Unemployment is Dropping Nationwide — Are You Ready to Compete for Talent?
Take a look at headlines, and you’ll see unemployment rates across the country dropping. In June, the rate stood at 5.9%, and in July, it was 5.4%. Businesses nationwide are adding jobs like crazy, with 943,000 added last month alone — far exceeding the 860,000 that economists forecasted. And when looking at specific industries, it’s becoming clear just how competitive the marketplace for talent is: the tech unemployment rate was recently reported at 2.2% — an all-time low for that sector.
As a result, companies are competing harder and faster than ever to win the talent they need for their open positions. It’s common to see candidates getting multiple competitive offers that often include a competitive base salary, a bonus program, and even equity participation. With this level of competition, the best way a company can differentiate is through other perks in their employee benefits package.
It’s Time to Raise the Stakes in Your Employee Benefits Package
While every demographic or employee base will want different components, it’s important to combine what your employees care about with what will be truly useful for them and for new talent. Historically, employee benefits packages have offered a combination of the standard health, dental, and vision insurance; short- and long-term disability solutions; life insurance; a 401(k) plan; and perhaps even funding for continuing education. Today, these are just table stakes — things candidates expect to see in a benefits package. It’s time to look beyond these.
The reason for this can be seen in much of what’s happening in the professional sphere today. People have spent the past 18 months enjoying more flexibility through remote work or hybrid arrangements as well as considering what’s really important to them. Some want to spend more time with family, whereas others are looking for careers with greater rewards and opportunities. To meet these new expectations and demands, companies must be ready to start offering expanded employee benefits packages that give people more choices as well as provide greater value in their personal lives. Considering that 80% of employees would select more benefits versus a pay increase, adding these benefits to your overall offering should be a strategic priority.
Examples include wellness offerings, childcare stipends, student loan reimbursement, mental health services, modern learning solutions (Udemy, LinkedIn Learning, Coursera, etc.), and more flexible paid time off and travel policies. Other key additions to an employee benefits package are lifestyle benefits, available through companies like Fringe — a Cognos HR partner. These are benefits that are more out-of-the-box than traditional offerings but still make a valuable impact on employee satisfaction and retention. Examples include:
Bonuses (such as holiday, quarterly, or performance-based bonuses)
Childcare services or reimbursement for employees with young families
Assistance with commuting costs for employees that work in the office
Complimentary subscription services (coffee, an industry publication, etc.)
Health and wellness offerings like gym memberships or yoga classes
Tuition reimbursement, or even ongoing learning courses
More generous maternity and paternity leave programs
Leadership development programs and executive mentorship
More team events (remote or in-person based on comfort level)
The Pandemic Changed a Lot, Including Candidates’ Preferences of Where They Work
Beyond your employee benefits package itself, it’s also important to give careful thought to your company’s work location policy. If you’ve been remote for the past 18 months, or have had a hybrid arrangement, expect your team to want to continue some measure of that going forward. Understandably, 100% remote work or even a hybrid arrangement isn’t possible for every business. But if you have the flexibility to allow team members to work remotely, time should be spent on developing a formal policy around that and learning how the company can support this preference going forward.
To find out more, we spoke with our friends at Mod Recruiting, a talent search firm for growing businesses. In their work for clients, they’ve found that:
A number of recent graduates and younger candidates are expressing interest in having the option to go work in an office on a flexible schedule
Candidates place greater value on effective mentorship, coaching, and socialization since younger candidates might be on their own
Comparing open positions with the candidates most likely to fill them (entry-level, manager, executive, etc.) provides a sense of where people are in their lives and what’s important to them, allowing you to tailor your strategy accordingly
While not tied to where your employees work, a final consideration is to look at the mission of your organization. While you might not have the philanthropic goal of eliminating hunger and poverty or fighting for civil rights, an organization that nevertheless has a well-defined and strong mission and purpose stands a much better chance at recruiting top talent. Candidates today — particularly with the Millennial generation and onward — want more meaningful work where they have the chance to make an impact (at times, this even takes precedence over compensation). Ensure you’re making it clear online and in job listings what your company is looking to achieve and how the right people will help to make a difference in your goals.
Get Expert Guidance on Your Employee Benefits Package
Cognos HR works with organizations nationwide to not only help them manage the daily responsibilities and simplify the complexities of HR but also to help them more effectively compete for talent in today’s competitive market. Our employee benefits consulting solutions connect our team’s decades of expertise and sense of market pulse with your leadership and HR teams and their strategic goals. Supporting your internal teams, we’ll help you create a plan that fits the needs of your business and culture while ensuring that plan is as competitive as possible.
As part of our professional employer organization (PEO) services, we can even add your team to our group benefit plan. This is an extremely valuable solution for small and mid-size businesses that are looking to build a cost-effective employee benefits package that still provides the coverage and offerings of a larger organization. Along the way, we’ll continue to monitor the financial efficacy of your benefits plan and make strategic recommendations to support your employees and keep you winning new talent.
And to make sure your employee benefits package is as appealing as can be, we’ve partnered with Fringe — a lifestyle benefits solution that allows complete customization of your benefits for employees. If you’re ready to take your benefits to the next level and start winning the talent you need to stay competitive and achieve your goals, we’re ready to work with you.
Connect with our team today to learn more about our benefits consulting solutions.