With unemployment at a 50-year low, it is becoming increasingly difficult for employers to attract and retain top talent for their organizations. Often we see employers trying to impact their recruiting and retention efforts with enhancements to their benefit offerings. Some employers are now offering dual plan options to give employees a choice for their medical coverage, higher annual benefit maximums on their dental plans and vision plans being paid for in full or part by the company. Employers, who in the past did not offer short and long term disability benefits, are now considering adding this to their benefits package as well.
Outside of the adjustments to these core benefits, we are also starting to see employers adopt non-traditional benefits. While these may not be true benefits, as it relates to health and wellness, they are perks that employees can take advantage of. This is a creative way for employers to stand out in the market and with a workplace culture that supports the total wellbeing of employees. Following are few of these new offerings.
Student debt and housing cost assistance
Programs such as student debt assistance and housing cost assistance are becoming more and more popular with employers as Millennials and Gen Z employees begin replacing a retiring workforce. Younger employees are often saddled with debt from college and student debt assistance or housing cost programs are a great way to support their financial wellbeing and help them achieve financial independence.
An accommodating travel policy
Entrepreneur reports that 59 percent of candidates surveyed by the Global Business Travel Association consider travel policies when choosing the company they want to work for. Allowing employees greater freedom when choosing how to travel is the underlying goal which supports employees’ emotional, physical and financial wellbeing.
Financial wellbeing programs
While many employers offer a retirement savings plan, proactive employers are providing resources to better address employees’ financial health. This can cover all areas of financial literacy, from debt counseling to financial advisor sessions, so that employees become more financially resilient and are ultimately prepared for a successful retirement. Similar to the student debt programs, this is another program supporting financial wellbeing and helps employees face the future with confidence.
These are just a few examples of non-traditional benefits that can be offered and employers who want to separate themselves from their competition. Understanding what is important to employees is a great way to begin the process of adding non-traditional benefits. Gaining their perspective can help target the benefits you should consider for your organization.
This material was created to provide accurate and reliable information on the subjects covered, but should not be regarded as a complete analysis of these subjects. It is not intended to provide specific legal, tax or other professional advice. The services of an appropriate professional should be sought regarding your individual situation.
Gallagher Benefit Services, Inc., a subsidiary of Arthur J. Gallagher & Co., (Gallagher) is a non-investment firm that provides employee benefit and retirement plan consulting services to employers. Securities may be offered through Kestra Investment Services, LLC, (Kestra IS), member FINRA/SIPC. Investment advisory services may be offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Certain appropriately licensed individuals of Gallagher are registered to offer securities through Kestra IS or investment advisory services through Kestra AS. Neither Kestra IS nor Kestra AS are affiliated with Gallagher. Neither Kestra IS, Kestra AS, Gallagher, their affiliates nor representatives provide accounting, legal or tax advice. GBS/Kestra-CD(337722)(exp012021)