The rate of unemployment in May 2019 in the United States was 3.6%, according to the Bureau of Labor Statistics. In other words, in this tight labor market, companies have to work to find benefits and perks to attract and keep talent.
When I went about researching for this post, I found two different opinions: some surveys found benefits (health insurance, PTO, etc.) were more desirable and other surveys found perks (free fitness classes, flexible hours, etc) were more desirable – but both sides agreed that potential talent is willing (or even prefer) to accept more benefits and perks over increase of income.
FRACTL conducted a survey of 2,000 employees regarding what benefits and perks would cause them to consider a lower paying job over a higher paying one. The survey found that better health, dental and vision insurance was the top benefit/perk that would be taken into consideration when comparing potential employers. This was followed by perks that are relatively low cost; perks such as flexible hours and the ability to work from home. Even offering education assistance (#7 on the list of 17), can be less expensive than you may expect as up to $5,250 per employee is tax free, according to the IRS.
No matter what, there is a cost to enhancing your curb appeal – and ignoring your appeal can cause you to increase overtime and employee stress with extended periods of position vacancies and/or increase turnover rates.
However, the cost of increased benefit and perk programs do not have to be carved out of your profit margin or bookmarked for next year’s fiscal planning – looking at cost reduction in janitorial supplies, freight, telecom, and more can have you seeing savings and starting those incentive programs sooner rather than later. Silverback has a wide range of experience in how we may be able to help you save and thus helping you invest in increasing or maintaining your talent.