It’s no secret that offering compensation benefits is a fantastic way to attract and retain top talent for your business.
Are you wondering if your employee benefits are attractive enough to potential new hires? Or are you targeting a specific generation when considering new talent?
We’ll explore the 8 most popular benefits for employees valued across various generations. This comprehensive list will ensure your business stands out from the competition.
What are Employee Benefits?
Employee benefits are job benefits an organization offers to their employees as compensation. Many organizations offer different benefits depending on each employee’s schedule.
For instance, a full-time employee has access to the full scope of benefits, including health insurance. A part-time employee usually has access to a limited list at most.
The average hours a week required for each employee type varies by location. Anything less than 35 hours per week would be considered part-time employment in most cases.
What is the Importance of Employee Benefits?
Employee benefits are essential in any organization.
Providing an assortment of benefits at work shows your employees how much you value them. Not only that, but they boost the overall morale of your team.
Imagine a company claiming they care for their employees but paying minimum wage with no benefits to show for it. That’s a recipe for disaster.
Offering employees access to compensation benefits and other employee benefit programs ensures employee loyalty and company longevity.
Our team at Wizard of Sales® is dedicated to helping you and your home service business succeed.
If you’re ready to establish an unstoppable team and a winning strategy, contact us today!
8 Most Popular Employee Benefits
It can be difficult to narrow down the employment benefits an organization can offer to just the essentials. If you’re wondering which core benefits to include, consider the 8 most common employee benefits below employees can’t go without.
Social Security
Social Security is one of the most well-known benefits offered by employers. Signed as part of The New Deal in 1935, the Social Security Act caters to 1 in 6 Americans. There are three pillars of Social Security benefits available to eligible employees.
Retirement benefits are available to workers starting at age 62. The longer an employee waits to claim their Social Security income, the higher the benefit will be. Claiming benefits at the age of 70 is when the largest benefit amount will be available.
The second pillar of Social Security benefits is Disability. Disability Benefits apply to adults age 18 or older who are unable to work. This pillar encompasses any disability, mental or physical, that is fatal or will last at least 12 months.
Survivors’ Social Security benefits are the third pillar. This pillar includes any dependents of deceased workers who were eligible for the benefit. Spousal benefits of a deceased individual are also included. If a spouse chooses to claim benefits at the age of 60, they’ll receive more than half the amount. However, if they are 50 years of age and disabled, or age 66, they’ll receive the full benefit.
Perks and Bonuses
Perks and Bonuses are other favored employee benefits. They can also be found more often as small business benefits that don’t have comprehensive benefit plans. Employee perks might include fitness or gym memberships. Another perk could be complimentary child care during office hours.
One employee perk that has been on the rise during the pandemic is telecommuting or a remote work environment. A relaxed dress code and flexible schedules also fall into this category.
One bonus could be sales spiffs for exceeding a quota.
Perks and bonuses can be unorthodox at times but allow the employer to offer something valuable to everyone they hire.
Employees Allowance
Employee allowances are another great benefit to offer. Allowances are given to employees to take advantage of for specific expenses. They are usually allotted aside from the employee’s earned wages.
So which expenses can you provide allowances for?
- Transportation & Travel: Transportation is a valuable allowance category to offer, especially if your work environment is in-person. Bus fares or gas are two examples of transportation expenses. A travel expense allowance may include a plane ticket or hotel for a business trip.
- Accommodation: Accommodation allowances cover any extra expenses that the employee may face for work-related events aside from day-to-day activities.
- Clothing: A clothing allowance compensates your employee for uniform or attire purchases in line with the dress code.
- Childcare: A childcare allowance is perfect for employees with children. For instance, this allowance can cover the cost of a babysitter or daycare during office hours. Unlike the childcare perk, this would include any childcare service away from office premises.
Another type of allowance you could provide is a spending account. Instead of specific category options, the employee would pull allowances from a fund pool.
One factor to consider is which allowances are taxable and which are not. Taxable allowances are calculated in the employee’s income and subject to tax upon return. On the other hand, nontaxable benefits have to be proved in a tax return but aren’t subject to taxes.
Offering employees benefit allowances is a great way to show you care about their needs.
Pay Raise
Pay raises are probably one of the most sought-after employee benefits. They are multiple ways pay raises are presented. Some companies offer annual pay raises as an incentive for employment longevity. On the other hand, other companies offer pay raises based on performance.
Pay raises are an excellent way to show appreciation for your employees. Decide on a metric system that works for you.
For example, giving your employees clear goals and milestones to reach toward a pay raise will increase motivation. You could establish the same system for promotions. Setting these goals in place makes them attainable to every employee that puts forth the work effort.
Health Insurance
Health InsuranceEmployee insurance is one of the most popular full-time benefits.
Nowadays, finding a good health insurance policy can be challenging. Many Americans skip the pain of searching by enrolling in the health plan offered by their employers.
Most employers have access to multiple plan types, allowing employees to choose what fits their needs. Offering health insurance and wellness benefits shows you care about your employees’ well-being.
You can also provide employee allowances for health expenses. Many small businesses that don’t have access to health plans go this route. Employees can use the funds to cover any medical costs or health needs.
Paid Vacation
One of the best employee benefits available is paid vacation hours. Paid vacation hours are calculated based on the total number of hours worked.
Most employers allow a set number of vacation hours for each employee per year. As a result, the employee earns a certain amount of hours each pay period toward their total vacation time.
Paid vacations provide employees with a positive work-life balance.
Offering the chance to receive compensation while on vacation alleviates the stress of missing bills. It allows your employee to enjoy their time away and is another way to reward them for their hard work.
Meal Breaks
Meal breaks are an essential benefit to offer each employee. They allow employees to refuel in the middle of the day and refocus during the second half of their shift.
The required break time by law depends on your country or state. Many states require employees to take a combination of 15-minute breaks and 30-minute lunches.
For example, a full-time employee working eight hours a day might take two small breaks and one lunch break. A part-time employee who works four hours a day may only be assigned one small break if they need it.
Another determining factor is the type of employment you offer. Employers who hire independent contractors leave the breaks up to their employees as long as they work their assigned hours. In a general employee position, employers may assign and stagger break times.
Imagine working 12 hours straight, without a chance to stretch your legs or get a bite to eat. Burnout would creep up on you pretty quickly, right? Don’t let the lack of meal breaks be the reason you lose valuable team members.
Achievement Award
Last but not least, achievement awards are another popular employee benefit. Taking the time to acknowledge individual accomplishments shows your appreciation.
There are many different achievements to award employees for, including:
- Special Projects
- Customer Recognition
- High sales revenue
- Improved work systems and efficiency
As an employer, you can decide on exciting ways to award different achievements. For instance, you could hand out statues for employees that have been with the company for years.
Friendly competitions and prize incentives are another engaging way to get every employee involved. Competitions could help the company improve on a result that’s falling behind.
Finding new ways to keep employees engaged and excited about their day-to-day responsibilities will boost employee morale.
Consider your target talent demographic and offer as many valuable employee benefits as possible.
What Kinds of Employment Benefits do Various Generations Value the Most?
Now that you know which employee benefits are the most popular, which ones matter most to each generation?
It’s essential to truly understand what matters to the top talent you’re trying to attract. Imagine a car mechanic who only hires bicycle experts. Reaching any sales goals would be nearly impossible—he doesn’t have the right talent on his team.
Avoiding this kind of pitfall is relatively simple. Taking the time to understand the expertise your business requires need sets you up for success. If you hire talent without offering benefits relevant to them, you’ll be back at square one before you know it.
Educating yourself about which benefits are valued by different generations is a great place to start. Below, you’ll find four generations and a bird’s eye view of what they search for when considering a new employer.
Baby Boomers
Baby Boomers refer to individuals born between the mid-1940s to the mid-1960s. Born post-WWII, this generation didn’t have much of the technological advancements we see today. Most of them are family-oriented and nearing retirement.
So what benefits are most important to them?
Above all else, baby boomers value pensions. Although not listed among the most popular, pension likely makes the top 10.
A pension is essentially a type of retirement account. Funds are added to their pension as they work to support them financially upon retirement.
Considering the decades this generation encompasses, they likely didn’t have other retirement investment options available compared to Generation Z.
As far as perks go, baby boomers value mobility and meal stipends. Including specific employee allowances for both categories is a great way to show you care about what matters to them.
Working hours, healthcare, and wellness are also part of the baby boomers’ top five benefits. Overall, they value health and a comfortable and financially secure retirement transition.
Generation-X
Generation X followed the baby boomers, born between the mid-1960s through the late 1970s.
They are often referred to as the “sandwich generation”, sandwiched between caring for their aging parents and their own children. They are known for being financially savvy with a strong work ethic. However, with working hours and leave first on their list, they value work-life balance.
This generation values flexibility in their work schedule and enjoys every company perk available to them. Generation X employees are also the most likely to take full advantage of their paid vacation days.
Another perk they value is activities, clubs and gifts. If this is your target generation, be sure to provide an outlet associated with the workplace to emphasize balance.
Similar to the baby boomer generation, they take their health and wellness seriously, and pension sits in their top five. Skills development is another important benefit.
Because of their workaholic nature, they always strive to improve their work performance. If this encompasses your dream employee, consider offering additional training and incentives to satisfy their hunger for professional growth.
Millennials
MillennialsMillennials are individuals born between the 1980s to the mid-1960s. Also referred to as Generation Y, this is the largest generation yet.
The millennial generation is the most diverse in terms of race and ethnicity. Millennials reached peak childhood in the 2000s and grew up with technology, unlike Generation X.
Often characterized as lazy and entitled, this isn’t always the case. Many unique characteristics make them valuable in the workforce.
For example, they’re comfortable with innovation and change. Millennials also mastered social media and technology, a perk the previous generations can’t quite offer.
Interestingly enough, their top five list of important benefits doesn’t differ much from those who came before them. They value flexible schedules and vacation hours above all else.
Millennials are valuable employees to hire, as they are achievement-oriented and aspire to make a difference in their work. Much like Generation X, they thrive off skills development and the opportunity to grow in the workplace.
Generation-Z
Lastly, Generation Z includes all individuals born in the mid-1960s to the mid-2000s. This generation offers a unique perspective on the world. They are incredibly social, both digitally and physically having grown up with more advanced technology than the rest.
Generation Z consists of digital natives who have never known a world without the internet. Having access to so much information at all times allowed them to become aware of the different business opportunities at their disposal.
They have entrepreneurial spirits, valuing individual work environments. Individuals of this generation are always learning, and overall frugal, understanding the importance of saving.
While they also value benefits such as pension and health and wellness perks, they also look for financial wellness. Hearing advice from family members from earlier generations allows them to see the bigger picture and value financial freedom.
Their overall interactive nature and ability to multi-task make them perfect additions to the workforce.
Offering the Right Benefits
Offering benefits is the perfect way to show your employees that you care about them. Benefits are essential in both attracting and retaining your desired talent. However, most employers don’t offer benefits their employees want or need. Some employees might prefer less common benefits like pet insurance or life insurance.
Different generations value different benefits. After determining your target employee, what benefits should you offer now that you didn’t before?
Some of the most popular benefits are Social Security, pension and health insurance, valued by Baby Boomers and Generation X. Healthy work-life balance and the perks of a flexible schedule are a few benefits most important to the younger generations.
As an employer, you should prioritize research on the benefits your employees want and need and offer them. As a result, you’ll retain the talent on your team and boost morale, creating a happy and healthy work environment for every employee.
Wizard of Sales® is beyond experienced in creating unforgettable strategies that help your business grow. And that starts with a winning team. Contact us today to lock in your target employee and we’ll give you the tools and strategies you need to succeed!