Why should we share our benefits package?
After the base salary, benefits are the next high-value item that will likely influence their job acceptance. Traditionally, companies have been quick to talk about general benefits, but have largely been quiet on the details. And the details matter.
If you’re gatekeeping your benefits until the third or fourth round interview, you’re setting yourself up for candidates to turn down your offer. Plus, you risk wasting your team’s time interviewing someone who can’t afford to make the job change.
What kind of information should we share proactively?
401K or other retirement scheme:
- What kind of match is available?
- When is the employee eligible to contribute or receive a match?
Bonus:
- Is there a bonus available? What type of bonus is it?
- When is it paid out?
- Historically, how much (%) has been paid out in the past?
Time off:
- How is time off allotted?
- How is vacation / PTO / sick time accrued?
- Are there tiers based on tenure or job level?
Health benefits:
- When do health benefits begin?
- What is included in the health benefits package?
- What is the cost to the individual vs family?
Reviews for additional compensation:
- When is the first review to evaluate for additional compensation?
- How often is this done?
How can sharing benefits be advantageous to the organization?
Providing this information benefits the employee and your brand. A high-deductible, high out-of-pocket, high-premium plan can cost a new employee thousands of dollars. This may be more than the anticipated raise that they will get by joining your organization. Conversely, if you have a great health benefits program, this is the time to let your candidates know.
Plus, it gives you the opportunity to edge out your competition if benefits are the tipping point on an offer acceptance. Benefits add value by providing them with something they didn’t have access to previously, or by reducing their current costs. Moreover, proactively providing candidates with benefit information illustrates a commitment to transparency from the get-go.
Finally, if your salary range is tight and you don’t have any wiggle room to bring in the ideal candidate, benefits are a great way to add value to your offer. Negotiating an additional week of PTO to a family with small children (and their daycare illnesses!) addresses a real-time problem. Likewise, healthcare on day one puts people at ease who may rely on care for themselves of their families.
Benefits have value. If the past few years have taught us nothing else, it’s that the labor force has shifted their priorities. Everyone wants to make money- but saving your applicants money or reducing their expenses has become just as important when looking for a new job.