Benefits are to employment what toppings are to pizza. The better the benefits, the more you are going to appreciate the experience of working for that company. And just like pizza and toppings, companies with the least desirable benefits get the least amount of love.
This is why companies are constantly looking to tweak their benefits packages. They know that benefits are often the difference in recruiting and retaining top talent. The best of the best understand which benefits are most important to workers. They go out of their way to provide them.
As a nationwide provider of payroll and benefits administration services, we talk to a lot of HR managers. We read the news and pay attention to public opinion. In essence, we keep our ear to the ground in order to stay abreast of what employees and employers are thinking. In light of that, we have compiled a list of what we believe are the five biggest benefits for 2020. The number one benefit might surprise you.
5. Financial Management Assistance
Despite a booming economy, fewer than 30% of American adults are satisfied with their financial health. It is not because they do not have enough money; it's because they don't know how to manage it. Smart employers recognizing this trend are responding by offering financial management assistance. Through educational opportunities and free advice from financial planners, companies are helping employees improve their financial health.
4. Customized Career Paths
Gallup research conducted in late 2019 revealed that the number one reason people leave their jobs is to pursue career development opportunities. Furthermore, 90% of America's employees consider career development opportunities particularly important to their job choices. As such, companies are discovering that competing for top talent requires offering customized career paths that keep employees on board for longer.
3. Flexible Work
Next on our list are opportunities to be flexible with work schedules and locations. Today's younger workers are not necessarily ready to commit themselves to the office for eight hours a day, five days a week. They want more opportunities to work from home. They also want more flexible schedules that give them the opportunity to establish a more consistent work-life balance. This is one benefit companies have been working on for some time. Unfortunately, few have mastered it.
2. Student Loan Assistance
American workers collectively owe approximately $1.6 billion in student loan debt. Outstanding student loans make up the second largest category of indebtedness in this country, behind only mortgage debt. Smart employers are responding by coming up with creative benefits to help their employees pay off their loans. This is one benefit that goes a long way toward generating employee loyalty.
1. On-Demand Pay
The biggest employee benefit for 2020, as we see it anyway, is on-demand pay. Younger workers are not content to work for two weeks and then have to wait another three to four workdays to receive their pay. They prefer to get paid as they earn. And why shouldn't they? Delayed payroll does not exist for the benefit of employees, it exists for the benefit of employers.
On-demand pay is an emerging industry with plenty of new players for 2020. Your company would do well to look into an on-demand pay solution that gives employees access to their pay when they need it.
So there you have it. We believe these five benefits will be the defining benefits of 2020. Companies looking to adjust their benefits packages in order to better compete for top talent would do well to consider each one and its likely impact on hiring and retention.