If you're like most home builders, you're having trouble hiring new workers. One reason might be that your benefits package doesn't match what is being offered by bigger companies outside of the residential construction industry. Compared with companies that have at least 100 employees, small builders are:
- 1% to 2% less likely to offer health and dental insurance;
- 12% less likely to have a 401(k) retirement plan;
- 28% less likely to offer life insurance;
- 15% less likely to offer disability insurance; and
- 7% less likely to offer paid sick days.
These gaps could make the difference in luring prospects, as research suggests less than one-third of workers are satisfied with their benefits package and over half of the workforce would heavily consider accepting lower-paying jobs that offered more benefits.
Especially now as labor is tight, the right benefits can make a big difference, says Veronica Ramirez, CEO and president of Kingwood, Texas-based recruiting firm Joseph Chris Partners. She says that in general, builders with better benefits will have an easier time attracting labor. Ramirez notes that while benefits can provide a sense of security to workers, several other factors can influence the attractiveness of a builder firm, including compensation, the stability of the company, company culture, and job stability of those in management positions.
Ramirez says benefits typically are most important to employees below management level; among high-level positions, benefits are likely to be less important relative to other factors at a builder firm for employees.
Here's a look at how the benefits offered by single-family builders compare with other U.S. companies.
Health Insurance
While lagging behind the benefits packages offered by big companies, the benefits offered by single-family builders compare more favorably with similarly sized companies. Compared with companies that have fewer than 100 employees, small builders are more likely to offer dental insurance, health insurance, 401(k) retirement plans, and paid time off.
Retirement Planning
Single-family builders are 18 percentage points more likely to offer employees 401(k) retirement plans than small companies. Seventy-three percent of all single-family builder employees are offered retirement planning benefits.
Life and Disability Insurance
Single-family builders are 5% more likely to offer life insurance and 3 percentage points more likely to offer disability insurance than small companies.
Paid Time Off
There's one bit of good news in the data about builder benefits: Single-family builders are more likely to offer paid vacation time for employees than companies with more or fewer than 100 employees. Ninety-two percent of all single-family builder employees are offered paid vacation while 75% of employees are offered paid sick leave.
Ramirez says vacation policies also tend to be more important for employees below management level. Many of these employees have families and children that are school-aged, and vacation time is a valued benefit. Ramirez says in many builder firms, executive-level employees will opt against vacation policies in their personal benefits package. This is reflected in the NAHB's Single-Family Builders Compensation Survey, where presidents/CEOs and CFO/head of finance are among the least likely positions to have paid time off among single-family builders.
