Findings from a new survey suggest that if a company offers no or limited benefits it risks losing out on top talent during the hiring process.
The survey, conducted by Clutch, a B2B research firm, finds that 23 percent of full-time employees in the United States do not receive benefits, such as health insurance, a retirement savings plan or paid vacation from their employers.
What Companies Offer
The most commonly offered benefits are paid vacation time (65 percent) and health insurance (62 percent).
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In addition, 53 percent of employers offer retirement funding; 47 percent pay overtime; 46 percent offer paid medical/bereavement leave; and 44 percent offer disability/life insurance.
Benefits and Job Satisfaction
Health insurance is overwhelmingly the most valued benefit, according to the survey. More than half (55 percent) of full-time employees who receive benefits say health insurance provided by their employer has the most impact on their job satisfaction.
Paid vacation time, overtime pay, and retirement plans are also identified in the survey as important to workers’ satisfaction, though not to the same extent. Only 18 percent of employees say vacation time is the most valuable benefit, while 11 percent cite overtime pay, and only 10 percent indicate retirement funding matters most.
However, the survey does find generational preferences when it comes to how benefits are valued. Millennials are more likely than other generations to prioritize paid vacation and overtime, and less likely to prioritize health insurance.
Only 44 percent of Millennials place the greatest value on health insurance, compared to 62 percent of both their Gen X and Baby Boomer coworkers.
Not Family Friendly
When it comes to family friendly benefits, there appears to be room for improvement. The survey finds most companies do not offer paid parental leave and childcare stipends.
Only 21 percent of employees surveyed have access to paid parental leave, and only 8 percent receive some form of childcare subsidy.
Yet, while survey findings suggest that offering a benefits package is preferable to not offering one, not all employees are happy with what their companies provide.
Nearly one-third (32 percent) of employees say they feel neutral or are not satisfied with the benefits they receive.
A majority, 52 percent, wants more of a benefit they have. Meanwhile, 24 percent want a benefit they don’t receive, and 22 percent say they can’t use their benefits. Additionally, 11 percent feel pressured not to use benefits, and 7 percent don’t understand how to use benefits.
One way to address this situation, according to the Clutch survey report, is for employers to conduct regular conversations about benefits, and ask for employee feedback.
Offering a cafeteria-style benefits plan is another option, the firm says.