What You Can Do Now to Attract and Retain Employees in 2023
- 3 min read
With average employee turnover hovering around 20%, as the year comes to a close employers are pulling out the stops to retain, as well as attract, employees. Employees are wielding a new-found power to demand better benefits and pay. However, financial uncertainty, a looming recession, and stubbornly high inflation mean that they are financially stressed and looking to their employers, and benefits, to help.
Lively’s inaugural Employee Benefits Pulse Check captures and shares what’s at the top of HR leaders’ minds and what they are doing right now to keep up with shifting economic conditions and employee expectations. In partnership with CITE research, we surveyed 250 HR leaders across the United States and multiple industries to capture key data and understand current trends around employee benefits, healthcare, health policy, and retirement.
Employers increased salary, flexible work and benefits to attract and retain employees
Overall, the report found that HR leaders are increasing benefits and flexibility not only to attract talent, but perhaps critically, to retain employees. Especially important are financial, family planning, and reproductive healthcare benefits.
Key findings from the report include:
- 84% of HR leaders increased benefits to attract and retain employees facing a high employee turnover rate.
- 72% of HR leaders improved employee base salary and remote or flexible work arrangements and believe that these, along with better healthcare coverage, are the most impactful actions employers can take to attract talent.
- 80% of HR leaders feel that offering competitive financial benefits is more important than they were a year ago, especially given economic uncertainty and high consumer prices.
- 94% of HR leaders say parental leave benefits are the most important to attract and retain employees and a majority support travel for medical purposes if a procedure is not available in state.
The report includes key steps HR leaders and benefits brokers can take to ensure they are meeting the needs of their employees and clients, especially as each begins to set goals and budgets for 2023.
Action items for employers
Overall, the report suggests HR leaders take concrete action that makes a difference to make an impact on employees’ financial health, including:
- Conducting a salary audit within your company and industry.
- Surveying employees to understand how satisfied they are with their benefits.
- Offering health plans that give employees greater flexibility and help you both save on costs and FICA taxes, such as a high-deductible health plan paired with an HSA.
- Reviewing your parental leave and medical travel policies and ensuring you understand what is covered by your health plans, HSAs, and FSAs.
For full recommendations to help you better understand how to improve benefit offerings and adoption in 2023, download the report.
Action items for brokers
In this uncertain economic environment, employers are looking to benefits brokers and consultants to help them offer benefits that employees want and will actually use. The right benefits packages can help employers attract and retain employees. Positioning yourself as a trusted advisor can help secure your clients and grow your business.
The report outlines how brokers and consultants can:
- Help employers save money HSAs, FSAs, and other benefits that drive FICA tax savings.
- Work with benefits providers that offer easy set up, integrations, a user-friendly dashboard, and resources for employee education to help clients to drive adoption and employees get the most out of their benefits.
- Provide your clients with resources to share with their employees that help them understand what their benefits cover and how to access them.
For robust recommendations about working with your clients to help them prepare for the year ahead, download the report.
Read the report
For more insights and action steps for both employers and benefits brokers and consultants, download the report.
Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.