In today’s tight labor market, the competition for talent among employers is fiercer than ever, especially when it comes to offering benefits.
Benefits can be a make-or-break factor for job seekers, and a recent poll found 80 percent of professionals would take a job with less pay for good healthcare benefits – over a job with more pay and no benefits.
From a company’s point of view, employee benefits are like another investment which needs to return value. Through a strategic offering of benefits, companies can get significant return in the form of hiring and holding onto top talent. Consider the following approaches to offering competitive benefits.
Use a Professional Employer Organization (PEO)
When putting together benefits programs, many small businesses find it difficult to manage numerous vendor relationships, each with their administrative demands and fees. As benefits add up, costs can add up as well.
PEOs get rid of these difficulties by pooling workers from several companies. This model can be thought of as a small company leasing out its entire workforce to a larger organization.
By pooling employees from several companies, a PEO can purchase benefits like health insurance, life insurance, 401(k) and other offerings at a lower rate than these companies could on their own. Some PEOs also offer services such as payroll administration and handling workers’ compensation insurance.
There are several kinds of PEOs for business owners to consider. Examples of large PEO companies include Unemployment Tracker, ADP and Justworks. A company should choose a PEO based on its structure and overall needs.
Anyone who has welcomed a child into their family knows all too well the 12 weeks of unpaid leave afforded by the federal Family Medical Leave Act isn’t enough. These folks also know it often takes two parents at home to effectively care for a child.
In response to these realities, many employers are offering paid parental leave to varying degrees. Some employers offer 12 weeks of paid leave for new mothers and fathers, often paying 100 percent of the person’s salary.
This type of benefit can be crucial to attracting young professionals looking to start or grow a family.
One approach to offer staff members substantial value at a low cost is schedule flexibility. Under such an arrangement, an employee works their own schedule, as long as they take care of their responsibilities on time. Flexible schedule arrangements can include four-day workweeks and remote work arrangements.
From a policy and legal point of view, flexible work arrangements are relatively basic to put into place. Consequently, they can have more of an effect on ROI than other benefits programs that can call for significantly more resources.
We Support Our Clients’ Benefit Offerings
At Jarvi Group, we fully support the benefits offerings of our various clients and often work with PEOs. If your company is currently looking for a supportive talent acquisition partner, please contact us today.