Are Your Benefits the Real Reason Your Employees Continue to Quit?
Hiring employees is expensive: up to three to four times the amount of a new hire’s annual salary, according to a recent report by the Society for Human Resource Management (SHRM). And if the impact on your company’s bottom line isn’t bad enough, staff turnover also can result in added stress and decreased motivation for those left behind to handle extra work and take part in replacing a team member who resigns.
That’s why employee retention is high on your list of business priorities. But before you can make a plan to boost retention rates and keep them at a healthy level, you need to know why people are leaving your company in the first place. There could be a number of reasons – but often, it all comes down to offering competitive, meaningful benefits.
Go to the source: Ask your employees.
Survey current employees and ask departing ones, during exit interviews, about the importance of specific benefits to them. Collect as much information as possible about what they like about your benefit offerings and what may be driving them out the door.
There’s no one-size-fits-all solution.
Specific responses will vary, of course. This illustrates the importance of tailoring the benefit packages you offer to each individual. The lifestyle needs of a seasoned veteran who has retirement on their upcoming radar screen will likely be much different from a Millennial who may be juggling anything from mortgage, childcare and student loan payments to the need for a comprehensive medical, dental and vision plans and gym memberships.
When it comes to the most desired benefits, here are some common trends:
- Flexible work options: In roles where fully remote work isn’t feasible, hybrid arrangements or flex scheduling are popular alternatives.
- Paid leave: This often means unlimited or open leave policies, with no specific cap on the number of days included.
- Financial wellness: For instance, access to emergency funds and financial planning services, as well as increased employer contributions to 401(k) plans.
In addition to more commonly requested benefits, to stay truly competitive, you may want to be prepared to offer anything from home office support for remote workers to a pet-friendly work environment.
Want to Establish the Right Benefits for Your Employees?
If it all sounds a bit overwhelming, that’s because it can be – especially if your focus is on keeping your business on the growth track for the future. You may think employee benefits on par with much larger companies are out of your budget range or bandwidth, but there are solutions that have proven successful for a growing number of small to mid-sized companies: partnering with a professional employer organization (PEO) or entering into a similar outsource relationship. KeyHR has a menu of options for you, as part of our commitment to helping you set the right balance of comprehensive, cost-effective benefits to aid in the attraction, recruitment, and retention of quality employees. Contact us today to learn more.
- Posted by admin
- On April 19, 2023
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