Employee turnover costs the company between 16% and 213% of annual salary depending on the position. Why does losing an employee cost so much? High turnover costs are expensive which includes company advertising, conducting interviews, hiring, and training new hires. The productivity of the new hires is also an issue, as it takes up to two full years to match the level of productivity of an existing employee.
What strikes mostly on the cost is 50% of voluntary turnover happens in the first two years of employment, especially among the youngest generation. Strengthening employee engagement during this period is a key for the company’s growth.
There are costs associated with high turnover, but there are also different ways to reduce it. With the changing way career is being perceived by young employees, non-salary benefits are growing in importance.
Financial perks is one of the most valuable benefits for your employees, and it is also one of the top reasons why your employees stay engaged at work.
How can you increase your employee benefits at no extra costs? We figured out the top 5 strategies to retain employees based on our partner employers’ experiences.
1. Provide High Quality and Affordable Health Insurance
Employees often seek financial support for their medical expenses, which is one of their top financial concerns. They worry about their unpaid bills and try to figure out ways on how to get out of debt, even if it cost them beyond their monthly salary. You can address this by providing high quality and affordable health insurance to reduce and soon eliminate high medical bills.
2. Offer a Retirement Savings Plan
Retirement Savings Plan is a valuable benefit that gives a great impact on both short-term and long-term goals of employees. If the plan is included as a compensation package, it could help employees stay motivated at work. So when the time comes, after their long years of service in your company, they have something to look forward to when they leave. It can also be one of the advantages to boost the company’s reputation for employee recruitment.
3. Secure Emergency Fund Assistance and Loans
When an employee knows that there are available options to support their urgent financial needs, this would likely help you sustain their high employee retention rate. Find a financial service provider that supports your employees’ financial well-being, and enhances your business goals at no cost and liability.
4. Reward Employees with Discount Cards
Aside from employee perks and benefits such as paid vacations, flexible work hours, and employee awards and recognition, providing employees with exclusive discounts on things that interest them can also be a reward for their hard work. Create a dining or shopping discount programs and provide free movie tickets for their birthday leave are great ways to keep them excited and veer away from stressful work.
5. Educate and Train on Financial Options
Learning is not only limited in the four corners of the classroom. It is an important and unending process of enhancing one’s skills and abilities, even at work. When you value the importance of evaluating the needs of your employees, it breeds a better opportunity to build financial literacy education in the workplace. Take the responsibility to teach your employees how to manage their finances and cultivate good money-saving habits to not only boost your organization globally, but also gain employee loyalty to your business.
Understanding what drives employee financial wellness will help you improve retention. Take time to gather feedback from your employees and listen to their ideas. It will help you to offer the right perks and benefits. Remember that your employees are your most important asset, they are your source of innovation. It is important to keep them engaged at work.