Employees are the life force of any organization. Unfortunately, in today’s market employees don’t hold loyalty to their companies as prior generations did. The result of this brought turnover rates to an all-time high and created employees with training deficiencies. High turnover rates not only cost the company more money, but they put a strain on those training and hiring. A series of benefits will help improve staff retention and reduce turnover rates.
1) Why is Staff Retention so Important?
The cost of hiring a new employee varies between 16-33% of that employee’s salary. If you consider that on a scale of replacing a $10 an hour employee you are looking at $3328 each time you replace that employee. This number is based on time to interview, run background checks, and minimally train the new employee. The time it will take them to be as productive as a fully trained and vetted employee also needs to be considered.
New hires also come with a good deal of uncertainty. There is no way to determine how productive they will be. They may show up on time every single day, or they may call in weekly. Perhaps their quality of work will surpass their predecessor, but again it might not. These are but a few reasons why retaining fully trained and trusted staff members is so important. The strain of constantly training new employees is a burden far too many companies bare.
2) Short-term Employment Benefits
One way to boost employee retention and productivity is to offer some short term benefits. This type of benefit can be performance-based, position-based, or even just appreciation based. These are the initial benefits that employees begin receiving after 30, 60, or 90 days. They are what get people to want to do that interview and say yes to the job.
Short term benefits include things like performance bonuses, sponsored trips based on goals, paid sick leave, paid vacation time, paid leave for jury duty, health insurance, HSA, HRA, 401k, employer-provided meals, employee appreciation events, gym memberships, wellness benefits…etc. The possibilities here are endless.
Some companies like google and amazon have taken these short term benefits to a whole new level. Offering things like onsite massages and game rooms. However, the goal of these is not only to get new employees onboard but to also show appreciation of your employees. They, of course, don’t have to be all out like a game room to be effective. They should fill the needs of your staff members though.
3) Long-term Employment Benefits
Long term benefits help retain employees for years to come. They are the benefits that begin after a year, or more with the company and continue to pay off for their remaining years of service. These are the benefits that will make your workers want to stay for 10 and 20+ years. They are also what makes having a comprehensive benefit plan in place worth it in the long run.
Long term benefits include options that involve training abroad for further advancement opportunities, performance-based promotions, cross-training in other departments, extra vacation time based on years of service, pension plans, shares of the company to get employees further invested…etc. These types of extensive training make your employees more valuable. They also help them learn and grow with you, which makes their job more fulfilling in the long run. Employees that are content and fulfilled will stay with a company. Providing fulfillment and an honest chance at advancement is not something many companies do these days. It shows a dedication to your employees, that will, in turn, cause them to be dedicated to you.
4) What to Consider When Designing Your Comprehensive Benefits Package
There is a lot to discuss when it comes to comprehensive employee benefits. Each company has it’s own needs and corporate culture. The benefits packages should resemble that culture. Including some long term, and some short term benefits. The reality of it is making your employees feel appreciated, secure, and fulfilled is what will have the greatest impact on your turnover rate. The key to doing that is by finding that perfect mix of benefits.
Of course, you don’t have to be like Google and offer onsite massages. Keep in mind that choosing to have some smaller benefits in the form of employee appreciation will boost employee morale. This, in turn, will help your turnover rate.
If you are having a hard time finding that perfect mix or you don’t have the HR department to handle this for you, then call 1-877-423-7736 or Email America’s Back Office today. Our dedicated team of benefits specialists will guide you through the process and make a complicated task much simpler for your company. America’s Back Office can also handle the headache of the mandated paperwork for you.