Want to attract (and retain) top talent, making your company’s workforce more competitive and cutting down on turnover costs to boot? The simplest way to do so starts with the benefits and policies you offer to employees.
We already know that benefits play a major hand in how candidates evaluate a job offer. One recent survey conducted by Fairygodboss, the largest career community for women, in partnership with Extend Fertility, found that 87% of professional women say a benefits package is important or very important to them when interviewing at a company. Respondents stated that the presence (or absence) of certain benefits would impact their likelihood to stay at an employer, too.
So, which specific benefits and policies are the ones that will set your company apart as a modern, desirable workplace? We spoke to experts — from CEOs to heads of HR — to find out exactly what the benefits package of today’s most relevant employers looks like.
1. Summer Fridays
Giving employees a few extra hours to jumpstart their weekend through “Summer Fridays” can lead to a whole spate of positive benefits, including improved morale, focus and engagement at work, according to Brian Kropp, Group Vice President of HR Research at Gartner. “Most companies have told us that with this benefit in place, they’ve found employees work harder earlier in the week because they know they have to complete their work before Friday,” Kropp said.
2. Pay transparency
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The days of salary and bonus conversations happening only behind closed doors are long gone. Thanks to whisper networks and a growing belief in salary sharing, for many companies, this information is available with or without their consent. Companies who want to appear modern (as well as do the right thing) should embrace this trend through official pay transparency policies.
“Companies that don’t want to appear outdated have written pay, incentive and bonus plans for all employees at all levels so that how pay is calculated is not a mystery,” Sarah Morgan, Senior HR Director of SafeStreets USA, said.
“The compensation is equitable across gender and races so everyone is paid fairly based on the position, experience, skills and responsibilities. Such companies are also open about their pay policies and share general information about how much people are earning at every level. This may be shared as ranges or as specific amounts.”
3. Inclusion initiatives
Be it achieved through employee resource groups that encompass diverse identities, unconscious bias training, or a commitment from leadership to hire more women, top talent today is looking for evidence in companies’ policies that diversity is a priority.
“There’s recent research showing that 80% of young people entering the workforce care about the company’s commitment to social responsibility, and employees also need to feel a sense of belonging during the recruitment process and once they are hired,” Kate Chovanetz, CEO of DiversityEdu, said.
“Saying you have a commitment to inclusion isn’t enough. It’s essential that companies make good on their commitment with initiatives and learning that set a baseline of inclusive behavior and opportunities for in-person, deeper engagement.”
4. Recognition programs
Designed to celebrate, incentivize, and motivate workers’ achievements in an official way, recognition programs are a great way of creating a workplace culture where employees feel seen, Cindy Harvey, CEO of Amelia Dee, said. “Ideally, these programs should align with a company’s strategy or values,”
Harvey said. “This means that if the company values delivering exceptional customer service, then recognizing employees who demonstrate this would help infuse it into the day-to-day culture of the organization.” She suggested three examples of these programs that she’s seen make a positive impact at companies: leadership recognition; bonuses; and peer-to-peer recognition.
5. Diverse compensation models
Illustration of a Businesswoman Holding a Trophy
Instead of remaining married to a traditional model of static salaries, Baron Christopher Hanson, owner of RedBaron Consulting, encourages employees to look into “incentive-based, variable compensation models” of pay.
“These reward employees on multiple levels: for excellent behavior and policy adherence; productive cost savings and risk aversion; and exponential sales or growth or profit creation in their role;” Hanson said. “Employees of all ages are looking to earn more for their excellent work, and they deserve to be paid using more diverse compensation methodologies and metrics that reward them for innovating or creating value or saving money for the company.”
6. Flexibility and work-life integration policies
As a concept, flexibility can take many forms in how it’s translated into employee benefits and policies. In the FGB Community, women advocated for a variety of forms, including remote work options and more fluid time-off policies.
“I say unlimited PTO (as long as employees have a plan for getting work done on time), flexible work hours to avoid unnecessary rushing to work, and the option to work remotely some days (so long as they’re actually working),” said one commenter, who posted anonymously. Another commenter, Lorraine Sanner, a Salesforce Administrator, said companies should offer “the option to not sit at a desk for eight hours to prove your worth when your workload can be accomplished in five or six (hours).”
Matthew Ross, COO of The Slumber Yard, agreed. He said the one perk his employees value most is flexibility, saying it helps them feel “empowered and in control of their lives” when they get to choose when and where they work. “I know how mentally draining it can be to sit down at the same desk all day, so it’s nice employees are able to leave and work from different locations,” Ross said. “I believe this helps keep the work fresh and boosts overall morale. I also think it helps employees from a mental standpoint in that they actually have a say in their day-to-day lives.”
7. Paid parental leave
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In Fairygodboss and Extend Fertility’s research, paid parental leave held a universal appeal for survey respondents, regardless of their age, ethnicity, and likelihood of personally using such a benefit. Seventy-nine percent said a paid parental leave benefit would make them view a company more positively and as supportive of women, and 76% said it would make them likelier to apply for a job at that company.
Dan Sprock, Director of People & Culture at Fairygodboss, encouraged companies to look at this benefit beyond the scope of traditional, gender-specific maternity leave. “Paid parental leave, rather than just paid maternity leave, is important because it shouldn’t just be a mother’s responsibility to take care of the child and a lot of companies are coming to that realization as well,” Sprock said. “Companies are trending toward offering a standard paid leave policy that benefits every employee, whether they’re a biological mother, father, or an adopting parent.”
8. Professional development plans
Benefits that financially support employees’ professional development through ongoing education, whether it be tuition reimbursement or student loan assistance, carry a positive impact for all parties involved, said Nelson Baker, Dean of Professional Education at the Georgia Institute of Technology.
“The rapid pace of change, especially in technology-related industries, means that workforce skill sets have to be in a near-constant state of improvement or a company runs a real risk of falling behind,” Baker said. “Creating customized professional development plans demonstrates the company’s commitment to employee growth and invites employees to be active participants in it.
At the same time, it provides the company with a skilled workforce that will give it a competitive edge. Professional development is a win-win solution for any company that wants to attract top-notch talent and hold on to them for the long-run.”
9. “Healthy lifestyle” credits
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In the past, companies have typically translated this kind of benefit as a discounted rate on gym memberships for employees. However, modern employers have expanded on this definition, said Michael Alexis, manager at Museum Hack. “Employees in 2019 have a wide range of health preferences, and an even wider stance on what constitutes healthy living,” Alexis said.
“They may do yoga, or tai chi, or go for massages or some other way of keeping their body healthy. Because of this, a more ‘up to date’ benefit is a flexible health credit: one that can be used for a gym membership, but also a yoga studio, boxing club, therapy, home-gym equipment or one of many other alternatives.”
10. Zero-tolerance policies on harassment
Now more than ever, it’s crucial that employers view their policies on sexual harassment and discrimination as something that can make or break them, in addition to being a moral imperative. Companies that care about creating a positive, safe workplace culture will craft clear, strong policies in this space, as well as ensure that employees are aware of and know how to utilize these policies, said Sharon Rosen, Chief People Officer at HeraldPR.
“While policies are generally state and city mandated, it really is important for companies to make their stance on any kind of harassment clear,” Rosen said. “Send a strong message to your employees that you care about them and will not tolerate any kind of harassment or discrimination, and then enforce it.”