Why employees are choosing jobs based on the benefits package
Research shows that the employee benefits package is a significant factor in employees’ decision to accept, reject or to stay in a job.
According to the Health and Voluntary Workplace Benefits Survey (2015) by the Employee Benefit Research Institute, 78 per cent of employees said that the employee benefits package on offer is very or extremely important in their decision to accept or reject a job.
Willis Towers Watson found in its Health Care Consumerism in a Marketplace Environment (June 2017) that 75 per cent of employees are more likely to stay with their employer because of their employee benefits package.
One Medical’s Employees with Benefits report (June 2016) also showed that 69 per cent of employees would choose one job over another if it offered better benefits.
So why do employees place such high value on employee benefits?
Employees can save money every week
Lowering outgoings and making your pay go further is a big factor in using employee benefits to attract talented new employees. Childcare vouchers are particularly popular and can really benefit families.
Schemes to help employees with commuting can also help save a lot of money as the price of fuel increases, while savings at supermarkets offered through employee benefits can help employees save on their weekly shop, which over time can lead to big savings.
With the number of different schemes and benefits employers can offer their employees, there’s plenty employees can save on, from tech to healthcare.
Whether it’s regular or one-off savings that employees can make, the financial benefits for employees are almost guaranteed to make the company more attractive.
If employees switch jobs, they could lose savings
Employees recognise that they could lose all the savings that they currently make if they switch to an employer with an inferior benefits offering. Although a new employer could be offering them a higher salary, employees are always aware of how their outgoings may change if they switch jobs.
Alternatively, employers need to be aware of how comprehensive their employee benefits offering is compared to their competitors. If an employer’s offering is the same or worse than that of their competitors, their competitive advantage in terms of recruitment is lost.
It shows that employers care
A comprehensive employee benefits offering will offer childcare vouchers, cycle to work schemes, financial wellbeing advice and help, as well as help improving overall health. An employer that offers all of these is one that is much more likely to be looked upon more favourably by potential candidates for a role.
Offering these from an employer’s point of view goes a long way to showing how much they care about their employees. This can be emphasised through adverts for job roles or even through social media. Doing so will not only attract more candidates but create positive PR for the company.
Specific benefits can be deciding factors
Certain benefits offerings can be deciding factors in a candidate’s decision to accept or reject a role. For example, for candidates who live far from where the employer is based, commuting loans could help them spread the cost of commuting to work, potentially making the job more attractive.
A health cash plan can also help, allowing employees to get discounted rates on dental treatment and eyecare for them and their family. For some, this kind of offering is more beneficial than for others.
The key to recruitment and retention
After considering the potential reasons behind the statistics outlined at the beginning of this article, it’s clear to see why employee benefits have such a big say in recruitment and retention.
They offer a genuine competitive advantage for employers looking to build the most talented team of employees. Furthermore, a good employee benefits offering is a great bargaining chip in negotiating with potential new employees.
For employers, introducing or upgrading their benefits offering is the key to building and maintaining a talented team.
This article was provided by Caboodle.
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