Costs of Not Retaining Talent
There is no place for the ‘everyone is replaceable’ mentality in today’s job market. Unemployment is at an 18-year low, which means if you lose employees, there will be a lack of skilled talent to fill open positions. That’s why retaining talent is pivotal to your company’s bottom line and taking the initiative to invest in retention now can save your company money in the long run.
Consider these stats when weighing the costs of not retaining your critical talent:
- The number of employees who have voluntarily left their jobs has steadily risen since 2012, from 2 million to 3.1 million.
- Over half of CIOs and CFOs report difficulty in finding skilled talent.
- Voluntary turnover in the U.S. costs employers $536 billion a year each and every year. That amounts to approximately $15,000 per employee, or more depending on their annual salary and skills.
- 59% of organizations called out employee retention as a major concern for 2018, compared to 56% for 2017.
- The cost to replace an executive can be up to 213% of salary. That’s well over $400,000 for one executive making $200,000.
- An average of 2 out of 3 executives are currently considering leaving their company.
How can you get them to stay?
Benefits are the top deciding factor when employees are choosing to leave or stay at a company. Investing in better benefits can be the difference between keeping your top talent and losing them.
- 4/5 employees would prefer a new benefit to a pay raise.
- Over 40% of workers said their company loyalty would increase if their benefit options were customized to meet their individual need.
- 56% of U.S. adults with employer-sponsored health benefits said that whether or not they like their health coverage is a key factor in deciding to stay at their current job.
- 84% of employees with high benefits satisfaction report high job satisfaction.
How can you invest in benefits without blowing your budget?
This is where supplemental expense reimbursed insurance comes in. This type of plan can be layered on top of the primary plan for just select employee classes. In this instance, for those employees at-risk of leaving the company. ArmadaCare’s expense reimbursed insured products range from $5,000 to $100,000 in annual coverage so there is a plan or combination of plans to meet any budget.
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