The main objective for all companies today is to retain productive employees. HR professionals and business executives know that employee retention is a strategic action to keep employees productive and within the company. A comprehensive retention program plays a vital role in attracting and retaining employees and reducing additional costs on employment and turnover. It also enhances the company’s overall productivity and work performance.
To help your HR team lead a successful retention strategy, we composed a list of 10 Employee Benefits That Improve Retention.
“Employees who are engaged are more likely to stay with their organization, reducing overall turnover and the costs associated with it. They feel a stronger bond to their organization’s mission and purpose, making them more effective brand ambassadors. They build stronger relationships with customers, helping their company increase sales and profitability.”
The most important thing to understand is that employee retention, while having many benefits, will significantly impact your bottom line. Hiring and training new employees can be expensive, so it’s best to retain current talent before looking elsewhere. Employee turnover also affects productivity, which has been shown in studies done by Gallup. The research conducted by the company found that a staggering 70% of people who voluntarily left their jobs did so because they were under-challenged by their work.
A lack of career development is one of the top reasons employers decide to give up their jobs these days. Millennials are all about opportunities and growth, so make sure to give them an option to climb that ladder.
“Most workers…approach a role and a company with a highly defined set of expectations. They want their work to have meaning and purpose.”
If you want to boost retention, creating an attractive healthcare plan is an excellent way to go. Both recruits and existing employees will value good health benefits. It’s not a secret that most people leave their much-loved jobs because they want to have high-grade healthcare.
However, if outstanding health benefits are too expensive for you, try to implement health initiatives. Don’t stretch the already stretched budget with costly healthcare and try to promote a healthier lifestyle instead.
A salary boost is a powerful retention strategy but has to be performed in the right way. Believe it or not, the initial thrill with wage increment lasts only for a couple of weeks yet costs a company a lot of money in the long run. That’s why we recommend regular evaluations and raises within a proactive employee strategy. Even lower boosts will mean more for the employees if they are a part of the regular company practice.
After career and health benefits, a good retirement plan is what people value the most. Whether you’re recruiting or retaining employees, a solid retirement strategy with lots of benefits will help you in the process. For your most valued employees, a 401(k) retirement plan might be just the perfect thing.
Your primary concern should be keeping your employees mentally, physically, and financially satisfied. Thus, promote retention by investing in wellness resources such as gym access and other healthy behaviors and physical exercises.
One of the things your employees will appreciate the most is a healthy work-life balance. A culture that encourages and awards after-hours is not favorite to anyone. Allow your staff to take their vacation time and promote flexible working hours. Employees are more efficient when they have a healthy work-life balance, even when they spend fewer hours at work.
Employees will always value the annual leave perks. You can add an extra day off for employees’ birthdays or Christmas shopping. Additional annual leave benefits will improve retention and staff productivity.
This strategy is easy to perform and won’t cost you anything. Transparent and respectful communication should be the center of your HR department and company culture. Encourage employees to share their concerns, ask for help and guidance, and overall, freely communicate with executives. That will help them feel comfortable within the company and enhance their performance.
The need for university or continued education is still strong among employees. Many of them will say that paid job training and tuition reimbursement are pretty crucial for their satisfaction. The benefits available to employees of your company may vary based on the needs of each specific department but can retain employees.
Lastly, we shouldn’t forget that employees often spend more time with co-workers than with family members in the company. Thus, employees would appreciate entertainment perks and discounts to spend more time with their family and enjoy movies, amusement parks, sports, and other attractions.
Too many managers are trying to fix retention problems by treating symptoms, not the underlying issues. The best approach is to hire correctly in the first place. Companies can drastically improve employee retention by hiring new staff members with different needs and skills or even replacing an employee with someone from a diverse background.
HR professionals can control the quality of both recruiting and selection processes to ensure that the company has a pipeline of talent coming in the door that will yield a higher percentage of successful hires.
In this way, HR becomes a partner rather than just a service provider, which is especially important for small-to-medium sized businesses where HR functions may not be present or have been outsourced to less experienced sources like temp agencies or recruiters.
Improving retention is all about valuing each employee and meeting every person’s specific needs in the company. Although health insurance and finances are crucial for most employees, other benefits can improve the company culture and increase retention rates. In the end, people chose to stay in the company when it feels like home – comfortable and secure in the long term.
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