Businesses of all sizes and across many industries are facing a similar challenge, employee retention. Retention is important because employee turnovers can cost businesses lots of money and can affect the company culture. Furthermore, it is one of the biggest problems employers face with millennials. In this article, we’ve outlined some high-level details about employee retention as well as information on employee benefits to help decrease the amount turnover in your company.
Companies across the nation have been looking into employee retention. We’ve outlined some of the highlights from their studies for you below:
- On average, 47% of employees will look for a new job within the next the next 12 months due to confusion or dissatisfaction with benefits. (Aflac)
- 59% of employees say that an important factor for increased loyalty in their employer are health and wellness benefits. (Metlife)
- Three out of four employees say that they are more likely to stay with their employer due to their benefit program. (Willis Towers Watson)
- Millennial turnover costs the U.S. economy approximately $30.5 billion annually. (Gallup)
HOW TO AVOID EMPLOYEE TURNOVER
There will never be a way to completely eradicate employee turnover, however, there are many ways to keep it as little as possible. Our top three recommendations are:
- Create Opportunities for Growth – An employee is much more likely to stay if they are able to grow during their time with their employer. This can be done in two ways. First, the employee may move up the ladder and gain more responsibilities and tasks as they work for the company. However, this can take years and there may not be opportunities for promotions for everyone at the company. So, for a short term solution, keep educating your employees. Whether it’s providing them with training tools, enrolling them in online classes, or adding new tasks to their job description, provide them with new challenges and opportunities to learn. This not only keeps them entertained in their role, but it also doubles as an investment into your employees, and therefore your company.
- Create a Positive Culture – More and more companies are putting emphasis on culture. This keeps your employees happy day to day and creates loyalty to the company. If an employee feels that their company provides a supportive, positive, and fun culture, they are less likely to look for new employment.
- Provide Exceptional Benefits – Want to set yourself apart from the other companies out there? With a great benefits program, it makes it hard for employees to leave. Benefits are increasingly important, and the better program you provide, the tougher it is for your employee to walk away.
POPULAR BENEFITS OF 2018
Traditional benefits, such as healthcare plans, tuition assistance, and relocation assistance are typically the most important to employees. However, below are some of the less tradition benefits that were increasingly popular in 2018 to keep you up to date and competitive:
- Paid maternity leave
- Onsite Nursery or Family Room for Breast Feeding
- Roth 401(k) Accounts & Education
- Paid Paternity Leave
- Education & Advice on Finances
- Stress Management Programs
- Standing Desks
- Paid Time Off for Volunteering
You can find the entire list of benefits on the rise & decline in 2018 here.
HELP FROM DAVIE KAPLAN CPAS
Have questions about employee benefits or looking for advice? Check out our Employee Benefit & Retirement Savings services for guidance from our experienced team. No matter if your business is local or nationwide, big or small, Davie Kaplan CPAs are here to help!