Benefits and Employee Retention-Why Employees Value These Incentives
Incentives of any kind are important. Employers use it as a reward and cushion, for employees that preserve the backbones of their industries, in which they have worked so hard to maintain. Benefits mean more to employees than many employers realize. As a team of benefits advisors, Bridge Benefits Groups believes that no one should undermine the importance of benefits, as it impacts every aspect of many jobs. For the sake of specificity, let’s address benefits and employee retention: Why employees value these incentives.
Employee Retention
Employee retention simply refers to the strategies and processes an organization develops to keep its top talent and reduce turnover risks. Retention and turnover has continually been an issue for upper management in several types of organizations. It creates significant operational costs for employers, potentially compromising their growth and profit. Employee turnover rates vary by industry, but could be less than 20% in public-sector roles to more than 60% in professional services and construction, according to findings from the U.S. Bureau of Labor Statistics. The reasons for employees leaving are varying, and let’s not forget that employee retention focuses heavily on voluntary turnover as opposed to involuntary turnover.
Benefits and Employee Retention
Apart from the obvious, when benefits and benefits advisors offer incentives to employees, it shows that you are not only invested in their overall health, but their future as well. A comprehensive employee benefits package helps attract and retain talent. More importantly, it protects your bottom line by engaging your employees to participate in wellness programs. Healthier employees mean less stress with healthcare costs for your business.
A Structured Benefits Plan
Based on the type of company you work for, benefits can look different from business to business. Every state in the USA is different, however, there is confluence on the basic benefit laws all employers need to follow. Required benefits can include:
Providing employees with time off to vote, serve on a jury, and perform military service
- Comply with all workers’ comp requirements
- Pay state and federal unemployment taxes
- Contribute to state short-term disability programs in states where such programs are in place
- Comply with the FMLA act (Federal Family and Medical Leave)
Employees are NOT required to provide these benefits:
- Retirement plans
- Health plans (with the exception of Hawaii)
- Dental or vision plans
- Life insurance plans
- Paid vacations, holidays, or sick leave
A Deal Breaker?
It would be useless to put every individual employee in the same category. This is because, our personal situations, especially our out of work life, couldn’t be more different from another person. Kids, marriage, additional expenses, are other reasons to incorporate high-quality benefits for your employees. Paying for certain things on your dime is not only stressful, but many will not have the means to get this done. In that way, a benefits plan can act as a good buffer or intermediary between you and the incurred cost or costs. An organization that does not offer even the bare-bones minimum in incentives, could risk losing current or prospective employees. Why take the risk when our benefits advisors can easily put in a plan to secure them, right now? So, in essence, yes, this can be a deal breaker for a vast majority of people.
Protecting Your Employee Base: Getting A Helping Hand From Our Benefits Advisors
Bridge Benefits Group will always give our clients a helping hand, so that they can protect their enterprise and its accompanying assets. To learn more about how our benefits advisors can help you, contact us today! We would love to hear from you.
This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.