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An Indeed analysis of job searches found the perks employees want differ significantly by age and gender.
Paying top dollar has always been a reliable way for companies to attract the most capable candidates. But new analysis indicates job seekers are now prioritizing employee benefits just after pay levels in determining where they apply, and which offers they accept.
The cautious low-hiring, low-firing stance employers adopted in response to economic uncertainty have made today’s labor market a maddeningly tough nut to crack for job hunters. But that’s likely to change as soon as opportunities increase, and again make recruiting a bigger challenge for companies when they do. To prepare, new data from job posting site Indeed suggests businesses should start reinforcing their benefits packages now — particularly health insurance and paid time off.
Indeed’s Hiring Lab research unit analyzed job searches and applications on the platform. It found 49 percent of people using the site considered employee benefits their main factor in weighing work offers. While higher pay still topped the list, the study identified the growing importance of workplace perks to prospective workers. It also discovered the allure of varying packages differs by age category.
Taken as a whole, 63 percent of people searching Indeed postings ranked health insurances as the most sought after — not entirely surprising given the costs of medical care in the U.S. But another 63 percent cited paid vacation time as just as important, while 59 percent said they wanted employers to pay for sick days.
After digging into user details, however, the Hiring Lab found significant differences about benefit preference according to age.
Users 45 years and older favored a narrower mix of benefits focused on more classic health insurance and retirement plans from employers. People aged 35 years and less, by contrast, tended to prefer a wider range of company-provided perks, “including free or discounted food, education and childcare assistance, and parental leave,” in addition to medical coverage.
At the same time, that younger cohort of job seekers ranked employer-organized retirement plans lower in their list of preferred benefits. That likely reflected the longer working periods those youthful employees have to put money aside for their golden years, compared to older workers.
By contrast, Baby Boomers were found to be “significantly less focused on benefits than other (age groups), likely because many are already eligible for Medicare and Social Security benefits, and might have lower needs for benefits related to dependent care.” Who’d have ever expected Boomers not demanding their fare share — or more?
Flexible working hours and remote work opportunities ranked fourth and fifth in benefits priorities. A second Indeed survey found those were particularly important to women workers, who “value benefits that help manage work and family demands, such as flexible working hours, remote work options, and childcare assistance.”
Employer knowledge of the preferences and motivations of potential work candidates is important in two ways. On the one hand, shaping packages to the hopes and expectations of different categories and ages of job hunters will help attract the best candidates for openings, and ease recruitment.
Meanwhile, that information also allows businesses to maximize the effectiveness of benefits they provide employees — investments that government data says make up 24 percent of all compensation outlays.
To help manage retirement plans within the wider range of perks offered, Bank of America just rolled out its enhanced Workplace Benefits solution, tailored to small and medium-sized businesses.
It acts as a one-stop platform where employees can access company-provided 401(k), IRAs, and other retirement plans, as well as health benefits and financial wellness resources. It also offers an Employer Pooled Plan option that allows groups of business owners to form shared retirement plans programs, which help reduce administrative hassles and expenses.
“For many businesses, workplace benefits feel out of reach because of perceived costs, or the time required to manage them,” said Lorna Sabbia, Bano of America’s head of workplace benefits, in announcing the enhanced service. “To change that, we’ve reimagined the benefits experience specifically for small and mid-sized business owners… (that) equips them with tools and resources to help elevate their business
This post originally appeared at inc.com.
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