Are Fringe Benefits the Key to Attracting and Retaining Talent?
As companies continue to try and turn the tide of The Great Resignation by assessing how they attract and retain top talent, more employers are thinking about how their benefit offerings can help differentiate them from the pack in the eyes of job seekers. With a workforce that’s generationally diverse, it’s more important than ever before for employers to leverage fringe benefits and build a company culture that is appealing to employees with different interests, needs, and preferences.
Though health insurance coverage continues to be a priority for all employees, there’s a growing interest in benefits beyond traditional health insurance. If organizations want to be successful in their recruitment and retention efforts, they need to be able to listen, respond, and adapt to changing employee expectations.
What are Fringe Benefits?
Fringe benefits are additional benefits that companies offer to employees to supplement their base compensation. Companies extend some fringe benefits to all employees and may also offer certain exclusive benefits to executives.
In some cases, fringe benefits can help employees cover the cost of work-related expenses, while others might help with overall job satisfaction. While the term “fringe benefit” might sound like a treat or a goodie gifted by a company, the law requires employers to provide some of these benefits to their employees.
Here’s a breakdown of more common versus less common benefits:
- Health Insurance
- Unemployment Insurance
- Worker’s Compensation
- Protected Leave (Medical, Parental, etc.)
- Sponsored Retirement Plan
- Income Protection
- Paid Vacation Days
- Life Insurance
- Employer-Provided Equipment
- Social Security
- Tuition Reimbursement
- Continuing Education Options
- Equity or Stock Options
- Free Meals or Drinks
- Dependent Care Assistance
- Fitness Stipend
- Exclusive Employee Discounts
- Commuter Benefits
- Adoption Assistance
- Fertility Benefits
It’s important to note that per IRS guidelines, some benefits are taxable while others aren’t. Be sure to reach out to one of our employee benefits specialists to learn more about which fringe benefits are taxable versus those that aren’t.
How Do Fringe Benefits Help Attract & Retain Talent?
A lot of factors shape company culture, but the benefits a company offers speak volumes about the intrinsic values of the company by virtue of what the employer is willing to invest in on behalf of employees. The right mix of fringe benefits can foster a culture of appreciation and loyalty, which is why employers should carefully consider the benefits they want to prioritize in tandem with the kind of talent they wish to retain and attract.
Instead of arbitrarily adding new fringe benefits offerings, companies need to think about their objectives and assess their economic bandwidth when making these decisions. It’s also important to get a pulse on what benefits employees want through tools like surveys, which can provide invaluable data about how to tailor and prioritize fringe benefit options.
Unique fringe benefits can help differentiate employers from their competition when hiring new talent. Oftentimes, when potential hires need to make a decision between similar salary offers, fringe benefits tip the scale in favor of one employment opportunity over the other.
Employers who want to attract and retain talent in a highly competitive, post-pandemic market should build a comprehensive benefits package with unique fringe benefits. If you are looking for ways to bolster or assess the benefits you offer, connect with our employee benefits team. Our experts are ready to assist you with crafting a benefits plan that aligns with your budget and vision.