Michael McKenna
Individuals enter job searches from a variety of points. Some might be embarking on their search for a “real job” for the very first time; others may be testing the waters to see if a better opportunity is on the horizon. And still others might have unexpectedly entered the job market due to downsizing or company reorganization.
Just as there is a range of reasons why someone enters a job search, so there is a range of expectations with regard to the kinds of benefits a person could expect upon accepting a job offer. Many times, these expectations are unrealistic – perhaps formed from popular media or from general national research, as opposed to research done specifically with regard to the industry or the greater Boston market. Obviously, a new hire is positioned poorly for success if he or she comes into an organization with these expectations unmet, which in turn will negatively impact the company as well. Setting expectations with regard to benefits early in the job-offering process is important for any organization interested in long-term, happy and productive employees.
Generally in the Boston area, regardless of industry, most employers will offer new, full-time employees health insurance, dental insurance, life and disability insurance, and vacation time. Within these benefits there is a range of possibility – how much coverage? How many vacation days? – so it is important to be clear about the specifics. While this menu of benefits in and of itself is fair and reasonable, especially for employers in the region, it’s not uncommon for new employees to expect far more – including everything from a flexible spending account and flexible work hours and policies to accessibility to workplace technology, training, education benefits, wellness programs, the option to work remotely and general initiatives and/or policies that help promote a healthy work-life balance.
Understanding and being able to explain clearly what your organization offers is important, and should be discussed early on in the hiring process (possibly in the job listing itself, or in the initial interview). Yet even when the offerings are already laid out, employers should also be ready to discuss these alternative benefits that aren’t traditionally offered. If the company can offer flexibility, be prepared to explain the possibilities; if not, be firm so that the employee doesn’t foster a false sense of hope.
Additionally, it may be worthwhile to look at what your company is offering in terms of benefits, and ensure that the benefits package is at least comparable to others in the region and industry, if not slightly better. For businesses that are lucky enough to experience low rates of turnover, the benefits offerings of an organization may be in need of an update to stay competitive.
For many employers, incorporating four key strategies into a benefits package – namely, convenience, choice, technology and return on investment – will most likely ensure that the organization can satisfy the demands of a good variety of prospective employees. First, make sure the benefits package offers convenient options for your employees, like health care providers that are located within 10 minutes of work or home. Second, allowing an employer some ability to choose the type of coverage can go a long way. After all, the single 20-something employee might opt for higher deductible plans with more risk but lower premiums than the middle-aged employee with a spouse and three children. Third, benefits that include technology-based add-ons, like service apps or video-based benefits education, offer more to a wide range of employees. Last, built-in ROI-based benefits not only impress your employee, but may get them sharing their positive experiences, which in turn builds the reputation of your company, while saving both the company and the employee money. An example of this might include a telemedicine program that offers access to quality medical care irrespective of time of day or location.
While there may be cases where it makes sense to offer additional benefits to a new hire based on their expected potential, keep in mind that your organization may be setting a precedent for other new hires, as well as current employees. That said, it’s not necessary for an employer to offer the same benefits for every employee. What is important is engaging in direct conversations with regard to what the employee expects, and what works within the employer’s scope of offering. By being sensitive to the makeup of the workforce, employers can find common ground for employees while balancing the financial realities of the organization.
Benefits can serve as a powerful and persuasive tool when it comes to both employee attraction and retention. By both understanding what new employees are looking for in terms of benefits, and setting expectations early with regard to what can be offered, organizations will find they’ve developed happy, productive and high-quality workforces.
Michael McKenna is president and owner of Comprehensive Benefit Administrators (www.cbacompanies.com), a company that combines traditional brokerage services with specialty services such as advocacy and claims administration. He may be reached at mmckenna@cbacompanies.com.
