The world of human resources/human capital has changed in the past few decades, and even if the employee benefits models of today no longer emulate those of the 1980s and 1990s, the ability of a company to offer high quality benefits remains pivotal to the company’s long term recruitment, retention, and overall reputation.
Study Confirms that Good Benefits Are Good for Business
This notion was confirmed by the most recent study performed by the Healthcare Trends Institute, an employer, broker, and healthcare partner-focused resource sponsored by WEX Health. Part of a much larger study called the 2017 Healthcare Benefits Trends Benchmark Study, one of the most important findings was that the quality of an employer’s benefits offering directly correlates with an employer’s ability to retain and recruit employees, as well as a company’s overall perception by the general public.
From our news release on the report:
“Employers are faced with daily challenges to keep employees healthy and engaged at work,” said Tiffany Wirth, executive director, Healthcare Trends Institute. “As the market continues to move in a direction of consumerism and consolidation, it is important to track how offerings have evolved as well as the perspectives of HR and benefits administrators on the types of plans that are most effective in meeting employees’ demands
Impact of Employee Benefits on Reputation
While respondents often differed in benefits strategy execution, one statement rang true whether the survey-taker was from a company of 20 or from a company of 20,000:
“The quality of a benefits package impacts the reputation of my company.”
According to the study, 67 percent of leaders selected seven or higher on a ten-point scale regarding their accord with the above statement, with nearly a quarter of respondents selecting ten out of ten.
Better Benefits, Better Recruitment and Retention
Building on top of this statement, employers are recognizing once again that quality benefits are a critical part in winning the current iteration of the war for talent—a time when there are more jobs available than qualified employees ready and willing to work them and a time when “just a salary” will no longer cut it: 68 percent agree that good benefits are key to improving morale and satisfaction and more than three quarters (75.4%) agreeing that a good benefits package helps to retain and recruit employees.
This was just one of the many findings from the 2017 Healthcare Benefits Trends Benchmark Study. The entire report looks much deeper into the employee benefits world, highlighting key trends like the move to consumerism and choice in healthcare, how employers were preparing for the possibility of an excise tax on high value plans, and other considerations employers are making.