It’s no secret that in this candidate-driven hiring landscape, your top choice talent is receiving multiple job offers. Not only that, but nearly half of millennials in permanent employment say they have itchy feet about their current role.
In order to attract the best talent and hold onto your existing top performers, your company will need to have an attractive remuneration and benefits package as part of your staff attraction and retention plans.
Why a remuneration package with benefits is important
A remuneration package is the complete offering your company gives to employees. This includes your salary package or wages, rewards and any employee benefits packages. Falling out of touch with what makes a strong employee remuneration package can cost your business dearly.
The current hiring landscape is moving fast, no matter which industry you operate in. Skilled, top quality talent is in high demand and many companies are in competition with one another. A strong employee remuneration package adds to your employer branding and is one of the factors that can make a business more attractive to those skilled candidates.
Remuneration links to retention
Not just effective for attracting new talent to the ranks, comprehensive remuneration packages also help to keep your existing employees happy. In London alone, 37% of employees say they’d leave a current job for an equivalent role with a better remuneration package and benefits — a statistic that really highlights the importance of offering competitive remuneration packages.
But what does a ‘comprehensive remuneration package’ look like to an employee?
Examples of best benefit packages
The first step to ensuring that your current employee remuneration package offering is on-point, is to benchmark them against others in the UK to see how it compares.
This provides a simple starting point to build on.
Here are the most common factors of a remuneration and benefits package that that candidates are telling us they’re looking for:
- Competitive salary package
The salary for your most in-demand positions should meet or exceed the market standard, as a general rule. It’s also important to review the salary package and benefits structure regularly so you continue to offer competitive wages and attractive benefits for new and existing employees.
It’s common for businesses to offer incentives in the form of anniversary bonuses or performance-based bonuses to reward achievements and loyalty. Best benefit packages that include bonuses should work alongside strong, clear targets to help drive employee engagement and development.
- Flexible working hours
For businesses focusing on retaining their top talent and looking to attract to new hires, our research shows that one of the top retention strategies for current employers is flexible working (42%). Flexible working is becoming increasingly popular and necessary for the future of work, as employees look to maintain a healthy work-life balance or to manage a tricky commute.
- Work-life balance
In an age that encourages people to be connected 24/7, employees are drawn to companies which promote a healthy work-life balance. Only 24% of 18-34 year olds are ‘very happy’ with their work-life balance, showing that there is some way to go. Lancaster University’s report shows that 35% of professionals said a flexible attitude to working hours was essential for their work-life balance and reduced travelling times.
Our new report IT’S TIME WE ALL WORK HAPPY™: The secrets of the happiest companies and employees suggests that an effective way to manage this is to lead by example by encouraging employees to take holidays and to go home on time.
- Unique benefits
Aside from meeting the industry standard, remuneration packages should aim to include some unique benefits that make your role stand out. Other than a better salary package, some businesses offer relocation and housing assistance, and half of UK employers introduce wellbeing schemes for employees. Other benefit package examples to consider are: financial planning, adoption assistance, legal assistance, emergency childcare, elderly care or pet health insurance.
Common employee remuneration package misconceptions
The modern professional’s idea of comprehensive remuneration packages is built on much more than just bonuses and salaries. Here are some of the lesser-known elements that make remuneration packages more attractive:
- Flexible benefits
1 in 2 professionals would leave their current employer if they were offered a flexible remuneration package and benefits for the same role elsewhere.
- Career progression
More than two in five (42%) employees say that the opportunity for progression is a huge factor in how happy they are at work. A quarter of them said they’d previously turned a job offer down because they were worried about their future career development.
- Small perks can go a long way
Small regular perks, like team lunches, gift card rewards and celebrations for successful projects are all ways to make your employees feel appreciated.
Why your benefits package matters
According to research by Aon Hewitt, 62%-70% of organisations are now offering flexible benefits to their employee remuneration package, so it’s in your best interests to consider negotiating with candidates and existing employees.
Working out a best benefit packages should feature highly on your hiring plan to-do list. A comprehensive, well thought out employee remuneration package should align with the company’s mission and values. More and more employees today are looking to work a businesses that has a purpose, has corporate social responsibility and treats its employees in a way that aligns. When candidates are comparing an offer between two different businesses, the remuneration and benefits package can provide a strong sense of the corporate culture.
Now that you know what candidates are looking for in terms of salary package and comprehensive benefits, and reviewed our remuneration package examples, re-assess your offering and make sure you’re not only in-line with other companies in your industry, but that you’re also bringing something unique to the table.
If you would like to know more about remuneration packages, or how you can work on your employee remuneration package, download our Salary Guide today!