What Are The Employee Benefits Packages for Permanent and Contracting Roles?
Employment is changing at a speed paced every day. An example of that is the recent study from Accel and Qualtrics, which shows that, unlike many years ago, 64% of millennials state that benefits are very important to acquire employer loyalty. As discussed before, in the past few years, more than one employee has tried to show their employers that having a good benefits package can be an advantage for them. By offering benefits that are attractive and know how to retain top talent, employees will be even happier and organisations will meet the new requirements of the working class.
The truth is that employees started to give more importance to the perks that companies provide them. Some of the benefits that workers are looking to have may be related to salary, compensation rewards, health & wellness, retirement and time off. As an example of this, Among Xexec’s report, shows that 43% employees say that annual leave is a work-related benefit that makes them feel most loved at work and 47% prefer to receive rewards spontaneously.
However, these benefits can be different according to the type of role that employees have. A proof of that is the fact that, although the number of contract workers is increasing, some professionals still prefer, permanent roles, as they offer a certain level of stability and structure that might be important to them.
However, both of these types of roles include employee benefits and we believe it’s important to understand what they are.
Employee Benefits In Permanent Roles
Security and Structure
These type of roles are associated with job security and having access to a structured working environment. This structure facilitates progression and career training, two of the main benefits that most of the employees are looking for, as they will be gaining experience inside the organisation and that can lead to new opportunities.
Holiday and Time Off
Permanent roles allow employees to have access to a package of benefits like paid holidays and time off. Although, this has become an intrinsic benefit, as organisations always offer them to permanent employees. What may differ between all of them is the number of given days, this varies according to each national legislation and company policies.
Parental Leave and Insurance
Two of the most common advantages of a permanent role is parental leave and insurance. The first one is very important, as new parents can benefit from paid leave days as soon as they welcome a new baby. Of course, like the previous one, this is different in each country and company, so organisations adapt however they are required to. Insurance is seen as a very important benefit as employees can benefit from insurance policies like health, dental, vision, life, among others. Some companies raise the bar by making this insurance available for the other employees’ family members, allowing them to cover their spouse and children.
Employers can also offer the access to a pension scheme, which is a pension plan for all employees set by the organisation and where the employer makes payments on behalf of the employee. Some companies contribute with a specific percentage and other allow the employees to contribute with the same or a higher percentage of their salary. This allows employees to save some money for their retirement, as retirement pensions policies are always changing.
Employee Benefits In Contract Roles
According to Neil Sullivan, our Contract and Consulting Director, The benefits of contracting in Ireland are converting more IT professionals from permanent jobs to contract jobs than ever before. In 2015, there were approximately 150,000 IT professionals working in Ireland and 10% were contracting. In 2018 that number is approximately 180,000 and 12% are contracting. One of our Contract Accounting Partners Fenero had over 1250 inquiries this year so far with 599 of them contracting for the first time. This data supports our findings and gives us confidence and optimism that not only is the IT market increasing in Ireland, organisation are more open than even before in engaging contract resources.
Specialised professional growth
Contractor employees can work across all industries and are mainly seen as specialised experts that meet fluctuating demands. This allows them to have more flexibility of their work and to have a better control of their future career development.
High daily rates
Because they are seen as specialised experts and sometimes given to the high demand for their work, contract employees can agree on high daily rates, that allows them to receive more than if they were in a permanent role.
Unlike permanent roles, by being a contract worker you may avail of a greater degree of flexibility. It always depends on the company, but usually, contractors may control their working hours and duties, making sure that they adapt them to their personal schedule.
Although the majority of contractors goes into a contract job with the mindset of it being temporary, some of them can actually lead to a full-time opportunity. This gives employees the chance to actually choose to stay in that specific company, in case it meets their expectations, or to move to another opportunity but keep all the expertise and knowledge from that experience.
In general, employees, whether they are in a permanent or contract role, are looking for a job that offers the benefits and perks. As companies start to understand this, they can start working on a competitive benefits package that helps them retain their top talent and acquire new workers.
If you’re a company that’s looking to develop a competitive benefits package, start by figuring out what is the type of role you are offering and what might be the perks potential candidates are looking for. If you are able to meet your requirements and employees’ expectations, your workers will be happier, you’ll be successful and your employee loyalty will increase and directly affect your recruitment processes.