"Benefits packages are becoming a true differentiating factor in today's competitive market," she says. This theme reverberates around the globe, according to Veronique Lemaire, head of HRP consultancy alliances at TMF Group, an international business administration company based in Amsterdam. Large manufacturers are offering health care and 401(k) on day one, large signing bonuses and above-market rates, and they're still coming up short." Or maybe your benefits offerings are not competitive for the roles or locations where you're hiring."īalint notes, "This is the tightest labor market in the country's history. "Are they in line with trends in the labor market? How do they stack up to what your competitors for talent are offering? You may be offering a lot of benefits, but they may not be the right benefits. "Review your benefits offerings," says Heather Salerno, senior VP of marketing at programmatic recruitment advertising company Appcast, which has 300 employees and is headquartered in Lebanon, N.H. If a day care worker can get $2-$3 an hour more by working at a fast-food establishment down the street, why would she stay?Ĭompanies also need to understand how their benefits compare. Moreover, compensation must be competitive not only within one's industry but also outside it, especially for entry-level employees. ![]() Compensation tends to be less malleable than benefits packages, but companies still need to conduct regular benchmarking. "As an employer, you must read the room," advises Christina Balint, corporate HR manager at 287-employee Universal Metal Products Inc., a custom metal-forming products manufacturer in Wickliffe, Ohio.Īccording to Mercer's 2021 Inside Employees' Minds study of 2,000 U.S.-based employees, front-line and low-wage workers are resigning at rates higher than in the past-in part to pursue higher pay because salaries have been stagnant at most companies while inflation rises. In fact, many employers are out of touch with which benefits employees value most. What employees want and what employers think they want in terms of benefits and compensation are often misaligned. The degree to which employers are meeting those needs, however, varies widely. Still, at least three concerns run across all demographics: physical health, mental health and work/life balance. To retain and attract workers who are in short supply in many places, companies must customize benefits and compensation packages to meet employees' needs-and those needs vary based on their income, age and life stage. Employees like Arnold say the benefit is life-altering, yet only 8 percent of employers offer it, according to the 2020 edition of the Society for Human Resource Management's (SHRM's) Student loan repayment assistance can be tied to years of service, which makes it a good retention tool as well. ![]() "Chegg has been helping employees pay off their student loans since 2015, and by further expanding the program two years ago, 25 percent of the participants have paid off their loans," says Debra Thompson, chief people officer at the Santa Clara, Calif.-based company. The second offers annual benefits of $5,000 for employees below the director level and $3,000 for directors and VPs who have worked at Chegg for two years. Employees qualify for the benefit immediately upon hire, and there is no cap on payouts. ![]() The first offers $1,000 per year to any U.S. The company has two student loan payment programs. My fiancée and I are thinking about buying a house now. "Originally, I was only able to pay off interest, but with the student loan repayment benefit, that $50,000 began to quickly shrink. ![]() "It's the best thing ever," says Arnold, a customer experience lead at the education technology company. After he started working at Chegg, he learned about the company's student loan repayment benefit. When Jamal Arnold graduated from Western Oregon University with a bachelor's degree in business administration and management, he had more than $50,000 in student loan debt.
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