In the quest for talent, traditional benefits are no longer sufficient for attracting the best employees. In the modern workplace, most employees expect health, dental, and a standard 401(k). As these have become ubiquitous, they are now an expectation for most workers, meaning they are no longer effective at attracting top talent.
Candidates want employers that offer benefits that genuinely benefit their well-being. The current benefit landscape suggests that employees desire a mix of traditional and non-traditional benefits.
Companies that fail to recognize these new trends will struggle to improve retention and attract top talent. By adjusting a benefits package to offer the most wanted employee benefits, companies are better positioned to keep their best workers and attract new ones.
This article explores six, under-the-radar benefits that the modern workforce wants.
According to a report from the Harvard Business Review, 60% of people report that benefits and perks are a major factor in considering whether to accept a job offer. Furthermore, 80% of employees would choose additional benefits over a pay raise. This trend has been apparent for some time, but was accelerated during the pandemic.
The modern workforce encompasses Gen X who value retirement benefits, Millennials who prefer family and well-being support, and Gen Z who crave student debt assistance and financial stabilization. No matter the generation, nearly all cohorts want an employer who can provide a holistic benefits package that promotes well-being.
HR Leaders should focus on three benefits pillars to satisfy the modern employee:
To attract the best talent and improve retention, organizations must commit to providing truly differentiated support. These six offerings are the core of a modern benefits package, designed to attract and retain the best talent.
While 401(k) benefits help employees plan for the distant future, Emergency Savings Support addresses more pressing financial matters. According to EBN, 40% of workers would like access to an employer-sponsored emergency fund.
Employers can implement this nontraditional benefit by facilitating automated payroll deductions into a dedicated, easily accessible emergency fund. Companies can choose to enhance this benefit by offering a small seed contribution or match, both of which demonstrate a powerful commitment to employee resilience.
Best of all, this is one of the most impactful benefits when it comes to improving retention. Emergency savings support helps alleviate financial anxiety, which prevents top talent from seeking higher-paying roles elsewhere.
For a majority of the workforce, student loan debt is an inescapable reality that will impact employment decisions and strategy. For employers, addressing the reality of student loan debt can play a beneficial role in retention and recruiting.
Offering student loan repayment assistance is a powerful benefit that will entice employees to stay longer. Given that student loan debt accrues interest, student loan payment assistance is often considered a greater value to employees than an equivalent salary raise. Additionally, these benefits typically don’t carry any FICA tax considerations, reducing tax liabilities for the employer and employee.
Employees love benefits that reduce daily friction and free up their personal time. Top organizations offer well-being stipends that serve as an effective retention booster. This can include subsidized on-site childcare, gym memberships, mental wellness apps, or fitness classes like yoga.
These tailored freebies are highly customizable, and amongst the most wanted employee benefits, given that they quickly improve quality of life. By funding services that support well-being and convenience, employers can build a culture that enhances retention.
For the ambitious, growth is just as important as compensation. By providing a robust, formal mentorship program, you can keep top talent while also developing the company’s future.
These programs connect newer employees with senior leaders, which helps foster essential skills transfer, develop leadership, and create a stronger organizational alignment. Mentorship signals that employers are willing to invest in long-term career paths, attracting ambitious candidates.
Additionally, this benefit tends to improve internal mobility and loyalty across the organization. When employees see a clear path to advancement supported by senior guidance, they are far less likely to look elsewhere for career advancement.
Most of the time, stress at the workplace can’t be avoided. But employers can play a role in helping employees manage their stress. Candidates want to work at places that offer tangible benefits to address stress and other mental health concerns. According to Forbes, 81% of candidates state that mental health support will factor into their future job decisions.
This nontraditional benefit is highly customizable. Employers can offer to provide free or discounted virtual therapy, dedicated mental health days, special training for managers, mental health apps, guest speakers that specialize in mental health, or even bringing in wellness animals into the office on occasion. The investment goes beyond improving retention, as mental health directly correlates to productivity.
While the availability of flexible work has changed quite a bit since the pandemic years, the fact remains that most employees desire either hybrid or fully remote options. Employees value the ability to integrate work into their lives, allowing them to manage personal demands without sacrificing productivity.
This nontraditional benefit is a powerful, impactful demonstration of trust and respect. When flexibility is genuine and supported by policy, it can be a powerful differentiator when candidates are selecting which position to accept.
The best benefits strategy is the one that changes with demand. Informed decisions must be made by relying on data-driven insight. A common mistake employers make is assuming that they know what employees want without asking. To stay ahead of the curve, HR leaders must regularly deploy Pulse Surveys.
Pulse surveys are short, frequent and anonymous, all designed to capture emerging employee preferences quickly. They provide real-time data on employee satisfaction and wants. With the right implementation, the HR team can identify emerging priorities quickly and develop benefits changes. This creates a direct feedback loop, allowing HR managers to know that the benefits offerings are valued by the workforce.
By grounding benefits decisions in data, you can maximize the budget’s effectiveness by prioritizing highly desired benefits.
The ultimate goal of any benefits package should consider its impact on the recruitment process. While benefits are a key component of improving retention, they should also be leveraged as a key tool for talent acquisition.
A truly competitive strategy should market nontraditional benefits during the hiring process. These offerings should be featured in job descriptions, during interviews, and on career pages. Transparency will help improve retention while also attracting new talent. By strategically showcasing these unique benefits, a compensation package acts as a powerful candidate magnet.
Building a distinct benefits package that is attractive requires challenging the status quo. Organizations that consistently review, refine, and personalize their offerings stand out in a crowded job market. By aligning benefits with employee wants, companies signal that they value long-term relationships with their employees.
When it comes to benefits packages, there is no one-size-fits-all solution. Different organizations will have different goals, and will need their own unique benefits package that incorporates non-traditional benefits.
Implementing these impactful benefits requires strategic execution. Platinum Group utilizes cutting-edge HCM technology to simplify benefits administration, ensure easy enrollment, and provide the data analytics needed to custom-design a competitive benefits package that fits within a budget. Don’t let manual administration hold back your talent strategy. Partner with us to transform your offerings and accelerate recruitment today.
Want to learn more? Platinum Group partners with growing businesses to make benefits enrollment, payroll, and compliance effortless through our integrated HCM technology. Connect with our team and schedule a demo to learn how we can help you streamline your next enrollment season.