Five Things Employers Can Do to Retain Employees
Nationwide, employers are beginning to see an uptick in their employee turnover rate. Earlier this year, the Employee Engagement Report cited a survey showing a 10 percent raise would prompt one in four employees to leave their current job. While some businesses have higher turnover rates than others, Compensation Force reported this year on 2015 turnover by industry. Across all industries, the voluntary turnover rate average last year was 11.6 percent. The highest turnover by industry was 17.8 percent in hospitality, with a low of 6.1 percent in the utilities sector.
So what’s an employer to do?
Here are five things to consider to help you keep your employees longer – and to help them feel more integral to your organization.
- Offer better employee benefits A national survey released in May found nearly three-quarters (72 percent) of employees using a private health insurance exchange say they are more likely to remain with their employer because of their benefits program. The survey found private exchanges help employees become more informed consumers of benefits. When survey respondents were asked to compare their exchange experience to a traditional benefits program, 83 percent said they were more engaged in their health care decisions (under the exchange) and 77 percent said they value their benefits more than they did previously. A Wells Fargo survey of benefits managers found 85 percent believe benefits have the most impact on employee loyalty and engagement.
- Survey your employees It’s good to regularly ask your employees for their feedback on topics like benefits, wellness programs, employee perks (like company-sponsored events), corporate culture, and job responsibilities. Why some employers may shy away from asking for staff feedback, it can be quite valuable. Consider setting up a focus group as a way to solicit ideas. Review the benefits employees value most and ask for suggestions on possible new coverage options. (As the number of pet parents increases, and as health care costs for pets increase, more and more employers are exploring insurance for dogs and cats. Consider adding more training for your employees. Employees stay where they feel valued and are learning new skills.) Ask your employees what prompted them to join your company in the first place – and why they stay. They’ll feel more engaged, even if not all of their suggestions are implemented.
- Improve your benefits communication Benefits can be especially confusing to employees as well as enrolled dependents. Employees tend to be more satisfied with their jobs if their benefits are well communicated. Be sure you offer information that is easy-to-understand and includes infographics, diagrams, and examples to explain how more complicated concepts (like coinsurance) work. Don’t just focus on your open enrollment communications; create a year-round communication plan to help keep your employees informed on ongoing plan and benefit changes (or benefits being considered). Include Facebook, YouTube, newsletters, and emails in your efforts. Ask your benefits consultant or broker if the carriers or private exchange they represent offers Smart Decision Technology to help employees get a better understanding of their benefits. That way they have the information to help them make more informed health care choices when making their annual benefit decisions.
- Offer customization choices Consider expanding your benefits by offering employees a private health insurance exchange (that includes multiple health plans and benefits) or by adding voluntary ancillary and other benefits. These could include Dental, Vision, Chiropractic, Long Term Care, Pet Insurance, Life Insurance, and other benefits. Employees love choice because it gives them the opportunity to create a more customized benefits program to fit their individual or family circumstances.
- Consider onsite health programs You already know it’s important to keep your employees engaged in their health, but what you may not know is that organizing a fitness program at work, onsite, can affect at-work attitudes and output. The American College of Sports Medicine noted in their study that workers who spent 30 to 60 minutes exercising during their break for lunch improved their performance by 15 percent. Sixty percent reported improved time management and better attitudes and focus on the days they exercised. Research by the Journal of Occupational and Environmental Medicine shows employees who included just 2.5 hours of exercise in their weekly schedule had fewer absences.
Ask your broker about implementing a private health insurance exchange or ancillary benefits program at your firm. He or she can share information on how the right benefits can help you improve your employee retention and increase employee satisfaction.