4 benefits to improve your compensation package in 2024

4 benefits that make your compensation package competitive in 2024

June 25, 2024 5:30 AM

A woman is working on her laptop from a long wood table overlooking a view of the ocean.

Wage growth is slowing down and workers have noticed — now it's up to employers to find new ways to keep their talent from walking.

According to the Bureau of Labor Statistics, wage growth slowed from 6% in 2022 to 4% in 2024; meanwhile, Bankrate found that 60% of workers feel their income has not kept up with the cost of living. Yet employees need a solid salary more than ever, as restarted student loan payments, inflated child care costs and record rent prices are just a few factors leaving workers feeling financially pinched.

At the same time, employers are having a hard time stretching their budgets to meet employee needs. According to new research from EBN, 64% of employers say balancing competitive wages with budget constraints has been at least moderately challenging, and 59% feel the same about adding and maintaining competitive benefits. But employers need a game plan if they want to retain valuable talent, and when it comes to retention strategies, benefits play a key role, stresses Tina Wang, the divisional vice president of human resources at ADP.

"When you don't have the opportunity to increase salaries, there's also the ability to complement that from a benefits perspective," says Wang. "It's more than just a paycheck employers can provide — it's the overall package."

Wang is confident that employers can upgrade their benefits without breaking their budget. From enforcing a flexible work schedule policy to adding more PTO, employers can implement low-cost ways to improve health and well-being, without turning to underutilized and pricey single-point solutions.

Here are four benefits that can add value to a company's total compensation package:

Flexibility

Amid the ongoing conversations around return-to-office mandates happening this year, the majority of employees prioritize flexible work and are willing to give up other benefits and perks for it, too. For Wang, this doesn't necessarily mean that employees should be remote full-time, but instead, that they have agency over when they come to the office and are given the ability to carve out time for their family if needed during the workday.

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"I had an employee come forward and say that her mother fell twice, and the employee needed to care for her," says Wang. "It's important that we help balance the work she does for us with caring for her elderly parents. That's why hybrid work arrangements are still so important, because it helps provide that overall balance."

Without breaking their budget, employers could benefit their workforce by enforcing a flexible, hybrid work arrangement, boosting productivity and retention in one go.

Financial planning

Financial planning assistance would ideally entail offering employees the ability to sit down with a financial adviser and consider their options for saving and investing. While this benefit would cost employers, Wang notes that it may be key to helping employees fully utilize their existing financial wellness benefits, such as their 401(k) plans, student loan assistance or emergency savings accounts. And if employers are already paying for a suite of financial wellness benefits, they need educational resources if they want the most bang for their buck.

Generous PTO

While paid time off does make up 7% of the total compensation package cost, according to finance benefits company Sorbet, it could be worth expanding. A generous PTO policy and leave for caregivers can be game changers for employee wellness and productivity, underlines Wang. In fact, a study by EY found that for every additional 10 hours of vacation time employees took, their end-of-year performance improved by 8%.

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"If you're seeing burnout, it's because employees need to take time for themselves," says Wang. "That way, they can come back and be in a better headspace."

Professional development

Whether it's a mentorship program, monthly workshops or digital training modules, employers need to ensure they're offering their talent the chance to develop beyond their current knowledge and role at the company, says Wang. If employees feel like they can see a future for themselves at the company, then they're less likely to walk away at the first offer they get.

"Think about how to continue to develop employees' skill sets," says Wang. "Employees want the opportunity to learn new things so they can grow in their careers."