Companies are incorporating additional benefits into their job postings to attract and retain workers. According to ZipRecruiter, a recruiting website, there has been a significant increase in the number of mentions of employee benefits in job postings, such as health insurance and student loan assistance. This trend reflects a growing emphasis on employee well-being and financial support, underscoring the importance of comprehensive benefits packages in the job market.
Rising Benefit Expenditures
The Employment Cost Index (ECI) published by the U.S. Bureau of Labor Statistics for the first quarter of this year shows an upward trajectory in employee compensation, driven by increased benefits. The data indicates that spending for employer benefits costs grew by an average of 1.26% across all sectors compared to the prior quarter, with the state and local government sector experiencing the largest growth of 1.5% in benefit spending.
Employment Cost Index (Percent Change)
| Category | December 2022 | March 2023 |
|---|---|---|
| Civilian Workers | ||
| Compensation | ||
| Wages and salaries | ||
| Benefits | ||
| Private Industry | ||
| Compensation | ||
| Wages and salaries | ||
| Benefits | ||
| State and Local Government | ||
| Compensation | ||
| Wages and salaries | ||
| Benefits |
Key Takeaways for Employers
Attractive benefits differentiate organizations and attract top candidates. A robust benefits package is a deciding factor for job seekers. Today, job postings offer a wide range of trending benefits like long-term care (LTC) insurance, pet insurance, and identity theft and legal benefits. Employee benefits impact satisfaction, quality of life, and loyalty. Valued employees contribute to a positive work environment and long-term growth.
Partnering with Pierce Group Benefits
Recognizing the increasing importance of offering benefits, organizations are encouraged to explore ways to emphasize their offerings, particularly as more employers highlight employee benefits to entice skilled talent. If you need guidance in developing or enhancing your employee benefits program, we recommend reaching out to your Pierce Group Benefits Account Manager or contacting our Service Center.