Why benefits could be the key to untapped talent
You may be surprised to learn that 79% of employees would prefer an enhanced benefits package to a salary increase. With this in mind, hiring managers are missing a trick if they don’t highlight the benefits of a role when advertising a new job. We spoke with Simon Costa, Client Relationship Manager at Progressive Recruitment and part of the larger SThree Group, to find out more about the value of a good benefits package to candidates.
Key stats on the value of benefits
When a candidate is considering taking on a new role, salary is understandably a hot topic of discussion – yet benefits and perks have often been considered an afterthought. Interestingly, a recent study revealed that:
- Almost 4 in 5 people value a good set of benefits above an increase in salary; and
- 55% of employees are more likely to accept a job with a lower salary if excellent benefits are on offer
Simon is unsurprised by these findings, saying, “We align our client’s employee value proposition to what candidates are seeking in their next role. Candidates nowadays seek more than a pay check and job security. They want a sense of purpose and by providing additional non-monetary benefits, employers can really attract quality candidates who will want to stay with the company long term.”
Other findings obtained from this survey stated that:
- More women than men value benefits over a pay increase;
- Younger professionals are also more likely to prefer perks over more money;
- 89% of employees aged within the 18-34 age bracket would prefer a good set of benefits; and
- Only 66% of employees aged within the 55-64 age bracket prefer benefits.
Interestingly, regardless of age or gender, the majority of each subsection of society surveyed prefer benefits. Simon offers an explanation to this, stating, “It is important to understand what motivates people to go to work. Whilst some people may be driven by a pay increase, others may simply enjoy working for a company that supports a greater good and has an excellent CSR program in place. Parents who are time poor may choose the job with the most flexibility rather than the highest pay. People with disabilities will be more inclined to join a disability-inclusive company that provides a supportive working environment, rather than a hostile workplace with more pay. For all the reasons mentioned, it is understandable why many employees value benefits more than a pay increase”.
The most valued benefits
When looking at these findings in more detail, we are able to see which perks people value the most. The most popular benefit across the board was found to be healthcare. Good holidays, a performance bonus, and paid sick days were next on the list. Interestingly, 3/4 candidates also said they would be much more likely to accept a job with flexi-time. According to Simon, “Flexi-time is important as long as your employee thinks it is important. The most essential part is to let the employee know that this option is available to them”.
At Progressive Recruitment, we work hard to ensure we place candidates in an environment that suits them, and this includes finding a company that can offer a benefits package that is suited to what they are looking for. Simon expands on this, “A big part of our role is the negotiation process, both with our clients and our candidates. Our job is to negotiate what financial and non-financial benefits that candidates value and find a middle ground with what clients are willing to offer. In my personal experience, I negotiated anything from salary to working hours, location, CSR initiatives and training and development programs – all of which are important for different candidates in different circumstances. This is all part of our consultative partnership service at Progressive Recruitment and why the close relationship we build with both candidates and clients is essential.”
Increase in employee retention and productivity
Good benefits don’t just get candidates through the door; they have been proven to increase productivity. According to an additional survey, employers who believe they have a good work-life balance are, on average, 21% more productive. Furthermore, good perks are also more likely to keep good employees in a job. 72% of employees said the ability to tailor their benefits package would increase their employer loyalty, and 36% said a good benefits package would motivate them to stay in their current role. It appears that if companies offer attractive benefits, they are more likely to see an increase morale resulting in higher employee retention.
Importance of showcasing benefits
At Progressive Recruitment, we understand quality candidates are attracted by benefits. Christian Vanezi at Progressive Recruitment stated that “with today’s busy lifestyle, many employees are more inclined to join companies that accommodate for their individual circumstances and provide benefits which can be cost effective for employers when negotiating salary packages. Such examples include providing additional annual leave days such as on the employee’s birthday, and working from home arrangements.”
So many organisations disregard the importance of promoting their benefits package. If you are looking to hire, working with Progressive Recruitment will ensure your benefits are fully highlighted to all candidates from the start. Similarly, if you are looking for a new position and want to ensure you are getting a benefits package that suits you, you’ll be in safe hands with our team. Whatever your situation, feel free to contact Progressive Recruitment today and find out how we can help you reach your potential.