OKLAHOMA CITY — The latest survey from Express Employment Professionals, conducted by Harris Poll, reveals a challenging landscape for U.S. hiring managers striving to satisfy employee demands for better benefits in response to escalating living costs. Nearly half of the managers surveyed reported an increase in requests for improved benefits at their companies.
Enhanced Benefits as a Strategic Response
Amid the soaring costs, two-thirds of the managers believe it is impossible to meet all the desired employee benefits. Despite this, efforts to adapt are evident, with 42% planning to augment benefits in 2024, a slight increase from 37% in the previous year. Notably, 70% of managers indicated that their companies had revised benefits specifically to retain and attract employees.
These adjustments include offering cost of living raises (31%), more paid time off (27%), and customizable benefits packages (21%). Additional healthcare incentives such as gym memberships and mental health resources were also introduced by 21% of companies, alongside increased sick leave provisions.
Challenges in Retaining Generous Benefits
Express Employment Professionals’ experts note a shift in the labor market, with some companies reducing previously generous benefits due to an increased labor supply and rising employment costs. “Clients have stepped back from attendance awards, retention bonuses, and even referral bonuses,” stated Nancy Reed, an Express franchise owner in Texas. This trend underscores a strategic pullback in benefit offerings as more workers enter the job market.
Alyssa Chumbley, another franchise owner, highlighted that while creative benefits have been scaled back, the focus has shifted towards operational flexibility to maintain staff retention. Express Employment International CEO, Bill Stoller, emphasized the critical balance companies must find. “Turnover can cost as much as up to 150% of the departing employee’s salary… It’s not feasible to offer every desired benefit but choose the ones that resonate the most with your workforce. Investing in people is what makes them stay,” he remarked.
Survey Methodology
The Job Insights survey was executed online in the United States by The Harris Poll on behalf of Express Employment Professionals between October 31 and November 10, 2023, surveying 1,007 U.S. hiring decision-makers.
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