If those two words caught your attention, then I’m sure you are currently facing or have faced the challenges and cost of employee turnover. Don’t be alarmed or feel alone in this issue, as it is challenging companies of all sizes and industries. The question now is, what can you do to minimize the financial cost, reduced production, and strain on your current employees that turnover can bring?
What if employees understood their benefits?
If you look at 10 unrelated LinkedIn profiles, you most likely will notice many employees only stay with a company for a few months to a few years. This is a trend that has become more popular now than ever before. I personally saw this in my first sales role right out of school. Most of the time, my former colleagues were jumping ship to the next company, only due to a minimal pay increase or because the new company’s culture or benefits were perceived to be better. According to a study from Aflac: 47% of your employees will look for another position in the next 12 months. Now this can be for a variety of reasons, but this goes to show that employees today are constantly looking for their next opportunity and another route to the top, over loyalty to a company and formulating a career. However, in the experiences I’ve seen, after being with the new company for only a short while, many of my former colleagues quickly realized how true the saying “The grass isn’t always greener” really was.
Seeing this trend be so common today, it’s an easy question: how many people are actually changing jobs for increased pay and/or better benefits? Then, down the road, how many people would have stayed in their current role if they understood their current benefits and what their total compensation truly was? According to Gallup, millennial turnover alone costs the US economy over $30 billion annually – that’s a huge price to pay!
Benefits are becoming even more important for retention
Metlife recently performed a study and found that 51% of employers say that using benefits to retain employees will become even more important in the next 3 to 5 years. I perceive this to be because that’s where the disconnect lies with employees on their value towards a company, and vice versa. Once you have a disconnect, employees consider and act on leaving. Think of the increase in value and confidence an employee feels once they understand their benefits, their value, and the dedication from the employer! A recent Willis Towers Watson study showed that 75% of employees reported to be more likely to stay with an employer based on their benefit program, which just goes to show the importance of the benefits being offered by companies, and more importantly, how those benefits are being communicated and explained to employees.
The above infographic shows an alarming amount of statistics around employee retention. The question now is, what is YOUR company doing to combat these statistics? How do you plan on gaining loyalty throughout your employees?
If you’re confused on where to start, you’re in the right place.
At Hodges-Mace, we believe the education and empowerment of your employees should start DAY ONE. It’s imperative to take the time to develop an onboarding strategy to ensure that YOUR employees understand not only what benefits are being provided, but how much you are actually investing in them. Not only is it important to have a proper onboarding strategy, but it is also important to provide them with a platform that allows them access to information and clear communication about their benefits year-round. Another trend we’re seeing bring in high communication results is mobile benefit strategies. Allowing employees access to their important benefits and wellness information through their computer, mobile device, or telephonic support at any time.
If your company is struggling to retain employees, or maybe you feel that there is a disconnect with the benefits being provided and the value your employees perceive, allow Hodges-Mace’s products and services to help. We have plenty of tools in place to help you create the best benefit strategy for you and your employees.
It’s time to see those retention numbers increase and those stats to be a little less unsettling.