Companies that offer the most competitive employee benefits packages are just that – competitive in today’s job marketplace.
Based on supply and demand, job seekers can pick and choose where they want to work, so the key to reeling in desired talent is finding the right menu of benefits to satisfy top candidates’ appetites. If you’re befuddled as to why your employee turnover rates have spiked up recently, then yes, it could be related to the Great Resignation of 2021. But, regardless of the global economic picture, your benefit offerings play a leading role.
The Role of Benefits in High Turnover
Employees today don’t hold the same loyalty to their companies as in prior generations. As a result, turnover rates in recent years have peaked at an all-time high. This is not a trend that’s likely to change in the foreseeable future, based on the career patterns of millennials and younger newcomers to the workforce. · You’re probably painfully aware of the costs associated with hiring a new employee after a previous new hire jumps ship. In each instance, your total expense is equivalent to a significant percentage of a person’s annual salary, based on time to interview, background checks, and other hiring and training expenditures. Plus, you have to factor in such intangibles as the time it will take them to reach full productivity, and the possible detriment to morale as others are called upon to fill related gaps.
What’s the Solution?
To avoid the pain and heartache of high employee churn, offer the most attractive short and long-term benefits as possible.
· Short-term benefits may include performance bonuses, paid sick leave and vacation time, robust health insurance coverage, HSA and 401(k) plans, company-provided meals or gym benefits, a wellness program, and more. The goal is not only to get new hires onboard, but also to show that you appreciate the value they add.
· While short-term perks don’t go away, long- term benefits help retain top talent for years to come. They may include performance-based promotions, cross training in other departments, extra vacation time based on years of service, pension plans, or company shares to get people further invested in your organization. Providing fulfillment and an honest shot at advancement shows your dedication to your team members – and this loyalty will more likely be reciprocated.
It Sounds Great, But What If You Can’t Afford It?
If you’re a small to mid-sized business owner, you may understand this logic, but it still doesn’t change reality: the cost of employee benefits that put you in a favorable competitive position is simply out of your reach. For a growing number of employers, the solution lies in partnering with a professional employer organization (PEO). Because PEOs pool together employees from all their client companies, they have group purchasing power, which they can leverage to offer you access to employee benefits that would otherwise be unaffordable to you. So, when a candidate is deciding between your organization and the Fortune 500 company located down the road, you’ll still be a frontrunner.
Ready to Take The Next Step? Key HR Can Help!
For more information on PEO and other preferred provider, relationships to meet all your talent management needs, reach out to Key HR today.
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- On October 28, 2021
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