I know, we just entered 2019, and already I’m forcing you to think about 2020, but for good reason! As the Boy Scouts say, “be prepared,” and when it comes to your benefits offerings, you’re definitely going to want to plan way ahead to attract talent in 2020.
Using benefits to attract talent is a common strategy for many recruiters and employers, you can highlight what sets you apart from the competition and if you can’t negotiate salary, you can try to sell candidates on your awesome benefits package instead.
With the influx of Millennials, and now Gen Z, in the workplace, your benefits must be unique, otherwise, these young workers will go work for themselves, or defect to the competition. First, though, you must understand the workers you are catering your benefits package to.
What do we know about Millennials and Gen Z? These younger workers are more technologically inclined and globally connected than generations past. They crave the freedom to work when they want, and where they want. And they value being part of causes that are much larger than themselves and always seek for ways to “do good” in the world. So, what kinds of benefits are they looking for?
Specialized recruiting firm for the consumer products industry—ForceBrands—released a new report, Talent Report 2019, which focuses on benefits and compensation offerings across the consumer products industry. These products include wine and spirits; beer; food and nonalcoholic beverages; beauty, wellness, and personal care; and legalized cannabis.
ForceBrands used survey data from over 500 professionals in this industry to compile the report. And it’s worth noting that a majority (51%) of respondents were between the ages of 18 and 34 years old—in other words, Millennials and Gen Z. Using these findings, you can learn what these generations are looking for most when it comes to work perks.
What Employers Are Currently Offering
“Employers today are challenged with retaining and attracting top talent in the strongest labor market in years,” says Sean Conner, Cofounder and Chief Progress Officer at ForceBrands—in an e-mail to Recruiting Daily Advisor. “ForceBrands’ 2019 Talent Market Report, an extensive in-depth analysis of CPG hiring trends, finds that benefits and compensation are the most effective tools for employee recruitment and retention. The maturing multigenerational workforces ushers in new demands especially when it comes to workplace benefits—what takes priority this year will shift in 2020.”
According to the report, many employers in the consumer products industry offer the following, as their top benefits:
- Paid maternity leave (57%)
- Paid family leave (52%)
- Dental insurance (51%)
- Vision insurance (48%)
- Bereavement leave (47%)
- Off-site social opportunities (47%)
- Paid paternity leave (47%)
- Partially company-funded medical insurance plan or private healthcare (46%)
- 401(k) plan with company contribution (45%)
- Life insurance (45%)
While these benefits don’t necessarily scream “unique,” it’s interesting that more paid maternity leave is offered over employer-provided health insurance. Some unique benefits that are currently being offered include:
- Free meals (43%)
- Full or partial subsidy for cell phone (43%)
- Flex-time or telecommuting opportunities (40%)
- Tuition or continuing education reimbursement (33%)
- Paid birthday off (32%)
- In-office stress relief or fun—like Nap rooms, massages, game rooms, etc. (32%)
- Summer hours/comp days (31%)
- Unlimited time off (27%)
- On-site pet care (22%)
- Student loan debt payback assistance (21%)
- In vitro financial assistance (20%)
What to Offer in 2020
As we saw in the lists above, the popular basic benefits that most employees are used to receiving aren’t as popular in the consumer products industry. Yes, health, vision, and dental insurance, 401(k)s, and paid leave are listed, but they’re not necessarily in the order we’re most used to seeing them as. Which makes you wonder what will more popular in 2020.
The ForceBrands report finds that Millennials and Gen Z will usher in new demands, such as off-site social opportunities and more flexible hours. According to the report, “When we ranked the benefits that are not currently offered but will be implemented in 2020, it’s clear these young generations are setting the tone with unique perks like in-office stress relief initiatives and in vitro financial assistance.”
In 2020, the top 10 benefits to offer will be:
- Off-site social opportunities, like weekly cocktail parties (18%)
- In-office stress relief or fun (17%)
- Flex-time or telecommuting opportunities (17%)
- Tuition or continuing education reimbursement (16%)
- Paid sabbaticals for personal, volunteer, or professional development reasons (16%)
- In vitro financial assistance (16%)
- Summer hours/comp days (15%)
- Commuting expense or reimbursement (15%)
- Full or partial subsidy for cell phone (15%)
- Student loan debt payback assistance (15%)
But what about maternity leave, healthcare insurance, and other basic benefits? Those were also referenced by the report; however, they fell in percentage points compared to the list directly above.
Are employers finally beginning to see that providing the basics have become expected? Workers these days are no longer swayed by health insurance and 401(k) retirement plans. Sure, we all want and need these important basics, but pretty much every employer provides them.
When it comes to working at a “Best in Class” employer who offers these unique benefits (on top of the basics) vs. an average employer who just provides health insurance, which place do you think the jobseeker will choose? In a tight labor market, it’s easy to see how a small thing—like the ability to work from home—can make or break an employer’s chances at recruiting top talent.
“While paid maternity leave, paid family leave, and dental insurance top this year’s list, the top three benefits that are not currently offered but will be implemented in 2020 are reflective of the generational differences that Gen Z, the largest working generation to enter the U.S. workforce, will bring to the workplace,” says Conner. “According to the survey findings, In 2020, the most popular benefits offered by cross-industry employers will be off-site social opportunities and meetups, in-office stress relief or fun, and flex-time or work-from-where-you-want.”
Keep the above information in mind while you prepare your benefits packages and talent strategies for 2020.