In today’s competitive hiring climate, small companies really need to step their game up if they want to attract and retain top talent.
Losing a good worker is naturally bad for morale in the company, however, new research has discovered that it also has a major impact on the bottom line.
According to a recent report by the Centre for American Progress, on average, the cost of turnover is around 21% of an employee’s yearly salary, because you have to consider the costs of hiring and training a new employee, not to mention the loss of productivity.
This means if you’re paying an employee $50,000 per year, you’ll have to spend around $10,000 to replace that employee.
And you’ll agree that that’s an amount that could easily bring a small entrepreneurial business to the brink or at least set you back significantly.
Why You Need to Revisit Your Benefits Package
So, what can you do to try to attract the next wave of talented workers and keep them on your team for a number of years? Well, chances are, you’ll need to revisit your benefits package.
You probably think that lots of companies are using benefits to recruit talent to join their organization, but you’re actually wrong. According to Society for Human Resource Management, in the past, less than 25% of companies used benefits to attract potential employees.
However, it seems like more and more companies are taking notice the allure of a great benefits package. According to a 2017 survey from the SHRM, nearly 33% of employers have boosted their benefits packages in the last 12 months.
As the survey explains, around 22% of companies increased their healthcare offerings, while roughly 24% of them improved their wellness offerings in order to stay competitive in the market.
How to Improve Your Benefits Package
While it may seem more cost-effective to eliminate certain benefits, you have to be aware that this practice will cost you a lot more down the line. Basically, employee retention is a vital component of a successful business strategy.
You’re probably now wondering what type of benefits should your organization consider offering. And you’re in luck, because bellow, we have a couple of things that trump a simple pay increase:
· Paying for Health Premiums
Health insurance is almost always the most important part of any benefits package. So it’s rather surprising that, according to National Business Group, more than 60% of employees cannot really estimate how much their employers pay for health benefits.
The problem in this situation is, most employees don’t really understand the true costs of health insurance. So by showing your workers how much you’re contributing, you’ll help them get a clear picture of the real dollar value of your benefits pack.
And even if they get another business offer, they will have a good comparison between your and the other company’s benefits. When it comes to targeting new employees, a simple thing you could do is to talk about health benefits in your job description in order to draw more talented candidates.
· Identity Theft Security
This might sound a bit unconventional, but hear us out. Identity theft occurs on a daily basis and most of your employees are forced to share sensitive personal information like credit card information and social security numbers online, practically on a daily basis.
With so many data breaches in the past couple of years, people are starting to become aware that on one out there is immune to getting their personal info stolen. According to statistics from the Bureau of Justice Statistics, more than 17 million people become victims of identity theft every year.
Offering an identity-theft protection plan can help your employees relax and minimize their online exposure before any financial damage can be done. It’s always good to hit your employees with a curve-ball and offer a benefit not a lot of companies have even considered offering.
· Opportunities for Growth at Work
More often than not, talented people want to advance their careers from the first day they step into an office. In fact, a large majority of today’s workers is highly motivated by added responsibilities and the respect of the higher-ups in the organization.
This is especially important if you’re looking to hire younger workers. These days, most millennials get their start with internship providers like Premium Graduate that offer them an opportunity to sharpen their skills before they find permanent professional work.
Researchers from the Harvard Business Review have described the power of progress in this article – so it would be a good idea to read it right away. Also, it’s important to note that young employees often want to improve their skills, so it would wise to consider devoting a part of your budget to training.
Bonus: Be as Transparent as You Can
A benefits package is more than just a salary number. In addition to the ones we listed above, there is a number of other elements you need to consider, like work location, vacation time and, health insurance. Salaries comprise only around 70% of the average person’s compensation – more than 30% goes to benefits, according to a 2014 Benefits Survey.
Don’t make a mistake about it – modern employees are fully aware of this fact, which means you shouldn’t try to avoid talking about the benefits. Therefore, you have to be as transparent as you can about what benefits you offer and what you don’t. There’s nothing candidates appreciate more than honesty.
Today, we have four specific generations in the workplace – millennials, Gen X-ers, baby boomers and traditionalists – an all of them lead significantly different lifestyles and have drastically different needs.
So it’s no wonder why workers are so attracted to benefits that are tailored to their needs, as CIO Magazine so eloquently explains it.
Therefore, you need to start offering benefits that are attractive to people from all walks of life – benefits that can help employees improve their work-life balance. What’s more, workers of different ages require different levels of health care and employees will surely appreciate if they’re able to select a health care plan that suits their financial needs.
As you can see, a simple thing like a benefits package is a powerful strategic tool that can allow you to instill the feeling of loyalty in your staff.
It’s a cut-throat world out there – more and more employers are working hard to retain their staff members – so if you want to remain successful, you need to start offering something more than money.