Employees’ New Essentials

Employers are scrambling to retool their total reward strategy in light of the remote work environment and post-pandemic concerns. The new essentials that workers say they now consider more necessary are in addition to, not a replacement for, standard compensation and benefits.

Among the top 10 essentials are familiar items like health insurance benefits, salary, and paid time off. But the list also includes the employee’s health, family, safety and security, and working for ethical and equitable employers.

We spoke with Mackenzie Button, Total Rewards Director at MRA, to get the lowdown on what today’s highly desired employee wants.

Q. What benefits can support workers who work from various locations all over the country?

A. There are the must-haves and nice-to-haves, and these change from market to market. The priority (of course) is putting food on the table and paying the rent. Right up there is affordable medical insurance, which is challenging as premiums keep going up and can cut into food and housing budgets.

Core benefits should be in place to keep people healthy and safe. Then there are the fun and thoughtful perks that attract people to the organization, like paid time off for volunteering, sick days, parental leave, employee’s birthdays, and extra holidays. As employers continue to compete for talent, potential hires are looking for more, like flexible working arrangements, childcare and eldercare assistance, summer hours, and bring your pet to work day. Employers should pay attention to what their market demands. It is not so much retirement plans anymore—people are concerned with the quality of life in the here-and-now.

Q. What does a one-size-fits one benefits strategy look like?

A. Employers need to have their thumb on the pulse of their organization when it comes to their demographics. Do you employ more young professionals or well-seasoned people? Attractive benefits for those right out of school look much different compared to those later in their career. It is a waste of money to have benefits that people do not use or appreciate. Having the right mix of perks to pull from is the key. Maybe that includes PTO for paternity leave. How about repayment of student loans or tuition reimbursements? Today, it is wise to have a variety of benefits to draw from for people in different stages of their lives.

Q. How should employers pay attention to the mental health of employees?

A. Employers can start by making benefits more accessible and less intimidating. If management is concerned that employees are having a stressful time, they could bring in different resources from the company’s EAP or the local community such as chair massages or onsite yoga/meditation. Making new avenues for support opens the door for more conversations.

You may learn that an employee’s mental health would benefit from more flexibility with work schedules. Seeing a doctor for an appointment midday should not result in taking a few hours off work. Also, being proactive with little thank-yous goes a long way as an organization. Consider surprising staff with an extra day off, summer hours, or even just acknowledging things are tough. Right now, people need more thoughtfulness and understanding about life’s stresses on the job and at home.

Q. Are life coaches part of a new trend?

A. Not so much. But we have heard a lot of talk about career coaching. The market is going wild with job opportunities, and many people are no longer hesitant to jump to a different company. Invest in your current employees and provide diverse and nontraditional career paths. Career coaching involves focusing on keeping current employees where they are while creating a path to keep them happy and fulfilled. People are now being told more that they are high potential employees and are being involved in succession planning. The goal is to have employees feel special and develop their skills as professionals while staying with the same organization.

Q. What are some new benefits organizations offer in the current work world?

A. Childcare has caused a lot of stress, hiccups, and gaps during the pandemic. Projects have been delayed because of quarantine and home school, and employers strive to alleviate that by being flexible, compassionate, and understanding. Some companies are even offering stipends for childcare and tutoring.

We are hearing more about the part-time employee. Employers want to hire part-time for opportunities involving skillsets that were handled by a consultant in the past. Job share is out there again too. We all know about remote work, work from anywhere, and a super flexible schedule, where 9 to 5 is no longer a thing. These new essentials are here to stay.

Family and family planning benefits are becoming more sought after. Tech companies are paying for things like freezing eggs and adoption fees. Employers are searching for what they can offer at work to get people to stay and are looking at benefits to assist as employees go through life’s changes.

It is also a time of altruism. Nonprofits need support, and employees want to help. Corporations are ramping up their social responsibility efforts in response to their employees’ desires to assist the groups they hold dear.

Figuring out how to keep people happy and employed by giving them what they want is the biggest stressor for most leaders right now. Considering some of these new essentials can help bridge the gap to more employee engagement—and retention.