July 21, 2018
Employers are pulling out all the stops with what used to be considered “fringe” benefits, now emphasizing health and wellness perks to draw and keep staff, as noted in the latest annual benefits survey by the Society for Human Resource Management (SHRM).
“With unemployment rates hitting an 18-year low, benefits are becoming a key player in the strategies employers use for recruitment and retention,” says Trent Burner, SHRM’s vice president of research. He notes that companies are tailoring their benefits from year to year, adjusting based on how much they’re used, their cost, and their effectiveness in making an organization attractive to top talent.
According to the survey, over the past year, 34% of organizations reported an increase in their overall benefits. Health-related benefits saw the most significant increase (51%), followed by wellness perks (44%).
The main drivers for enhancing benefits were retention (72% of respondents) and recruiting (58%), according to the survey which gathered responses from over 3,500 randomly selected HR professionals in the U.S. during February and March.
This focus on health benefits is hardly surprising. A 2017 SHRM study found that companies taking a strategic approach to benefits, using them to attract and retain talent, are nearly twice as likely to report satisfied employees and superior business performance compared to those that don’t strategize with benefits.
Another SHRM survey on job satisfaction and engagement revealed that 92% of employees consider benefits crucial to their job satisfaction. “This underlines what many HR professionals know—benefits have a significant financial impact on a company’s turnover rates,” say the researchers from the SHRM benefits survey.
The link between benefits and retention was also evident in the job satisfaction survey, where 29% of employees identified their benefits package as a key reason they might look for a new job within the next year. Conversely, 32% of those not likely to seek jobs elsewhere cited their benefits package as a major factor.
**Significant Gains in Parental Leave**
The 2018 SHRM benefits survey highlighted a notable rise in paid parental leave offerings between 2016 and 2018. Paid maternity leave availability, for example, increased from 26% to 35%. Increases were also seen in paternity leave (from 21% to 29%), adoption leave (from 20% to 28%), foster child leave (from 13% to 21%), and surrogacy leave (from 6% to 12%).
While the federal Family and Medical Leave Act offers up to 12 weeks of unpaid leave, paid parental leave can make it easier for employees to utilize this time fully. Research suggests that paid parental leave can enhance organizational commitment, increase engagement, provide skill-building opportunities for those covering leave, reduce maternal depression, and even decrease healthcare costs through higher rates of breastfeeding.
Wellness benefits are also widely embraced, with 75% of employers offering wellness resources and/or programs. Notably, there has been an uptick in company-organized fitness competitions and CPR/first aid training, while standing desk offerings have increased from 44% to 53%.
Conversely, preventive programs for chronic health conditions saw a decrease. However, there was a significant rise in life insurance for dependents, offered by 70% of organizations in 2018, up from 57% the previous year.
As for non-health-related perks, service and employee program benefits rose by 39% among organizations that increased their benefits offerings. More casual dress codes, free coffee, company-provided snacks, and annual outings are becoming more common. Additionally, more companies are celebrating service anniversaries and expanding telecommuting options, reflecting a broader trend towards creating more flexible and enjoyable work environments.
