In the highly competitive tech industry, where skilled individuals are both the hunters and the hunted, attracting and retaining top-tier talent is akin to finding the Holy Grail. While competitive salaries have been the traditional draw, they are no longer the be-all and end-all. An increasing number of tech companies are focusing on a more holistic approach, offering robust employee benefits packages. These packages don't just cover healthcare; they include a wide range of perks, from retirement plans to dependent care - all fully paid for.

Far from being a simple perk, these comprehensive benefit plans offer both employees and employers numerous strategic advantages.

Figure 1: To retain talented employees, companies need to offer comprehensive benefits
Figure 1: To retain talented employees, companies need to offer comprehensive benefits

Whole-Life Support

Benefits packages that cover medical needs, mental health, retirement planning, and family care indicate that a company cares about its employees beyond their work output. A comprehensive benefits package can provide crucial support for tech workers - who often burn the midnight oil, tackle high-stress tasks, and work under tight deadlines. According to the Society for Human Resource Management (SHRM), a compelling 92% of employees say benefits are a critical factor in their job satisfaction1.

Talent Attraction: The Benefit Magnet

Attracting the right talent is challenging, especially in today's competitive job market. By fully covering a variety of benefits, employers make their job offers exceptionally attractive. This is especially true for millennials and Generation Z workers, who, according to Glassdoor, often consider the quality of the benefits package as a decisive factor in accepting a job offer2.

The Family Factor: Extending the Circle of Care

While individual benefits are crucial, extending those to dependents is a game-changer. In most cases, work stress is compounded by worries about family. Comprehensive dependent care benefits allow employees to focus fully on their tasks, providing a powerful psychological boost. The rareness of such an offering makes companies that provide it especially attractive to top-tier talent.

Lower Turnover Rates: A Stickiness Factor

Turnover is a significant drain on company resources, from recruitment costs to lost productivity. A robust benefits package is a safety net for employees at high turnover risk. According to Willis Towers Watson, over half of employees would reconsider their decision to leave if their benefits package was improved3.

Figure 2: Why employees leave. Chart courtesy Sharlyn Lauby, HR bartender
Figure 2: Why employees leave. Chart courtesy Sharlyn Lauby, HR bartender

Enhanced Productivity: The Invisible ROI

Less stress about healthcare and family leads to more focus on work, a natural performance boost employers gain when offering comprehensive benefits. While hard to quantify, the productivity gains can be substantial and directly contribute to a company's bottom line.

Boosted Company Image: The Silent Marketer

A company that offers all-inclusive benefits isn't just an attractive workplace; it also becomes a key player in the industry. Word spreads fast, and a reputation for taking care of employees creates a ripple effect that extends to clients, customers, and partners. This reputational capital can't be bought but can be earned, serving as a silent yet effective form of marketing.

Long-Term Cost Savings: The Fiscal Prudence

While providing extensive benefits may appear costly upfront, the long-term gains can far outweigh the initial expenditure. The equation is simple: Lower turnover equals reduced recruitment and training costs. Improved productivity means more gets done, more efficiently, adding tangible value to the organization. Finally, benefits costs are consistently less cost than a higher base salary.

The Final Word: A Strategic Imperative, Not a Luxury

Offering a comprehensive, fully-paid benefits package, including dependent coverage, is no longer a “nice-to-have” perk in the tech industry - it's a “must-have.” A strategically designed benefits package enriches employees' personal and professional lives and provides a range of tangible and intangible benefits for employers. In the fiercely competitive arena for tech talent, a fully covered, wide-ranging benefits package is not just icing on the cake; it's a non-negotiable ingredient for success.

Footnotes

  1. Society for Human Resource Management. “2019 Employee Benefits Survey.”
  2. Glassdoor. “Employment Confidence Survey, Q1 2020.”
  3. Willis Towers Watson. “Global Benefits Attitudes Survey 2019.”