In the manufacturing industry, employees are a company’s greatest asset. However, the significant loss of manufacturing workers over the last three decades has taken its toll. According to the U.S. Bureau of Labor Statistics, more than 7.5 million manufacturing jobs have been lost since 1980, directly contributing to the declining labor force participation rate in prime-age U.S. workers.
Providing competitive benefits is one way that employers can distinguish their company from its competitors and retain a healthy workforce. Learn how to build a competitive employee benefits package that improves company morale and attracts and increases employee retention.
Why Competitive Benefits Matter
Benefits play a bigger role in employee satisfaction than most people realize. According to an SHRM survey on job engagement and satisfaction, 92 percent of employees indicated that benefits are important to their overall job satisfaction. The survey also found a connection between employee benefits and worker recruitment and retention efforts. In fact, employee benefits were found to be one of the top reasons that people choose to accept a job offer and remain in their position.
Most Sought-After Employee Benefits
Building a comprehensive employee benefits plan requires extensive research and guidance from an experienced employee benefits consulting firm. First, a manufacturing company must consider any legally required benefits.
Some employers may be mandated to provide employees with workers’ compensation, family and medical leave, and Medicare, Social Security and Federal Insurance Contributions Act (FICA) unemployment insurance. Local and state laws may also require employers to provide paid or unpaid time off to vote, for military service or jury duty.
Healthcare benefits are also a required benefit for certain employers. Under the Affordable Care Act (ACA), businesses with 50 or more full-time workers must offer health insurance to their employees. Health insurance policies are often coupled with wellness programs in an attempt to help employees improve their health and achieve a better work/life balance.
Health insurance and wellness plans can decrease the frequency of employee illnesses and injuries and can reduce the occurrence of chronic medical conditions like high blood pressure and diabetes.
Employer-sponsored retirement plans are also an essential component of any competitive benefits package. These plans can be beneficial to both employers and employees by offering tax breaks and other perks. Employer-sponsored retirement plans are broken up into two main categories: defined benefit plans and defined contribution plans. Defined benefit plans provide employees with a guaranteed monthly benefit at retirement, while defined contribution plans do not offer a guaranteed payout.
Other benefits may be added to an employee benefits package to enhance its competitiveness. Benefits like educational assistance and childcare assistance can be highly attractive to families and young employees working through school. There are also many free and low-cost benefits to offer, such as flexible schedules, access to technology, onsite yoga, career advancement opportunities, paid time off for volunteer work and paid time off for major holidays.
Determining Compensation & Benefits
Businesses in the manufacturing industry should follow best practices when building a compensation and benefits plan for employees. First, it is important to review the company’s budget to determine how much can be allocated towards employee pay and benefits.
Businesses should also conduct regular compensation audits to determine where changes can be made in regard to employee salaries, incentives and bonuses. There are many things to consider when performing audits, such as the level of growth the business has experienced and if the compensation aligns with the job duties.
It is not only enough to provide benefits to employees, but also to communicate these benefits properly so that workers are aware of what is available to them. Benefits should be implemented into the onboarding process to ensure that new employees are properly educated about the company’s benefits package.
Train employees on how to properly use these resources and provide workers with a contact if they have any questions about the plan. Benefits should also be advertised internally and employees should be provided a resource where they can find answers on their own. When manufacturing companies communicate effectively, employees are most likely to use their benefits.
Speak with an Employee Benefits Consulting Firm
Businesses in the manufacturing industry are always on the lookout for new ways to gain a competitive advantage. Job candidates often seek out companies that offer the best employee benefits when looking for work opportunities, especially benefits like health insurance, paid time off and retirement accounts. Offering these types of benefits to employees can attract and retain top talent and ensure greater job satisfaction and productivity.
Working with an experienced employee benefits consulting firm can help manufacturing businesses develop a competitive benefits package that is both scalable and effective. For more information on how to provide competitive benefits in the manufacturing industry or to speak with a knowledgeable employee benefits consultant, schedule a consultation with New City Insurance today.