5 Ways Employee Benefit Plans Can Attract and Retain Diverse Talent
Published On: May 21, 2021
In today’s competitive job market, utilizing best-in-class strategies to attract and retain top employees is critical for your company. So, what’s one sure-fire method to do just that? Offering a top-tier, customizable employee benefits package is a proven way to help your company attract a diverse team to your workplace. That being said, most business owners fail to grasp just how far an attractive benefits option can go in driving both diversity and employee retention.
As a whole, employees want to feel valued and trusted by their employers. Of course, actions speak louder than words; as such, offering a comprehensive benefits plan with enough flexibility to meet the evolving needs of employees accomplishes that need. According to MetLife’s 15th Annual U.S. Employee Benefits Trend study, 72% of employees say that the ability to customize their benefits would increase their loyalty to their current employer.
With this data in mind, employers may need to adjust their mindset and shift employee benefits plans from a short-term attraction tool to one that works in your organization’s long-term interests too. Below we describe the benefits of a diverse workforce and detail four ways to utilize employee benefits plans to diversify the talent within your organization.
Why Is Diversity Good for Business?
Diversity in the workplace means that businesses employ people of all ages, genders, races, cultural backgrounds, sexual orientations, national origins and more. There are several distinct advantages of a diverse workforce, including:
- Expanded creativity. When employees of all cultures come together, there is more opportunity for creative viewpoints to inform and solve problems.
- Enhanced decision-making. Diverse employees bring different perspectives, experiences, and skills to the table, which will enhance your organization’s decision-making processes.
- Increased employee engagement and job satisfaction. Employees will feel happier, more comfortable, and at ease in inclusive job environments. Generally speaking, they will feel more comfortable speaking their minds and being themselves.
Here are other ways to utilize employee benefits to reach diverse talent.
Include Maternity and Paternity Health Benefits
It is common for employers to provide maternity benefits, but additional paternity benefits are quite rare. Offering both maternity and paternity benefits (otherwise known as parental leave), such as extended paid time off when a child is born or adopted, will show your employees that your company understands the importance of family togetherness and healing during this life-changing event.
Parental leave is an important benefit to extend to all employees to demonstrate your organization’s commitment to inclusivity and fair practices across all genders and sexual orientations. Most employers only allow for one type of parental leave, but providing both allows new moms and dads to recoup and celebrate their new bundle of joy without sacrificing their paycheck.
Offering Voluntary Benefits
Voluntary benefits are supplemental benefits offered by an employer and are seen as additional “add-on” benefits. There are many different categories of voluntary benefits, but some examples include pet insurance and short- and long-term disability coverage. These types of benefits are popular among employees because they can take advantage of a discounted group rate and fill any gaps in their healthcare coverage.
Opening Health Savings Accounts (HSAs)
Health savings accounts (HSAs) are medical savings accounts that allow employees to put aside pre-tax funds to pay for qualified medical expenses. The funds placed in an HSA are not subject to federal income tax, which offers a financial boost to employees. It can be challenging for individuals to set up HSAs on their own, so employer-sponsored HSAs can go far in making an employee feel valued and trusted.
Providing Comprehensive Worker’s Compensation Insurance
Workman’s compensation insurance is a particular type of coverage that protects employees from any injuries or hardship directly sustained while performing work-related duties. Providing comprehensive worker’s compensation insurance affords your employees peace of mind, secure in the knowledge that they will be covered financially if any accidents occur while they’re on the clock.
In summary, employee benefits plans can help retain diverse talent and show employees that you care about their well-being. By adding all-inclusive employee benefits packages to your organization, you will notice how your employees will thrive and push your business to new heights.
Founder and CEO, Mployer Advisor