Many companies are still feeling the consequences of ‘The Great Resignation’ and continue to struggle with recruitment and retainment issues. If your staff turnover is high, your company can suffer negatively so it is important to find long-term solutions that encourage your staff to stay.
Employers must respond to modern demands, find ways to differentiate themselves from the rest and offer more than simply more money. In fact, a company that is unwilling to offer its staff any benefits or perks may find it difficult to get recruits through its doors, and perhaps more importantly, keep them.
People have plenty of time to figure out what they want from their jobs, homes and lives. Unfortunately for many employers, that means candidates turning down jobs in their droves, or even failing to apply, if the listing isn’t attractive enough.
So how can employers make their jobs more attractive, not only to new candidates but to retain their current employees? The truth is, there are many ways and our focus is on the ways employee benefits can boost confidence and improve staff retention.
What is employee turnover and retention?
Employee turnover and retention is more or less as advertised, it concerns a company’s ability to keep hold of its staff to reduce turnover. The stronger an organisation’s ability to prevent employee turnover, the better its employee retention is. This is key to business success and companies must do what they can to retain their skilled staff and avoid losing them to competitors.
Why is employee retention important?
Companies looking to succeed are advised to improve employee retention to keep their highly-skilled staff onboard, helping to push their ventures to new levels. But retaining talented staff is just the beginning, a company with high levels of employee retention enjoys increased productivity and more stable processes and systems.
With a low level of staff turnover, companies don’t need to invest in the expensive process of replacing an employee. Worryingly, the cost to replace a salaried employee is 6-9 months of their salary, which in the UK is an average cost between £14,800 and £22,200 per employee. There are reduced training costs associated with strong staff retention as fewer new faces need to go through the onboarding process.
Ultimately, good staff retention is indicative of a healthy working culture which leads to an increase in productivity and a better customer experience. Introducing staff benefits can help to safeguard employee retention and make a company remain the destination of choice for staff members.
What benefits can employers offer?
Companies have plenty of options when it comes to introducing employee benefits. The only real limits are how much a company is willing to invest and how creative it wants to be. Here are some common staff benefits that are implemented in UK businesses to help navigate the shortage of skilled workers in any sector and improve retention when they have workers in situ.
Flexible working
Before the pandemic, flexible working was less of a concern for staff but since being able to work from home, many people are looking for this flexibility to remain. Flexible working is something that almost half of UK workers say is one of the top factors that would attract them to a new job opportunity. Offering staff the ability to work from home once or twice a week can make all the difference in how they feel their needs are being supported by their employer.
Career development
A lack of career development is a reason why staff can seek pastures new. Employers can showcase clear career paths and development routes for staff who want them. From training initiatives or upskilling to mentoring and coaching opportunities, if staff feel like they are progressing they are more likely to stick around.
Mental health and wellness
The pandemic took a significant toll on many people’s mental health and wellness. Companies can show their staff they care by offering support by investing in mental health training and education. To show its importance, 42% of employees with access to mental health benefits said they’re more likely to stay at their current organisation than if they didn’t have those resources.
Improved pension plans
Nothing says a company is doing the bare minimum than doing the bare minimum. UK companies are now legally obliged to offer a workplace pension and while only required to provide minimum contributions, offering more helps improve an employee’s perception of their employer and, critically, how much they care for their staff.
Financial well-being initiatives
Very few people are immune to the impact of a tough economic climate, and while the same is true for businesses, offering financial well-being support is a great mechanism for increasing staff retention. From offering salary rises in line with inflation to providing financial education resources and short-term loans, companies can do more to support their staff through tough times. Offering this level of support helps once again helps staff know you are looking out for their interests.
Lighter benefits
Companies don’t have to commit lots of financial resources to provide benefits to their staff. There are organisational changes that also benefit employees.
These include:
- Pet-friendly workplaces
- On-site child care facilities
- Sabbatical leave
- Holidays carrying over from one year to another
- Providing fruit and drink for staff
Ways to improve employee retention:
- Hire well and strategically
- Engage in feedback initiatives throughout the company
- Improve onboarding
- Recognise top talent
- Utilise exit interviews to improve company culture
- Provide employee growth opportunities
How staff benefits boost retention
When employees feel valued by their employer they are happier and less inclined to leave. Companies that experience a loss of an employee can suffer from a drop in morale, but when morale is high the workplace is a more positive environment. That rubs off on others and not only does it improve the mood in the workplace but it also helps boost productivity.
Long-term employees have had the time to hone and perfect their skills while they tend to be more committed to the business rather than those who have recently joined. Those employees can feel settled and like their contributions are a vital part of company operations.
If a company has a higher level of employee retention, the signs are that there is a strong culture running through it. Employees will feel as though they are trusted and their engagement in company activities will continue to improve retention levels.
The positive impact of company benefits include better employee health, lower absenteeism and a greater level of loyalty. Businesses should leverage their employee benefits to reduce turnover and maximise job satisfaction.