November 3, 2017
Employee retention is one of the major concerns of companies at the moment. To the cement the statement, a recent survey conducted by Bamboo-HR has concluded that 70% of the technology industry employers are concerned about retention of their employees.
Today’s employees are evaluating every aspect of their benefits package before and after joining the company. Since talented employees are an asset and are a must to a company. Companies need to put forward offers which will anchor them to the organization.
There are millions out there searching for a job, so what’s the big deal?
Those who are least bothered about retaining their employees should consider the statistics mentioned below.
A recent study by HR drive has found out that, 33% of an employee’s salary is needed to replace him/her.
Regarding the countless people that are ready to take up the job. Isn’t it a risky deal to let go a talented hard working employee and to replace him with another who has no clue about the working atmosphere and procedure of the company?
Just imagine the time and the money that has been lost in training the new employee.
It is indeed true that young blood is an inevitable part of any company. But an experienced employee is more likely to be risk-free than others and will act as a mentor for the new workforce.
The same survey did by HR drive also found out that 50% of the overall employees are not planning to stay more than 2 years and 51% of the current workforce are planning to quit their job.
Quite shocking and dangerous isn’t it?
The only proven solution to this deadly issue is to give benefits for employees and make them feel that they are being valued so much.
Talking about benefits,
What are the most important benefits?
2015 survey of Glassdoor is more relevant at this juncture of time. They found out that 80% of the existing employees will choose additional benefits than that of their pay scale rise.
Speaking about benefits, which one do the employees value the most?
Here are the top 5
Transportation Benefits: Nowadays, most of the small and average sized companies do give transportation service to their employees. However, most of the companies have not considered it as crucial in retaining their employees. Recent studies have concluded that and an average employee spends more than a week (in a year) in the company vehicle owing to delay and traffic.
Considering an average sized company’s employee strength i.e. 1000-2500. the amount will be so hefty.
Apart from the discount on transit passes, ride-sharing options, parking benefits, and reimbursements. Employees expect an organized hustle free commute to their office. The most practical and clever solution would be to Automate the fleet as it has advanced features which will suggest optimum routes for a commute in case of any trouble like, traffic congestion, bad weather, protest etc. Automating the fleet will also save a lot of money and time.
Student loan repayment assistance: Employees will be often burdened with student loans that will affect the productivity of their work. Since millennial prefer to study with their own money they would love to work for companies which would help them in repaying their loan.
Just like any benefits employees nowadays consider education benefits as important too and they will feel like they owe it to the company.
Bring Your Own Device: Nowadays employees are using their personal devices for their work-related activities a lot. Unfortunately, some companies do not reimburse the money that employees spend in terms of internet usage and calls.
BYOD Programs are popular among employees because they are getting a chance to bring balance between their work life and personal life. Since balance plays a crucial role in employee productivity and retention companies should encourage these kinds of activities a lot.
Health Insurance: Employees consider health insurance as one of the biggest benefits that their company can offer. Glassdoor survey has recently revealed that up to 50% of the employee’s value health benefits as the important factor in retention.
Above all, health benefits are proven to increase employee satisfaction to a great extent. However, policies which do not give any benefits to employees are also discarded.
Wage Increase: among the 5, wage increase has the least importance as often salary hikes are misunderstood as alternate for benefits. Secondly, companies increase employee wage expecting them to spend more money on benefits. To substantiate, surveys have evidently proven that employees tend to discard such benefits by thinking exactly the opposite. That being said, regular hikes are important and employees consider them as one of the factors to work productively for the company.