COVID-19 and current economic fluctuations have changed the ways that many businesses do business. Unfortunately, economic uncertainty is taking place during a time when many businesses are also short on labor and looking to attract skilled candidates and retain the great employees that they already have. Some companies are considering employee benefit changes to save money. In fact, 95% of employers in a recent survey reported that they have recalibrated their benefits strategy.
Be Careful What You Cut
Any time that you perform employee benefit changes, someone will be impacted. As a result, it’s a good idea to think critically about which benefits are most important to your employees and which are utilized the most. The same survey cited above found that, out of employers who did scale back benefits due to signs of a recession, the most common benefits that were cut included:
- Adoption and fertility benefits
- Commuter benefits and stipends
- Financial education
- Health and fitness discounts and reimbursements
- Home office stipends
- Senior care benefits
Many of these benefits are considered to be niche when weighed against more prevalent benefits, like 401(k) matching and health insurance. As a result, it may be prudent to scale back spending in these categories. For example, if you are encouraging employees to return to the office, removing home office stipends can supplement your efforts to do so.
Hold a Survey
One of the best ways to learn what your employees want is by asking them. However, some employees, particularly those who are new to your workplace, may feel self-conscious about publicly stating their preferences. While not new, a survey is STILL a great way to get valuable insight into what your employees want and what benefit changes they might be open to. Instead of asking your employees outright about what benefits they want, ask them more open questions like how you could make their work lives easier. This can open you up to different pain points that you might not otherwise think of.
Don’t let concerns about over-surveying or the optics of not delivering on un-stated promises stop you. Many employers worry that if they conduct a survey, employees will expect changes. This is true but what participants are often looking for is your response. They want to know they were heard and how the organization plans to address the priorities. We often recommend a response that highlights areas that are receiving high marks and how consideration will be put into continuing or enhancing those areas. Then, highlight several areas that received low marks and share how consideration will be put into modifying or improving those specific categories.
Don’t Forget Training
Some companies forget that training is a benefit, as it gives your employees the opportunity to learn new skills that they can bring with them to another job in the future. When you are thinking about employee benefits changes, remember that there are many free or low-cost things that you can add to your benefits even in times of economic difficulty, like hosting training using employees that you already have.
Work with the Right Partners
Even if it might sometimes feel that way, no business is an island. Don’t be afraid to work with trustworthy partners to improve the technology and security of your business. At TriBridge Partners LLC, we offer benchmarking services that make it easy for you to identify where you stand in comparison to your peer group.
