Today’s hiring environment is challenging for employers, as is keeping employees on your team versus joining a competitor. With the great resignation still underway, our research illustrates what today’s employers are facing:
- 41% of U.S. businesses have experienced a spike in voluntary employee departures
- 5.2% have budgeted for employee salary increases, up from 4.2% in 2021
- 21.8% of U.S. employees left their jobs so far in 2022, of which 17.2% were voluntary
When hiring and retaining C-suite employees, compensation isn’t only about base pay but the potential for them to acquire more. The extra compensation may include bonuses, executive perks such as physical items, memberships, or equity in the company.
Offering smaller, more frequent equity refresh grants has become preferable to executives versus the boxcar method that vests equity on a delayed schedule that emerged during the Great Recession. Through our research, we’ve found that employers use the following eligibility criteria when refreshing equity grants:
- 72% use performance
- 62% consider tenure
- 52% examine the key role and contributions
- 49% consider the C-Suite level
- 45% consider retention
- 39% consider vested interests
In addition to benefits such as compensation and health insurance, ‘new benefits’ have emerged throughout the pandemic that we classify as flexible work options:
- Telecommuting- 73% of employers offer this benefit
- Flexible hours- 48% of employers offer this benefit
- Flexible schedule- 18% of employers offer this benefit
- Summer hours- 15% of employers offer this benefit
- Job sharing- 5% of employers offer this benefit
Companies must also consider their voluntary benefits, which employees pay for themselves, and feel part of their benefits package when considering an offer. Here are the top voluntary benefits companies are adding to their benefits stack:
- 75% offer mental health benefits
- 66% offer life insurance for employees and dependents
- 55% offer accident insurance
- 52% offer critical illness or cancer insurance
- 30% offer long-term disability
- 29% offer a legal services plan
- 29% offer short-term disability
- 25% offer identity theft insurance
- 24% offer pet insurance
- 15% offer long-term care insurance
- 5% offer supplemental health insurance
You must review your executive compensation and benefits package to remain competitive in hiring. Our team at Aspen HR can help you benchmark your compensation and benefits to those in your industry and help you design a package to attract, hire, and retain top talent.
This blog is a summary of Aspen HR’s Executive Compensation and Benchmarking Benefits webinar held on June 8th, 2022, that can be viewed here.
