With the competition in the job market showing no signs of slowing down, employers need to step up their game to become an employer of choice. Obtaining this status means talented job candidates want to work for the company, and the existing workforce wants to stay with the company. While recruitment is important, most employers have figured out that element of the equation. Now, they need to turn their attention to retention.
Employee retention is so important because of the high cost associated with turnover. When employees leave, it will cost their employer 21% of their annual salary to replace them. Keeping employees engaged is one way to keep them happy. However, having a high-quality benefits package is one of the best ways to retain talented employees.
Employee Benefits Strategy
Knowing that a superior benefits package can retain employees and implementing one are two very different matters. Employers may have questions regarding how many benefits to include, how detailed they should be, and so on.
- Matching benefits to employees’ needs. Benefits packages muddle the debate of quality versus quantity. While a one-size fits all approach to benefits won’t work for most workforces, throwing every benefit option that exists at new employees will only confuse them. Employers need to create a benefits package that matches employees’ wants. For example, pet insurance is popular among animal lovers, but it may be an unnecessary addition to a benefits package if most employees don’t have pets.
- Tailoring benefits to employee’s lifestyle. This may seem like a repeat of the above, but it delves much deeper than that. Employees now expect to see what were once voluntary products and more. For example, if a benefits package doesn’t offer short-term disability, life insurance, coverage for critical illness, and more, it’s likely falling behind the competition. Not only that, employees are now seeking benefits options that improve their work-life balance. This means seeing options for flexible work arrangements, parental leave, and even telemedicine.
- Guiding employees through the process. Selecting the right benefits is an intimidating prospect. Helping employees determine which healthcare offerings are best for them is crucial to their long-term happiness. If they feel misled by their employer, they are likely to harbor resentment and even begin looking for other job opportunities with clearer benefits packages.
A business’ employee benefits offerings can mean the difference between a thriving workforce and a tumultuous one. If your company is experiencing high turnover rates, your benefits package could be the problem. Contact the experts at The Reilly Company to learn more about reducing your costs while improving your employee benefits offerings.