To get candidates interested in your company, you need to know what they’re looking for. Offering a competitive salary and health insurance isn’t enough. In order to win the war for talent, your company should be offering a robust benefits package that stands out from your competition.
The national burden of student debt is sparking interest in employer-sponsored benefits that offer relief. Nearly one-third of jobseekers (31%) encounter companies offering student loan repayment benefits (SLRPs) during their search, according to a new survey from Clutch, a B2B ratings and reviews firm.
As of November 2018, Americans have accumulated $1.4 trillion in student debt, with the average borrower owing $37,172. High monthly student loan payments can leave employees unable to contribute to other benefits, like their 401(k). Although only an estimated 4% to 5% of companies currently offer SLRPs, they are an emerging benefit that jobseekers want and more companies should consider, experts say.
“This has to be a core recruitment and retention strategy going forward,” said Matt Beecher, CEO of Vault, a software company that administers SLRPs. “The population that’s impacted is huge.”
Experts suggest SLRPs can boost employee loyalty, thus curbing turnover and reducing costs associated with recruiting and training new employees. Statistics indicate that women, minorities, and other marginalized groups are disproportionately impacted by student debt, so offering SLRPs can also boost diversity.
What Do Jobseekers Primarily Want? Higher Pay and Better Benefits
Companies must offer competitive pay and benefits or risk their employees leaving to work elsewhere, experts warn. Approximately one-third of jobseekers (32%) say they’re actively looking for opportunities with better pay and/or benefits.
“Once someone finds out they’re underpaid, they’re no longer your employee,” said Katie Donovan, an equal pay expert who founded Equal Pay Negotiations LLC and helped author the Massachusetts Pay Equity Bill. While the total value of a compensation package typically includes salary and benefits, the two are not equal.
More jobseekers (31%) say they would accept a job offering a higher salary, compared to 10% who say benefits are the most important factor in their employment decisions. Despite reports that younger generations value “purpose over pay,” jobseekers of all generations are equally likely to value pay over other factors, according to the new data.
Overall, just 5% of jobseekers rank company mission above other factors, with only 4% of Millennial jobseekers saying mission matters most. Companies that plan to offer a competitive salary should include that information in their job listings to increase transparency in the hiring process and attract candidates.
Jobseekers Also Want Flexibility and Professional Development Opportunities
In addition to meeting financial goals, jobseekers want perks that improve their quality of life and advance their career goals.
Scheduling or location flexibility is an appealing perk. Overall, 11% of jobseekers say flexibility is the most important consideration—but 13% of women surveyed rank it first, compared to only 8% of men.
Nearly one in five jobseekers (18%) are looking for professional development and growth opportunities such as certifications, mentorships, and other training programs. The survey findings indicate that companies that offer flexible work options and professional development have an advantage in recruitment.
Clutch’s 2018 Recruiting Survey included 507 full-time employees who started a new job in the past 6 months. Read the full report, here.