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More proof that benefits are essential for recruitment

New research has found that 80 percent of workers would take a job with benefits over an identical job that offers 30 percent more salary without them.1 For employers looking to attract and retain talent, the need to offer a competitive benefits package has never been higher.

When you consider that an employee’s benefits make up more than one-third of their total compensation (37.6%), it’s no surprise that adding more benefits is a determining factor in an employee’s job selection.2 The important role of benefits in attracting and retaining employees is a trend that Trustmark has seen in our own research, as well. We found that roughly 60 percent of employees would be less likely to stay with their company if they stopped offering voluntary benefits.3

None of us are strangers to the importance of attracting and retaining talent for a company to be successful. But just to reiterate a few of the points, the cost of replacing an employee is substantial, there is a loss of productivity while training a new employee and, the better the talent you attract, the more successful your company will be.

Why voluntary is the perfect fit for employers

In the current employment landscape, voluntary benefits are a perfect fit. Not only do they offer the added protection that employees want, they offer several other advantages to employers:
  • Cost savings – Voluntary benefits are employee-paid. Employers can provide the added benefits that employees want without adding to their costs.
  • Employee education – Only three in 10 Americans are “very confident” they’re using their benefits to their full potential.1 With benefits playing such an important role in attracting and retaining employees, it’s critical they understand them. Voluntary can help fund the communication and education employees need to not only understand, but appreciate their coverage.
  • Voluntary meets employee expectations – As noted earlier, more and more employees are expecting voluntary benefits as part of their program and are less likely to stay with an employer who doesn’t offer voluntary products.
  • Complements HDHPs – Voluntary benefits play a complementary role to the increasingly-popular high-deductible health plans offered by many employers.
As employees continue to place more and more emphasis on benefits as an essential part of their compensation, employers need to be prepared with answers to meet those needs. Voluntary benefits allow employers to offer those added benefits while also helping to support education so employees appreciate what they’re being offered. Especially for employers who are only looking at salary as a means to attract employees, more careful consideration of their benefits program could be a more effective approach.

1 Americans Favor Workplace Benefits 4 to 1 over Extra Salary: AICPA Survey. AICPA. November, 2018.
2 “Employer costs for Employee Compensation”. Bureau of Labor Statistics. December 14, 2018.
3 Trustmark Connell Group Research. 2015.
 

Posted on January 10, 2019 in Broker News

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