What Benefits Can You Offer to Improve Employee Retention?
In what came to be known as the Great Resignation of 2021, an unprecedented 4.3 million American employees left their jobs for reasons ranging from compensation, benefits, and work conditions to career prospects and job satisfaction. Of these, 37% cited low pay as their main reason for using the exit door, while another 33% said there were no growth opportunities. When it came to benefits, about 23% of these workers complained of very poor benefits as the major driving force behind their exit.
No doubt, employee benefits packages, and compensation are two critical areas of consideration for employees switching jobs. As you can expect, the best talents are often taken or retained by firms offering the most competitive benefits packages and remuneration. If your organization is experiencing employee turnover, one way to check the trend is by reviewing and redesigning your employee benefits package.
But to deliver the best benefits to your employees, you need to start by studying their demographic and unique needs. In addition to that, there are common trends in the benefits offerings across industries today. You want to also pay attention to these trends:
Offer Flexible Work Options
A lot of employees today want to work with an organization that offers them flexible work options, such as remote work or the hybrid model. Much research conducted between 2020 and 2021 shows that employees around the globe want flexibility regarding where and when they work. Many employees want fully remote positions that allow them to work from anywhere, including their homes.
In some workplaces where remote options are not fully possible, employers have also embraced the hybrid work model. A hybrid arrangement allows employees to work from home or anywhere else for a few days each week and work out of the office for the remaining days. This allows them to tidy up jobs and assignments that can't be performed remotely at all. According to research by the Society for Human Resource Management (SHRM), 42% of organizations that saw higher or much higher turnover in early 2021 have implemented new or additional remote work or flexibility options to curb employee turnover.
Employees appreciate paid time off. This is besides their annual three-four weeks of leave, sick leave, and exam leave. Offering employees paid time off allows them to refresh and come back even better to produce their best work. People are looking forward to reducing stress and creating better work/life balance for themselves. Most employees will readily jump at an offer that includes paid time off.
Paid family leave, for instance, has increased significantly since 2019, according to SHRM. Generally, employees have begun to demand unlimited or open leave policies that allow them to take some time off work as often as needed to sort out personal or family-related matters, with no specific cap on the number of days.
More and more organizations are beginning to include financial wellness benefits, such as payday loans, access to emergency funds, student loans, and financial planning services. In a study by SHRM and Morgan Stanley, it was found that companies that offer these benefits recorded increasing usage since 2019.
Career Advancement Opportunities
Surveys conducted to understand the reasons for the Great Resignation indicated that a lack of clear career advancement path contributed significantly to employee turnover. Employees typically feel more engaged when they see that their employer is invested in their growth and career development.
Employers can make provisions for employee career advancement by providing career path options within the organization, which allows more employees to visualize the opportunities that are available to them. But beyond that, employees are even more motivated when the company provides them with opportunities to further their education, enroll in certification programs, access loans, etc. Your company may also consider providing employees with development mentoring and coaching to assist them to attain their goals.
Educational Assistance Programs
Another laudable benefit that employers can consider offering workers is education assistance. By investing in employee career growth through supported tuition and training programs, many employees will be inclined to stay back even if they have previously considered leaving the company.
Mental Health and Wellness
These days, talents are just as concerned about their mental health as they are about their main remuneration. Many American workers only want to work with employers that offer robust healthcare insurance and mental health programs. Other wellness programs include eye care, physiotherapy, dental care, etc.
If you're looking to retain more of your top talents, mental healthcare is an important criterion that HR cannot overlook. Employers who care about their employees' mental well-being and invest in training, education, and programs that connect employees with great treatment options and mental health care providers often enjoy better employee retention. Creating a Mental Health-friendly workplace that is conducive for employees to do their best work is also an attractive benefit offering that organizations can consider.
Other Great Perks That Employees Look Out For
Home office support
On-site daycare services for nursing mothers
Free gym membership
Free massages and spa sessions
Healthy food options.
Employee resource groups.
Employer-paid food delivery subscriptions.
Transportation subsidies and/or ride-share coordination.
Student loan repayment assistance.
Employee discounts for company products or services.
There are several other opportunities that businesses can explore to enhance their benefits offerings and retain top talents. Usually, the best place to start is in-house. Consider surveying your workers to find out what they want. Find out which needs and benefits resonate with your workers the most. Also, you don't have to be a Fortune 500 company to implement many of these benefits.
One important thing to keep in mind is that it may take some more financial investment to remain competitive in an ever-changing labor market.
Are you looking to redesign your employee benefits package? Partnering with an industry-experienced broker like Quantum Benefits can help you seamlessly navigate the entire process. At Quantum Benefits, we provide employers like you with premium affordable benefits solutions for your employees.
Give us a call today at 203-946-0320 or fill out our contact form to speak with a representative.
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