You pay a hefty salary, yet the departure of your employees seems to be inevitable. Perhaps it’s no longer all about the money but something more exclusive and rewarding – employee benefits.
High employee turnover rates could crush your business. The costs of attracting and training a new employee outweighs the cost of retaining a current one. However, it is more than just the cost of searching for and hiring a replacement. Employers often overlook the hidden costs of conducting exit interviews, advertising the job opening, and the time and resources required to train the new entry from scratch.
Apart from the monetary costs, productivity and morale also receive a direct hit. New workers entering the company, no matter how skilled, will need some time before their productivity levels are on par with the employee who left. This can be detrimental to businesses especially if turnover is widespread. Morale is also negatively affected when remaining employees must take over the workload until a replacement is found. Furthermore, seeing others leave may spur those left behind to take similar actions and pursue better opportunities.
We’ve previously explored why employee benefits is key to businesses, and increasing retention rate is among the many advantages. Top talents are flocking to companies like Google, Amazon and Netflix, and while salary plays a part, one cannot deny that the attractiveness of the perks has been a strong pull factor.
Cross a certain point and tiny increments in wages don’t satisfy employees as much. Instead, employee benefits may be more highly-valued. In fact, 57% cite benefits and perks to be a key consideration for accepting a job offer. This means that the benefits you as an employer offers could be the make or break factor when employees are making the decision to leave. For small business that cannot afford to pay a handsome salary, employee benefits could level the playing field in the quest for talent.
Employees feel valued when they are granted benefits. They do not want to be seen as a mere tool to grow the business, but to actually matter as a person. Benefits let employees know that their employer cares about them, and that their well-being is just as important as the contributions they make to the company. With the addition of perks, employees are more likely to be satisfied with their job, and less likely to make a switch.
From the graph above, we can see that benefits are essential in keeping employees happy. For example, 71% of employees are satisfied when allowed to take paid time off. Of course, not all employees value the same benefits equally, and a personalised employee benefits scheme potentially maximises the returns gained.
That being said, job satisfaction is not the only reason for workers departing, and although happy employees aren't guaranteed to stick around, unhappy ones are surely bound to leave. Nevertheless, providing employee benefits will definitely please your employees and get them to think twice before submitting that resignation letter.
Mednefits helps businesses take care of their employees with its automated, affordable, and accessible employee benefits platform. Request to join Mednefits for free to help process and track claims in real-time, while controlling costs.