Following eight years of job growth, the U.S. unemployment rate hit a nearly five-decade low in September, according to a recent U.S. Department of Labor jobs report. While this is good news for the U.S. economy, it suggests there is a smaller pool of active job-seekers and a high demand for workers.
As a result, companies are facing fierce competition when it comes to winning over new talent. While some companies are raising wages to woo job candidates, many companies cannot afford to do so. However, boosting benefits is another effective strategy for not only winning new talent, but keeping talent around. In fact, 55% of the 2,000 employees surveyed for the 2018 Aflac WorkForces Report said they would be at least somewhat likely to accept a job offer with slightly lower compensation but better benefits options. Additionally, more than one-third of employees said an improved benefits package would help keep them in their current job.
Of course, every employer situation is different. This article is for informational purposes only and is not intended as a solicitation.
You have to counsel each employer client separately, and encourage each to seek any relevant accounting and legal advice.
But, by some estimates, the financial impact of losing an employee can range from tens of thousands of dollars to twice the employee’s annual salary —and the impact is especially felt in a tight labor market where replacing talent often takes some time. These numbers may not be surprising considering the costs associated with hiring, onboarding, training, learning and development. Losing experienced workers only amplifies the financial drain.