Open enrollment is approaching – and just in time. A new survey reveals that 66% of respondents are waiting to review their company’s new benefits offering before deciding between staying or leaving their job.1 Offering competitive benefits may be the deciding factor for an employee with one foot out the door or an employee considering joining your company.
Continued Tight Job Market
As of September 2024, the US labor market remains tight. While there have been some signs of easing, the overall trend signals that worker demand will continue to outpace supply. Here are a few of the key indicators:
- Job Openings: There are still more job openings than unemployed workers, demonstrating a persistent talent shortage. Today, the US has about 1.2 job openings for every unemployed person, a ratio nearly six times what it was in 2010.2
- Wage Growth: Average wages have surpassed inflation for 12 straight months. Wages have been increasing steadily, reflecting the tight labor market and employers’ need to attract and retain workers.3
- Labor Force Participation: The labor force participation rate has been gradually recovering but is still below pre-pandemic levels.4
Influence of Healthcare Benefits
It’s clear employees are looking for employers that not only value the work they do but also value their physical and psychological well-being.
Salary is typically seen as king. When asked which factor was most important to employees, the answer was “salary,” followed by “health insurance.” That doesn’t mean organizations that offer higher salaries and substandard benefits aren’t at risk of losing their employees. In fact, 63% of all respondents said they would leave their company if offered a job with better benefits but less or equal pay.
Why Employee Benefits Matter
Attracting Top Talent
In this crowded job market, providing competitive employee benefits keeps your business in the running to attract top talent. Since candidates prioritize companies that provide comprehensive health insurance, this benefit isn’t just a perk—it’s an essential factor influencing a candidate’s decision to join your company.
Retaining Quality Employees
Employee turnover is costly. Losing talent means losing their skills and knowledge and incurring the costs of hiring and training new employees. A robust benefits package can enhance employee satisfaction and loyalty, reduce turnover rates, and help retain workers.
Boosting Employee Morale
Happy and healthy employees are more productive and engaged. Custom benefits like health insurance show your employees that you care about their well-being. This can lead to higher morale, better job performance, and a more positive workplace culture.
Time is Ticking
Now is the time for your business to finalize your health benefits plans for 2025 and begin planning for the next few years. This process can be daunting for businesses that are not our clients, particularly as they are forced to choose from health plans that cater more to the needs of large employers.
For more information on how group health insurance can save your business money while enhancing employee satisfaction, contact PT Business Solutions. We are ready to help you find the best options for your company and ensure you get the most out of your investment.
3 https://www.epi.org/blog/average-wages-have-surpassed-inflation-for-12-straight-months/