Benefits and Advantages of Employee Retention

Thursday, February 17th 2022 in Employment by Emily Snell
Benefits and Advantages of Employee Retention

Benefits and Advantages of Employee Retention 

There's a reason why the skills shortage and candidate-driven market have received so much media attention. As the jobless rate approaches levels not seen in nearly two decades, job possibilities abound. As a result, employees are more likely to seek other employment options, resulting in a major turnover problem. Examining the causes of the problem is a crucial first step in resolving the issue at your company. 

Because of benefit misunderstanding or discontent, 49% of your employees will hunt for a new job in the next 12 months. Thus, it's only a year till the deadline. You'll need to be as specific as possible about the benefits you're delivering. Begin with a simple on-boarding procedure. This means that member materials should be written in a straightforward and concise manner. Add a few follow-up calls or office visits to make sure they've understood everything. Then, using email campaigns, inform and remind staff not only about the benefits, but also how to use them. Take it a step further and build educational webinars that employees may access at any time. You might have a lot of great benefits, but if your employees aren't aware of them, they could be part of the 49%. 

Employees are more inclined to stay with a company if they have a good benefits package, according to 78 percent of respondents

While we're on the subject of great advantages, make sure yours are up to par. Flex hours, paid time off, and a 401(k) are all vital to employees. Is there, however, one advantage that sticks out above the rest? As you may have predicted, health insurance is at the top of the list of what employees want. 3 You might even think about purchasing supplemental expense reimbursement insurance to offset any gaps in their primary health plan. This will go a long way toward demonstrating how much staff are valued. Employees that feel valued are more likely to show up to work, be more productive, and, of course, resign. 

Benefits will become even more essential to businesses in the next 3 to 5 years, according to 51% of employers. 

Here's another one, as if the prior two facts weren't enough to convince you of its significance. Who's to say that after the fifth year, 51% of employers won't think it's critical for the next ten? Benefits will always be vital when it comes to retaining (and hiring) employees. That's why they were created in the first place. Offering rewards to your employees demonstrates that you care about their well-being. In the form of pay, the correct type of perk can also act as a recruitment and retention strategy. 

The expense of replacing an employee can be anything from 50% to 400% of their annual compensation

Naturally, there will be a range of costs associated with turnover, just as there will be a range of salary levels. HR must spend time on another hire for every person lost, and the management must spend time taking up the slack. Employee turnover, on the other hand, comes with a slew of hidden costs. There is team disruption, lost productivity, institutional knowledge loss, and ultimately, less business as a result of these expenses. All of these charges might have a significant influence on a company's bottom line. = 

Over 40% of employees indicated they would be more loyal to their employer if their benefit packages could be tailored to their specific needs

Instead of providing too much or too little with one-size-fits-all plans, this allows employers to provide benefits that employees will actually use. Employees will be more likely to be attracted, retained, and engaged if you provide perks that they appreciate. Benefits customisation is vital to promoting employee loyalty for over 75% of millennials, while it is also significant for 67 percent of Baby Boomers. 7 Furthermore, when employees' basic needs are satisfied, they are less likely to be distracted by personal problems, which boosts overall productivity. 8 

Last but not least 

So, what precisely do these figures indicate? You must invest in benefits — the appropriate kind of perks that your employees will understand and value – to win the talent battle and avoid churn. Supplemental expense reimbursed insurance is a strong benefits tool for organizations looking to reduce attrition, boost retention, and recruit the best employees in a competitive market. This sort of insured plan can be placed on top of the primary plan for specific employee classes—those that are difficult to recruit or have a high turnover rate.

About the Author

Emily Snell

Emily is a contributing marketing author at ChamberofCommerce.com where she regularly consults on content strategy and overall topic focus. Emily has spent the last 12 years helping hyper growth startups and well-known brands create content that positions products and services as the solution to a customer's problem.

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