Employee Benefits Might Be the Answer to Not Spooking Them Away
At this point we’ve all heard of the great resignation. When the coronavirus pandemic hit, we all knew the world would change, but not to what extent. But it made perfect sense that people would reevaluate their career paths and explore their options. Throughout 2021, an average of 3.98 million people quit their jobs every single month. (Flynn) That is an astronomical jump from years prior, in fact from April 2020 to April 2021 it was a 90.5% increase. (Flynn)
Now with new perspectives, prospective employees are more aware of what’s important to them when looking for a job. It’s made the job market more competitive as employers try to be as attractive as possible to talent.
As an employer, you might say well if someone wants to leave, let them. But that might do much more harm to your business than you might initially realize. The fact is turnover is detrimental to the growth of your company and depletes its resources.
First, we’ll go over why retention is important to the overall health and culture of your organization. Then we’ll reveal why employee benefits is a useful method in both retaining your staff and as a recruitment tool from our own experience. We ourselves have seen the fruits of using robust employee benefits in order to both keep our current employees happy and in recruiting whenever we grow. The benefits are substantial and that’s why we’re breaking them down before we show you why employee benefits is key to not scaring your employees away.
Constant Turnover Means Constant Culture Shifts
It’s well documented that successful businesses have well-defined cultures. You can’t build that culture, that camaraderie, with a shifting roster of talent. Without stability, there will be a dip in morale which of course affects work ethic. We here at Financial Designs have an excellent retention rate, with most of our staff having been here for 5+ years! We’ve seen firsthand that it’s the best way to build an effective and skilled team.
Turnover is Detrimental to Customer Service
Any business owner knows one negative experience can sour a client. At Financial Designs, the client is always our top priority and that’s why we’ve been intentional with the team we’ve built. We have found that having a consistent team has given our clients the confidence to be with us long term. They don’t have to worry about dealing with different people from one day to the next and it allows them to build long standing relationships with our team. A lack of stability makes customers uncomfortable.
It takes time to train new employees and it takes your staff away from attending to clients. That’s just an unfortunate fact. The resources it takes to constantly train new employees means a dip in your customer service which inevitably means a blow to your customer base.
Retention is Good for Recruitment
Having an experienced staff that has enjoyed being with your organization for several years, is the biggest endorsement you can possibly have for recruitment. It shows prospective employees there is stability and ensures them they will be properly trained by someone with relevant experience. No one wants to start a new job at a place with uncertainty. Your reputation is exponentially better with a low turnover rate. Recruiters will feel more comfortable working with you and prospective employees will find your company as a desirable place to work.
Now that we’ve laid out why retention is integral to building your business, we’ll tell you why employee benefits are key to helping you retain your employees.
42 percent of employees with access to mental health benefits are more likely to stay at their current organization (Mercer’s 2021 Health on Demand Report)
Mental health is being prioritized by the workforce now more than ever. Post pandemic many realized the importance of taking care of their mental health and the strains on their mental health that certain careers had. They want to work for leadership that shows compassion. Part of that is having a benefits package that addresses mental health. It shows your employees you understand it’s importance and that without mental health no one can be an efficient worker or an effective part of a team. With these benefits, you can ensure that your staff avoids burnout and increase productivity.
Financial Benefits such as 401k have seen increased enrollment since the beginning of the pandemic according to a study conducted by SHRM and Morgan Stanley.
The workforce used to be much more preoccupied with the now rather than how their current job could shape their retirement. It simply is no longer the case. Employees have seen how uncertain things can get with the pandemic and now they understand the importance of having a financial safety net. Offering your employees, a 401k package shows your concern for their future. To employees that concern for their future breeds loyalty. Not only will they be invested in their 401k, but they will be invested in your company as a result.
87% of employees surveyed value health insurance benefits (AHIP)
Health insurance is absolutely a motivating factor for prospective employees. Let’s face it, getting health insurance for you and your family has always been a complicated endeavor. Having an employer that not only offers health insurance for you and your family but serves as a guide in the process is invaluable. Having a robust health insurance plan coupled with an agency that puts education first will make sure they your employees feel appreciated and valued. At Financial Designs, in addition to educating your staff, we have a support staff that helps them in filing claims as well as other inquiries they may have. That type of care and support is instrumental in keeping employees satisfied.
Don’t Let a Lack of Employee Benefits Scare Away Good Talent
Every industry has seen its shortage of talent. Finding talent that fits your culture, has experience and stays long term has proven difficult in a post-pandemic world. That’s why employers must take any advantage they can get in retaining their employees. It ensures consistency in both your office culture and customer service as well as helping with making your company attractive to prospective employees. Employee benefits matter. People want to know they work for a company that cares. Make sure you find a plan that fits the needs of your staff, and you’ll see they will reciprocate in kind with hard work and dedication.
Jack Flynn. “18 Great Resignation Statistics : Why Are Americans Leaving Their Jobs?” Zippia.com. May. 4, 2022, https://www.zippia.com/advice/great-resignation-statistics/
AHIP. “SURVEY SAYS: Employer-Provided Coverage Delivers Health and Financial….” AHIP, 21 July 2022, www.ahip.org/resources/survey-says-employer-provided-coverage-delivers-health-financial-security-for-families.