Pet insurance, fertility treatments, paid time off: benefits communicate a company’s priorities, priorities that can have a major impact on employee happiness and retention. But while some companies offer flashy benefits like unlimited vacation, others stick to the basics like medical coverage and retirement plans. So how do you build an unbeatable employee benefits package that works for everyone?
What Falls Under “Competitive Benefits” in Today’s Market?
Understanding the difference between required benefits and optional benefits is crucial for designing an effective employee benefits package. Required benefits are mandated by law and include things like Social Security, unemployment insurance, and workers’ compensation. These are non-negotiable and must be provided by all employers.
Optional benefits, on the other hand, are where you can get creative. These benefits aren’t required by law but are highly valued by employees. They include health insurance, retirement plans, and paid time off.
Optional benefits also allow you to address the unique preferences of different generations. By offering a diverse employee benefits package, you can cater to the varied needs of Gen Z, Millennials, Gen X, and Baby Boomers. This inclusivity fosters a more engaged and loyal workforce.
Tailoring Benefits for Different Generations
Each generation has its own set of expectations and needs when it comes to benefits. Understanding these preferences can help you design an employee benefits package that appeals to everyone.
What Attracts the Older Generation?
Older employees, particularly Baby Boomers, often prioritize financial security and health benefits. They value robust retirement plans, comprehensive health insurance, and long-term care options. Offering these benefits can make your organization more attractive to this demographic.
In addition to financial and health benefits, older employees appreciate work-life balance initiatives. Flexible working hours and the option to work remotely can be particularly appealing, as they often have caregiving responsibilities.
What Do Millennials Want?
Millennials, on the other hand, are known for valuing experiences and personal growth. They often seek benefits that enhance their lifestyle and personal development. Professional development opportunities, such as training programs and tuition reimbursement, are highly sought after.
Health and wellness benefits are also crucial for Millennials. They value mental health support, fitness programs, and even pet insurance. Yes, you read that right—pet insurance is a popular benefit among Millennials!
Gen Z’s Unique Preferences
Gen Z, the newest generation in the workforce, has its own set of preferences. This tech-savvy group values digital and remote work options. They appreciate flexible working hours and the ability to work from anywhere.
Inclusion and diversity initiatives are also important to Gen Z. They want to work for companies that prioritize social responsibility and community involvement. Benefits that promote inclusivity and corporate social responsibility can resonate strongly with this generation.
Crafting Your Benefits Package
With these generational preferences in mind, let’s explore what you should include in your employee benefits package. Here are some optional (and other perks) that can make your package stand out:
Professional Development
Offering opportunities for professional growth is a win-win for both employees and employers. Training programs, workshops, and tuition reimbursement can help employees advance their careers while benefiting your organization.
Inclusion Initiatives
Initiatives that foster an inclusive culture can attract a diverse range of talent and improve employee satisfaction. This could look like honoring different holidays, language translation services, or implementing diversity training programs.
Work-Life Balance
Flexible working hours, remote work options, and generous paid time off can significantly enhance work-life balance. These benefits are particularly appealing to employees with caregiving responsibilities or those who value personal time.
Recognition & Rewards
A culture of recognition can boost employee morale and motivation. Implementing a rewards program that acknowledges hard work and achievements can foster a positive work environment.
Health & Wellness
Comprehensive health insurance, mental health support, and wellness programs are essential for employee well-being. Offering these benefits can reduce stress and improve overall job satisfaction.
Employee Engagement
Engaged employees are more productive and loyal. Initiatives such as team-building activities, social events, and regular feedback can enhance employee engagement.
Community Giving
Promoting corporate social responsibility can attract socially conscious employees. Encourage community involvement by offering volunteer opportunities and supporting charitable initiatives.
Competitive Benefits on a Budget
What if your company is a start-up or operates on a lower budget? Can you still offer competitive benefits? Absolutely! Here are some strategies to provide valuable benefits without breaking the bank:
Focus on Flexibility
Offering flexible working hours and remote work options doesn’t cost much but can greatly enhance job satisfaction. These benefits are particularly appealing to younger generations.
Leverage Low-Cost Perks
Consider offering low-cost perks such as wellness programs, professional development opportunities, and employee recognition programs. These benefits can provide significant value without requiring a large investment.
Utilize Technology
Take advantage of technology to offer digital perks such as online training programs, virtual wellness sessions, and remote work tools. These options can be cost-effective and highly valued by employees.
Build Then Bless Is a Low Cost, Big Impact Benefit
During the Great Resignation, 57% of employees quit because they didn’t feel respected at work, which is only 6% less than those who quit because of low pay. The most powerful way that Lemonade Stand combats this feeling of indifference toward employees is through the Build Then Bless software.
It allows every team member to publicly thank their coworkers, send money as a “thank you,” track anniversaries and birthdays to send gifts, share community service experiences, and much more. Schedule a demo to find out why 90% of our employees say it’s a benefit that has made them want to stay at Lemonade Stand!
