Global Employee Benefits Package by 2025
What Are The Global Employee Benefits Trends?
We’re living in an era where employees want to work in companies, not only because they’re successful and renowned, but also because of the benefits and perks that they can offer to their staff. A recent study from Accel and Qualtrics showed that 64% of millennials state that benefits are very important to acquire employer loyalty. Workers are trying to show their employers that they can have an advantage by offering benefits that are attractive and know how to retain top talent.
According to Clare McDonald, our Business Development & Client Relationship Director, In relation to remuneration, many companies traditionally separated salary and benefits when considering what budgets should be approved for hiring and what a potential new employee should be offered. However, Stelfox clients who enjoy constant and consistent high retention and low attrition rates among their employees are those that pay full attention to salary and benefits in equal measure. By 2025 75% of the workforce will consist of millennials, by far the most well-informed workforce to date, who highly value the full remuneration offered a by a new potential employee.
According to SHRM, retention (72%) and recruiting (58%) are the main reasons for companies to improve their benefits packages. All over the world, organisations have started to focus on developing better benefits packages that will meet their employees’ needs and requirements. However, every employee, company, and country is different, so their requirements will also differ from each other. With this, it’s even harder for companies to offer what workers are looking for. So, an important question stands: what exactly are the global employee trends regarding benefits?
Top 3 Global Benefits Employees Are Looking For
According to our recent guide ‘’How candidates evaluate job offers’’, there are 3 main benefits that employees are looking for: salary package, progression & career training, and work/life balance.
The Top 3 Global Employee Benefits Trends are:
• Salary Package: 65% view Basic Salary as a very important benefit. The first thing employees want to ensure is that the compensation offered in terms of salary and benefits meets their expectations, in terms of ample compensation. Moreover, Glassdoor’s most recent report states that 48% of hiring managers view salary and compensation as the most influential factor for (attraction and retention) employees to stay or for candidates to join a company.
• Progression & Career Training: As opportunities in the marketplace increase employees want to hear about growth and progression opportunities. Significantly, 47% of employees view the opportunity for promotion as something critical to making a decision to stay in their company or look for a new opportunity. Nevertheless, career training is becoming even more important, according to Bridge, offering career training would improve retention of millennials by 86%.
• Work/Life Balance: Did you know that 37% of workers who are parents said that changing the company culture to enable work/life balance should be a priority for all companies? Candidates are now, more than ever, looking for roles that will offer work/life balance. With increased knowledge of the effects of workplace stress on physical and mental health, 61% of candidates evaluate the opportunity to balance work and life when considering a job offer.
Top Benefits Per Country
Although it is important to offer a robust benefits package, each country has its own cultural norms and this has a direct reflection on their citizens’ needs and requirements. Based on their political and economic policies, countries have different legislation that will affect the way companies articulate employee benefits.
Start by looking at some countries in Europe and what are the benefits offered by the majority of companies there. This will help you to understand which country offers what you are looking for. Here’s a list of 5 European countries and the top employee benefits offered.
Average Gross Salary: €84,816
No Minimum Wage
Vacation: 20 Days
Parental Leave: 14 weeks at 80% of pay
Healthcare: Provided by private companies and paid by individuals; Insurers must cover pre-existing conditions
Average Hours Worked per Week: 31
Average Gross Salary: €65,719
No Minimum Wage
Vacation: 25 days
Parental Leave: Paid leave at 80% of salary for 54 weeks or 100% for 44 weeks
Healthcare: National healthcare financed by the government
Average Hours Worked per Week: 27.4
Average Gross Salary: €65,564
Minimum Wage: €9.57 per hour
Vacation: At least 25 days
Parental Leave: Paid, 6 months full time, 12 months part-time
Healthcare: Mainly state-sponsored, workers contribute 5.44% of gross income
Average Hours Worked per Week: 30
Average Gross Salary: €58,423
Minimum Wage: €8.21 per hour
Vacation: At least 20 days
Parental Leave: 16 weeks at 100%
Healthcare: Private insurance funded by payroll taxes shared by employees and employers. Ranked #1 by the Euro Consumer Health Index
Average Hours Worked per Week: 27.3
Average Gross Salary: €49,401
No Minimum Wage
Vacation: 24 days
Parental Leave: 13 weeks paid leave with an average compensation of 64% of wages
Healthcare: All citizens are covered by a National Healthcare System, mostly funded through taxes with a small percentage through service fees
Average Hours Worked per Week: 36.2
Differences Between Permanent and Contract Benefits Packages
As employees require more benefits, companies, as mentioned before, are starting to offer several options that could better cater to their expectations. One of these options includes contract or contingent roles. These comprise of fixed-term contracts that include a daily payment for a certain period of time (fixed-term is a type of contract, not all contingent contracts are fixed term). We’ve been witnessing more companies adopting these types of roles and according to EY 40% of organisations expect to increase their use of contingent workers in the next five years.
Although the number of contract workers is increasing, for some, permanent roles are still preferred, as they offer a certain level of stability, security, and structure that can be relevant to them. Not only this, but permanent roles have a package of benefits that several contract roles don’t include.
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 types 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 employees are looking for, as they will be gaining experience inside the organisation and that can lead to new opportunities.
• Holiday and Sick Pay: Permanent roles allow employees to have access to a package of benefits such as paid holidays and sick pay days, 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 permanent roles are 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 as 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.
• Pension scheme: 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 others 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 policies for retirement pensions are always changing.
Employee Benefits In Contract Roles
• 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 in their work and to have better control of their future career development.
• High daily rates: Contractors are mainly seen as specialised experts. Because of this, there’s a high demand for their work and they can negotiate high daily rates that allow them to receive more money than if they were in a permanent role.
• Flexibility: Unlike permanent roles, by being a contract worker you may avail of a greater degree of flexibility. Though it does depend on the company, usually, contractors may control their working hours and duties, making sure that they adapt them to their personal schedule.
• Full-time opportunities: Although the majority of contractors go 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 which enables them to transfer the tacit knowledge that they have gained
How To Build Competitive Benefits Packages
Offering a competitive benefits package is important even if you’re working as a permanent or contract employee; and if you’re working in Ireland or any other country. This is why organisations need to work on an overall benefits package that offers a set of perks that will be valued by employees.
However, how can we actually build competitive benefits packages? Start by thinking of a set of benefits, except starting salary that is important for your employees. If you are able to offer them, you will be able to retain your staff, but also acquire new employees. Furthermore, it will increase the company employer brand. This can be done by considering what are the employee’s needs and requirements that you can answer. Bearing in mind their different backgrounds and generations (Millennials, Generation X, and Baby Boomers), companies need to develop a program that’s able to have a positive impact in their lives.
If you’re thinking of building the ultimate benefits package, there are some crucial areas you’ll need to cover.
Benefits To Improve Your Benefits Package
1. Financial Benefits
We all know that the basic salary is important, but having added financial benefits will make a difference when it comes to attracting and retaining employees. Start by offering something like a pension and retirement plan that will allow employees to save money for their future. By matching their contribution, you’re showing that you care about their well-being. Also, if you manage to get any corporate discounts when it comes to health and wellness, your workers will recognise the efforts that were made to offer outstanding conditions. Moreover, benefits like paid holidays, sick days, sabbaticals, and parental leaves are always seen as important benefits for all employees, but these (except the sabbatical) are common among all organisations.
2. Healthcare Benefits
When it comes to healthcare benefits, the more you can offer, the better. The truth is that, based on some countries legislation, this will make a difference and employees will be thankful for having great healthcare insurance that includes vision and dental options for them and their families. Furthermore, if options for wellness coverage are included, they will be appreciated., This is because companies now more than ever, have to deal with problems like stress, anxiety and depression. By offering the best healthcare plan you can, you’re already contributing to your workers’ wellbeing.
3. Progression and Training Benefits
As mentioned before, employees see progression and training as one of the most important benefits a company could offer. It’s important to work on a progression and development plan for all employees, having in mind their abilities and ambitions, as well as where they can go within the company. If you understand what they want in their future, you can then work on a training plan that will help improve their skills and knowledge. Setting up a learning centre could be a good start. This will allow your company to offer regular training sessions from internal or external experts. If employees wish to take any specific course or certification that will also help improve their current work, the organisation could pay for a portion of the full fees. The training benefits can be included in their performance and progression plans, as an incentive for them achieving their business goals.
4. Work/Life Balance Benefits
Having a clear balance between work and life is essential for all generations, even if they have just started their careers or if they have been working for the last 20 years. All employees need time for themselves and, by understanding and allowing it, companies already have an advantage over their peers. Flexitime could be a great answer for that. Workers can choose the hours they prefer to work. From our experience, another great benefit is remote work. Some companies have already introduced this practice internally. Allowing staff to work from home one, two or even more days a week is becoming more frequent and employees, especially the ones who live far away or that have children, see that as a huge benefit. Also, for the companies that can offer it, having extra services on site to avail of like cleaning, fitness and beauticians, is a big advantage. These options give them the opportunity to balance their professional and personal lives.
Creating the perfect benefits package is extremely important, no matter the role you have or the country you’re working in. This will definitely make a difference whenever you want to retain an employee or acquire a new one. The first step is to acknowledge the importance of programs like these and to make sure your benefits packaged is developed based on the type of company and employees you have. It’s a work in progress, but you’ll see that the hardest part is to start. Once you have your benefits package up and running, everything it will be easier to retain top talent and to acquire new one.
Sep, 13 2018
Employment is changing at a speed paced every day. An example of that is the recent study from Accel...Read more>