Some job candidates assume that non-profit organizations offer lower compensation than for-profit organizations do. Having open positions in your non-profit can be a difficult hurdle to overcome — especially if you don’t have the budget to compete with for-profit organizations. However, you may be able to offer lower cost benefits package that won’t break the budget. Review your benefits package to see if it could use some enhancements.
Competitive Advantage Of A Lower Cost Benefits Package
A comprehensive fringe benefits package can be worth its weight in gold. In fact, a survey by workplace review site Glassdoor found that 80% of employees prefer additional benefits to comparable pay hikes, and 60% say benefits played a big role in accepting a job. Workers indicate they favor better benefits because they provide greater flexibility and job satisfaction in the long run.
Your benefits may also enable you to distinguish your organization from non-profits with similar missions. An applicant inclined to work for an organization that supports a worthy cause may opt to accept one non-profit over another if it furnishes more benefits and more flexibility to use them.
Saving On Traditional Benefits
When asked to name a common employee benefit, most people probably would name health insurance. This benefit is also typically the most expensive for employers to offer. You can help defray your organization’s costs by asking staffers to pay a greater share of the premiums, but then help make up for it by offering greater wellness benefits, such as discounted gym membership and cash incentives for healthy living. These tend to be affordable add-ons to health care plans.
Retirement savings plans can also be costly to sponsor. However, non-profits are no longer limited to offering 403(b) plans, they can also adopt 401(k) plans. Traditionally provided by for-profit entities, 401(k) plans tend to have lower expenses and fees for both employers and employees. One of the most cost-effective plans is the Safe Harbor 401(k), which has lower administrative burdens. Talk to a benefits expert to learn more.
Alternative Offerings
According to data-analysis non-profit Candid, almost 70% of non-profit staffers are female. Because women are more likely than men to be tasked with child and elder care, consider offering a dependent care FSA (if you don’t already). This pre-tax account allows employees to save for dependent care expenses.
Also think about offering parental and adoption leave, and short-term disability insurance. These can help staffers and their families maintain financial stability during stressful times. And you might want to consider training and education reimbursement programs and other career advancement initiatives.
Finally, don’t overlook time off incentives. Many employees rank work/life balance as their top priority. Your organization may want to grant employees extra time off to handle personal matters or simply to enjoy R&R. Such benefits usually can be offered as paid time off, personal time, sick leave, or vacation time.
No Magic Formula
The “magic” formula that enables you to land and retain the best talent can be elusive. Some workers simply want higher compensation, and there’s probably nothing you can do about it. But if you spiff up your benefits menu (keeping an eye on costs) and highlight it when recruiting staffers, you’re more likely to attract the attention of job candidates. Contact us for more information.