Fringe Benefits are Changing Faster than Ever
February 13, 2020
With today’s tight labor market, employers are turning over any stone they come across to find the next benefit program that allows them to attract and retain employees. Remote working and flexible work environments do not have the same enticing properties that they did even a few short years ago since these programs are now becoming an expected benefit by many employees rather than a perk.
Best in class employers have always listened to their employees and sought to provide the benefits that mattered to them because it was good for productivity, the bottom line, and/or their family-like culture. But now out of a necessity to stay relevant to their current and future staff, employers are reviewing and updating their benefit offerings at a pace not seen before.
One such benefit that is being discussed in greater numbers is the amount of paid time off provided to new hires. Today, eight out of 10 organizations provide the same amount of time off to employees with no experience as they do to those with many years of working experience, as reported in ASE’s Quarterly Economic & Employment Survey – 4th Quarter. This is causing employers’ offer letters to be rejected because candidates are not willing to give up their hard-earned time off when they know a better offer is just around the corner. Over the next few years, paid time off that is based on years of service will most certainly decrease and the amount of time provided will either be determined by the candidate’s years of experience, will be negotiated along with their compensation, or will be calculated in a way that is more meaningful than what is happening today. Another concern for new hires is when they will be allowed to use that paid time off. Fortunately, nearly 90% of organizations allow new hires to use their time sometime within the first five months of their employment. Approximately one-third of employers do not have a waiting period at all.
As long as organizations continue to look out for incoming employees’ best interests, they will be successful in attracting new talent.