It may be tempting for companies to skimp on employee benefits when budgets tighten and job seekers are plentiful. But offering generous benefits for employees is more critical than ever as workers juggle the new demands of work and life.
Employee benefits have always been important to job seekers. Most recently, millennials have been targeted for their selectivity in their employment choice. The benefits an organization offers to their employees is often the differentiator in their decision to accept or reject an offered position. Nearly 30% of potential employees will reject a job offer if the benefits for employees don’t match their expectations, regardless of compensation.
Employers need to evaluate their compensation packages, flexibility of work hours, work from home policy, and wellness offerings to determine the health of their organization and make adjustments if needed to support employee expectations.
The ROI of strong benefits for employees is highlighted in several measurable areas.
Employee attraction & retention
Employee turnover creates a big hit to a company’s bottomline. Exact numbers are all over the board, but recent figures estimate that it costs approximately 33% of an employee’s salary to find a replacement. The same study reported that over half said their organization or manager could have done something to make them stay. A company that recognizes the importance of employee benefits is more likely to attract and retain good employees. Investing in your employee’s wellbeing by demonstrating the importance of employee benefits with strong offerings will pay off in dividends.
Better presentism & reduced absenteeism
Even if employees show up for work, they may not truly show up. Employees who feel better, work better. Better health leads to fewer sick days and better productivity when they are physically and emotionally present at work. Strong benefits for employees include an investment in wellbeing initiatives that allow better overall health. Additionally, creating a strengths-based culture, one that knows and uses individual strengths, also builds a stronger workforce that is more excited to show up for work.
When companies invest in ongoing professional development of their managers, they are likely to reap stronger engagement levels and better health for their organization. The past few months have show tremendous volatility in employee engagement. In July, Gallup reported that 47% of workers were not engaged, meaning they were unattached from their work and looking for other opportunities. While companies cannot control the state of the world, they can control their communication with employees during difficult times. Strong communication, particularly from managers, has shown to be the biggest differentiator in employee engagement.
Improved quality of life & wellbeing
The space between work and life is becoming increasingly blurred. As a result, employee wellbeing follows them into both environments. Wellbeing includes financial, career, physical, social, and community health. Gallup reports that employees who thrive in all five areas are:
- more than twice as likely to say they adapt well to change
- 81% less likely to seek out a new employer in the next year
- 41% less likely to miss work due to poor health
- 36% more likely to recover fully after illness, injury or hardship
- 27% less likely to have changed jobs in the previous 12 months
The importance of employee benefits is indisputable. The strongest, most viable companies invest in their people.