New fear unlocked: Your employees may leave soon.
We don’t want to be the bearer of bad news, especially when we want you to end the year and start another on a positive note. However, as discomforting as this may sound, it’s news that shouldn’t be surprising or much less disheartening.
Think of it this way: facing this truth now means you’ll have more time to go back to the drawing board and strategize. And don’t try to avoid the topic because in this case, what you don’t know WILL hurt you.
Loyalty has been declining for the past 20 years and the pandemic sped up the regression. The percentage of employees who said that they intend to be with their current employer in 12 months fell to 70% in 2022 from 2018’s 80%.
Clearly, organizations need to give workers something more than just a pat on the back to improve their job satisfaction. Sweet nothings are just that. NOTHING.
Employees only have one question in mind: Should I stay or should I go?
You, on the other hand, have a lot of questions that need to be answered right now:
When was the last time you reviewed your company perks? Are your benefits responding to the needs and wants of your employees? Are they enough to offset their financial struggles amid inflation?
If you’re in a tough spot, we’re here to help you out. Though we’re not fortunetellers, we have some valuable insights and data on what company perks your employees are looking for in 2023.
Reinventing Your Compensation and Benefits Package
If we haven’t stressed this enough, flexibility is one of the main considerations of jobseekers and employees. In fact, 54% of recruiters have observed that lack of flexibility and remote work options increases the likelihood of candidates turning down a job offer.
The trial period for remote work during the pandemic proved to be successful in:
- Diversifying the workforce
- Expanding the search for talents with skills that are otherwise rare in the area
- Lowering costs for office space rental, utilities, and supplies
- Improving employee satisfaction and performance
Evidently, offering flexibility benefits not only employees, but also organizations. So, if you’re not onboard the work flexibility train yet, then it’s not too late to get on!
Blown away by the rising cost of living due to inflation? Good thing the cost of healthcare is consistent – still expensive!
On average, price growth for medical goods and services is projected to accelerate by 2.4% per year from 2019 to 2028. Despite that, about 1 in 10 Americans don’t have health insurance.
Because of this, health insurance topped the list of benefits that employees prioritize. In Metlife’s 20th Annual U.S. Employee Benefit Trends Study 2022, 86% of workers see health insurance as a must-have.
Take this chance to review if you’re providing sufficient coverage for your employees and to consider if you should extend the benefit to their dependents and other family members.
Retirement benefits comes in second, in employees’ list of priorities. Makes sense, given that people work hard to eventually live a comfortable life upon retirement.
The current trend is to match 401(k) contributions, wherein additional contributions are pooled in by employers on top off those paid by employees. This is an enticing offer as it is essentially a risk-free return on investment.
For many, working is primarily a means to support their family. Thus, it becomes difficult to stay in a job that doesn’t allow you to be there for your loved ones when it matters.
Currently, legislations on paid family and medical leave are only available in the District of Columbia and 11 states. Meanwhile, the Family Medical Leave Act is inaccessible, since most people cannot afford a reduction in their salaries. In Wisconsin, only 17% of employees enjoy paid leave through their employers.
Stepping up to provide paid time off to your team members, despite the lack of legal compulsion to do so, will mean a lot to your employees, especially to those who act as caregivers for aging or sick family members and relatives.
Targeting the special needs of certain groups of employees can work as a great component of your DEI (diversity, equity, and inclusion) initiatives and ADA (Americans with Disabilities Act) compliance.
Here are some benefits you may want to look at:
- High-risk pregnancy, lactation, postpartum, and pregnancy loss support
- Family planning
- Paid leave and financial aid to women suffering from gynecological disorders
- Legal assistance and mental health resources for victims of sexual assault and gender-based violence
- Educational assistance or student loan financing assistance
- Individual disability insurance
It’s unfortunate but a lot of employers will give the bare minimum and still act surprised when employees leave (kind of like the most common girl-leaves-boy scenario in romantic relationships).
In any kind of relationship, there will come a time when enough is enough. And for employees, that time is now. This signals a change in the power dynamics between employers and employees, with the latter snatching the helm from the former.
What we’ve enumerated above are just a few of what workers consider essential in your compensation and benefits package. But ultimately, everything boils down to “holistic support.” According to MetLife’s 2022 data, there are five key areas that compel employees to stay:
- Purposeful work
- Flexibility and work-life balance
- Social and supportive cultures
- Career development and training
- Wellness programs and benefits
Your employees are not foot soldiers from whom you can ask for blind loyalty. If you’ve made it this far, then they’re probably talents that are hard to come by and whom you want to stay with until retirement.
We’re here to help you become that cool and generous (not without return, we promise!) employer that everyone wants to work for. If you’re ready for that transformation, here’s where to start.