Your staff forms the backbone of your company. A satisfied, committed workforce is the driving force behind pushing your business towards greater heights. Implementing the right employee benefits can be a powerful motivator for your staff, fostering their loyalty to your company.
Ideally, your employees should grow in tandem with your business, climbing the professional ladder as your company expands. In recent times employee benefits have taken on an unprecedented importance.
So, why are benefits so critical? They’re instrumental in retaining talent. If your organization suffers from high attrition rates, you’re likely to see a decline in your company’s productivity. The length and complexity of recruitment and onboarding processes are all too familiar.
In this article, we’ll discuss the significance of perks in employee retention, and suggest some of the top perks your company should think about providing.
Understanding Employee Retention
The pandemic triggered several changes, reshaping employees’ perspective towards their workplaces. The reasons for employees considering a job switch can range from inadequate benefits, the working environment, or a quest for a healthier work-life balance.
By investing in appropriate employee benefits, you can prevent your staff from feeling overwhelmed or undervalued. The role of benefits in retaining employees should be an integral part of your HR strategy.
The challenges in hiring new staff have prompted nearly 90% of HR leaders to prioritise employee retention. If you wish to retain your staff, providing them more than just their salaries is critical.
The Value of Employee Benefits
Employee benefits serve as incentives that foster a positive and productive workplace, encouraging your staff to stay with your organization. Although most of these benefits will entail financial investment, their cost is usually less than the expenses associated with the recruitment process and the subsequent disruptions to productivity.
The departure of an employee from your business costs you both time and money. A study by Employee Benefits News indicates that the cost of an employee quitting is equivalent to a third of their annual salary. This cost comprises:
- Recruitment
- Lost productivity
- Training for onboarding
Employees who don’t feel valued are nearly twice as likely to search for a new job. A Qualtrics survey found that employees are five times more likely to stay at a company where they feel recognized and rewarded. Employee perks can serve as an excellent method for achieving this.
Top Employee Benefits for Enhancing Retention
Although every employee may have unique preferences, we’ve identified the top employee benefits in the current employment landscape. Here are four benefits that every should consider offering. These benefits address the most common reasons employees leave a company and can be easily implemented with minimal setup costs and almost immediate benefits.
1. Remote Working
The pandemic underscored the importance of remote work. Even if your company is based in an office, offering remote work options can bolster employee retention. Companies that offer remote work opportunities have seen a 25% decrease in turnover rates, as employees increasingly expect flexible work arrangements.
This benefit doesn’t have to disrupt your working environment. Allowing employees to work from home once a week can enhance their productivity and provide them with an additional reason to stay with your company.
2. Mental Health Days
A lack of work-life balance often makes employees question their current job. Burnout was a major factor in the ‘Great Resignation’ of 2020/2021. To prevent your company from suffering a hit to employee retention, consider offering mental health days. Healthy employees are happier and more productive.
Providing mental health days can reduce employee turnover by preventing burnout and long-term absences.
3. Workplace Pension Contributions
As the retirement age steadily increases, employees are seeking better workplace pension contributions. There’s a good chance that your employees will be looking for the best UK workplace pension providers to start building their pension pot.
Penfold is an award-winning workplace pension provider for businesses looking to provide their employees with a user-friendly pension that employees love. Penfold handle the entire setup process and run the scheme for you, so you’ll never have to answer a pension-related question again. To learn more, schedule a free demo today.
Cycle to Work Schemes
As the cost of living escalates, daily commutes often account for a significant portion of our expenses. ‘Cycle to Work’ schemes have been gaining popularity in major cities and are becoming increasingly mainstream. Encouraging cycling to work can improve your employees’ well-being and help them save on daily expenses.
This benefit is relatively affordable if you can provide facilities such as a secure bike rack. Promote the benefits of cycling to your employees, and they’ll arrive at work more relaxed, happier, and ready to conquer the day.
Final thoughts: Picking the Right Employee Benefits
As the cost of living continues to rise, the significance of benefits in retaining employees is clear. Employees look for more than just a salary in exchange for their commitment to your company. Benefits – especially those that don’t increase your employees’ tax burden – can boost your employee retention and enhance productivity.
If there’s one benefit every business should offer, it’s a workplace pension that makes a great retirement a more attainable goal. Discover Penfold’s award-winning workplace pension for innovative businesses who prioritise an unbeatable employee experience.