Why Having a Rich Benefits Program Isn’t Enough to Attract & Retain Today’s Talent
CHROs, benefits leaders, and members of the C-suite continue to recognize the strong influence their employee benefits program has over their ability to attract and retain their top talent.
Unfortunately, a rich, well-designed benefits program is not enough to drive the strong employer brands and workplace cultures that make an organization an employer of choice – organizations also need a strong benefits communication and engagement strategy that helps their people better choose and use the best benefits available to them, at the individual level.
Benefits are the Second Leading Driver Pushing Your Employees to Seek New Employment
While voluntary quits have eased slightly at 3.9 million voluntary resignations in early 2023, employers report that 40% of workers consider leaving a job for better benefits, according to a recent Forbes Advisory survey.
Data collected in a PwC study also supports this trend, demonstrating that employees looking for new roles cited better benefits as the second leading driver for seeking a new position, ahead of desires for increased flexibility or career advancements. Fifty-seven percent of employees say they are at least somewhat likely to accept a position with slightly lower pay in exchange for a more robust benefits package.
Unfortunately, the ability to attract and retain workers depends on an organization’s ability to communicate the value of its benefits offering in relation to the needs of each individual, creating personalized benefit experiences that align with their current healthcare needs, financial wellness, life stage, lifestyle, or circumstance.
Positive Benefit Experiences Drive Strong Workplace Cultures & Employer Brands
Employers who neglect to take the necessary steps to inform both future and existing employees about their benefits demonstrate both a lack of employee support and an uncaring company culture, no matter how generous their employee benefit plan design may
This is absolutely detrimental to an organization’s people experience, as data shows that employees of all generations present in today’s workforce rank “organizations that care about employee well-being” as a top three criteria when evaluating and selecting an employer.
“Without a big picture understanding, employees will be unable to truly understand the value of your benefits offering. This understanding is especially critical as employees continue to make employment decisions based on the benefits program they believe they are getting,” says Angel Seufert, Executive Vice President, Human Resources at Empyrean.
The ongoing volume of voluntary quits has made it clear that employers who do not meet the evolving demands of employees can expect to see high levels of turnover, making it critical that employers take the time to inform both future and existing employees about the value of their benefits offering.
HR Teams Must Work Together to Attract and Retain Talent
Seufert also says that talent acquisition teams, HR, and benefits leaders must work together to create cohesive and thoughtful communication campaigns that positively demonstrate the value of your benefits program throughout the candidate and employee lifecycle.
“Gone are the days when benefits and HR teams could work in a silo,” Seufert adds. “HR and benefits leaders need to work together to listen and understand exactly what your unique employee populations are looking for, whether that be through exit surveys, engagement and stay surveys, or through a benefit utilization analysis.”
HR teams will need to create a positive journey throughout the employee lifecycle, starting with candidate experience and communications. And to combat attrition, HR teams will need to align to ensure they understand what their employees’ benefits needs truly are.
“Employers need to hone in on which benefits will both retain current talent as well as attract new desirable talent,” says Empyrean Strategic Account Advisor, Scott Mesteller.
Even when the job market eventually shifts to favor employers, it can be expected that top talent will continue to prioritize employment with organizations that demonstrate they value employees through commitments to positive employee experiences and total well-being. One of the most tangible ways for employers to express their commitment, values, and dedication to positive workplace cultures will continue to be through employee benefits.
Check out more Empyrean Insights to learn how to drive positive people and benefit experiences at your organization.