The Powerful Impact of Benefits on Employee Loyalty
If you are like most CEOs, you are concerned about the consistently rising cost of employee benefits. The U.S. Bureau of Labor Statistics reported in late 2018, benefits averaged 31.7 percent of a total compensation package. Although the cost creep isn’t likely to change, it might ease the sticker shock for you to know just how much your employees value their benefits. They are the key to employee loyalty, job satisfaction and retention.
A 2018 Robert Half survey revealed that workers who find balance between their jobs and personal lives are twice as happy, more productive and show greater loyalty to their employers than those struggling to find balance.
Different Generations Value Different Benefits
Another 2018 survey found that American workers favor workplace benefits four to one over extra salary. Here are the benefits employees value the most. Note how the various generations value some benefits more than others:
The generational differences are important. For example, if you want to attract more Millennials, the largest generation in the workforce, then, according to this survey, it would be wise to offer benefits that are associated with work–life balance, such as paid time off, flexible work hours and working remotely.
In fact, a Qualtrics study found that 64 percent of Millennials say benefits are extremely or very important to employer loyalty.
Help Employees Use Their Benefits More Fully
Yet even though American employees value their benefits more than increased pay, not quite 3 in 10 Americans (28 percent) are very confident that they are using benefits to their fullest potential. To leverage the powerful impact of employee benefits on your organization’s employees, invest some resources in helping your employees make better use of their perks.
Especially as open enrollment comes around in November of each year, educate your employees about how to get the most out of their benefits. Help them avoid leaving money on the table. This is likely to result in even more job satisfaction among your workforce. Superior Benefits can help you educate your employees about their benefits.
Consider Offering Nontraditional Benefits
Benefits play such an important role in employee satisfaction that more than half of workers in a Randstad US study said they have left jobs after hearing about better benefits elsewhere. Because benefits are such a powerful tool in attracting and retaining top talent, why not get creative and offer perks no one else is offering? Here are some ideas to consider:
- Student-debt repayment plans
- Pet insurance
- Financial counseling
- Caregivers’ benefits, such as flexible or remote work hours, part-time work and leaves of absence; on-site childcare, childcare subsidies and backup childcare; and geriatric assessments, eldercare consultants and emergency adult backup care.
When you factor in the impact that your employee benefits have on attracting and retaining top talent, and keeping your employees happy, you can view the cost as less of a prohibitive expense and more as a powerful tool you can leverage for your company’s advantage.
Superior Benefits, Inc., goes the extra mile by implementing supplemental plans to help your employees get even more from their health benefits. Contact us to find out how we can help you make the most of one of your most costly but valuable business expenses.
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Who We Are
We are a National Employee Benefits Consulting firm because we go beyond the expected. Minimizing your business healthcare budget while maximizing your benefits is our top priority.
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Tampa, FL 33609
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Orlando, FL 32806
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Fort Lauderdale, FL 33301