You may not feel the full impact of turnover until a top-performing employee announces they’re leaving your company. It could take several weeks, or even months, to replace them and bring someone new up to speed.
The other key factor at play: In today’s job market, top performers who see greener pastures outside their current company can easily go elsewhere. And one of the leading things driving them is their total compensation – not just salary, but more importantly, benefits – package.
How Benefits Impact Retention
The correlation between employee benefits and talent retention cannot be downplayed. The need is clearly there for competitive benefits packages to promote long-term loyalty. Research has shown that:
- Sixty-six percent of currently employed individuals are open to new job opportunities, as long as the pay and benefits are better.
- Approximately 58 percent of millennials, who now dominate the market, are expected to leave their current jobs within three years or less.
- Fifty-six percent of employees say they would trade a salary increase for better benefits. More specifically, workers want a well-developed package that helps them to better balance their hectic work/life schedules. They also want to be respected and rewarded for their contributions to their employers.
Healthcare and Retirement Top the List
Comprehensive healthcare compensation and retirement savings plans are now viewed as standard benefits in most cases. Also important are flexible schedules, wellness programs and more paid holidays.
- More than half of employees surveyed said health and retirement benefits were an important reason to stay with their companies. And according to the same research, this attraction and retention value declined when companies decreased their 401(k) matching contributions. Given that your organization receives tax benefits from your 401(k) matches, these options are a win-win.
How to Tackle the Benefits Challenge
If you’re wondering how to improve your benefits offerings for better retention, a good place to start is by asking your employees which perks they value the most.
- Take a truly proactive approach by conducting stay interviews. Exit interviews are very valuable, but by then, it’s too late to hold onto a valuable employee. By doing annual stay interviews, you garner important insight into ever-changing employee needs. Plus, you help people to realize how valuable their input is.
- Develop creative benefit packages. Toss out the old-school idea of one size fits all, and tailor benefit offerings to each individual employee. Tuition assistance and an on-site gym may be a deal breaker for one person, while daycare and more comprehensive health, dental and vision plans may appeal to others. Simply ask yourself, “How much do I want to keep this person on board?” The right answer should be crystal clear.
Partner with a PEO Company in Atlanta, GA!
Lyons HR provides full-service HR management, including benefits assistance and administration to help your company stay competitive in today’s candidate-driven job marketplace. We are an ESAC-accredited professional employer organization (PEO), the gold standard for best industry practices and financial responsibility. For more information on how we can partner with you for ongoing talent management success, contact us today.