How employee benefits can help reduce turnover

How employee benefits can help reduce turnover

Posted Nov 18th, 2015 by Expedite | 0 comments

Employee benefits

 

The employment culture is constantly changing. It is more common for employees these days to change jobs every couple of years, rather than grow with one company. As the economy and job market improves, companies need to work harder to retain employees.

          These days, more and more employees are looking to strike a balance between their work and family life. Effective employee benefits help to significantly reduce staff turnover. The main reason companies work hard at retaining employees is because turnover costs can be very high and significantly affect the overall financial performance of an organisation. Direct costs include recruitment, selection and training of new people while indirect costs could include increased workload and overtime expense for co-workers. This could also reduce productivity and lower employee morale. The cost of hiring new employees can vary from organisation to organisation and could be anywhere between a few hundred pounds, to four times the annual salary of an employee.      

Reasons to reduce turnover:

  • Increases employee morale.
  • Lowers the workload of the other employees in the organisation.
  • Turnover costs are high.
  • Time invested in recruitment affects productivity.
  • Boosts financial performance of the organisation.
  • The average rate of employee turnover in the UK is around 15% and this figure varies between different industries.
  A key factor in employee engagement and retention remains being fairly rewarded for time and effort. Apart from a pay rise, there are several other ways in which you can show appreciation for a job well done.  

Benefits that will help boost employee morale and reduce turnover:

Most human resource professionals will agree that a compensation package requires more than money. Although wages and salaries are an important component, they are only one part of the equation.   Equally important are the benefits offered by organisations. While some benefits are required by law, other types of benefits are provided by organisations to maintain an effective workforce.
  • Flexible working hours
  While this benefit will not be suitable for all businesses, giving an employee the opportunity to accumulate flexi-time or the option to work from home on occasion can be a great option. This is a proposition that could be enticing to both prospective and existing employees.    
  • Holidays
  All companies are required to provide a minimum number of holidays each year. Organisations have the option to go above and beyond this and offer more than the minimum to staff members who have been with the organisation for longer. This could be an incentive for employees to stay with you over the long term.  
  • Sick leave
  Employees appreciate the opportunity to accumulate paid sick leave for times when they are unwell. This prevents your employees from coming in to avoid loss of pay and invariably affecting other employees, potentially causing them to fall sick.  
  • Health insurance
  Some companies offer private medical insurance and healthcare to reduce the cost associated with employee absence and lowered productivity. Such benefits also improve your employees’ security with regard to illness and accidents.  
  • Offering additional perks
  Companies can consider providing subsidies or free memberships to gyms, local spas, healthy meal plans etc, to offer employees a chance to integrate healthy eating and exercise into their busy schedules.  
  • Retirement plan
Having a retirement plan for your employees shows them that you genuinely care about them in the long run. This is also a good incentive for employees to stay on in a company and build their career knowing that they will be looked after when they retire.   Always keep an open line of communication with your employees so they feel valued and appreciated. Happy employees are likely to be more productive and invested in their job.                      

                      If you are a service provider in the HR industry and can address these challenges then connect with us here: http://bit.ly/1SDzhBI

Events News/Blog

Testimonials

"Expedite took our lengthy brief & swiftly came back with a company we did not know of, yet was an exact match in terms of our requirements. They then organised the meeting and set the scene for both parties. We are now working with the company they put forward" ~ HR Director, Software
"We have had a number of meetings, arranged by Expedite with HR Directors. In each case the individual has had a live project, a budget and time frame attached to resolve it and they want to meet us. We could not ask for better meetings" ~ MD SLA Recruitment
more