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Both employers and employees often underestimate benefits packages. However, they play a pivotal role when employees are considering job offers. With 89% of organizations planning to enhance or add more benefits in 2025, it's crucial to recognize the significance of benefits. Here are some themes to remember as you consider whether your benefits will help you achieve your attraction and retention goals this year.
Prioritizing your goals and values
As companies contemplate enhancing their benefits in 2025, evaluating and prioritizing their values and goals is vital. There are many aspects to consider, from maintaining a positive workplace culture to attracting top talent and fostering employee loyalty.
"Benefits allow organizations to build a relationship with employees that goes beyond just cash compensation," Idan Shlesinger, October Three’s Retirement Solutions Practice Leader, said. "They create a longer-term connection that transcends salary and bonus."
With recent job growth and decreasing unemployment, employers may face challenges in retaining and attracting top talent in 2025 and 2026. Reevaluating your company's benefits offerings is not just an option but a necessity to stay ahead of the curve and be prepared for the future.
Flexibility
Providing a baseline level of core benefits coverage, combined with flexibility for personalization, can help meet the diverse needs of employees. The ability to customize benefits to individual circumstances makes the program more effective and appreciated.
"One thing we know employees dislike is reviewing a benefits program and thinking, 'None of this applies to me. I don't go to the chiropractor, I don't get massages, and I don't have kids who need braces, so why am I paying for all this?'" Shlesinger noted. "The ability to tailor benefits significantly enhances the program's effectiveness."
Culture
Benefits packages also significantly impact workplace culture. They foster a sense of shared investment and collective well-being among employees. Employers can communicate their priorities and values by offering more than just a generic benefits package, helping employees feel more engaged and connected to the company.
"People are looking for more than just compensation," Shlesinger explained. "They seek a relationship; they want to identify with an organization where they can envision their long-term future. It is essential to design benefits that address their long-term needs, aspirations and family concerns."
Creating long-term connections
A well-structured benefits package is crucial for attracting and retaining top talent, especially as employees age and focus on long-term advantages. Companies should prioritize offerings that foster a deep-rooted relationship with employees, such as retirement plans.
"Retirement benefits have a long-term perspective, and their value increases over time," he remarked. "Employees begin to associate them with their future and their relationship with their employer. If focused on retention, engagement and a strong connection, I would consider savings and retirement plans as key drivers of a successful long-term employer-employee relationship."