Improving Retention: The value of Employee Benefits


Employee benefits are often an afterthought or a necessary ‘add on’ when preparing a job offer. Employers usually don’t consider the individual candidate’s needs and take the time to think about the specific benefits they could offer them, to seal the deal.

They say that money does not buy happiness. It also doesn’t buy engagement or loyalty – the cost of rehiring and training new employees can be devastating for a business. A happy workforce equals a healthy business and it seems that non-financial incentives are a great 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.

 

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

 

Flexible Working Options

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 remotely, to flexibility around start/finish times.

As tempting as a higher salary is, employees are motivated by more than just money alone. Working to their own schedule is great – but it can also be vital for people who have a hectic home life. Offering employees flexible working options usually results in improved productivity and creates a healthier work/life balance.

The problem however, is although everyone in the UK is entitled to request a flexible working arrangement after 26 weeks of employment, 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.

 

Tailored Perks and Benefits

Besides offering flexible working options, there are other perks and benefits that are also attractive to employees. Tailoring packages to employees needs and giving them the opportunity to choose the benefits they want, is becoming an increasing trend. A ‘one-size fits all’ benefits package will not satisfy the needs and lifestyle choices of such a diverse workforce – giving people the option to pick and choose which benefits are of value to them, is a benefit in itself.

To help retain and attract top talent, organisations are realising the power offering flexible benefits solutions has. Organisations are giving employees a budget to select a range of benefits that suit their needs and interests. This means that the impossible task of creating the perfect benefits package to suit each individual employee is lifted off the employers’ shoulders. The cost of unused benefits is cut, and employees get the benefits they actually want. Having such a strong, holistic benefits package which is tailored to employees needs, gives employers a strong competitive advantage.

At the end of the day, it’s not just about the money and more about what value an organisation can bring to someone’s life in return for their service. A ‘better than nothing’ approach to employee benefits is outdated and leads to high turnover and low retention.

Ultimately the hiring process is about the employer and employee. If an organisation doesn’t have an attractive employee benefits offering and fails to accurately demonstrate that they genuinely care about their employees – they’ll lose their candidate to another business.

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

 

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Are you a candidate looking for your next role? Let us help you.

Alternatively, are you an organisation with a HR or Reward vacancy? Get in touch with us today.

 

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