Sourcing, screening and hiring the right candidates isn't easy — nor is it cheap. In fact, according to one study the average cost of turnover is 21 percent of an employee’s annual salary. Ouch. And when you have prolonged vacancies, it's not just your bottom line that's hurting. Indeed, the whole process is a drain on time and energy, with the average time-to-hire for a given position across industries currently set at 42 days.
The good news is that if you're trying to shorten that cycle and get your business back to 100 percent productivity faster, few levers are as powerful as employee perks and benefits.
Perks and benefits can be a critical nudge for candidates considering a role. But one key finding from recent research conducted by Randstad is that a measurable gap exists between what employees say they want and what their employers think they want.
That's a missed opportunity for employers, because a strong benefits package — one that actually aligns with the needs of employees — can be a difference-maker for candidates. Indeed, the findings from Randstad's survey of more than 700 employees in this regard are particularly striking, with 66 percent of employees saying that a strong benefits and perks package was the most significant factor in determining whether to accept or decline a job offer.
Be warned: The power of perks and benefits packages can sway candidates in both directions. Just as a good perks and benefits package will attract candidates, a lack of one may push your most valuable employees away. In Randstad's survey, 55 percent of employees said that they had left companies in the past because they received better benefits packages elsewhere.
If that isn't cause for alarm, maybe this will be: Fewer than half (39%) of the respondents in Randstad's survey said they were satisfied with the benefits their employers currently offer. So if your perks aren't up to snuff, there's a good chance that a number of your employees are actively on the hunt for their next career move.
According to Randstad's survey, the perks that matter most for employees are:
That said, there's no one-size-fits-all solution for getting perks and benefits right. The takeaway is that you need to think strategically about what matters to employees — and what will actually improve their quality of life. Indeed, Randstad's survey found that 94 percent of employees wished their current employers would update the perks and benefits they offered in order to promote quality of life.
If a tree falls in the woods and no one's around to hear it, does it make a sound? The same sort of question might be asked about your perks and benefits package. If you have a good one in place, why not communicate that to current and prospective employees?
One way to be upfront about the perks and benefits packages you offer is to include them in the job description. You don't have to put a price tag next to them (although communicating the monetary value of the benefits you offer might be a good idea for internal employees). But you should spell out your offerings, and try to explain the value that employees actually get from them.
If you really want to lure top talent, you might consider offering something that helps employees with personal obligations — for instance, something that allows them spend more time with family or pay off student loans. This is one area, Randstad's research suggests, where too few employers are fully living up to the expectations of their employees.
Working closely with internal HR partners, making use of polls and questionnaires and partnering with a staffing company are all smart ways you can land on the perks and benefits that will contribute the most bottom-line value to your employees and your organization.
Otherwise, you're running dangerous risks — and you just might miss the talent you need to take your business forward. Click here to learn how Randstad can repair your talent problem, so you can focus on the bottom line.
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