Going the Extra Mile for Employee Recruitment, Satisfaction, and Retention

BY TOM WEBER

The “great resignation” has continued for far longer than many had anticipated, with approximately 4 million Americans continuing to leave their jobs each month since April 2021. Th is trend persisted, even during the shaky economy of 2022, with the onset of a technical recession doing little to stop the turnover juggernaut.

Benefits packages are one of the key factors that can influence an employee’s decision to stay or go, which is why many companies have been beefi ng up their offerings in recent months. With the competition for exceptional talent remaining fierce, these five innovative benefits trends can act as powerful differentiators for companies that want to maintain an edge in recruiting and retention for 2023 and beyond.

100% Health Plans

It’s no secret that U.S. health care costs have risen dramatically in the past several years. According to a 2021 Kaiser Family Foundation survey, half of responding adults say expensive health care is a top fi nancial worry and a burden on their families. To alleviate these negative outcomes and attract scarce talent, more companies have decided to pay 100% of monthly health care premiums for their employees. The decision to embrace 100% premium coverage, rather than the national average of 83%, can be an incredible diff erentiator in the eyes of candidates. Currently, this practice is more common in smaller fi rms than larger ones, with 29% and only 5% off ering full premium coverage, respectively.

However, the perpetually tight labor market of the 2020s appears to be changing this equation, with many larger fi rms embracing 100% coverage plans in recent months. Although this can be a fairly expensive proposition, many think it is ultimately good for the bottom line because it boosts the physical and mental well-being of employees, increases engagement and productivity, and improves recruitment and retention.

Here are some key questions employers may want to ask themselves when considering a 100% paid health plan:

• Will the company pay 100% for employee-only coverage or extend this benefit to spouses and dependents? It’s more common to see employers cover 100% of premiums for employee only, with other plan participants needing to buy up.

• What about other aspects of a 100% plan design? While paying premiums looks good on its own, shifting costs to employees through increased deductibles and out-of-pocket maximums can undercut actual savings for plan users who think they are getting a good bargain.

• How does the cost for a 100% plan compare with hiring a new employee? According to the Kaiser Family Foundation’s 2021 Employer Health Benefi ts Survey, the standard company-provided health care policy totaled about $7,739 for single coverage and $22,221 for family coverage. According to the Society for Human Resource Management, the cost to attract, hire, and onboard a new employee averages $4,129. Depending on industry specifics and the severity of one’s turnover problem, paying 100% of premiums may or may not make fi nancial sense.

Expanded Voluntary Benefits

You can’t please all the people all the time—unless you embrace voluntary benefits. Voluntary benefits, also called supplemental benefits, refer to optional perks off ered to employees at a discounted group rate, which employers negotiate with providers. While employees still need to pay to use these benefits, the amount is typically far less than it would be without company subsidies.

Th ese types of benefits give employees the chance to customize their benefits package to best suit their particular needs. Whether it’s aff ordable veterinary insurance for pet owners, subsidized pre-K child care for new parents, or discounted food delivery for the culinary-challenged, off ering these types of policies can directly improve the quality of life of employees who choose to take advantage of them. Th ese off erings can play a crucially important role in recruitment and retention strategies, with MetLife’s 20th Annual Employee Benefi t Trends Study 2022 fi nding that 73% of employee respondents would stay at their current employer longer if they had a wider selection of benefits.

Holistic Leave for Caregivers

Since the COVID-19 pandemic abruptly normalized remote work for millions