How to Build a Competitive Benefits Package that Wins You Top Talent

Are you struggling to attract top talent, even with competitive salaries? It might be time to rethink your benefits game.

In today’s cutthroat job market, simply offering good pay isn't enough to reel in the best candidates. Wellhub’s Return on Wellbeing 2024 report shows that nearly 75% of HR leaders view their benefits package as critical to talent acquisition. And here’s a kicker — failing to offer standout perks could cost you big, with turnover costs reaching up to three times an employee’s annual salary, according to SHRM. Ouch.

So, how do you design a benefits package that doesn’t just check boxes but wows candidates? It’s all about blending classic perks with modern, personalized offerings that make your company irresistible. 

Get ready to discover how to create a benefits package that attracts talent and boosts retention like never before! 

Decoding the DNA of a Competitive Benefits Package

The modern workforce demands more than a paycheck and basic benefits. They expect a comprehensive approach to wellbeing that includes holistic wellbeing support, personalized benefits, and flexibility. This shift in expectations is reshaping the benefits landscape, and you don’t want to be left behind. These are the tenants that permeate the most competitive packages today.

Employee Wellbeing

There was once a time when a decent salary and basic health insurance were enough to make employees jump for joy. Those days are over. Today’s workforce is looking for more than just a paycheck. They’re looking for a holistic experience that values their entire wellbeing, from their mental health to their work-life wellness. As revealed in Wellhub's State of Work-Life Wellness 2024 report, 93% of workers consider their wellbeing at work equally important as their salary.

Plus, nine out of 10 employees want their company to value their wellbeing, according to a 2023 study from the American Psychological Association. That’s a lot of people expecting their employer to care about their stress levels!

And wellbeing is no longer just about a good HMO plan and a 401(k) (though those are a great start!). Now more than ever, employees expect their employers to offer substantial non-monetary benefits to improve their employment experience. For example, almost two-thirds of workers expect their employers to offer mental health treatment, according to the Harvard Business Review. 

Personalized Benefits

The modern employee is like a sophisticated coffee connoisseur — a generic blend of instant coffee won’t cut it. Just as a coffee aficionado might prefer a single-origin, ethically sourced espresso with a dash of oat milk, today's workers seek benefits packages tailored to their individual circumstances and aspirations.They want a personalized beverage that caters to their unique needs and lifestyles. This means offering a range of benefits that allow employees to find a blend that supports their own goals and lifestyle, like pet insurance, mentorship programs, or caregiver benefits. Not every employee will want each benefit, but it could mean the world to those who do.

Flexibility

Flexibility is the name of the game for more than benefits themselves — it also applies to work hours and location. Remote work options, compressed workweeks, and sabbaticals are all examples of policies you can evaluate to find how your organization can fit flexibility into its benefits package. By offering these flexible arrangements, you're acknowledging that employees have diverse needs and lifestyles outside of work, and you're empowering them to achieve a better work-life balance while maintaining productivity.  

Building Blocks of a Magnetic Benefits Package

If your benefits package hasn’t been revamped in a while, then it might seem a bit of a daunting task to tackle. Putting together a competitive package requires a thoughtful approach, which is why it can feel overwhelming if you haven't done it in a while. You need to be very clear on what your company values and what your employees need. That way, you can put together a package that mixes the best of both worlds — old and new — to suit the dynamic needs of your team. 

But here’s the kicker: What’s competitive in one industry might be average in another. That’s why it’s important to understand your industry benchmarks. Knowing what’s standard in your space gives you a data-driven baseline to work from. That way, you’ll know what the rules of the game are before you start playing, making your job significantly easier. 

Essential Pillars

If you’ve been in the HR game for a while, you know some benefits never go out of style. Health insurance, retirement plans, paid time off, and other traditional benefits are still essential pillars of any benefits package. Let’s start by dissecting these essential benefits you don’t want to miss.

Health insurance 

Offering health insurance coverage for employees is pretty much a must — but not all health insurance plans are made equal. Choosing the wrong one can cause your employees to look for the door.

In fact, more than half of employees say how well they like or dislike their healthcare plan is a factor in determining whether they stay at their jobs, according to an SHRM survey. To select the best plan for your workforce, consider these factors:

• Employee demographics: Analyze your workforce's age range and health needs.
• Cost-sharing balance: Find a sweet spot between premiums and out-of-pocket costs.
• Network coverage: Check that popular providers are included.
• Additional benefits: Look for fun extras like telemedicine or wellness programs.

These are three of the most common types of health insurance plans:

• Health Maintenance Organization (HMO): The budget-friendly choice that keeps costs low by sticking to in-network providers. It's perfect for employees who prefer predictable costs and don't mind a more guided healthcare experience.
• Preferred Provider Organization (PPO): The flexibility champion that allows visits to any provider, in or out of network. While it comes with a higher price tag, it's ideal for those who prioritize freedom of choice in their healthcare journey.
• Health Savings Account (HSA): A type of savings account that lets employees put aside pre-tax dollars to pay for qualifying health costs. It's great for those who want to take control of their healthcare spending and potentially save for future medical needs.

Retirement plans

Helping your employees plan and save for their retirement can help them feel more confident in their financial wellbeing. This is especially important considering that one-fifth of Americans over 50 worried they don’t have enough money saved up in their retirement accounts, according to an AARP survey. You can help your team plan for future financial success with:

• 401(k) matching: The corporate equivalent of “I’ll split a pizza with you.” Employees contribute to this tax-advantaged plan, and you chip in to help their retirement nest egg grow. 
• Vesting schedules: The longer employees stay, the more of your money they get to keep. It's essentially a loyalty program with actual cash instead of points for a free sandwich. Talk about a win-win!
• Roth 401(k): This massively popular retirement plan pays taxes on today’s money and then grows tax-free forever. Employees on these plans will be able to enjoy tax-free withdrawals in the future, regardless of their future tax bracket. 

Wellbeing programs

Gone are the days when wellbeing meant a dusty treadmill in the basement and a bowl of bruised apples in the break room. Today’s wellness programs are like a five-star retreat that focuses on total wellbeing instead of just physical fitness. From pumping iron to finding inner peace, these perks are designed to keep your workforce healthier than a kale smoothie and more energized than a double espresso:

• Gym memberships: Exercise can help your employees reduce stress and feel their best both in the office and when they're off the clock.  
• Meditation app subscriptions: Turn potential meltdowns into moments of calm. These apps are especially useful during busy periods. (Or when the coffee machine breaks down.)
• Fitness trackers: Because nothing motivates like some friendly competition. Knowing you’re competing with your colleagues is a great way to make getting your steps in a bit more fun.  
• Mental health support: Sometimes, we all need help deciding if it’s us or if the printer really is plotting world domination. Counseling services or an Employee Assistance Program (EAP) can help employees get the help they need to thrive. 

Paid time off

Paid time off (PTO) helps keep your workforce recharged and ready to conquer the world (or at least their to-do lists). In the grand buffet of benefits, PTO is the dessert table — sweet, indulgent, and something everyone looks forward to. From vacation days that spark creativity to parental leave that prevents new parents from turning into office zombies, here are some flavors of PTO that’ll spark the interest of any potential hire:

• Address vacation: Nobody ever wrote a bestseller or learned tango while staring at a spreadsheet. Be generous here and watch employees' creativity blossom and their happiness grow.
• Sick leave: Keep “Sneezy” out of the office to keep the rest of your team healthy. Your employees and their immune systems will thank you.
• Parental leave: New parents need time to bond with their tiny humans, and work can sometimes interfere with that. Almost three-quarters of working parents are considering changing their work schedule or even leaving their jobs because of their childcare duties. Unless you want meetings punctuated by baby cries or employees napping under their desks, it’s probably a good idea to just give them time off. 
• Personal days: For those moments when adulting is just too much. Whether it’s for a mental health day or to finally tame that garage that’s starting to look like a Jumanji set, sometimes you just need a break.

The "Wow" Factor

Let’s face it, offering the bare minimum benefits is like showing up to a potluck with a bag of chips. To really make your employees’ eyes light up, you’ll want to bring out the confetti guns. Here’s how to turn your benefits package from “meh” to “marvelous”.

Remote work and hybrid models

Welcome to the future, where wearing pants to work is optional — so long as you do it from your living room. Remote work helps your employees save on commuting time, and it also shows that you trust them to get the job done. Remember to set clear expectations and invest in good tech to prevent any hiccups.

Flexible hours and compressed workweeks

Letting employees start early to beat traffic, finish their day at home to accommodate childcare needs, or crush 40 hours in four days is sure to put smiles on faces. More than 90% of workers benefit from flexible work arrangements, according to a Deloitte survey. That’s a lot of happy campers.

Unlimited PTO

The all-you-can-vacation of time off. Sounds dreamy, right? Just be prepared for the catch — some employees might take less time off due to guilt. Establish clear guidelines and expectations so employees know they can take time off stress-free.

Employee Assistance Programs (EAPs)

Life throws curveballs every now and then, and your employees need a professional to help them manage. EAPs can offer confidential support for everything from mental health to financial advice.

Tuition reimbursement and continuing education

Help your employees level up their skills and become more productive parts of your team. Whether it’s an MBA or a coding bootcamp, investing in their talent is a win-win.

Mentorship and coaching programs

Pair your seasoned pros with eager newbies and watch them both blossom. The mentors will be able to share their expertise, while the mentees will be able to provide a fresh perspective on how things are done.

Conference and workshop attendance

Send your team out into the wild world of industry events and let them come back with new ideas and fresh connections—and probably a ton of branded pens.

Mindfulness and stress reduction programs

Help your employees find their zen faster than you can say “om.” Offer subscriptions to meditation apps, yoga classes, or stress management workshops. Everyone wins with a benefit like this because a calm employee is less likely to tell Karen from accounting what they think of her passive-aggressive emails.

Get More Out of this Employee Benefits Series:

Showcasing Value to Potential Applicants

Here’s a hard truth: your amazing benefits package won’t do much to attract new talent if only internal employees know about it. It’s like having a gourmet meal hidden behind a vending machine. To remain competitive and attract the very best, consider leveraging these strategies so job seekers know all about the amazing benefits package you can offer them:

• Strut your stuff on the careers page: Don’t bury your benefits in the fine print — give them prime real estate on your careers page. You can use eye-catching graphics, snappy headlines, or maybe even a benefits calculator. Let candidates see exactly how much that gym membership or 401(k) match is worth.
• Share stories, not statistics: Sure, numbers are nice, but stories sell. Share employee testimonials about how your parental leave policy let them bond with their newborn or how the wellness program helped them run their first marathon. Make those benefits real and relatable.
• Use social media: Use your company’s social media channels to highlight different benefits. “Wellness Wednesday” or “Financial Friday” can showcase your benefits while providing value to your followers.
• Create a benefits brand: Give your package a catchy theme or name. Something like “TotalRewards+” or “LifeBoost Benefits” sounds way cooler than “company benefits guide.”

Measuring Impact & Continuous Improvement

They say what gets measured gets managed, and the impact of your benefits package is no exception. But how do you measure something so seemingly intangible? Well, there’s plenty of metrics for that! From time to cost-based metrics, here are a few things you might want to consider.

Data-Driven Insights

Flying blind when it comes to benefits is about as smart as trying to assemble IKEA furniture without the instructions. It’s time to put on your data scientist goggles and take a look at the metrics that’ll turn your benefits program into an ROI machine. These are some of the main KPIs that’ll have your CFO doing their happy dance.

Time-based metrics

You know the saying, “Time is money.” But it’s also the difference between snagging the perfect candidate and watching them ride off into the sunset with your competitor. These metrics are like a stopwatch for improving your hiring process, helping you sprint to the finish line before other companies even tie their shoelaces.

• Time to hire: This measures how long it takes from “Hey, nice to meet you” to “Welcome onboard!” Shorter times mean you’re attracting the right candidates and have an efficient hiring process. 
• Time to fill: Think of this as the “How long until we stop drowning in extra work?” metric. It tracks the time from a job posting to a new hire’s first day. The goal is to make it as short as possible without sacrificing the quality of your new hire.

Cost-related Metrics

You already know this: Hiring isn’t cheap. But neither is leaving positions unfilled or making bad hires. These cost-related metrics will help you figure out how to hire without exceeding your budget. So, it’s time to put on your accountant hat (you know, the green visor thing) and crunch some numbers for attracting talent with benefits:

• Cost per hire: This calculates how much cash you’re throwing at the hiring process. Beyond just salaries, you also have to factor in how much time and money you spent on the recruitment process.
• Cost of vacancy: Ever wonder how much that empty desk is costing you? This metric spills the beans. Think of it like calculating the cost of that gym membership you’re not using — painful, but necessary.

Quality-oriented metrics

In the recruitment game, it’s all about hiring the right people. These quality-oriented metrics will help you see if your new hires are top-shelf material. They’re the difference between building a dream team and assembling a pack of lone wolves.

• Quality of hire: This metric tells you how awesome your new team members are. It’s like judging a baking contest, but, instead of cakes, you’re evaluating your fresh talent. Performance reviews, productivity stats, and how long they stick around are all considerations for this metric. High scores mean you’re hiring the very best.
• Candidate experience: It measures how much candidates enjoyed (or didn’t) their journey through your hiring funnel. It’s like getting Yelp reviews for your recruitment process. Five stars? You’re golden. One star? Time to revamp your process. 

Efficiency & effectiveness metrics

These efficiency and effectiveness metrics are like your recruitment report card, showing you where you’re acing the test and where you might need some extra tutoring. You want a recruitment process that purrs like a well-oiled machine rather than one that creaks like old junk. 

• Offer acceptance rate: This is your batting average in the hiring game. It tells you what percentage of your job offers get a “Yes, please!” rather than a “Thanks, but no thanks.” High rates mean offers are hitting the mark, while low rates could mean that your compensation package needs a revamp.
• Source of hire: This metric is like a treasure map for top talent. It shows you which recruitment channels are gold mines and which ones aren’t really worth pursuing. Are employee referrals your secret weapon? Is that pricey job board actually worth its weight in resumes? This data can help you find where the big fish are instead of casting a wide net in the recruitment equivalent of the Dead Sea.
• First-year turnover rate: This measures how many of your shiny new hires wave goodbye before their first work anniversary. A low score means you’re finding candidates that are a great fit for your organization. A high score might mean that your onboarding process needs some tweaking. Or maybe you need to re-evaluate your job postings to make sure they accurately represent the roles you’re filling.
• Submittal to interview ratio: This metric helps you separate the wheat from the chaff, as they say. It tells you how good your recruiters or sourcing channels are at finding needles in the haystack of applications. A high ratio means your talent pipeline is efficient and bringing in the right candidates. A low ratio could mean that your recruiters are wasting valuable time on unserious applicants.

Agility and Adaptation

If you’re standing still when it comes to benefits packages, then you might as well be moving backward. Your benefit offerings need to be more agile than a cat in a field of cucumbers. And you need to be designing competitive benefits packages. Here’s how to keep your office perks from going stale:

• Trendsurfing: Keep your finger on the pulse of employee expectations. You can subscribe to HR publications, attend industry conferences, and maybe even hire a Gen Z intern to keep you relatable to younger audiences. Remember that yesterday’s nice-to-have is today’s deal-breaker.
• Regular check-ups: Give your benefits package an annual physical. Do you need to add new gym options, or start offering meditation app subscriptions? Don’t be afraid to replace underperforming benefits with new ones. And there’s no shame in going back on a new initiative! Trying new things doesn’t always work, but you shouldn’t let that stop you from innovating.
• Tech it up: Benefits administration platforms can help make enrollment as smooth as butter. Take advantage of engagement apps to keep your workforce connected anytime and anywhere. And don’t forget about data analytics, as gathering metrics won’t do much unless you put them to work.

Elevate Your Benefits Package From Basic to Brilliant

A stellar benefits package can be the difference between attracting top talent and watching them slip away to your competitors. From essential health coverage to innovative perks like remote work options and professional development programs, a well-rounded benefits strategy can turn your company into a talent magnet.

A comprehensive, strategically designed benefits program does more than just attract new hires — it also keeps your current employees engaged and loyal. By focusing on both traditional and cutting-edge benefits, you can create a workplace culture that values and supports its people. This approach can lead to increased productivity, lower turnover rates, and a reputation as an employer of choice.

Wellhub is here to help you transform your benefits package into a powerful recruitment and retention tool. Wellhub's Wellness Specialists can work with you to offer a powerful program that will attract new talent — and keep them thriving!

You May Also Like:

• How to Create a Powerful Talent Philosophy
• Recruiting: How to Attract Women at Work
• How to Attract and Retain Top Millennial Talent

References:

• American Psychological Association. (2023). 2023 work in America survey. https://www.apa.org/pubs/reports/work-in-america/2023-workplace-health-well-being
• Lobell, K. O. (2020, September 22). Employers Consider Child Care Subsidies. SHRM. https://www.shrm.org/resourcesandtools/hr-topics/employee-relations/pages/many-workplaces-consider-child-care-subsidies.aspx
• Miller, S. (2018, February 14). Employees are more likely to stay if they like their health plan. SHRM. https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/health-benefits-foster-retention.aspx
• Navarra, K. (2022, April 11). The real costs of recruitment. SHRM. https://www.shrm.org/topics-tools/news/talent-acquisition/real-costs-recruitment
• MediaRoom. New AARP Survey: 1 in 5 Americans Ages 50+ Have No Retirement Savings and Over Half Worry They Will Not Have Enough to Last in Retirement. (n.d.). https://press.aarp.org/2024-4-24-New-AARP-Survey-1-in-5-Americans-Ages-50-Have-No-Retirement-Savings
• Wong, B., & Greenwood, K. (2023, October 10). The Future of Mental Health at Work Is Safety, Community, and a Healthy Organizational Culture. Harvard Business Review. https://hbr.org/2023/10/the-future-of-mental-health-at-work-is-safety-community-and-a-healthy-organizational-culture
• Deloitte United States. Workplace Flexibility Survey. (n.d.). https://www2.deloitte.com/us/en/pages/about-deloitte/articles/workplace-flexibility-survey.html