Voluntary Benefits and Employee Retention
A well-designed voluntary benefits program can be an essential tool in an organization’s ability to retain employees.
While there are many reasons good people move on and leave their employer, sometimes, it can be boiled down to the fact that they were not offered the right benefits or no benefits at all.
As a business owner, you have an immense challenge in front of you — to convince job applicants and existing staff alike that your business is a great place to work and that you offer a benefits package that is better than your competitors.
Why staff retention is critical:
Low staff turnover is a sign of a well-managed business
Higher rates of productivity due to lower training costs
Lower recruitment costs for new staff
Higher employee morale because people feel like they are being treated right
How can voluntary benefits help with employee retention?
Encourage better staff engagement. There’s a wealth of evidence showing that people who feel valued, appreciated, and recognized are more engaged at work. This shows in terms of higher levels of job satisfaction, better performance and productivity, and lower staff turnover rates.
Encourage higher morale. One of the best ways to encourage staff morale is to show staff that your company appreciates them.
Greater job satisfaction. Job satisfaction leads to less employee turnover, more organizational productivity, and reduced job stress.
A stronger sense of loyalty. A fundamental way to keep employees from feeling like they’re “just another number” is by making them feel like they are valued members of the team.
Fewer than half of all employees in the United States are offered voluntary benefits, even though 75% of Americans are more likely to work for an employer that offers them.
What are some voluntary benefits that can help with employee retention?
Long-Term Care Insurance
Critical Injury Insurance
Hospital indemnity insurance
Fully funded, voluntary benefits can be a great way to attract good, qualified candidates to your company. These benefits can also be retained, sometimes at very little or no cost.
Holding on to employees that are already performing well may help a company be more productive, which will cause more sales and profits. If a company loses a top performer to a competitor, it could be much more costly than it is possible to calculate.
It is no secret that voluntary benefits can be great for keeping your employees happy, and happy employees are good for your business.