5 Critical Statistics about Benefits and Employee Retention
There’s a reason for all that non-stop media coverage of the talent shortage issue and a candidate-driven market. Job opportunities abound as the unemployment rate reaches levels not seen for almost two decades. Because of this, employees feel confident seeking other opportunities, thus creating a serious turnover issue. Examining the reasons behind the issue is an important first step to solving the problem at your organization.
49% of your employees will look for a new job in the next 12 months due to confusion or dissatisfaction with benefits.1
There you have it. The deadline’s only a year. You’ll need to clarify benefit offerings as much as possible. Begin with straight forward on-boarding. This means member materials should be simple and concise in their wording. Add a few check-in calls or office visits to make absolute sure they understand. Next, use email campaigns to inform and remind employees not just of the benefits but how to use those benefits. Go even further in-depth and create educational webinars employees can use at any given time. You may have a bevy of impressive benefits, but if your employees don’t know it, they could be joining that 49%.
78% of employees reported they’re more likely to stay with an employer because of their benefits program.2
Speaking of impressive benefits, make sure yours are up to snuff. Yes, flex hours, PTO and a 401(k) are all important and valued by employees. But is there any one benefit that stands out above the rest? You’ve probably guessed already; health insurance takes the number one spot as far as what employees want.3 You might even consider supplemental expense reimbursed insurance to cover what their primary health plan does not. This will go a long way in showing employees just how much they are valued. Employees who feel valued show up to work more, are more productive and, of course, are less likely to quit.
51% of employers say that using benefits to retain employees will become even more important in the next 3 to 5 years.4
As if the first two stats didn’t already state its importance, here’s another one. Who’s to say that after the 5th year, 51% of employers won’t say it’s important for the next 10? The fact is benefits will always be important for retaining (and recruiting) employees. It’s what they were designed to be in the first place. Offering benefits to your employees shows you genuinely care about them and their well-being. The right type of benefit can also serve as a recruitment and retention tool in the form of compensation.
The cost of replacing an employee can range from 50% to 400% of their annual salary.5
Naturally, there are going to be varying costs regarding turnover, just as there are varying levels of salary. With every employee lost, HR has to spend their time on another hire and the manager is spending time picking up the slack. But employee turnover has a lot of hidden costs as well. There’s team disruption, lost productivity, lost institutional knowledge, and ultimately, because of these costs, less business. The overall impact of all these costs can really put a dent in any company’s bottom line.=
Over 40% of workers said their company loyalty would increase if their benefit options were customized to meet their individual needs.6
This helps provide employees with benefits they will actually use rather than providing too much or too little with one-size-fits-all plans. Offering benefits that employees truly value will help attract, retain and engage them. Over 75% of millennials declare that benefits customization is important to increasing loyalty to their employer, while 67% of Baby Boomers share this sentiment.7 Furthermore, when employee needs are met, they are less likely to become distracted by struggles in their personal lives, which improves overall productivity.8
The bottom line
Now, what exactly do these stats show? To win the talent war and avoid turnover, you need to invest in benefits – the right kind of benefits that your employees will understand and value. ArmadaCare’s supplemental expense reimbursed insurance is a powerful benefits tool to help employers drive down turnover, improve retention and attract the right talent in a tight market. This type of insured plan can be layered on top of the primary plan for select employee classes only—those for which it is difficult to recruit or for roles with high turnover.
ArmadaCare’s expense reimbursed insured products range from $5,000 to $100,000 in annual coverage, meaning there is an option for every budget and every need. In addition, these types of benefits do not need to sync with primary plans, meaning they can be put in place at any time of year.