This article explores the significance of employee benefits in attracting and retaining talent — particularly in relation to employer branding.
But first, let’s provide a brief definition of employer branding.
What is employer branding?
Employer branding (EB) refers to your standing among your existing employees (and the broader public), particularly potential job candidates.
Your employer branding influences how your organization is viewed. Data indicates that firms known for being compassionate, with a robust culture of diversity and inclusion:
- are more frequently regarded as desirable employers (among job seekers)
- prevent current employees from seeking employment elsewhere
A company’s standing is more critical than it has ever been. Indeed, 86% of employees would refrain from applying for, or remaining at, a company that has a poor reputation with former employees or the public.
(source: Everything You Need to Know About Employer Branding by Caroline Forsey)
Note: Explore our blog for additional tips and resources to enhance your employer brand.
Why employee benefits are crucial for your employer brand
The kinds of benefits you provide influence your employer branding (think compassionate and inclusive). How you are viewed by newcomers and the retention of employees make benefits extremely significant.
Your benefits package is an invaluable marketing instrument to establish a strong EB. When contemplating how your employee benefits impact employer branding, keep these 3 key areas in mind:
- Reputation — Your employee benefits should enhance your reputation as a company that genuinely cares for its staff and extends this care to a diverse demographic.
- Job Security — Your employee benefits should provide employees with a sense of security in their positions.
- Culture — Your employee benefits should be inherently inclusive so that employees (and applicants) acknowledge your commitment to culture.
Below are several illustrations of benefits to enhance your employer branding.
Employee Benefits to enhance your reputation
Whether you are an SMM expert or a digital mentor, your reputation is shaped by the opinions others hold about you. Nowadays, it’s straightforward for individuals to form quick opinions about you via social media or a Google search. Therefore, it’s essential for your employees, clients, and candidates to express favorable sentiments.
There are numerous methods to accomplish this, but when it comes to employee benefits, it’s advisable to emphasize:
Being Transparent
Be candid about your benefits in your job descriptions and career pages.
Including each benefit in a job advertisement can boost the application rate by 1% to 5%. The benefits that have the most positive effects on application rates are: Regular Incremental Bonus (+155.1%); Pet Insurance (+37%); Health Insurance (+29.8%); Stock Options/Employee Stock Purchase Plan (+27.5%); and 401(k) (+20.5%).
(source: Job Ad Content: How Benefits Impact Candidate Attraction by Appcast)
Additionally, if you introduce a new benefit, announce it on your social media and urge employee advocates to do the same.
Covering your bases
Distinct individuals hold varying views on what constitutes “good benefits.” Therefore, to demonstrate that you value a diverse group of people, contemplate benefits that span several categories:
- health and wellness (gym memberships, health insurance)
- financial (reimbursements for travel and education, bonuses)
- retirement (401K matching)
- paid time off (for vacations or volunteering)
- flex-time or remote work (hybrid office/home arrangements)
Staying up to date
Be prepared to enhance your benefits as current events create new challenges for your employees. However, be cautious about eliminating benefits.
Here’s an instance of how remaining current (and willing to enhance your benefits) enhances your EB reputation:
The Supreme Court’s decision on June 24th regarding abortion access has elicited strong reactions. With this in mind, numerous organizations have chosen to incorporate abortion access benefits, primarily by covering travel expenses for abortion. You can also learn more about companies that have added abortion access benefits here.
Moreover, another noteworthy example involves maintaining remote work or hybrid work options following COVID-19:
“32% of professionals would contemplate relocating even with a pay cut, if given the chance to work from home as often as they wish.”
(source: The Permanent Relocation: Paycut Edition by Team Blind)
Employee Benefits to enhance job security
Your EB is influenced by how secure your employees feel in their roles, as well as the extent of their grievances regarding any insecurities!
In the past, and now more than ever (due to the rising cost of living), job security ranks highly on employees’ and prospective candidates’ lists of significance. Consider these benefits to boost job security:
- Healthcare plans
- Parental leave or return-to-work compensation
- Financial aid for expenses like travel or caring for elderly parents
- Wellness benefits to assist with stress and mental health
Ernst and Young (EY) provides a comprehensive wellness benefits package designed to help employees maintain emotional well-being and offer support through challenging life experiences (such as divorce):
“EY’s“Better You” programaims to address the physical, financial, social, and emotional needs of its employees by providing free resources to help them “achieve balance so they can fully engage at work and in life.” To tackle employees’ mental health challenges, EY’s program includes up to 25 counseling sessions for employees and their family members, mindfulness training, and mediation sessions. Furthermore, EY also covers the costs of online support tools to aid employees in better managing stress, along with training for employees to identify if someone in their network is struggling.”
(source: 15 Companies That Prioritize the Mental Health of Their Employees by RIPPLEMATCH TEAM)
Benefits showcase your culture
Organizations with a defined culture help employees feel included and part of a community.
When you possess a clear workplace culture, it bolsters the confidence of prospective talent. You want to make them feel they will fit in. This also applies to motivating current employees to remain a part of the team.
So, how do you convey this from an employer branding perspective?
Employee benefits reinforce your workplace culture when they align with your mission, values, and ethics. These benefits generally manifest as optional extras like team-building activities and community engagement opportunities. However, they may also fall under more conventional benefits.
Here’s an illustration based on financial benefits from Patagonia:
Patagonia has consistently represented the enjoyment of nature and environmental preservation. Its EB is a natural extension of that ethos, promising an “unusual blend of work, play, family, and environmentalism.”
They deliver on that promise through:
- paid environmental internships
- time off for civil disobedience training
- reimbursements for commuting in environmentally conscious ways
- flex-time policy
Why I wrote this:
Ongig is dedicated to assisting HR professionals in crafting unbiased, inclusive, and healthy work environments for employees, and exceptional employer branding is a key component of this. Connect with us at friends@ongig.com
Thanks to my sources:
- How to Strengthen Your Reputation as an Employer bySarah Jensen Clayton
- 15 Companies That Prioritize the Mental Health of Their Employees by RIPPLEMATCH TEAM