The cost of employee turnover for a business isn’t just inconvenience. According to a study carried out by the Society for Human Resource Management, the total cost of turnovers for U.S employers is expected to reach a staggering $680 billion by 2020. Also, according to the Bureau of Labor Statistics, around 3.6% of workers quit their new jobs each month. Add those two statistics and you’ll understand the importance of increasing employee retention rates.
What then, is the best way to retain employees? Well, one of the sure-shot ways of holding onto existing talent is to offer the sort of incentives that’ll make workers think twice about quitting. In this blog, we share 3 employee benefits that are most effective in increasing retention rates.
Businesses operating in major American cities have employees that usually spend a significant amount of time being stuck in traffic or have to travel long distances to work. Even in smaller towns, the traffic problem has worsened forcing some employees to consider changing their jobs just to avoid the hassle altogether.
In such a scenario, offering transportation benefits to employees is an effective retention tool. According to a report published by the U.S Environmental Protection Agency, businesses that help minimize the expense and stress of employees stuck in traffic are viewed in a more positive light. In fact, an estimated 86% of American employees consider transportation benefits as “useful”.
With such a tiny number of companies offering transportation benefits, smaller businesses can greatly benefit from incorporating such incentives into their employee benefits plan.
Now that millennials represent that largest workforce segment in America according to Pew Research, it’s necessary to understand how their demands and expectations differ from the previous generations. According to a study carried out by Deloitte, 16.8% of millennials evaluate how good a job opportunity is based on the work-life balance it offers.
Expecting employees to work for long hours also results in burnout and increased levels of dissatisfaction. Allow for flexible working conditions. If working overtime on a project is necessary, offer an extra day off or late coming for the next day to increase job satisfaction.
Communication and Feedback
Ensuring there are open lines of communication with the staff creates an open and relaxed environment. Employers that are welcoming of ideas and complaints stand a better chance at understanding and resolving employee grievances’, leading to improved performance and retention rates.
Other important benefits include offering training and development programs, increased wages, and the implementation of a recognition and reward system. JS Benefits Group is an employee benefits consultancy in Pennsylvania. They work together with businesses to create affordable and effective employee benefit plans that result in increased employee satisfaction and retention rates. Contact us today for more information.