Federal contractor benefits are essential to employee retention, showing contractors that their company values their contribution and cares about their well-being. However, providing a benefits package that is strong enough to keep talent on board during a recession can be challenging.
Traditional methods of retaining talent, such as bonuses and other financial incentives, may not be feasible for all businesses, and federal contractors may find that their current earnings are no longer covering their expenses because of inflation.
How can businesses adapt their benefits to retain talent during economic downturns without jeopardizing their finances?
Focus on Wellness
Recessions can be challenging times for everyone, and they can take a serious toll on mental health and morale. Many federal contractors may be concerned about their job security; even those who have the reassurance of a long-term government contract may be weighed down by concerns about the job security of their spouse or other family members.
This can lead to significant stress and burnout, compromising productivity and affecting the company’s ability to meet deadlines and secure future contracts.
During a recession, a workplace wellness program is an affordable benefit that can offer an excellent return on investment in terms of employee satisfaction, retention, and productivity boosts.
Businesses that do not currently have a wellness program should consider establishing one. In contrast, those with a wellness offering may find enhancing it a smart move during economic downturns.
A workplace wellness program may be as simple as offering employees access to a meditation app or a gym membership. Many cancel these subscriptions during financially trying times, often when they are most needed.
It is also a good time to introduce smoking cessation programs, which not only improve health but also help employees who are heavy smokers eliminate the significant expense of cigarettes. Employees may also appreciate access to yoga classes, massage therapy, and stress management classes.
Provide Financial Education
In 2022, nearly one in four students had access to personal finance education in high school; this represented a significant rise over the 16.4% who took such courses in 2018, but it means that 75% of students need to learn this important life skill.
This illustrates how underprepared many Americans are to manage their finances, and getting through a recession requires even more financial literacy than normal economic times. Another excellent benefit to introduce during a recession is financial education.
Employees with financial concerns may not be as engaged at work, so offering financial education is a great way to alleviate money-related stress while providing employees with useful life skills. Lessons on budgeting, investing, and planning for retirement in the face of a recession will be welcomed during this time.
Give Employees Flexibility
Employees often feel helpless during recessions. To keep morale high among federal contractors, consider giving them more flexibility and autonomy over their schedules. This is a very affordable approach that can have a significant impact on employee retention and satisfaction.
For example, federal contractors with children may struggle to cover childcare costs during a recession. By allowing employees to set their schedule, some people may shift their hours to enable them to rely less on paid childcare, such as by working hours that do not overlap with those of their spouse so someone can be at home with their children.
Another good approach is offering employees the opportunity to work from home. The pandemic demonstrated how feasible this option is for a surprising range of job roles, and many businesses also enjoy significant cost savings.
It helps employees save considerable money on expenses such as commuting to work, dry cleaning, and dining during their lunch hour. Moreover, the lack of commute often means employees can sleep longer in the morning, making them more alert and productive throughout their workday.
For federal contractors who are needed in the office at certain times, consider offering a hybrid schedule that combines days when they must be present with days they can work from home.
Find Out What Employees Need
The changing economic landscape presents the perfect time to reach out to employees to learn more about their preferences. Even companies that conduct regular surveys may find that checking in again during a recession yields valuable insight.
Ask employees what benefits would motivate and satisfy them during this time. Many businesses find that federal contractors’ preferences shift, and employees may provide some excellent ideas that management had not previously considered, such as joining discount programs with major retailers.
Work With Employee Benefits Brokers
Navigating a recession can be complicated, and getting it wrong could cause a business to lose talented employees at a particularly inconvenient time.
At Business Benefits Group (BBG), our employee benefits broker services can help businesses reshape their federal contractor benefits in a way that enables them to attract and retain skilled employees in a competitive post-recession job market. Contact us today to get started.