In Face of Turnover Tsunami, Employer Must Alter Employee Benefits

Employers of all sizes are dealing with a labor shortage and difficulty hiring new employees. To complicate the matter, organizations can anticipate 52% of employees will look for new jobs later this year, according to The Achievers Workforce Institute’s Employee Engagement & Retention Report. Additionally, 25% plan to leave their current positions when the economy fully recovers. This is what has been referred to as the “Turnover Tsunami.”

Leaders looking to attract and retain their top talent therefore need to quickly identify some of the most coveted changes workers are looking for post-pandemic – one of which is a strong employee benefits package. According to a Zywave survey, 50% of employees are willing to change jobs for benefits that matter to them.

During Open Enrollment, employers have the task of determining what benefits and perks employees want and which they will offer. Employee benefits increase the value of working for a company while also improving employees’ health and quality of life. They show that the company cares about employees and has the financial capacity to invest in them. Employee benefits can be a powerful recruiting and retention tool, but only if candidates and employees see the value.

A 2021 Glassdoor survey reveals around 60% of respondents strongly consider perks and benefits offered before accepting a job offer. In addition, 80% of all employees would prefer new or additional benefits compared to a pay raise.

The EBHR 2021 Survey identified that of 150 employers surveyed, 45% are offering greater workplace flexibility and 38% are expanding their benefit offerings. It reiterated the point that traditional benefits may seem like a solution, but sometimes voluntary benefits and non-traditional perks are what employees want.

The most popular and important benefits to employees are health care, paid time off, family leave, retirement plans, flexible hours, remote work, wellness programs like Employee Assistance Programs (EAP), tuition reimbursement, life and disability insurance, performance bonuses, and workplace perks. The “outside of the box” benefits/perks include offerings that are non-traditional like pet insurance, paying for cell phones, concierge services, and alternative wellness like meditation.

Employers are also realizing that employees’ age can determine what they want. Millennials are interested in community service and time to volunteer. GenX prefer remote work and family leave options. Boomers are nearing the end of their career and are focused on retirement plans and time off.

As Open Enrollment season arrives, employers should take a fresh look at what benefits their employees and possible candidates want, commit to investing in a comprehensive benefit package, and then encourage employees to participate. After the benefits have been setup, the next important step is educating employees, so they are aware of what is offered. Using social media and company websites as well as in person education meetings are important to saturate recruits and employees with benefits information.

Tilson will soon be announcing its new employee benefits resource webpage with education provided on various benefits terms and plans.

 

With recruitment becoming more difficult and employee retention even more important, a strong benefits package that includes a mix of traditional and new offerings can move the needle for attracting and retaining quality employees.

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