In the race to recruit top talent, don’t underestimate competitive benefits packages as a powerful tool to win over first-rate candidates. According to Glassdoor research, nearly 80 percent of workers prefer new or additional benefits to a pay increase.
In fact, many companies are revamping their benefits policies to incorporate changing family structures, an increasingly globalized workforce and more transparency in benefits offerings (thanks to tools like Glassdoor’s benefits reviews tool). Failing to recognize these trends and making strategic decisions about benefits offerings could cause your company to miss out on locking down great hires.
Based on Glassdoor’s research, we’ve pulled together four of the most crucial benefits to consider when offering a benefits package to employees — for the rest of the most important benefits, and advice on how to strategically craft a benefits package, download the Competitive Benefits Kit ebook.
1. Health Insurance
There’s no way to overstate how important this benefit is. Across multiple surveys, Glassdoor has found that health insurance is the most important benefit for employees and job seekers. In fact, 40 percent of employees value health insurance more than a pay raise. Having a comprehensive healthcare package — especially one that pays premiums, covers dependents and includes dental and vision — is a surefire way to attract top candidates.
[Related: The Benefits Employees Want Most]
2. Parental Leave
In an increasingly globalized employment landscape, it is even more important not to just outpace local competitors with more attractive benefits packages, but to also be cognizant of global trends in employee benefits. According to Glassdoor Economic Research, European leave policies range from 14 to 52 weeks, with varying amounts of pay, while the average length of paid family leave for full-time employees in the U.S. is 15 weeks. More flexible and generous leave policies are part of a global trend – don’t be left behind.
3. Retirement & Pension Plans
Providing a retirement net for employees is a must-have benefit for attracting long-term, dedicated talent. This can be achieved through perks like a pension plan or 401(k). Pension plans are highly valued by employees: a good pension plan has one of the highest correlations with overall employee satisfaction with benefit packages — 0.6 out of 1.0, according to Glassdoor’s research.
And 401(k) plans aren't far behind — in fact, they're among the top five benefits that employees value over a pay raise. Keep in mind that in creating a benefits packages, it’s important to know what benefits prospective employees in your industry value. Glassdoor found that the industries with the highest-rated 401(k) plans were finance, education and manufacturing.
4. Performance Bonuses
Generous performance bonuses are a tool for not only making current employees feel valued and motivating them to perform to the best of their abilities, but also to attract new talent to the company. Glassdoor’s research has found that 35 percent of employees value a performance bonus over a pay raise. If you can't offer as high of a starting salary as competitors, this is an especially great benefit.