4 Creative Ways to Enhance Employee Benefits in 2020
November 26, 2019
Employee benefits have always influenced recruitment and retention efforts. And that matters because the cost of employee turnover is high! However, with U.S. unemployment hovering around a 50-year low, your ability to make your business stand out in the job market is more important than ever.
Just as we did a year ago, we’re sharing with you a few benefits trends we’re seeing as we approach the new year. Adding these can help you differentiate your business from the competition.
The cost of college tuition has more than doubled since the 1980s, with student loans now being the largest contributor to non-housing U.S. debt. And the financial burden left after earning a college degree is very real. Nearly half of employees say finances cause them the most stress in their lives.
As a result, employers are increasingly turning to tuition reimbursement programs (often as part of a Lifestyle Spending Account offering) to help employees reduce their student debt. By alleviating one of your employees’ biggest financial concerns, you can improve work attendance and boost productivity.
Employees prefer perks that show you care about their health and wellbeing to ones that purely create a fun work atmosphere. For example, one survey found that employees would rather have an employer who provides parental leave and good health insurance than game rooms and free food. State governments are also noticing the demand for paid leave, as nine U.S. states and the District of Columbia have laws that provide paid family and medical leave.
About two-fifths of employers are offering paid parental leave, which is up from 25 percent just three years earlier. And we’re increasingly seeing employers offer fertility benefits for expenses such as in vitro fertilization.
Unlimited time off
Unlimited vacation is gaining traction. Employees want it, and shedding the traditional paid time off (PTO) model reduces some liability issues for companies. While it’s an effective recruitment and retention tool, consider that employees with an unlimited PTO plan actually take less PTO every year (on average) than those with traditional PTO plans. Unlimited PTO can save employers money, but it can also result in employee burnout.
Our four-legged friends are more than just animals. They’re members of our families! And the health benefits your employees experience when owning dogs, cats and other types of pets are very real. That’s why many employers are providing pet-friendly benefits, including pet health insurance and PTO for employees who are house-breaking an adopted animal.Would you like to learn the value of having your benefits and COBRA consolidated with one administrator? Submit the form below for your free handout.