The most prospective and high-performing employees today require a quality benefits package to pair with their job offer. As an employer, you know the price tag that goes along with a great benefits package can be costly, especially for smaller businesses.
But how do you know which benefits are most desired by employees? What can your company offer to keep up with the bigger players in the market without breaking the bank?
To find some answers to these questions, A Habits of Profitability™ Thought Leader, Justworks, performed an original study with 500+ employees at U.S. companies sized 2-200 employees, who do not use Justworks’ services.
…and the results are in! Hint: the first one might be obvious:
- Health Benefits
Health benefits tend to be the most expected and desired type of benefit surveyed employees cited when accepting a job offer. 88% said the quality and options of health benefits were important. However, only 41% of employers offer health insurance as part of their benefits package.
In an increasingly competitive talent market, health benefits are a clear and competitive way to recruit the best candidates. Of course, the budget can be a big concern when considering a health benefits package or small businesses. In today’s world, there are many options to help small businesses access affordable benefits that otherwise were only available to large organizations with many employees. A Professional Employer Organization (PEO), like Justworks, is one example.
- Paid Time Off
Today everything is about work-life balance. Prospective employees highly value the ability to take paid time off (PTO). In total, 88% of participants said vacation and PTO are important when searching for a job. In other words, PTO ranks right up there with health benefits. It’s important to know a burned out team member is far less productive than a well-rested team member — within reason, of course.
Despite that, only 36% of surveyed employers offer paid time off in their benefits package. The strain is understandable — many small employers struggle to offer employees PTO because of limited resources to cover for employees while they’re gone. However, finding time for paid leave ultimately pays off, and is proven to increase employee productivity and improve morale. More and more companies, specifically technical engineering and sales environments, have gone as far as to offer unlimited days, just as long as high-performance expectations are met and operational tempo is prioritized. Again, options are key to success for small businesses.
- Paid Time Off By Gender
Since PTO is so important to job seekers, it’s worth breaking this down to a more relative level. Nearly twice as many women as men value the option of taking time off. Of the respondents surveyed, 50% of women said PTO is important, while 26% of men said the same.
The need for women to use PTO is strongly correlated with parenting. According to the Pew Research Center, 58% of working millennial mothers reported that being a working mother has made it harder to get ahead at work.
However, parenthood shouldn’t hinder great businesses from recruiting the best talent for their team. Some companies take it a step further and tailor their policies specifically toward creating a family-friendly workplace. One efficient and affordable option is to offer flexible work hours.
“This isn’t for everyone, but I continue to be amazed on the performance and productivity of highly committed team members when they are given freedom to flex their daily hours,” said Scott Thompson, Partner at Foresight SFO. “Operational tempo rarely, or should rarely, include true fires requiring all hands on deck right away.”
- Employee Perks
Although work perks like discounted gym memberships weren’t the most important for job seekers, 26% of surveyed employees cited these types of perks as important when considering a job offer. However, a mere 15% of employers offer perks for mental and physical health in their benefits package.
The good news is there are plenty of ways to infuse health and wellness initiatives into your company, no matter the size and no matter your budget. Many of these initiatives can be achieved for little or no cost. For some examples, take a look at this guide on how to create a phenomenal health and wellness program.
From your Habits of Profitability™ Team
Yes, balance is key while you continue to grow. But it’s crucial to look beyond upfront cost, and think about the profitability and performance each new or existing team member could bring to your bottom line or overall business. Ask yourself:
- Will a great benefits package, that my business can still afford, increase the performance and stability of my team?
- What is the ROI to great or better benefits for my overall business value?
Making long-term investments in your team can pay off across your organization, from recruitment to retention to productivity, and ultimately a committed team drives higher profitability. That is the goal and a core driver to overall value and stability as an industry leader.
We at the Habits of Profitability™ team see Justworks as one great option for businesses to access quality, affordable employee benefits. It’s a different way of thinking, and we love that.