Attracting Top Talent & Reducing Employee Turnover with Better Benefits
The #1 driver of retention is benefits.
Executives share the top three factors that are driving employee retention at their company:
- 1. 34% said benefits were most important factor
- 2. 31% said a “Strong sense of culture”
- 3. 29% said “Belief in the senior leadership team”
Other responses included: Career mobility (21%), Salary (17%), and Professional development (11%).
Companies that prioritize health care benefits experience 27% lower turnover rates.
It’s no surprise after the last few years, that employees are recognizing the importance of a healthy work environment.
According to The Predictive Index, companies where healthcare benefits ARE a priority have an attrition rate of 16%. Compare this to organizations where providing competitive benefits ISN’T a top-three talent priority, and they are seeing a 22% turnover rate.
This is 27% change between companies that DO and DO NOT focus on offering top tier health benefits.
The Great Resignation: 1 in 5 workers quit in the last 6 months.
The cost of resignation is approximately $11,000 per employee.
Despite high employee turnover that many companies are facing during “The Great Resignation,” about one-third of job seekers said they would remain with the company they were previously leaving if their employer addressed some of their job grievances.
With no end in sight for The Great Resignation, an employee-centered strategy seems to be the key to reducing employee turnover in today’s job market. Companies that prioritize the employee experience, either through benefits, flexibility, or a sense of purpose see clear reductions in turnover.
So how can we meet our employees where they are and mitigate turnover?
Employee centered strategies.
Connect to Purpose
Research shows company’s that prioritize purpose see higher employee engagement.
According to a 2022 report on The State of Talent Optimization from The Predictive Index, of the companies that cited purpose as their top priority, there were four other retention rate factors that were prevalent. Such as good job fit, good relationship with their manager, positive co-worker relationships, and a strong sense of culture. Of these four factors, Sense of Culture ranked the highest in terms of importance to purpose driven organizations. Good job fit ranked the second highest and manger relationship ranked third.
Lack of work-life balance makes up 13% of why employees quit their job. To combat this you can take steps toward improving and promoting a healthy work-life balance among your employees.
Here are few ways you can do that:
- Open a dialogue with your employees on what they need
- Create a remote-friendly company
- Promote health initiatives among your employees
Remote friendly companies are experiencing 33% lower turnover and it is virtually free to implement, so adopting a remote working environment is an easy way to start promoting a good work-life balance.
Offering Incentives as a means of reducing employee turnover is not a new idea.
Employers have been offering Casual Friday’s and Pizza Parties as an incentive since the beginning of time, but those incentives are no longer cutting it when it comes to improving emloyee morale.
A survey found that less than half (45 percent) of employees actually feel appreciated at work. So how can we fix this? By offering better incentives.
Here are some ideas:
- Offering an employee recognition program
- Allowing flexible work schedules
- Investing in the right technology for your employees
- Mental health support
Offer Better Benefits
Here at The Difference Card we are partial to offering better benefits to our employees. As we stated above, the number one driver of retention is benefits and companies that prioritize health care benefits experience 27% lower turnover. Offering a better employee benefits package also improves a companies ability to attract top talent.
In a report done by Clutch, 55% of employees cited health coverage as the greatest driver of job satisfaction, followed by paid vacation (18%), overtime pay (11%) and retirement plans (10%).
Health benefits and health coverage have proven to be a top way for retaining employees and attracting new talent, but what are some health based benefits?
Here are some ideas of health based benefits you can offer your employees:
- Medical Expense Reimbursement Account
- Health Savings Account
- Flexible Spending Account
- Health Reimbursement Arrangement
- Dependent Care Account
- Lifestyle Spending Accounts
- Dental & Vision Benefits (Check out Dental Difference for a new way to fund dental benefits.)
- Commuter & Transit Accounts
- Wellness Programs
How a Difference Card Benefit Strategy can help YOU
Do you want to experience 27% lower turnover?
The Difference Card offers companies a competitive solution for attracting top talent and reducing employee turnover through our unique benefit plan designs.
Discover how The Difference Card can build a custom health plan that puts employees first, without increasing cost to the employer.