Employee benefits that boost your hiring and retention
A wise leader named Simon Sinek once said, “Happy employees ensure happy customers. And happy customers ensure happy shareholders – in that order!” Employees are the most important piece to a company’s success or failure in today’s fast-paced economy. Hiring and retaining the right employees should be seen as an investment that impacts the future of your business as a whole. Offering an affordable and comprehensive suite of benefits will have employees thinking twice before leaving, reducing expensive turnover costs and increasing employee satisfaction, ultimately giving you a competitive advantage over your competition. According to Forbes, around 63% of US companies find it harder to retain than to hire workers, and a study by the SHRM found that 60% of employees said employee benefits were extremely or very important when considering whether to stay with their current employer. It’s no surprise that businesses with favorable cultures, affordable medical and leave packages, and competitive compensation offerings are preferred by employees nationwide.
“...a culture that attracts high-caliber employees leads to a 33% revenue increase...”
The most influential aspects of company culture today are flexibility (offering hybrid and remote options) and generous or unlimited PTO (bonus for extended holiday breaks). Positive work culture also includes a healthy environment with a good reputation. This combination can help employees manage their work life balance which is linked with better productivity, increased employee engagement, and higher overall profitability. According to a study by Teamstage IO, a culture that attracts high-caliber employees leads to a 33% revenue increase, while poor workplace cultures lead to a 157% increase in the incidence rate of moderate to severe burnout. Additionally, millennials prioritize ‘people and culture fit’ above everything else. Since mental wellbeing is so closely intertwined with physical wellbeing, it’s obvious that maintaining a healthy work culture can also help your bottom line and employee happiness when it comes to Healthcare offerings.
It’s no surprise that healthier employees are happier employees. In the United States where healthcare is tied to employment, it’s more important than ever to offer affordable and useful medical and mental healthcare to your team and their families. In addition to basic healthcare offerings, it’s also beneficial to both employers and employees to offer additional ancillary services such as ample parental leave and fertility support. What goes on at home impacts an employee in the workplace even when it is not known or visible to management. According to a study by the International Foundation of Employee Benefit Plans, employers with high levels of productivity and engagement offer benefits such as paid leave, healthcare, retirement, flexible hours and wellness benefits. These services can be expensive, and adding affordable or even full coverage options can make a huge difference in the effectiveness of your team.
The final and perhaps most important factor in employee retention relates to feeling valued by offering a competitive compensation package with a clear path for career development. To attract and retain the best employees, total compensation (including base salary, retirement, and stock options) should land in the top 25 percentile for the industry. It’s also crucial that salaries reflect inflationary rates, which can be accomplished with annual bonuses and merit increases. When combined with a clear path to promotion, an attractive overall comp package which includes upward mobility and job security will ensure your employees feel valued for their work. According to a survey by Metlife.com, 42% of employees don’t feel cared for by their employers, and only 61% of employees are satisfied with their overall benefits – the lowest point in the past decade. Studies have also shown that employees who feel valued and appreciated by their employer are more likely to stay with the company and be productive.
In an era where employees have an abundance of options, your overall benefits package can make or break your success as a company. In conclusion, it’s vital for any organization to consider culture and PTO, healthcare benefits, and overall compensation when determining a proper retention strategy. In the end, employees who feel appreciated by their employer are likely to return that appreciation by staying with the company and providing value to the business.
Meet the Author
Brittany Robinson
Talent Consultant, Talent Solutions
Bridging what you know, to who we know.
With direct access to the top talent across the nation, there’s a good chance we’ll have just the right person in mind once we learn more about your talent needs.