Taking a Creative Approach to Benefits for Employee Retention
Director of Financial Institutions Practice
For years, employee benefits revolved around health insurance. Employers and their brokers chose plans that made the most sense financially for their employees and the business, signed the renewal, and went on with their day-to-day.
Times have changed.
We’re no longer operating in a marketplace where employers can offer basic health insurance and expect to retain their talent. It’s a job seeker’s market, and businesses need to consider creative benefits options in order to reduce turnover and remain on the top of applicants’ wish lists.
Case Study: Financial Institutions
Let’s take financial institutions as an example.
The financial institution industry has been hit hard by turnover since the recession. A recent Crowe study reported that turnover for non-officer positions in the financial industry is up to 23.5%, and officer positions report a 7.5% turnover rate. When it costs nearly half of an employee’s salary in order to find and train a replacement, turnover adds up.
Turnover in financial institutions is caused by many factors, including increased retirements by long-term employees at an executive level, and entry-level competition for talent with other financial institutions and even retail entities. However, ADP’s report on workforce turnover suggests that 60-70% of all employee turnover is voluntary, based on an employee’s experience and perception of their employer. You have more power than you think to affect turnover rates in your company.
Creative employee benefits for talent retention
As your insurance advisor, we recommend upleveling your benefits package in order to retain employees and encourage ideal candidates to consider your business. Compensation is important, but having a comprehensive benefits package that offers your employees something more than basic health insurance can make your company desirable, and create longevity and loyalty among your employees.
Forward-thinking insurance brokers are getting creative with their benefits strategies. Voluntary benefits like critical illness and accident can be added to a package in order to provide an extra level of care and protection to your team. Volunteer time off, pet insurance, student loan repayment programs, and identity theft protection are at the forefront of innovative benefit offerings.
In addition to adding more benefits, it’s important that your employees understand what is available and how to use them. Engaging them through regular communications, and motivating them to take part in your company’s culture through added benefits like wellness programs can generate positivity toward you as an employer, and create a healthier, happier population within your organization.
Thinking outside the box when it comes to your benefits package is a great way to offer added value to your employees, and encourage them to stay with your company for the long-haul. In today’s job seeker-focused market, your benefits package should be a part of the conversation with your insurance consultant before every renewal period.
Every company requires its own solution based on the motivations of its employees. Connect with an M3 Account Executive to see how you could improve your benefits package to retain talent.