Did you know that 78 percent of employees have reported that they are more likely to stay with an employer because of their benefits program? This statistic illustrates just how important a quality benefits program can be for employee retention. It also means that if your benefits program is not living up to the standard your employees expect and desire, they could walk out your door in search of a company that provides what they want.
How is employee turnover affecting your company?
High employee turnover rates impact your company in several negative ways. When employees leave the company, they must be replaced, leading to recruitment, training, and overhead expenses for your company. According to a study by Deloitte, the cost of losing a single employee can be crippling, ranging from tens of thousands of dollars to twice the lost employee's annual salary or even more. Training new employees also takes time, and productivity tends to suffer while new employees are learning the ropes. In addition, high employee turnover rates are also discouraging for remaining staff, leading to lower morale and poor company culture.
Although some employers mistakenly believe that pay raises are the best way to keep employees from leaving, the statistics indicate otherwise. According to a study published by Glassdoor, as many as 80 percent of employees would rather have quality benefits than a raise in pay.
What are employees looking for when it comes to benefits?
Offering basic benefits to your employees is not enough to keep them happy and prevent them from looking for other work, nor will it be enough to bring in the best talent. Instead, you should offer the benefits employees desire most. According to a survey conducted by Randstad, 75 percent of employees cite health insurance as their top priority when it comes to employment benefits. The next most popular benefits among employees surveyed included pensions and retirement funds. Other benefits, such as discount programs, wellness programs, and financial management services, are also valuable to current and potential employees.
Tips for improving your employee benefits strategy and reducing turnover
To enhance your employee benefits strategy, keep your current employees satisfied, and attract the best new talent to fill job openings, follow the tips below.
- Learn about current benefit trends. Before you can improve your employee benefits strategy, you need to understand what your employees want. Research current benefit trends in-depth by reading up-to-date articles and checking out the benefits available from your most successful competitors. Use this information to inform your benefits strategy moving forward.
- Seek feedback directly from employees. Another way to understand which benefits your employees prioritize is to ask them directly. Give employees plenty of opportunities to provide feedback about their current benefits, as well as to make suggestions for future changes. Not only will this provide you with valuable information, but it will also show employees that you care about their opinions.
- Offer more competitive benefits. After you understand the current employee benefits trends, as well as your employees' priorities and desires, it is time to make changes to your benefit offerings. Be sure to research cost-effectiveness before making significant changes, and remember that better benefits will improve productivity in the long run.
For many companies, cost is the biggest obstacle to offering the "dream" benefits package to employees. When you work with a professional employer organization, you can offer benefits at a lower cost. Working with a PEO allows you to give employees the benefits they desire most while simultaneously protecting your business' budget.
