Employee turnover is one of the greatest expenses a company will be forced to deal with. The expense of turnover includes lost production, increased marketing, training, and more. According to one report, $11 billion is lost annually as a direct result of employee turnover. Further, nearly half of all millennials report, if given the opportunity, they will leave their current employer within two years.
Despite the belief that there is an overall lack of jobs in the United States, over half of employees state that they are confident they can find a new job in the next 12 months. Another 35% state they will leave their current job if they do not receive a pay raise within the next year.
Businesses are finding it more and more difficult to find and maintain reliable employees. Further the really good employees are the ones that can demand more money or be pulled away by bigger opportunities.
Although many businesses look at their inability to offer higher pay as a determining factor in their inability to reduce employee turnover, the fact is that benefit packages have a much more significant pull on keep employees. Employee benefits can make or break a company in regards to employee turnover.
Currently, medical care plans are offered to approximately 70% of employees working within the private sector, but only 51% participate in these plans. Offering an employee group benefits plan is one way to attract and maintain quality employees.
Paid time off is the most common benefit offered most workers. However, other possible benefits include childcare options, flexible scheduling, telecommuting, stipends to help cover expenses such as internet, cell phones, and vehicles, and options like life insurance, adoption assistance, extended maternity and paternity leave. According to one study, companies offering 11 or more benefits have a significantly higher rate of employee retention, as well as employee recommendation.
An employee group benefits plan is one step in the right direction in offering employees reason to stay beyond actual pay. The employee group benefits plan provide them with options for benefit coverage that they can choose to participate in or not.
In many cases, employees like the option of certain benefits even if they never use. For example, companies offering tuition reimbursement for employees looking to further their education is highly attractive despite the fact many will never actually go back to school due to other obligations including family. This would be a prime example of cost-effective benefits solutions.
