How to design an employee benefits package that attracts and retains top talent

A competitive, unique benefits package sets your organisation apart during the recruiting process. It sends the message that a company cares about employee development and wellbeing. Comprehensive package benefits go beyond mere financial compensation to provide higher levels of security.

It’s all about the little things – small workplace perks like gym memberships and compressed schedules are cost-effective ways to provide employee support. And when employees feel this support, they’re more likely to feel valued and engaged. In fact, research shows discretionary benefits create positive social exchange relationships between employee and employer – improving retention rates, all while reducing turnover costs.

Package benefits refer to any employment compensation outside of salary and wages. These include the extra incentives that employees receive along with their job offer, including things like health insurance, annual leave, and paid training. Benefits often enhance corporate culture, such as paid time off for volunteering or an annual, companywide wellness retreat.

Any benefits package must first meet mandatory standards in Australia. It should also include an array of supplemental workplace perks to set your company apart.

What are the standard employee benefits in Australia?

Australia’s National Employment Standards set out clear guidelines your company can use as a benefits package baseline.

•  Super Guarantee: Employers must contribute a minimum 11.5% of each employee’s salary into their super fund. This minimum is set to increase to 12% in July 2025. Many employers will exceed this minimum pension contribution to attract and retain talent.

•  Annual leave: Employees (both full-time and part-time) are entitled to four weeks’ minimum of paid annual leave per year.

•  Paid public holidays: Holidays vary by state and territory, according to the NES guidelines.

•  Workers’ compensation: Support received when suffering work-related illness or injury.

•  Sick and compassionate leave: Employees can receive up to 10 days of personal leave.

•  Parental leave: Primary carers qualify for 12 months of parental leave.

•  Flexible working: After 12 months of continuous employment, Australian employees are entitled to flexible working arrangements.

•  Right to disconnect: Employees can refuse to read, respond, or monitor work-related communications outside of working hours, with some exceptions.

You can view more details about mandatory employee benefits, rights and entitlements on the Australian Government website.

Supplementary benefits

Because all Australian businesses must meet the minimum requirements outlined above, a competitive employee package will go above and beyond with supplementary perks.

•  Private health insurance: This provides additional coverage for employees that aren’t always provided by Australia’s national Medicare system, such as optical and physiotherapy services.

•  Life and disability insurance: Companies provide financial support to an employee’s family in the event of accidents, long-term illness or disabilities.

•  Career development opportunities: Invest in employee career growth with paid-for training, higher education and mentorship programmes.

•  Health and wellbeing benefits: Offer gym memberships and access to mental health services to support a healthy, well-balanced lifestyle.

•  Bonus structures: Provide recognition for high-achieving employees with morale-boosting rewards, financial bonuses and awards ceremonies.

•  Childcare support: Working parents receive allowances for childcare to ensure they can achieve a more satisfactory work-life balance.

Flexibility comes top of the list when it comes to attracting top talent. According to a LinkedIn survey, work-life balance and flexible working arrangements were two of the top priorities when considering a new job, second only to employment compensation.

Your business can target all three top priorities with flexible company benefits packages. Rather than offering a one-size-fits-all solution, boost engagement with tailored employee packages that reflect individual needs.

This starts with flexible working arrangements that allow employees to create their own schedule to accommodate a better work-life balance. Hybrid working environments and compressed workweeks are popular, flexible solutions.

In terms of family support, go beyond mandatory parental leave with childcare partnerships and subsidies. Customise the family support option with the addition of eldercare resources as well to help employees care for multiple generations, all while better managing work commitments.

What benefits do employees value most in Australia?

Australian talent trends mirror global priorities. A 2023 LinkedIn survey showed employee compensation came out as a top priority, followed very closely by flexible working arrangements. However, this varies not only by region but by industry. While healthcare workers valued a better work-life balance, retail and hospitality workers valued career growth and development.

Following regional and industry-specific trends is a valuable first step towards creating more attractive company benefits packages. Yet to better understand and cater for top candidates, you’ll need to understand their drivers.

LinkedIn Talent Insights provides real-time data on workforce trends, helping companies analyze what matters most to their target talent pool. Employers can filter insights by factors such as industry, skills, and location to tailor benefits offerings to employee expectations.

Once key priorities are identified, LinkedIn Recruiter enables businesses to connect with top candidates through personalized outreach, emphasizing benefits that align with their career and lifestyle preferences.

By leveraging LinkedIn’s data-driven tools, companies can refine their benefits strategy and attract top talent more effectively.

Gather feedback from current employees to better understand benefits engagement, so you can adjust areas in need of improvement. Metrics to analyse could include things like satisfaction surveys, turnover rates and participation rates – high levels of engagement indicate that these benefits are well worth the investment.

Data-driven insights help determine which benefits and workplace perks are most important to your talent pipeline. With customisation and care, your business can reap maximum rewards from company benefits packages.