Employee Benefits: A Snapshot of What Employees Really Want
Ever wonder what benefits your employees want and need? What they want out of their jobs? And how your organization can help meet their needs?
The truth is, there's no one single answer when it comes to meeting your employees' needs. Each one is different and has unique circumstances and priorities. That reality can have HR leaders wondering what benefits they should include in their offerings to support their employees without blowing the budget.
In today's competitive job market, attracting and retaining top talent has become a challenge for many organizations, making it more important than ever to become an employer of choice that can meet employee needs. According to MetLife's 22nd Annual U.S. Employee Benefits Trends Study, employees who feel cared for at work demonstrate a 17% increase in engagement and loyalty, along with a 12% boost in productivity. It's clear that creating an environment where employees feel cared for pays dividends for organizations.
The question remains: What do your employees want and need, and how, as the employer, can you meet those needs?
ADP conducted a recent survey of over 31,000 employees to gain insights on what real employees want in a benefits package. Download the guidebook to take a deeper look at key findings not covered in this article: Meeting the needs of the modern employee: Practical strategies for employers.
In the meantime, here's a snapshot.
1. Pay is number one
For the majority of workers (56%), compensation tops of their list. This is no surprise, considering financial well-being is becoming a priority for many against a backdrop of a changing economic environment and the rising cost of living. Employers may think their set budget for a role is limiting, but leaders should consider factors like benchmarking and market value before boxing themselves into a specific pay range.
Employers can consider practical steps like using reputable benchmarking tools to help ensure they are offering at or above market value. They can also clearly define salary ranges in job postings to ensure their applicants are aware of the compensation for that role before applying. Committing to a pay transparency plan is also a great way to foster trust about compensation with employees and applicants alike.
2. Workers are thinking about their financial future — retirement
For the first time in the employee benefits survey history, retirement plans are now ranked as the second most valued benefit, tied with dental insurance. The increased focus on retirement planning demonstrates that employees are prioritizing planning for their financial futures.
Employers can lean into their employees' focus on retirement by offering them worthwhile options, which now include taking advantage of the SECURE 2.0 Act, which offers tax credits for employers to promote retirement planning for employees. Other great options include offering matching contributions and implementing auto-enrollment for new hires to make starting retirement plans seamless.
3. Healthcare options are forcing hard choices
Healthcare costs remain a significant consideration for employees, with 58% naming paycheck deductions as their top concern about medical plans. However, preferences vary widely depending on whether employees would rather have lower deductions or higher out-of-pocket costs at the time of service or higher deductions and pay less at the time of service.
When considering what types of plans to offer employees, it's important for employers to know that while some employees may say that they'd prefer to have less money deducted from their paychecks and pay more out of pocket at the time of service, 42% of employees have less than $1000 available for unexpected healthcare expenses. Employers can offer different plan options so that employees can choose the plan that is right for them. Promoting health savings accounts (HSAs) is also an option and provides a tax advantage as well as the ability to save for future healthcare expenses. Innovative solutions like health reimbursement arrangements(HRA) are also great options for non-profits and smaller organizations looking to save.
Getting practical
As your organization adapts to the shifting labor market, getting practical on how to offer your employees attractive benefits is critical. Consider conducting a survey so your employees have a forum to relay their benefits preferences. Diving into the employee benefits study results will give you valuable insight. Keep in mind that benefits are one of the most impactful ways employers can help their employees feel cared about at work, which will in turn, help them bring their best selves to work.
Download the guidebook to review more key findings from the employee benefits survey.
