Hiring remains the top priority for employers, and while money is top of mind for talent, they also want a total rewards package, according to new data.
Human resources professionals say they are responding accordingly: In HR Dive’s 2023 Identity of HR survey, almost half of respondents (43%) said retirement contributions or benefits are a facet of their talent acquisition approach.
Retirement benefits saw the highest year-over-year uptick, too; only 35% cited this tactic as a tenet of recruiting strategy in 2022.
The data also revealed an uptick in increased hourly wages and referral bonuses as job candidate lures. This indicates that HR is working to meet employee demands not only for fair compensation, but financial stability and security as well, according to benefits professionals.
Access to emergency savings is seemingly top of mind for talent. For many, the old financial wellness adage that one should have six months’ worth of income saved is more maxim than lived reality. Recent data from Consumer Financial Protection Bureau suggested that only 27% of Americans would be able to cover more than six months of living expenses. Even fewer would be able to support themselves for two months or two weeks.
Workers are demanding higher pay. In 2022, 59% of HR Dive survey respondents said increased hourly wages or salaries were part of their talent strategy. In 2023, that rate crept up to 64%. Workers are increasingly vocal across the board regarding their demand for higher or fairer pay, with state legislators leading the charge.
Why more HR professionals are using retirement benefits as a recruiting ploy is clear: Not only are people hungry for financial stability, but potential candidates are also vocal about the ways those resources make a company an employer of choice. In Betterment at Work’s report, 43% said finding a job with better benefits and/or higher pay was their motivation for leaving their company.