How employee benefits can be used to recruit top talent in 2023
Employee benefits are a key part of any company's culture. 2020 showcased a large shift in preferred benefits for 9 to 5 employees, with an emphasis on flexibility and remote work. Now that we're entering 2023, what are the top benefits employees are interested in? How can you stay competitive in the recruiter market if you can't compete on compensation?
From remote work options to healthcare benefits, there are plenty of ways to make your company stand out. Here are eight ways employee benefits will help you recruit top talent.
Is remote work the most important factor when recruiting?
With the rise of remote work, more employees are emphasizing the importance of flexibility over a competitive compensation. In big tech, one of the hardest benefits for startups to compete against large tech companies for top talent is offering candidates a competitive compensation. In a LinkedIn poll conducted by the Wellfound team, 45% of respondents said flexibility and remote work beat out competitive compensation ranking in at 26% as a top contender to attract and hire in-demand professional talent.
Employees prior to 2020 would spend on average 54 minutes each day commuting . If you are a company or startup which offers remote work as a benefit to employees, note the remote working policies directly on job applications and company profiles.
Recruiting Tip: If your company has roles which offer a remote working policy, indicate this on the job listing. Candidates can search for remote only roles and filter by job postings which allow for remote work.
Remost work can also include options like telecommuting, working part-time from home and working from different countries. Offering flexible work arrangements, can help attract top talent who value work-life balance. Many companies have found working remotely and offering "on-sites" and company retreats on a quarterly is an effective way to give employees the flexibility they desire, while also building genuine relationships as well as a strong culture.
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Extra time off and flexible time off as incentives
Workers are making it clear that they certainly have an affinity for paid holidays and extra time off. Providing employees with extra paid time off including the week between Christmas and New Years, floating holidays for employees to use how they would like, or half-days during summer months may help incentive employees to join your startup.
Some research suggests that approximately 80% of employees would choose a job with more vacation time over a job with higher pay. Paid holidays may also make an employee more likely to stay with a company and avoid burnout. Recently, even larger tech companies including Microsoft are moving towards an unlimited PTO model for its employees in addition to 10 paid holidays. Business owners who recognize the importance of this benefit, may benefit from a happier and more engaged workforce.
How to position health and wellness benefits
Healthcare has become essential for many people in today's workforce and very much expected from full-time employers. In the recruiting process, highlight any specific health benefits which may be unique to your company. For example, if you offer a gym benefit or reimbursement include this information on your website and recruiting profiles.
In the past year alone, 30% of employers have already made mental health a top priority for their workforce. Healthtech companies especially may benefit from providing wellness benefits which align with their company culture. For example, Peloton offers free digital access to Peloton digital access.
Sharing interesting health and wellbeing benefits may be beneficial in the recruitment process and provide more insight into the company culture for the candidate.
Offering retirement benefits to reduce risk
Stated by Stripe, “In addition to the benefits for yourself personally, retirement plans are increasingly becoming a standard offering as you begin to hire more employees. When asked, 76% of millennials said that 'retirement benefits offered by a prospective employer will be a major factor in their decision on whether to accept a future job offer'."
For example, Hubspot has a strong 401(k) matching program alongside additional benefits like sabbaticals and parental leave which may help retain top talent. Having a retirement plan in place can go a long way in attracting high-caliber staff. Offering a 401(k) may help reduce the risk and variability of a startup to a top candidate.
Do people even care about equity anymore?
Offering stock options, or equity, is a popular way to incentivize interest in a company, particularly among startups. Startups often don't always have the most healthy cash flow, especially in early days. Equity in a startup is a good way to be able to attract top talent and compensate them fairly with partial ownership in a company, despite the companies smaller cash flow.
Having overall compensation relying on the success of a company creates a dynamic that encourages employees to be more invested in their work and stay with companies for longer. The return on investment from working for a startup with equity can end up being far more valuable than a higher salary. For over 50% of millennials, a companies stock option was the main determining factor for where they ended up working.
Tuition Reimbursement
People who work at companies that offer tuition reimbursement tend to have stronger networks, be more confident, and stay at their companies longer. Companies are also luring talent with debt assistance packages, which can be tax-exempt up to $5,250, to help employees pay off loans.
Jellyvision is a Chicago-based startup that offers tuition reimbursement. Intuit provides up to $
$5,250 per year ($2,625 for part-time employees) for continuing education and student loan refinancing options.
While a full tuition reimbursement may not be possible for all small startups, investment in a employees continued education through courses, LinkedIn Learning, certification reimbursement may be a great benefit to offer employees.
Unique benefits related to your companies mission
Startups have been at the forefront of the shift to remote work culture . Tech companies offer other truly amazing and unique benefits, including unlimited time off and 4-day work weeks with full pay. In addition, employees are in search for companies that feel more aligned to their own personal values when looking for a role.
Airbnb offers its employees the ability to work from any location in the world - a great benefit to lovers of travel. One of their most unique benefits is their paid volunteer time, which allows the company to encourage workers to invest some of their time not in their company, but in their communities.
Twitch's feature a wide variety of gamer memorabilia, arcades, PC gaming rooms, and more. Headspace leans into the wellness aspect of their business and offers free gym memberships to employees.
Offering a competitive compensation
Offering competitive compensation packages can help attract top talent and help narrow the gender wage gap. Companies benefit, too, with more trusting work environments, better employee engagement, and higher productivity.
This may not be possible for all startups. On a smaller scale, can you offer bonuses to employees annually or quarterly? This could be a way to provide an additional benefit to top talent.
Conclusion
We shared some new and exciting takes on employee benefits for startups. In order to provide maximum visibility for your company, ensure your Wellfound company profile is fully filled out.
Do you have an interesting company benefit you use when recruiting? Tell us below.
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