Manage Employee Turnover and Retention with the Right Benefits
By Richard Weinstein, Insurance Solutions Specialist
“We can’t find good Employees!” “Our turnover is really hurting our business!”
These concerns were expressed to me by a group of General Contractors, at a recent Associated General Contractors monthly luncheon in Central Texas.
There has been non-stop media coverage of the talent shortage issue as the unemployment rate reaches levels not seen for almost two decades. Employees feel confident seeking other opportunities, which creates a serious turnover issue.
So what are the reasons behind this trend and are you willing to take the steps to reverse it?
Poor Benefits Can Drive Away Your Workforce
49% of your employees will look for a new job in the next 12 months due to confusion or dissatisfaction with benefits.
Tell them about your benefits as much as possible. It starts on their first day of work – on-boarding. Materials should be simple and concise. Follow up with phone calls or office visits. Use informational email campaigns. Educate them on the who, what, when, where of their benefits. Provide educational webinars and give examples.
The Right Benefits Help Retain Good Employees
78% of employees are more likely to stay with an employer if they are happy with their benefits program.
Employees who feel valued show up to work more, are more productive and, of course, are less likely to quit.
The fact is benefits will always be important for retaining (and recruiting) employees. It’s what they were designed to be in the first place. Offering benefits to your employees shows you genuinely care about them and their well-being.
The right type of benefit can also serve as a recruitment and retention tool in the form of compensation.
Turnover Costs Your Business – BIG!
The cost of replacing an employee can range from 50% to 400% of their annual salary.
Your Human Resources Department is in a daily battle – Finding People, Compliance, New Hires, Benefits, Turnover…. It becomes a revolving door, with little time to effectively manage your Human Resource. But employee turnover has a lot of hidden costs as well.
Half of CEO’s missed their innovation goals last year and a third complain that HR had a limited view of organizational goals. I wonder what would happen to those statistics if turnover decreased? Turnover creates chaos: team disruption, lost productivity, lost institutional knowledge, and ultimately, because of these costs, less business.
The Hidden Cost of Turnover
- Low Morale
- Lost Knowledge
- Lost Productivity
- Unhappy Customers
The Bottom Line Cost of Turnover
The cost of replacing an employee can range from 50% to 400% of their annual salary. That’s $250K to $2M for a $500K salary.
Benefits Cultivate Employee Loyalty
Over 40% of workers said their company loyalty would increase if their benefit options were customized to meet their individual needs.
One-size-fits-all dangers. Provide employees benefits they truly value. Attract, retain and engage them.
Over 75% of millennials feel that benefits customization is important to increasing loyalty to their employer, while 67% of Baby Boomers share this sentiment.
Productive employees are less distracted by “life’s curve balls.”
The Bottom Line
So, what do these stats show?
Make sure your employees know they are of value and appreciated. It is just like a relationship. Meeting their needs goes along way. Maybe it’s time to start providing them Benefits and Compensation they want, and not what you “think” they need. In what ways are you making their lives easier? There is so much work out there and everyone is so busy.
Just because everyone else is caught in the “revolving door” does not mean your company has to follow. Lead.
Interested to see what the right benefits program can do for you? Get in touch through the form below.
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