The need for bigger and better employee benefits is becoming more evident every day, especially in the manufacturing sector. According to a recent report released by Tooling U-SME, an estimated 2.5 million manufacturing jobs will go unfilled by 2028. The manufacturing industry is highly competitive and without the right incentives, businesses are likely to experience a high rate of turnover.
Attracting and retaining a workforce in the manufacturing industry requires a good salary and competitive benefits package. Approximately 33 percent of companies use benefits as a retention strategy for employees at all levels within an organization, according to the Society for Human Resources. However, just 49 percent of employees are satisfied with their current benefits.
What Benefits Do Employees Want?
Many businesses in the manufacturing industry have already taken steps to alter their benefits to increase retention. However, it is important to offer benefits that employees highly value. A survey by Glassdoor revealed what types of benefits are most sought-after by employees. The results were as follows:
- Health Insurance (e.g., medical, vision, and dental): 40 percent
- Paid Time Off (PTO) and Vacation Days: 37 percent
- Performance Bonuses: 35 percent
- Paid Sick Days: 32 percent
- Retirement Plan, 401(k) Plan, and/or Pension: 31 percent
Health insurance is the most desired employee benefit among job candidates and employees. Offering an employee benefits package that includes medical insurance shows workers that the company is invested in their well-being, resulting in greater job satisfaction and more productive employees. Group health insurance is more affordable than individual health plans and eligible businesses receive certain tax incentives.
Paid Holidays and Vacation Days
Research consistently reveals the health benefits of taking vacation time. Employees that are offered time off in the form of paid holidays or vacation days are more likely to experience lower stress, improved productivity, and better mental health. Staff members require time off to help keep their mental and physical health in balance. Employers that provide paid time off encourage employees to make use of their time away from work.
Paid Sick Days and PTO
Similar to paid holidays and vacation days, offering employees paid sick days and paid time off is an excellent way to reward a loyal workforce. Life commitments like doctor appointments often require employees to miss work, which can lead to low paychecks and decreased morale.
By adding paid sick days and time off into an employee benefits package, workers can take the time they need without the stress of financial concerns. PTO can also benefit employers. According to a study published by the Alexander Hamilton Institute, employers that offered PTO saw a 6 to 8 percent decrease in unscheduled absenteeism.
Other Fringe Benefits
There are also other types of fringe benefits that employers in the manufacturing sector may choose to offer workers. Some types of fringe benefits may be mandatory to certain companies, such as health insurance, medical leave, unemployment insurance, and workers’ compensation. However, businesses may also choose to offer fringe benefits not required by law, such as stock options, education reduction, disability insurance, life insurance, retirement planning services, fitness training, meal plans, and employee discounts.
Why Offer Benefits to Employees?
The job market has changed drastically over the past decade, and there are more positions available in the manufacturing industry than there are qualified candidates to fill them. In a highly competitive market, businesses must find new ways to attract and retain employees. With a solid benefits package, manufacturing companies can compete for the best talent.
The smaller the business, the less likely it is to offer an employee benefits plan. However, what many growing companies do not understand is the importance of offering competitive benefits.
Great employee benefits help to differentiate businesses from their competition. Manufacturing companies that do not offer benefits or offer inferior benefits are at a major disadvantage.
It is important to remember that compensation does not just pertain to salary. Instead, it refers to all types of compensation that is paid to employees, including benefit offerings. Today, employees expect to receive a fair salary and the benefits they need to maintain good health and well-being. If a company does not offer these perks, job candidates are likely to look elsewhere.
Benefits also help make employees feel valued. Turnover costs can be significant, especially when employees frequently leave for better compensation and benefits packages elsewhere. Providing workers with a total compensation package will help them feel like they are being paid well for their work.
Speak With An Employee Benefits Consulting Firm
Employee benefits are more important than ever as the manufacturing industry continues to experience rapid changes in the job market. To attract and retain a talented workforce, reach out to the experts at New City Insurance about benefits consulting services.