What People Care About The Most With Their Employee Benefits Packages

As a broker or trusted advisor, you can do your clients a great service by helping them understand how and why to optimize their employee benefits packages. Ultimately, this will help them save costs while attracting their preferred candidates.

In this guide we’ll give you information you can use to help explain the importance of competitive employee benefits packages, including the top 5 most important benefits that candidates look for.

Why Employers Should Focus on Excellent Employee Benefits Packages

Salary is often the most important component of a total compensation package. It’s how the bills get paid, so it’s no surprise that candidates place top priority on this figure. However, it’s far from the only factor. 

Candidates with families to support will look for well-rounded employee benefits packages that make their lives easier, improve their work-life balance, and contribute to their job satisfaction. This is especially true in competitive industries where qualified candidates are highly sought after.

What Does it Mean to Offer a Competitive Employee Benefits Package?

When employers are building their benefits packages, they should focus on optimizing these key principles:

1. Health and Well-being

Employers should strive to build an employee benefits package that supports an employee’s physical and mental health. This contributes to the security and comfort of employees.

2. Work-Life Balance

Paid time off and flexible work arrangements, such as work-from-home or hybrid schedules, can help employees balance their personal and job responsibilities, reducing stress and absenteeism.

3. Retirement Planning

Offering retirement savings plans, especially those that include employer contributions, can show candidates that your clients care about their long-term financial health.

4. Career Development

Offering opportunities for professional development is another great way to enhance job satisfaction because it signals to candidates that your clients are interested in their personal growth.

Which Benefits Do Candidates Prioritize First in an Employee Benefits Package?

Each candidate is different. Depending on the industry your client is hiring in and the types of candidates they hope to attract, this list may change slightly. However, according to our research, these are the top 5 most important benefits.

Health Insurance is the Top Priority for Most

It’s no secret that healthcare in America is extremely expensive. Employees, especially those with families, worry about sudden medical expenses that can lead to dire financial consequences. That’s why health insurance is the number one priority for employee benefits packages.

Healthcare also represents a perfect opportunity for employers looking to gain an edge in the hiring market. Only 55% of employees express satisfaction with their current healthcare plan. Employers who find the best plan for the best possible rates can include this in their job descriptions.

Retirement Plans Rank Near the Top

Retirement plans come second, and the job market reflects that 94% of employers offer a defined contribution plan like a 401(k).

Since almost everyone in the market offers retirement options, your clients must follow suit or risk falling behind the competition.

Paid Time Off (PTO) is a Must-Have

PTO is another nearly universal benefit. Employees get sick, burnt out, or encounter emergency situations in their personal lives that force them to temporarily put work on the back burner. Employers who can’t or won’t accommodate these situations are simply not competitive in a market where 99% of workplaces offer paid vacation.

Mental Health Support is of Growing Importance

Mental health support, including the addition of mental health days, is also growing in importance.

As our society grows more sensitive to the realities of mental health issues, burnout, stress, depression, and anxiety, employers who acknowledge these problems and offer solutions will place themselves at the forefront for top-quality candidates.

Physical Wellness Rounds Out the Top 5

Many employee benefits packages are placing a new focus on promoting physical wellness, reflecting a growing recognition of its importance for overall health and productivity. Examples include gym memberships, health screenings, fitness challenges, smoking cessation programs, weight management support, and on-site health services.

How Partnering with a PEO Adds Value for Small Businesses

Limited budgets, fewer resources, and the complexity of managing benefits programs often mean that SMBs may struggle to provide packages that attract top talent. If you’re working with clients who fit this description, partnering with a Professional Employer Organization (PEO) can make a real difference.

Streamlined Administration

Negotiating with vendors, ensuring compliance with ever-changing regulations, and handling employee questions or concerns can be overwhelming tasks for small businesses. A PEO takes over these responsibilities, allowing business owners to focus on growth and operations instead of getting bogged down by HR complexities.

Access to More Competitive Benefits

Large corporations can leverage their size to negotiate better employee benefits plans. A PEO can help level the playing field by offering health insurance, retirement plans, and other benefits at attainable rates usually reserved for these large corporations.

Managing Regulatory Changes

Staying on top of state and federal regulations regarding employee benefits can be time-consuming and risky if mishandled. A PEO helps businesses stay on top of regulatory changes by ensuring their benefits packages meet all relevant legal requirements. This minimizes the risk of costly fines or legal trouble down the road.

BBSI Can Help Your Clients Optimize Their Benefits Packages

Strong employee benefits packages, in addition to a competitive salary, are the best way to attract and retain top talent. Small businesses, especially those in very competitive industries, will need all the help they can get to level the playing field against their larger competitors.

As a broker or trusted advisor, you can make a huge difference in that competition by encouraging your clients to partner with a PEO like BBSI to optimize their benefits packages.

BBSI is a PEO with decades of experience with companies of all sizes and industries. We’ll use our expert knowledge of benefits, HR, recruiting, risk and safety, and business strategy to craft the best possible employee benefits packages for your clients.

Interested in becoming a BBSI referral partner? Contact us today.