one commuter account. We’ll help you stay compliant if you want to offer your employees the chance to use bike sharing, bike shops, e-scooters, e-mopeds, or corporate shuttles.
- Lifestyle Spending Accounts – Wellness plans with various offerings that you can customize to your employees’ desires. Use it for employees’ health, fitness, general health, or well-being programs.
- Ticket Restaurant – Employees use prepaid cards to purchase food from restaurants, grocery stores, and delivery apps. Food benefits often have a considerable impact on company culture.
- AnytimePay – Let employees access their earned wages early rather than wait two weeks for a paycheck. They can buy groceries, order from food delivery apps, or eat at restaurants with a prepaid card.
Are you interested in offering more benefits to your team? Schedule a call so we can discuss your options with you.