Employers turn to more exotic benefits to retain top talent

With the job market still tight, companies are getting creative with the extra perks and incentives they offer employees. More employers are now providing on-site childcare, a rare but growing benefit aimed at retaining working parents. The number of businesses with on-site care rose 47% since 2019, per a survey. While costly to implement, government credits can assist, and the payoff in loyalty and retention is high.

Equity compensation, once the domain of top executives, is another increasingly common retention tool down the line. Bank of America recently announced $800 million in stock grants for employees. Walmart is now giving store managers up to $20,000 in annual stock awards. Equity gives workers ownership, motivating them to stay.

As competition persists, firms are thinking outside the box on benefits. Childcare support and stock incentives show the value of meeting specific workforce needs. While traditional offerings like health insurance remain essential, smart companies are customizing their compensation packages to attract and anchor talent.