How employee benefits can help reduce turnover
Posted Nov 18th, 2015 by Expedite | 0 comments
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.
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
- Sick leave
- Health insurance
- Offering additional perks
- Retirement plan