What Should Your Company Offer Above Statutory Benefits?

In the dynamic landscape of today’s job market, attracting and retaining top talent goes beyond offering just a competitive salary. Employee benefits play a crucial role in shaping job satisfaction and loyalty, making them a key consideration for both employers and job seekers alike. But what do employers classify as a competitive benefits package, and what do they sell as benefits to candidates in a competitive marketplace?

Let’s delve into the world of employee benefits, exploring the difference between basic (statutory) benefits and competitive benefits, and why staying ahead is vital for companies.

Basic benefits vs. competitive benefits

Every employee is entitled to certain basic benefits mandated by law, known as statutory benefits. These include essentials like a minimum employer pension contribution, a standard number of holiday days, sick pay, and key provisions such as flexible working arrangements and maternity/paternity pay.

On the other hand, competitive benefits go above and beyond legal requirements, aiming to enhance the overall employee experience and create a more attractive workplace culture. These can range from unlimited holiday policies and private health/dental plans to performance bonuses, enticing perks like gym memberships or discounts, and robust learning and development (L&D) opportunities.

The impact of competitive benefits

Offering a robust package of competitive benefits can yield significant advantages for companies. Firstly, it enhances the company’s appeal to top talent in a competitive hiring landscape. Job seekers are increasingly discerning, looking beyond just the salary figure to assess the overall value proposition offered by a potential employer. A comprehensive benefits package signals that the company values its employees’ well-being and is invested in their long-term growth and satisfaction.

Moreover, competitive benefits can also contribute to higher employee retention rates. When employees feel valued and supported through perks like health plans, bonuses tied to performance, or access to ongoing learning opportunities, they are more likely to stay with the company for the long haul. This reduces turnover costs and fosters continuity within teams, benefiting overall productivity and morale.

Navigating benefits in today’s market

While every company can’t offer an extensive selection of competitive benefits due to financial constraints, it’s crucial for organisations to evaluate and prioritise benefits that align with their values and employee needs. Conducting regular surveys or feedback sessions can provide valuable insights into what benefits matter most to employees, guiding better informed hiring decisions.

Using LinkedIn as a platform, we asked our followers what they want to get out of a benefits package. 119 people voted, and the results are summarised below:

Flexibility

The overwhelming majority of respondents expressed a strong desire for flexibility within their benefits package, with 78 (66%) of respondents selecting this option. This encompasses various aspects such as flexible working hours, remote work options, and the ability to tailor benefits to individual needs and lifestyles. Flexibility is seen as a vital component in achieving work-life balance and overall job satisfaction. Something as seemingly trivial as being able to drop the kids of at school and start a little later, can be the difference in attracting or retaining talent.

Extra time off

The need for additional time off beyond standard holidays resonated with a significant portion of respondents as 24% said this is the most important factor for them. Whether it’s for personal pursuits, travel, or simply to recharge, employees value the opportunity to take extended breaks to rejuvenate and maintain well-being.

Cost saving perks

10% of respondents highlighted specific cost-saving perks like gym memberships or discounts, remains an essential consideration for them. Such perks not only contribute to financial savings but also promote health and wellness, aligning with broader employee wellness initiatives.

Why good employee benefits matter

In tough hiring conditions, where skilled talent is in high demand and short supply, understanding what the market is looking for in terms of remuneration can be a strategic differentiator for attracting top candidates and retaining current employees amidst enticing job offers from competitors.

A vast number of employers focus on providing a competitive salary and offer only basic benefits, selling their remuneration package as competitive. But in the evolving landscape of work dynamics, employee benefits have emerged as a cornerstone of modern compensation packages. By understanding the distinction between basic and competitive benefits and strategically aligning offerings with employee preferences and market trends, companies can position themselves as employers of choice.

As job seekers evaluate potential employers beyond the salary, investing in competitive benefits isn’t just an option—it’s a strategic imperative for building a thriving and resilient organisation in today’s competitive business environment.

Looking for advice?

As technology recruitment specialists, we have a depth of knowledge on the current hiring landscape and can offer unique insights into market trends, demands and preferences through constant contact with candidates.

If you would like advice on comprising a competitive remuneration package, information on trends to set you apart from your competitors or help in sourcing the country’s leading tech talent, get in touch to arrange a free consultation.

Likewise, if you are on the market for a new opportunity and have any questions regarding benefits, or need support in negotiating a stronger benefits package, speak to a member of our team who is there to help!

Together, we strive to create workplaces where every individual feels valued, supported, and empowered to thrive both personally and professionally.