In today's competitive job market, attracting and retaining top talent requires more than just a standard benefits package.
The current workforce challenges make it tough for organizations to attract and retain high-quality staff. Between trying to keep up with inflation and post-pandemic trends, it's difficult to know what will motivate them to stay with your organization.
Over the last few years, even before the pandemic, I noticed that people weren't as interested in the traditional benefit package as I was when I was starting my career. Younger generations seem much more interested in a higher paycheck than a generous retirement match. This is especially true now that housing costs have skyrocketed, and inflation is still on the rise.
Employers are often inflexible about their benefit packages. You either take what they're offering or leave it. However, offering alternative benefits can help you attract high-quality employees who are looking to stay with a company for the long term.
So, what does offering alternative benefits mean? It means allowing staff to pick the benefits they want and exchange other benefits for higher pay or other benefits.
Examples:
✅More Paid Time Off in exchange for less salary
✅Employer share of insurance premium going to salary instead of insurance coverage
✅Money for supplemental insurance plans rather than health insurance
✅No retirement match for higher pay
✅Money in a flexible spending account for high deductible health plans rather than a health insurance premium
Steps to implement alternative benefits:
1️⃣ Survey staff about which benefits are important to them.
2️⃣ Inventory current benefits and find ways to offer alternatives.
3️⃣ Consider costs to administer alternative benefits. Remember, Safe Harbor 401k plans require an employer contribution.
4️⃣ Track results over the next year and make adjustments, noting what worked well and what didn't.
Flexibility is key. An employer that lets employees design their benefits package can attract high-quality staff and retain them for the long term.
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