Why Competitive Compensation and Benefits Matter
It’s no secret that key factors other than compensation influence whether you will accept or deny a job offer. Compensation is usually number one, but another critical factor is benefits, such as healthcare, retirement, and paid time off. In fact, one could even go so far as to call 2019 the year of employee benefits. Companies must focus on the additional perks, outside of compensation, to attract the best talent. As the fast-moving job market becomes more saturated and competitive than ever before, one of the most effective ways for your company to incentivize your employees is by offering a benefits package that “differentiates [their] organization and entices employees to join and stay.” Below, we list the top reasons why you’ll want to offer competitive compensation and benefits moving into the future.
To attract the industry’s top talent, your company must make things like paid time off and healthcare a top priority. As to be expected, 88% of the workforce said that both health insurance and paid time off is important to them, and 66% said that paid parental leave is also important.Modern-day employees are looking for their employers to invest not only in their work life, but their family life as well. These quality employees are the ones making the decision whether or not to accept your offer. Therefore it is important to consider a way to meet these types of needs.
As you identify your employee retention program, consider the fact that in in 2017 “75% of employees reported that they’re more likely to stay with an employer because of their benefit[s] program.” To compete in a highly competitive job market, 47% of employees will begin to job hunt due to confusion or lack of benefits offered to them.Ask yourself – what does my organization’s turn over currently look like? A high turnover rate can result in wasted time on things like training and exit interviews. The cost of employee turnover increases as you move up employee levels. We encourage companies to invest in the employees they have. In the long run, companies save large amounts of time and money. By providing competitive compensation and benefits, your company will have an easier time attracting and maintaining talent.
Company Morale and Reputation
The correlation between company morale and reputation are pretty direct. When employees feel that they are compensated and treated fairly, their work product is typically higher. And there’s something to be said about coming into an office that is positive, upbeat, and collaborative. Research shows that disengaged employees can be detrimental to an organization’s bottom line.Furthermore, the increased availability of information on the Internet means that if your company’s morale is low, it’s not just your employees that know it. Platforms like Glassdoor dedicate part of their business to employee reviews on what it’s like to work for a company. These sites encourage reviewers to talk about everything, including benefits, compensation, and internal morale. If employees believe they are compensated fairly through salary and benefits, your online reputation will reflect it.At the end of the day, the market’s top talent will gravitate towards the companies who offer the best compensation and benefits opportunities. To attract people who are going to propel your company forward, retain them, and ensure they’re happy, competitive compensation and benefits should be a top priority for your company.