Value: Employee benefits and retention

Employee benefits are often overlooked, but when considering a job offer there is a lot more on the table to consider than just the salary.

They say that money does not buy happiness. It also doesn’t buy engagement or loyalty, and the cost of constantly hiring and high attrition can be devastating for a business. A happy workforce equals a healthy business. Are non-financial incentives a way to inspire and engage employees in a way that money can’t?

Employee retention is one of the biggest challenges that recruiters are facing today. A study has shown that more than 50% of millennials are expecting to leave their current role in less than 3 years.

Should employers expect their employees to leave so soon, or work on keeping them for longer?

Hiring, training and developing people costs. Organisations need to recognise the correlation between benefits and employee retention and do everything they can to hold on to their top performers. 

What’s on offer?

Flexible working options are becoming more and more popular with large and small organisations alike. People are now increasingly being given the advantage of defining a working arrangement to suit their lifestyle and needs; ranging from hot desking, working from home, and freedom with start / finish times.

As tempting as a higher salary is, employees are motivated by more than just money alone, and working to your own schedule is great – but can also be vital to people that already have a hectic home life – they improve productivity and create a healthier work / life balance.

The problem with here is, as referenced in my previous article, everyone is entitled to request a flexible working arrangement after 26 weeks of employment, yet only half of UK employers actually offer it, and only 1 out of every 10 job listings advertise it.

Organisations that do not or cannot offer flexible working are potentially missing out on attracting and retaining the best talent.

Perks and benefits at work are also attractive, and a strong benefits package can often give employers the opportunity to create a competitive advantage against competition. Having flexibility in packages are also just as important. A ‘one-size fits all’ benefits package will not satisfy the lifestyle choices of such a diverse workforce – giving people an option is a benefit in itself.

To help retain and attract top talent, organisations are creating flexible benefits solutions that give employees a budget to select a range of benefits to suit their needs, and interests.

This means that the impossible task of creating the perfect benefits package is lifted off the employers’ shoulders, the cost of unused benefits is cut, and every employee gets the benefits that will most suit their lifestyle.

It’s not just about the money, but what value an organisation can bring to someone’s life. A “better than nothing” approach with benefits creates low retention.

The hiring process is all about the employee… at the end of the day, if an organisation doesn’t work to their employees needs, then another company will.

In such a changing world, incentives need to not only be an option, but also constantly reviewed to remain relevant to the workforce and add value to an organisation.

 

Tags: Benefits , Employee Benefits , Employee engagement , Employee Retention , Flexible Benefits , Human Resources Categories: Uncategorized

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