With today’s high rate of job mobility, retaining great employees isn’t as easy as it used to be. Workers want a position that offers them more than a paycheck. If they feel dissatisfied or stressed, they may start to look for a new job. A good benefits package that addresses their personal needs can persuade your workers to stick around.
Health insurance has been a standard part of benefits packages for decades, but these days there are more choices than ever. Many companies are offering personalized health packages, allowing employees to choose premiums, policies, and benefits that best serve their needs.
For those wishing to pay lower premiums, many companies are including an option for health savings accounts coupled with high-deductible health plans. These are attractive to young, single workers who don’t expect serious illness. Employees may also be able to choose expanded coverage for mental health, as well as short-term and long-term disability plans.
Paid time off (PTO) is managed in varying ways, but basically, it has taken the place of allotted sick days, vacation, and sometimes, paid or floating holidays. The policy acknowledges diversity and individual needs by giving flexible time off for children and family needs, religious observances, and other personal matters.
PTO helps prevent burnout by giving workers a break as needed. In most companies, workers can use PTO without an explanation to their supervisor, provided they give enough notice. Many companies will set a certain amount annually per employee. Others allow employees to “earn” PTO through accrued hours worked. The number of days of paid time off usually increases based on the number of years worked.
A Retirement Plan
A few larger corporations still offer pension plans, but the most popular retirement plan these days is the 401k. These plans allow workers to save pre-tax dollars for their retirement, and most companies will match the employee’s annual contribution to a certain percentage. Most companies allow employees to choose from a range of investment plans, depending on their retirement goals.
Smaller companies have alternatives that may be suitable, such as IRAs and SEPs (Simplified Employer Pensions). Unlike the 401k plans, there are no start-up or management costs associated with the SEP. They allow employees to save up to 25% of their salary annually.
Create a Break Room
A break room allows employees a dedicated space to relax, away from the bustle of the workplace, while taking a break or having lunch. A comfortable sofa and dining tables are always appreciated. It’s also considerate to equip the room with a shared refrigerator, microwave, and coffeemaker.
In warmer climates or for summer days, consider creating an outdoor space so employees can get some fresh air and sun on their breaks. Furnish the space with a picnic table or patio furniture, but be sure to keep it covered with an awning or shade. You can prevent damage by keeping wood furniture out of the sun.
One of the newest trends in employee benefit packages is financial wellness counseling. Many workers are living with financial stress, whether it’s student loan payments, credit card debt, or healthcare worries. Financial wellness can provide assistance with credit counseling, spending management, and budget planning.
Financial wellness benefits can take a number of forms, from investment seminars to one-on-one sessions with a financial planner. Employees who take advantage of financial wellness benefits experience reduced stress and increased job satisfaction.
Flexible scheduling and work-from-home options are two of the most sought-after benefits and can make your company attractive to the best-qualified workers. Recent studies have shown a large majority of workers say that flexible scheduling will increase job satisfaction and boost morale.
There are also advantages for employers, including reduced overhead costs and increased productivity. With flexible scheduling, workers can better arrange their health care appointments and child care needs, resulting in a lower absentee rate.
Providing education assistance has advantages for both employees and employers. For workers, help with college tuition or training and certification costs helps them avoid student debt or reduce the amount they will owe. The education will give them knowledge and skills to better their position.
This makes it an advantage for employers also, as they can promote highly skilled workers from within the company. The benefits may also give companies a tax break. As long as employers follow federal guidelines, they can deduct up to $5,250 per employee, per year, in educational reimbursements.
Increasingly, workers are striving to balance their careers with their home lives, and workplaces are responding by tailoring their benefits packages to appeal to that wish. With the workforce more diverse than ever, it’s wise to offer a wide variety of benefits. Employees will stick around when they feel they’re valued and supported.
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