When courting an elite candidate, it is imperative not only to understand what other companies may be offering in terms of benefits, but how the benefits you are offering are applicable to the individual who is being considered.
A recent study by LendingTree allows recruiters some statistical evidence broken down by gender and age. It points precisely to the pressure and leverage points that are most likely to impress an applicant of a specific demographic.
In fact, it might be possible to offer lower initial salaries than competitors and still be able to recruit top talent, if also considering benefits packages from a smarter angle. To do this properly, however, it means an analysis of what benefits will glean the best results in negotiation.
1. How much does benefits affect job acceptance rates?
The statistics demonstrate that as many as a third of applicants consider benefits a “deal breaking” item and have turned down offers due to an unsatisfactory package. It is useful to know that men are around 5% more likely to break off negotiations due to what they see as a sub-par benefits offer.
2.Where are the best pressure points?
Across demographics the most important elements that affect consideration of benefits are improved health insurance packages and 401(k) matching. When entering negotiation it is possible to take advantage of current unrest in the healthcare market. Offers that include family insurance, for example, might be a stronger consideration than they would be in another climate.
3. Do not ignore the gender gap in 401(k) vs. health insurance
It is crucial to note that there is a relatively significant difference in the way different genders reacted to what they felt was the most important benefit when weighing 401(k) matching and health insurance. It has been shown that women place greater emphasis on immediate financial concerns while men are more focused on retirement. If entering negotiation, you may want to choose one over the other based on the gender of the applicant.
4. Age demographic matters when considering an offer of improved health insurance
The desirability of offers that include expanded health insurance coverage can also be predicated on age. The study seems to indicate that those with young families or closer to retirement are most swayed by the promise of greater insurance benefits.
5. Offering a reduced salary for improved retirement security
Over a third of employees say that they would take a pay cut if it meant a 2% increase in 401(k) matching. With this in mind, if an applicant is seeking a slightly higher salary, it might be advantageous to see if offering a 2% raise in 401(k) matching will be an option with a positive outcome, before looking toward salary negotiation.