You can promote employment opportunities on corporate talent networks. You can use assessment science to put the right prospects in the right places. And you can invest in technology that delivers an exceptional candidate experience.
But at the end of the day, there’s still one recruitment tool that outshines all others: employee benefits.
Here’s a look at five ways offering quality employee benefits helps improve employee work base and attract top talent.
1) Increase your appeal
Skilled dedicated workers are the lifeblood of every successful business. They can also be difficult to attract.
The best employees have options, so it’s important to make yourself more appealing by offering more than just the bare minimum of baseline pay, two weeks’ vacation and standard health plans.
Offering exceptional benefit packages increases your appeal. According to a survey conducted by Glassdoor, benefits and perks play a major role in helping people decide whether or not to accept a job offer.
Creating a benefits program that is better than the rest improves your ability to attract top talent–especially if you can show candidates employee benefits reports that demonstrate exactly what they will receive after accepting an offer.
2) Reduce the rate of turnover
Employee turnover is a normal part of doing business, but it still hurts.
Turnover increases recruitment costs, reduces productivity and affects other employees, teams and the entire business. It’s one of those costs that doesn’t necessarily show up in most employee benefits reports.
Minimizing your turnover rate is a smart move–and offering high-quality employee benefits is one way you can reduce your rate of turnover.
According to a study conducted by Glassdoor, four out of five employees want quality benefits more than they want pay raises.
Give current employees what they want and they’ll be less likely to leave.
Low morale comes at a high cost. It leads to turnover, low productivity, more employees calling in sick and even dangerous work environments.
There are a lot of ways to lower morale and just as many ways to improve it–including offering quality employee benefits.
High-quality employee benefits accomplish two things: They keep your employees healthier, which keeps them at work. And they demonstrate to employees that they are valued.
With that in mind, you can’t really afford not to offer high-quality benefits.
4) Healthy employees
According to the Centers for Disease Control (CDC) Foundation, absent employees cost U.S. employers more than $225 billion annually.
Employees who are sick and not in the office can’t help your company achieve its goals.
Health insurance helps keep employees healthy–and it helps them recover more quickly from illness and injury.
5) Increased productivity
The CDC Foundation says that people going to work sick account for almost two-thirds of all costs associated with employee absenteeism.
Sick employees aren’t productive and they put their colleagues at risk. So why do they continue to show up? Maybe because many workers (nearly four out of 10) don’t have employee benefits that include paid sick time.
This might save you money in the short-term, but over time it can cost you a lot more in productivity.
What do your employee benefits reports say about you?
Do your employee benefits reports show a company that differentiates itself from the competition, cares about keeping employees and works to keep them happy?
If so, you probably have happy, healthy, productive employees. Now, make sure they know what you’re providing! Connect with Compackage.com to generate low cost, easy-to-use employee benefits reports.
Many company leaders, and similarly their employees, think that all company paid holiday policies are created equal. After all, they reason, these are national holidays. However, this is far from reality! At least 25% of companies nationwide do not provide for any holiday pay at all. The other 75% can provide from as little as one, to as many as thirteen, paid days off. So, the higher the number of paid holidays that your company provides, the more generous your company is.
Laws Governing Holiday Pay
Currently, there are no federal laws requiring an employer to provide holiday pay for their employees. Holiday pay is strictly a voluntary benefit offered by employers who wish to foster a positive company morale and bolster employee benefits packages. Indeed, the more lucrative the holiday pay, the more likely employees are to feel valued and appreciated. Especially if this benefit is defined in relative terms, such as in an annual benefit statement.
Understanding a Typical Holiday Pay Package
Many employers provide 1-5 paid holiday days, while others offer up to 10 paid days of holiday time off. Very few will offer the full 13 days of federally-recognized legal holidays, but there’s no doubt your employees will appreciate their place of work all the more if your company does. When added to other types of paid time off, including sick leave and vacation pay, this can represent upwards of an additional 13% of the salary for each employee (e.g., $5,200 for an employee with a $40,000 annual salary if you provide paid time off for 13 holidays, 15 vacation days, 5 sick days, plus bereavement or jury time off). Of course, the final value should be detailed in the employee compensation reports provided annually to your employees.
What Are Federally Recognized Holidays?
Employers may choose to offer holiday pay for any of the following federally recognized holidays.
- New Year’s Day
- Martin Luther King Day
- President’s Day
- Easter/Good Friday
- Memorial Day
- Independence Day
- Labor Day
- Columbus Day
- Veteran’s Day
- Thanksgiving Day (2 days)
- Christmas (2 days)
Are Companies Required to Accommodate Religious Holidays?
Religious holidays can be a tricky issue for companies, depending on the number of employees on staff, especially if those employees hold drastically different religious and cultural beliefs. Legal statutes require the reasonable accommodation of religious holidays. As such, many employers will offer 1-2 floating holidays in lieu of the holidays listed above. Let’s face it, few people may choose to celebrate Columbus Day, but there may be several employees who wish to celebrate Yom Kippur. By offering floating holidays, instead of sticking strictly to the federal holiday schedule, you allow employees to select the days which mean the most to them.
Must Holiday Pay Packages Be the Same for Everyone?
As long as your policy doesn’t discriminate based on age, gender, race or other protected classifications, policies may vary based on position within the company. For example, many companies will offer holiday pay to full-time staff, but not to part-time employees. When in doubt, seek the expertise of a compensation specialist to ensure compliance with labor policies.
Holiday Pay and Overtime
Employees often believe that holiday pay equals premium or overtime pay. This is simply not true. There are no requirements that mandate an employer pay overtime for holidays. In fact, in most cases there are no requirements that stipulate civilian employers must offer paid time off for holidays, vacation or illness. But if you do, you should detail it in your annual total compensation report!
Furthermore, holiday hours cannot be factored into the overtime calculations for the employee. Employees are only eligible for overtime if the actual number of hours worked for that week exceed 40 hours (and not a combination of holiday hours and hours worked that surpass 40 hours for the week).
Documentation and Holiday Pay
Holiday pay varies greatly from company to company. As such, it is vital that organizations outline their leave and holiday policies carefully to avoid employee confusion. As long as holiday pay is offered in accordance with established company policy, employers have the flexibility to create a policy that works best for their unique environment.
Lastly, all paid leave, including holiday pay, should be documented in the annual employee compensation reports. If your company is one with a more generous holiday pay package, let your people know. Such reports provide employees with a snapshot of their total compensation picture. Affordable online reporting systems, like those offered from COMPackage, can assist your organization with creating employee compensation reports that increase overall employee morale.
In 2014, the Affordable Care Act made 10 “Essential Healthcare Benefits” (EHB) mandatory, no matter the size of the company you work for or your healthcare provider. These requirements are set to come online in 2017.
Importantly, healthcare plans must be balanced among the 10 categories, namely,
- Outpatient care (care you get without being admitted to a hospital)
- Trips to the emergency room
- Treatment in the hospital for inpatient care
- Care before and after your baby is born
- Mental health and substance use disorder services
- Prescription drugs
- Services and devices to help you recover if you are injured, or have a disability or chronic condition
- Lab tests
- Preventive services
- Pediatric services
Your insurer can substitute benefits within each category, but cannot substitute one of the main categories, and it can change coverage, such as a benefit’s duration. Finally, under the EHB, your plan cannot discriminate against you because of your age, disability or your expected length of life. Here is some greater detail about the services that must be included.
Ambulatory patient services. These are the services that you likely use the most, since they cover your regular doctor’s visits. Most plans, regardless of your company’s size, usually cover this service.
Laboratory services. The new law requires that healthcare insurers cover preventive tests like Pap smears for women and prostate exams for men. However, your insurance coverage can bill other types of diagnostic, so check to see what is covered on Employee Compensation Reports.
Prescription drugs. The EHB mandates that all healthcare plans now cover some prescription drugs. All plans must now cover at the minimum one drug in every category and class of medications approved for use in the United States. And, when you pay for prescriptions the cost must be applied to your annual out of pocket expenses.
Maternity and Newborn Care. This new requirement entitles all mothers and babies healthcare before and after the baby is born since prenatal care is preventive care, so it must be given at no additional cost.
Emergency services. Your coverage extends to trips to the emergency room. EHB allows you to get emergency services even out of network with no extra fees. And, your plan can no longer require that you get preauthorization before you seek emergency services.
Hospitalization. This new requirement means your healthcare insurance must cover inpatient treatment for any serious medical concern. It does not mean, however, that you are exempt from paying a copay which can be quite expensive if you are still under your annual out of pocket limit.
Mental health and substance use disorder services. Perhaps this is one of the most extensive additions required by the EHB that is laid out in the Employee Compensation Reports. Your healthcare plan must include behavioral health care, substance abuse, and mental health coverage on par with that of the plan’s physical health benefits.
Rehabilitative and habilitative services and devices. Your plan likely already covers rehabilitation therapies like pain relief or learning to walk again, and cover equipment like wheelchairs. However, now habilitative services must also be covered, which are therapies that help with long-term disabilities like Parkinson’s disease.
Preventive and wellness services. These services include things like vaccinations, counseling and screenings that help to prevent more serious illnesses.
Pediatric services (including oral and vision care). Under EHB, now all children under the age of 19 can get dental and vision services, including one pair of glasses every year.
It’s important for employees to know what benefits they receive. Savvy employers use Employee Compensation Reports, like those from COMPackage.com, to highlight the total compensation an employee receives. After all, you can’t appreciate what you are getting if it’s not clearly spelled out. No one knows what changes the new administration will make, but such changes take time, so the aforementioned may be valid for a while to come.
Employees love seeing the full value of their benefits because they demonstrate how much their employers value them. But when employees do not know what benefits they actually have, or what the value is, it can lead to confusion and ultimately dissatisfaction with their employment. The solution: clearly written employee benefit packages statements shared annually.
Why are benefits so crucial to employee well-being?
Employee benefit packages include compensation along with other types of pay and incentives, including work-life benefits like paid leave, performance and recognition, development and career opportunities and other types of non-financial rewards. Generally speaking, since most employee benefits are not equity-based, they include the types of things that can make one feel more valued by one’s employer, and often one’s co-workers, too.
As an employee, your benefits can increase your quality of life and make your job more fulfilling. When all employees have great benefits that help with work-life balance, for example, they are more productive, easier to retain and take fewer days off. Of course, communicating these benefits in the hiring stage serves as a great recruitment tool.
Why do employees need to see their benefit statements on a regular basis?
All employees should receive their own personalized benefit statements at least once a year, because as they move through different lifecycles, from the birth of children to the desire for more education, to concerns about disability as they mature – their needs change and so will what they want from their benefits.
For example, work-life benefits are increasingly important to employee well-being. These benefits address overall quality of life for an employee and their position in their family and community as well as on the job.
The best employee policies and programs are designed to ensure that every employee is happy at home and at work and therefore include things like workplace flexibility programs, help with caring for dependents, paid time off, financial support with savings and other life issues, and programs that involve employees with the community, like charitable functions.
And, as employees move through their careers, they might also want more individualized benefits and services. These can include performance milestones, educational opportunities like graduate or professional degree tuition reimbursement or job-specific certifications and on-the-job training – all of which are linked to career advancement. They need an easy way to see and keep track of their benefits.
Can your employee benefits statement end the confusion?
At those moments when an employee is not feeling good about his or her job or an economic downturn has them worried about the future, seeing the full complement of their benefits in one clear statement can end any confusion they might have about their employer’s commitment to them.
You want employees to be content and productive in their jobs, and that’s what they want as well. This is why you they will appreciate your clearly communicated employee benefit packages statements. They can see what benefits they have, and the total value of their overall package. As many of us have short memories, it’s important to remind employees of these benefits on an annual basis.
For many people, employment is not just about the money. Though salary plays a big role on whether or not someone is happy with their job, the whole compensation package is what matters more – especially when the financial sum of all the benefits being provided is significant.
Thus, it’s important for your company to be able to communicate the full value of your benefits plan to all your employees, especially if there’s a change they should know about. But even without changes, employees may not be aware of exactly how much they’re getting, causing them not to take advantage of everything they’re entitled to, and diminished appreciation of their total employment compensation.
A sure way to inform your employees about their benefits is by issuing them a personalized benefit statement, but this is not an easy thing to do manually, even if you have a relatively small workforce. In this case, you’ll need employee statement benefit software like COMPackage to streamline and automate the process for you. But aside from this added convenience, here are other compelling reasons to invest in such a solution:
- Cost effectiveness — Manual creation of benefit statements (even with the help of Excel) takes time, especially for companies with more than 40-50 employees. Also, this is more prone to error. It’s best to use a specialized tool, like low-cost total compensation statement software, to minimize mistakes and speed up the creation process. When less effort and time are spent, your company can allocate a smaller budget for creating benefit statements without having to sacrifice quality.
- Customized statements — Different kinds of employees have different kinds of benefits, so it’s not advisable to use one form for everyone in the workforce. You run the risk of having some employees feel discouraged if they see benefits others are receiving at a higher pay grade. Using COMPackage employee statement benefit software addresses this by allowing users to define benefits according to only what they receive.
- Accurate computations — Some companies attempt to provide total compensation reports using spreadsheets. However, these are difficult to maintain. Moreover, they don’t help you identify many types of benefits that could be reported, such as non-monetary perks which can still have a quantifiable dollar value.
- Employee satisfaction — With employee statement benefit software, you can clearly lay out each aspect of an employee’s compensation package to help them grasp the total value of what your company is giving them. Once they do understand, they’ll be able to appreciate how better-compensated they are, leading to higher employee satisfaction, which can result in improved productivity and stronger loyalty.
- Recruitment advantage — A lot of employers and employees focus on the salary when recruiting and searching, respectively. But wouldn’t it be great if you could attract ideal candidates with the whole compensation package – which, on average, represents over 43% more than base pay – that your company can offer? And wouldn’t it be greater if you can present them with an easy-to-understand statement that lists all the benefits they’ll be getting and the total value of their compensation? When you use employee benefit statement software, you can create detailed customized reports on professional-looking templates fit to be given to top talent. It’s an effective way to attract them to your company.
People will always be the top resource of your company, so make sure you invest in them. It’s not enough to grant them a good compensation package — you also have to encourage them to make the most of it. With the help of COMPackage, you can give them the push they need.
Competitive employee benefit packages are the cornerstone of employee retention. While employers can often offer smaller perks and incentives to increase overall employee morale, without a comprehensive benefits package, new qualified applicants won’t walk through the door – and seasoned experienced employees will look for better opportunities elsewhere.
The Cost of Losing Talent
Employees leave jobs for a host of reasons. Yet each time your company loses an employee, there are qualitative and quantitative costs incurred. This comes in the form of lost productivity, advertising for a new position, hiring and training a replacement, and customer service issues with a reduced staff. A study by the Society for Human Resource Management indicates that, on average, it costs 6-9 months of an employee’s salary to replace that employee. For example, to replace an employee making about $60,000 per year would cost a company about $30,000 to $45,000.
Happy Employees Are Retained Employees
Maintaining a positive relationship with your employees is not a matter of guesswork. Employees want to know that they are respected and appreciated. They also want a balance between their professional and personal lives. Don’t be afraid to actively engage with your employees to determine what aspects matter most to them. This will help you narrow the focus of your employee benefit packages.
Building a Comprehensive Package
When thinking about employee benefits, it’s important to consider all aspects of an employee’s well-being. Far too often, small business owners focus solely on health insurance options. That’s a vital aspect of the benefits plan certainly, but it is not the only aspect worth considering.
Besides health insurance, the 401(k) is the second most important aspect of comprehensive employee benefit packages. Employees want to know they will one day be able to enjoy a comfortable retirement. It’s so important, in fact, recent studies have shown that a well managed 401(k) program can add approximately 8% to the overall profitability to the company.
Paid Time Off
All employees need the chance to recharge their batteries. It increases overall productivity and helps elevate employee morale. It’s also an important component of a comprehensive benefits package. Traditionally, companies offered different types of time off including sick leave, vacation, and holidays. Today, more companies are incorporating a more consolidated approach toward paid leave and allowing employees to decide when and how to utilize their personal days.
Short and Long Term Disability
Accidents and illnesses happen. Although we all hope to avoid them, many of us will at one point or another need disability insurance for ourselves or our loved ones. If your employee is suddenly out of work for a serious medical condition, they will need to replace their lost income to continue to provide for their family. Short and long term disability packages allow employees to have the peace of mind that their family’s needs will continue to be met even during a medical hardship. Additionally, many of these types of plans are completely employee funded so employers incur no additional cost for the program.
Dental and Vision
Standard health insurance rarely offers any type of coverage for dental or vision. For your employees with families and small children, these types of policies can help offer a tangible savings in overall health expenses. While the costs of many of these programs are often shared between the employee and the employer, the expense is more than paid back in employee satisfaction.
Flexible Spending Accounts
Flexible spending accounts allow employees to pay for medical expenses such as deductibles and co-pays with pre-tax dollars.
Providing excellent benefits without regularly communicating the value of these benefits to your employees is a missed opportunity. People are prone to take things for granted; and, those who don’t still often miss the big picture. The solution is to communicate the value of the total package you are providing each employee, using online solutions such as COMPackage. Such a solution is easy-to-use, inexpensive, and powerful in how it clearly and simply communicates the value of each employee’s overall package.
Employee Compensation Statements are growing in popularity with employees in large and small businesses. The statements give employers the ability to outline, in one clear document, each employee’s complete financial and non-wage compensation. Here are five key benefits of an Employee Compensation Statement.
Employees who are content in their jobs – come to work ready to go, know their job and feel that they contribute to their company’s success – are employees engaged with their company. Engaged employees are likely to give more at work and show more loyalty toward their employers.
Personalized Employee Compensation Statements furthers employee engagement by boosting employees’ morale. Compensation statements can serve as a reminder to employees that they are more than just a paycheck. Seeing a total list of benefits that includes work-life-balance through flex time or day care, for example, can help to make going to work each day more fulfilling.
When employee engagement and morale is low, retention becomes the number one problem for an employer. Companies that have high engagement report less absenteeism and importantly less employee turnover. A 2015 survey notes that 56% of employees believe that perks matter and are key factor in deciding to stay put in their job.
Employee Compensation Statements are a visual guide to those perks, giving employees a clear picture of how invested their company is in their success. All employee benefits, including performance rewards, mean that employees have something other than just their salary as a measure of their worth to their company. For those employees who have their compensation statement, they are less likely to ask for salary increases or importantly to look outside of their company to get a bigger salary.
Just as the statements assist employers and employees with retention, it can be invaluable tool in recruiting top performers. Fully 25.2% of employees looking for work state that benefits are very important factors in considering a company’s job offer. Compensation statements tell potential employees exactly what they can expect from the first day and well into the future.
In an easy-to-read statement, employers use compensation statements to give a potential employee a roadmap to the future. From performance reviews to bonus structures, compensation statements tell employees what they earn and can earn in real time.
Compensation statements can be a useful tool for outlining performance expectations for employees. Improving employee performance is easier with a compensation statement because employees work harder and smarter when visual performance markers are spelled out. The statements can be accessible all year around, giving employees quick access and a constant reminder of what they mean to the company.
And, importantly, Employee Compensation Statements are an excellent avenue of communication between employer and employee, which also enhances employee performance. Compensation statements are living documents so they can be revisited at performance reviews to show continuous investment in employee well-being.
Many gracious employers wonder, “Don’t employees understand all that I’m doing for them?” The truth is that without a simple, summarizing annual total compensation statement, many benefits go unnoticed or forgotten about. Take for instance, education benefits, or your 401(k) match. Oftentimes it’s provided and not used, many times because the employee just wasn’t thinking about this benefit and how it improves their life. If they knew, many more would take advantage of it – benefiting both the employer and the employee.
The ability to implement the critical value provided within a successful total employee benefits project is dependent upon two things. One is the ability of the employer to define and deliver what employees feel is needed most. The other is to provide a reporting mechanism that is easy to implement, and quick and easy for the employee to read.
Plain and Simple
Many employers make the mistake of using benefits reporting packages that are overly burdensome to read and understand. If a report is difficult to read, most people won’t bother.
Often when employees fail to absorb the full value they are being offered, and how it can improve their cost of living over time, the less likely they will feel fully valued themselves. This can lead to a higher than necessary employee turnover rate. This is why many companies choose to review employee benefit packages on an annual basis. Having a manager personally review the value of their employees’ packages with each employee, is a great way to show concern for the employee, and to make sure the employee fully understands what he or she is getting.
Reflecting on Critical Impact
Many employees have very little appreciation of the value of their healthcare and many other not-fully-understood benefits. Employers spend a lot of money on benefits, and to have this understood and appreciated, it is critical for benefits provided by employers to be communicated to employees in a meaningful way.
Employee benefit compensation statements are often the best answer because they provide one of the most powerful tools you can offer to help raise workforce morale and retention.
Employees need to be able see the full value of the many total employee benefits they are receiving. Many companies utilize total compensation reports and statements as part of their annual employee reviews. Most businesses use them for year-end reports, and even for recruitment.
Many employees do not realize that they might be making an average of $40,000 per year plus another $20,000+ in supporting health care benefits, disability insurance, social security guarantees, flexible spending account access and any of over 60 other kinds of benefits.
Employee retention often hinges on just how valued each individual feels. Strategic utilization of total compensation reports, such as those offered by COMPackage.com, has the power to reduce turnover, motivate excellence and provide a level of transparency that garners much deeper levels of employee trust in their employer.
Total Compensation Statements are increasingly popular among employers as a way to boost company morale and retain top performers. Providing the total value of their employment will help you quiet the noise that comes with employees that look too closely at the paycheck, and only the net portion, at that!
Few people are aware of the true power and value of giving your employees compensation statements. They create a useful log of the investments a company makes in its employees. This allows workers to see what they receive above and beyond the salary that they see. Employees are, most typically, happier and work harder if they understand all that their company invests in them.
Having an understanding of the value of the benefits employees receive is equally important to employee retention. A worker who can see all of his or her benefits in one place is less likely to feel unsatisfied with his or her salary. This leads to fewer requests for large salary increases and fewer employees looking outside the company for a bigger salary separate from their total compensation.
Deliver the Report by Manager to Employee
As useful as a compensation statement may be, not all of them are intuitive to read. Benefits will be better understood, and appreciated, if they are presented clearly, and with good graphics. If reader find absorbing the details difficult, they may forego reading the total compensation statements altogether, wasting your efforts to communicate the full package they receive. You should invest in reports that are easy to read. Moreover, to make sure employees both actually read the reports and understand them, I highly recommend having managers present these reports personally. Leadership should never miss an opportunity to communicate with the people they employ.
Recruiting Efforts Benefit
Compensation Statements can help to close new recruits who might be considering offers from other companies. With compensation reporting solutions like COMPackage, you can actually show a potential new hire the full value of what he or she stands to earn with your company in real time, since it takes less than 6 minutes to prepare a single statement. Most employers who spend the money on generous benefits neglect to communicate how valuable their offer really is.
When I ran an advertising agency with over 100 employees, we were gracious employers, but had no good way to communicate it effectively. This was years before we developed COMPackage. There were solutions available, but they were expensive and required purchasing consulting and high priced handling to implement. COMPackage was built to be the easiest solution to buy, the easiest to prepare and the easiest to read!
A Total Compensation Statement Is Not a Legal Document
While Total Compensation Statements seem very official (and you should treat them with the care you would treat an official document), they are not true legal documents. They have no ties to government requirements and they are not used for tax purposes. The statements are simply used to display to your employees and recruits the total value of what you offer to them.
There are very reasonably priced solutions available, like industry leading COMPackage, where total compensation reports can be produced for as little as $10-$20 per employee depending on the number of employees and length of your contract. When I entered into this business and pioneered the self-service Total Compensation Statement solution, the costs of the alternatives were in the thousands of dollars per implementation, and that was for small companies – much more for large ones. I’m very proud that we’re still one of the lowest cost and easiest to use solutions available. I’m even prouder that our customer support is second to none.
Total Compensation Statements don’t have to be difficult. A professional program can help you deliver the goods for all your employees quickly and easily.
Generous employee benefit packages are critical to attracting, motivating and retaining top talent. Benefit packages can add tens of thousands of dollars to an employee’s salary, giving them opportunities to maintain work-life balance, grow in their career, and take care of their health.
One innovative benefit that employees value highly is a significant employee education benefit. Here are some excellent reasons to add education benefits to your total compensation statement.
Demonstrate Employer’s Commitment to Employee Development
Whether the company reimburses undergraduate, graduate, or associates degree programs, the benefit clearly demonstrates the company’s willingness to invest in employees willing to invest in their own future.
The type of benefit each company offers varies according to the specific targets of the benefit.
For example, employers can offer tuition benefits and/or either partial or full reimbursement for course and/or book costs.
A second type of commitment is shown when employers offer flexible hours to allow employees to take courses during work hours, for example, rather than taking up only personal time. Flex time, or some option for telecommuting, are innovative responses to an employee’s needs when taking a challenging course load.
Improves Employee Performance
Employees who seek out job-specific education, like business degrees at the undergrad or graduate level, will translate their new skills into their daily job tasks. Any employer can target specific skills for employees to acquire through a tuition reimbursement plan.
The employer can take advantage of the employee’s new qualifications to improve their workplace rather than going through the costly process of recruiting new talent. If new hires are necessary, however, the education benefit can give companies the edge when recruiting. This is especially true for a small business trying to attract talent away from larger corporations.
Employees Can Grow with the Company
Employers that attract top talent are the ones that also help their employees to grow with the company. A recent study showed that 61% of survey respondents confirmed that they are more likely to stay with a company longer, up to five years, after taking advantage of educational benefits. The company benefits from their years of experience and new educational skills, while employees rise up the ranks.
The morale boost that comes with education benefits feeds into happier employees who work harder and are more likely to stay in your company. Even employees who choose not to take advantage of the benefit immediately, or who have no plans to do so in the near future, get the benefit of knowing that they can – and the morale boost that comes with working for a company they know cares about their future.
Employers can offer courses that are in non-career areas, like smoking cessation or health improvement. These simple courses can lead to healthier employees, and that can translate into less sick time and consequently more productive employees.
Companies can also offer classes in work-life balance like stress reduction, which makes people more alert while working, or financial management, which contributes to better living as a result of increased savings and debt reduction.
Your company can learn about the many pluses of including an education benefit in your total compensation statement at compackage.com.