How startups can design benefits packages to retain employees
Starting a business is an exciting time for founders. They get to be creative, dream big, and build something from the ground up that’s entirely their own. It’s also a challenge — startups often lack the resources and established corporate structures of larger organizations. In order to compete with other companies, startups need to offer perks that people want in addition to what they need — but while they may understand what they want as employees, they don’t always understand how those requests apply as benefits providers.
As a result, companies often make costly mistakes when investigating their options for benefits. The good news is that there are many resources to help companies understand the basics of benefits and get off on the right foot when it comes to setting up their workplace offerings.
Since the early days of startups and small businesses, there has been a lack of resources for companies to use to understand and evaluate their benefits packages. As a result, companies have often struggled with creating benefits without external guidance. It’s not always clear how to determine your company’s needs or the best ways to offer them.
Benefits packages are a significant part of any culture, but they require thorough research and planning when it comes to creating, presenting, and communicating them to your employees. Too often, startups give little thought or consideration to how they can put together an effective benefits package — which can create conflicts between what they want and what they need.
A one-size-fits-all benefits package is not enough. Some people want a more traditional approach to their benefits, while others care little about their benefits and view them as simply a cost of doing business. Companies looking to attract top employees should consider tailoring their benefits to the type of job they’re trying to fill or even the personality and preferences of the individual they’re looking to hire.
More than 45% of employees leave their jobs voluntarily, and 20% are looking for a new job every day. The average millennial will have 12.7 jobs in the course of their career, and the average tenure with any given employer is now just three years. Employers are looking to unlock their potential through diversity and inclusion strategies. However, there’s one group of employees that many businesses still struggle to accommodate: the growing number of women who choose to have children.
Women now make up 46% of the U.S. labour force and represent nearly 40% of the global workforce, and half of all working mothers are either currently buying or planning to buy a home in the next five years. In addition, 90% of millennial women say they plan on having children. While more working women today choose to have children, they still face challenges and inequality in the workplace.
An informal poll conducted by The Boston Globe in 2010 showed that two-thirds of U.S. women felt that employers were not doing enough to support working mothers, and 59% felt that they would need to choose between family and career at some point in their lives. These challenges show why it’s so crucial for employers to be inclusive and supportive of all employees, including working mothers.
Many companies are looking to create working environments that actively support working mothers and encourage a culture of inclusion. While it’s common for companies to offer maternity leave for new mothers, many don’t realize the importance of providing resources for other women in the workforce who are having children.
For working mothers, the most important benefit is paid maternity leave. According to the Center for Economic and Policy Research, only 12% of workers in the private sector have access to paid leave through their employer. The average number of weeks a company offers maternity leave ranges from 17 weeks in California to 6 weeks in Florida.
In addition to paid maternity leave, employers should also make sure to have a robust maternity leave policy in place. While many employers are providing new mothers with eight weeks at company expense, the average benefit is actually just half the length of parental leave. The benefits of parental leave extend beyond how much time you spend with your child. Studies show that parental leave improves career development, lowers turnover rates, increases employee satisfaction and decreases absenteeism.
The traditional model of a hierarchical organization is now being challenged by more innovative workplace models that have evolved from a combination of technological advancements, emerging global trends, dynamic philosophies and leadership styles. These new workplace models are creating new networking opportunities for employees giving them more control in their work relationships and creating greater levels of engagement. This requires an adaptive approach to leadership as organizations must engage employees at all levels in the processes.
Trends that are impacting the 21st-century workplace include:
Half of all employees worldwide are likely to want to work in a different job during their career. The study found that 85% of HR professionals and managers believe their organization’s leadership team is prepared for this new dynamic. Working parents are increasingly likely to be working outside the traditional office structure, with 40% of all employees engaged in some form of telecommuting or remote work.
In addition to the trend of working parents who are assuming more flexible work arrangements, there is also a growth in part-time employees who work from home. The Bureau of Labor Statistics reports that an estimated 32% of employees in the US work from home, and this number is expected to grow.
85% of HR professionals and managers believe their organization’s leadership team is prepared for this new dynamic. This requires a shift in thinking about work-life balance that goes beyond traditional benefits such as parental leave. As organizations are looking to integrate the blended family into the workplace, flexible work arrangements are increasingly being used as a means to support working parents.
The ability to better manage the various tasks of parenting requires a different approach to leadership that can only be achieved with a more inclusive culture. 42% of employees say they are more engaged at work due to their family members, and 63% of employees agree that their employers understand the unique challenges associated with working families.
The growing demand for flexibility in work-life balance is also driving companies to become more creative in how they structure staff. Many companies structure their teams based on the ability to focus on the task at hand. However, this approach can actually lead to increased feelings of isolation for employees who wish to be more involved or contribute on a creative level.
In the future, work-life balance strategies will not just be limited to the more traditional approaches. They may include:
The ability of employees to maintain a healthy balance between their personal and professional lives can be incredibly beneficial to them and their employer. Research shows that working parents are more involved, engaged and present in the workplace and that they provide better service to their customers.
Working mothers who have flexible work arrangements can also enjoy other benefits. Research shows that working mothers with flexible work arrangements are better able to manage home-related responsibilities, such as childcare. This can be vital for new mothers in the workforce who might be away from the child’s school during some hours of the day and not be allowed to take breaks.
As more employees are working outside the traditional office space, employers must continue to adapt their workplace policies. At the 2011 Society for Human Resource Management conference, a panel was held on work-life balance.
The need for work-life balance is critical in today’s workplace, as employers are increasingly trying to attract and retain top talent. The number of women who enter the workforce continues to increase, while the number of men continues to decline. This gives working mothers an advantage over men because they are more appealing to potential employers.
Flexibility is vital for women to manage running their own household and working outside conventional office hours. Employers should provide consistent flexible work hours for employees who are required to work outside the 9 am-5 pm scheduled shift. Companies should also provide flexibility in order to promote employee retention and better fit individual family lifestyles. There is a need for employers to be more accommodating with schedules, so that child care can be provided by other substitutes whenever necessary.
A more flexible work arrangement might include:
The increasing number of parents who are working outside the traditional office space and managing their work, home and family responsibilities can create new challenges for employers looking to attract and retain talent. As a result, organizations have been adapting their workplace policies to provide a greater degree of flexibility in the way teams operate.
However, this focus has often been on remote work arrangements, as opposed to flexible work arrangements. Employees might work from home or from a satellite office that is kept separate from the main facility. This can have unintended consequences for new parents since they are typically not allowed to take time off during the day for school drop-offs and pick-ups.
The “Maternity and Paternity Leave Act” is a federal bill which governs the rights of fathers to take time off for their newborn child. The purpose of the Act is to ensure that both women and men are treated fairly when it comes to maternity leave, paternity leave and parental leave.
Many governments have also linked parental leave entitlements to income tax. For example, a government might allow the employee to receive a certain percentage of their salary for up to four months after birth or adoption. This means that individuals choose whether they want to use paid leave or not.
Countries are divided over whether or not a father should be entitled to paid paternity leave. Some countries only allow a father to take unpaid time off. While others, such as the U.S., have no paternity leave at all and treat the mother’s role as the primary caregiver. These laws don’t always apply to same-sex couples. In the U.S., seven states prohibit same-sex couples from adopting, meaning that same-sex men are usually not entitled to paid paternity leave if they want to adopt a child.
Self-managed work and self-regulated workplaces are not new concepts and have been around for decades. Dealing with the challenges of balancing family life, professional life and home life, self-employed people deal with the same issues as employees in traditional businesses but from the perspective of an entrepreneur rather than a worker. The range of issues is diverse but has some commonalities; for example, to be successful, it relies on managing inputs, outputs and outcomes at all levels.
A range of skills and competencies is necessary to build a successful business, whether it be as a freelancer or entrepreneur. Some of the skills required are similar to those you would use in a traditional working environment, for example, negotiations or time management. Other aspects such as team building, leadership and networking are also important to have strong foundations in your business.
Employees who are working from home or in a satellite office may find the following advantages:
The increasing number of parents who are working outside the traditional office space and managing their work, home and family responsibilities can create new challenges for employers looking to attract and retain talent. As a result, organizations have been adapting their workplace policies to provide a greater degree of flexibility in the way teams operate.
Since flexibility is such an important issue in current workplaces, many organizations are offering flexible work options as part of their benefits packages. However, this strategy can be challenging to implement. It is important to understand which employees are interested in working remotely and ensure that the right environment is established for them.
As flexible work arrangements in workplaces become more prevalent, the need for a more flexible approach to leadership will emerge. This will require organizations to find ways of incorporating a new type of leader into their organization, namely an organizer who can weave together a cohesive network of employees from different departments and with differing levels of seniority.
The workplace is changing, and organizations will need to adapt in order to remain competitive. The key is to offer flexible work options that are tailored to the needs of the full spectrum of employees, especially those with children. In a world that is increasingly moving towards micro-managing work, it may also be difficult for companies to attract and retain talent. However, research shows that working parents are more involved and engaged at work, which can have a positive effect on the bottom line if they are treated well by their employer.
The meaning of work has changed and has become more flexible over time. Back in the 1950s and early 1960s, full-time employment was the standard, whereas nowadays, people are often self-employed or freelance. Modern technology is also changing where people work, as teleworking is becoming increasingly popular. The rapid growth of social media means that many people can now be managed remotely with fewer human resources requirements.
The concept of work-life balance is now well established as a universal expectation. However, the concept is used in different ways depending on the context and culture within which it is being discussed. Work-life balance has become a key component of organizations’ HR strategies and employee retention strategies. Changing demographics, such as the rising number of women in the workforce and a changing family structure, has led to an increase in interest in work-life balance issues across corporate Canada.
Work-life balance is the average balance of time spent at work and at home across multiple locations and over time. It is a term used for the relationship between work and family and refers to the actions individuals choose to make in order to have a good work-life balance. Work-life balance connotes two different concepts: work balance (work schedule management) and life balance (time spent with family, friends and activities).
In the workplace, work-life balance can be defined as a combination of activities, behaviours, routines and choices that allow employees to manage their time between work and life. The concept of work-life balance is often used synonymously with the term “work–life fit”, which is the extent to which an employee’s personal values and priorities are aligned with the corporate culture.
Work/life balance and work-life conflict have a direct impact on an individual’s quality of life. These relate to the choices one makes and the opportunities that are presented. Work-related decisions are influenced by the choices that people make in their free time and vice versa. Research has focused on measuring how much time is available in life, how efforts over the whole of life contribute to well-being, what work is like, how it affects personal relationships, etc.
A flexible work schedule is a work arrangement that allows employees to make arrangements with their employer to work from home, either on a regular basis or occasionally, at specified times of the day or week. Flexible working arrangements are aimed at addressing the problem of an employee’s geographic location and/or personal circumstances when these may lead to a decrease in availability for the employee (e.g., childcare problems) or may prevent employees from doing well-rehearsed tasks.
“Flexible working hours” refers to the arrangements that an individual makes with their employer to work outside the normal business hours of the office. These arrangements are mainly used for individuals with children at home and often provide flexibility in terms of employees’ work schedules.
Edited by Prakriti Arora
