On the one hand, businesses need to offer competitive benefits packages to attract and retain top employees. On the other hand, providing benefits is expensive—making up 32% of the average employee’s total compensation in 2020, according to the Bureau of Labor Statistics (BLS).
Consider the following points when evaluating your current benefits package to ensure that it’s compelling and competitive.
What are the most common employee benefits?
Benefit packages vary by industry—what the tech industry offers its employees is different from what mom-and-pop retailers can provide. That said, the most common types of employer benefits are as follows:
- Health and wellness (e.g., health, life, dental, vision insurance)
- Financial and retirement (e.g., 401(k), 403(b), pensions)
- Family and parenting (e.g., parental leave, on-site daycare)
- Vacation and time off (e.g., holiday pay, sabbaticals)
- Perks and discounts (e.g., company car, flexible schedules, free food at office)
- Professional support (e.g., tuition or continuing education support)
If your business isn’t offering any benefits in one or more of those categories, it is worth considering whether you can afford to add benefits to improve employee satisfaction. Some benefits are expensive, but others—like offering a dog-friendly office, service awards, mentor programs, or paid parking—can be added at little or no cost.
Is your health coverage competitive?
For most employees, health coverage is a top priority. Because there are enormous differences in the cost and quality of different employer programs, it can be the deciding factor in whether employees choose to work for a company, and for how long.
According to a 2021 survey by the Kaiser Family Foundation, 58% of small companies and 99% of large firms offer health benefits to at least some of their workers. In considering whether your health benefits are competitive, consider that workers pay $5,969 on average toward the cost of their health coverage. The average annual deductible in 2021 was $1,669 for single coverage.
Are you offering enough paid time off?
According to the BLS, 77% of civilian workers in the United States have access to paid vacations, which are another crucial benefit for attracting and retaining employees. The average number of paid vacation days varies significantly, depending on the type of employer and length of employee service:
- 13 days per year for state and local government workers after one year of service
- 22 days per year for state and local government workers after 20 years of service
- 8 days per year for private industry workers after one year of employment
- 17 days per year for private industry workers after 20 years of employment
Are your benefits keeping pace with changing times?
Ideally, your benefits should be flexible to keep up with changing times. The pandemic spurred many businesses to change their benefit packages. If your business has not done so yet, you may want to consider updates such as offering expanded telemedicine benefits or allowing for more remote and hybrid work arrangements.
Insero Talent Solutions is a recruiting firm focused on providing quality recruiting services for companies both large and small with their staffing needs. We can help you assess your current benefit package and make recommendations to help set your business up for success.