The biggest downside to a strong economy right now is that turnover is growing at a high rate of speed. When employees have options they tend to look for more pay and better benefits as well as an opportunity to grow and advance in their careers. Turnover cost employers $280 billion in 2018 and that is projected to balloon to $280 billion by 2020. If your best employees have started to jump ship, it’s time to start thinking about how to keep those who remain as happy as possible in their current roles.
A third of American workers are looking to change jobs, and last year a quarter of workers left their jobs in search of better opportunities. But 77% of turnover can be prevented by employers offering better and more well-rounded benefits packages.
In many offices today, perks are replacing benefits. Free snacks and premium coffee can make the office feel more like home, fueling workers to accomplish their best work without the afternoon slump. But with the jobs market growing so strong, perks are no longer enough.
Real, valuable benefits are crucial to prevent workers from walking out the door. Companies that boast a 6 benefit plan were shown to decrease turnover by 138%, while companies that had no benefits whatsoever had an average turnover rate of 157%. Benefits like medical insurance, dental insurance, vision insurance, and life insurance are pretty standard offerings, but there are other benefits employees are looking for.
Tuition reimbursement and tuition assistance for continuing education are among the more popular benefits these days. As pensions disappear retirement packages that include employer contributions and financial planning are becoming more of a necessity than an added bonus. Company culture is another area where employers can make significant strides with minimal investment. Things like periodic lunches out and employee common areas with activities can go a long way toward building a more cohesive team.
Learn more about the growing problem of employee turnover and how to address it below!
Infographic Source: Paycor