employee turnover

Is Your Benefits Package Contributing to Your Employee Turnover?

Most businesses spend a lot of time thinking about how to fill open positions, recruiting and training staff.The last thing you want is to have high employee turnover. Repeating the process too frequently may cost you more money than you planned for. Anything you can do to keep your workers happy benefits your company and reduces churn.

Do Benefits Solve Employee Turnover Issues?

The United States Bureau of Labor Statistics reported in March 2023 that the number of separations remained steady at about 5.9 million per month. The number of quits decreased slightly as layoffs ticked upward. Although the economy shows signs of filling some of the open job slots, there still remains a labor shortage employers must battle against in the economy since COVID-19 started.

Employee turnover issues might be solved by providing additional benefits and matching other companies in the same industry. You can also look at additional perks they may not offer. How can you improve your benefits package?

1. Create Flexible Work Options

Remote work was already growing, but the pandemic of 2020 pushed many employers to offer work-from-home options sooner than planned. Employees enjoyed the benefits of working from the comfort of home, saving money on commutes, clothing and outside lunches.

Today, many workers seek employment with firms allowing at least some remote flexibility, such as working from home a few days a week. Other options might include allowing two people to share a job so they can better arrange for childcare or other personal responsibilities.

2. Personalize Benefits Packages

People often have various needs they’re seeking from benefits. You can reduce employee turnover simply by having a conversation and adjusting what you offer based on preferences.

For example, around 77% of people have experienced burnout at their jobs. This can take a toll on physical and mental health. Making an HSA allowance rather than just giving a set package for treatment can help people find the flexibility needed to meet their mental health needs.

Perhaps one of your employees gets health insurance through their spouse and doesn’t need the $20,000 package offered. However, they really want to expand their training and education. You could make better use of the financial allowance by giving them an education stipend, as long as it applies to the job they’re doing.

3. Give Ample Paid Time Off (PTO)

You can prevent exhaustion and improve employee turnover by offering enough PTO. Although some companies say PTO is unlimited, the model rarely works. Employees either worry they’ll take too much and get fired or they are discouraged from taking time off when they truly need it, especially during peak times.

Spell out how much time workers can take off and any additional days, such as volunteer time off (VTO). VTO can be used to contribute time to a local charity, for example. You should separate PTO and sick days so people don’t use up their vacation for illnesses.

Inform employees about any other options. For example, if they have a baby, what are their family medical leave options and will they be paid for any of the weeks they take off? What if they have a sick parent and need to care for them for a bit? What are their options? The clearer you can be, the less stress you’ll put on your workers.

4. Offer Generous Pay

In a survey of American workers, around 20% said they’d voluntarily quit their positions in the near future. One reason employees often cite for leaving a job is to secure higher pay. When you offer people what they’re worth, you’re less likely to lose them to another company.

Pay attention to what the average wage is for each position you’re hiring for. You can also look at how much people make for entry-level, intermediate and senior levels. After the worker has been with you a year or so, offer them a raise. You should account for inflation and make sure you give them enough of a raise to show how much you appreciate their hard work.

5. Put Employee Well-Being First

When employees feel stressed enough to become ill from the pressure, you’ll experience high employee turnover. Your benefits should include things that help employees with their physical and mental health.

For example, you might offer a program that encourages employees to eat healthier, exercise or quit smoking. You also should have access to counseling and psychiatric care should employees need it. You might offer mental health breaks by providing gift cards to local spas or giving employees a travel stipend they can use to get away for a few days.

6. Engage Team Members

When workers feel you value them, they will stay with your company. One of the biggest benefits you can offer is through showing appreciation, such as bonuses for those who show up and work consistently or try to improve each quarter.

Offer training opportunities, team building and opportunities for workers to connect with management and one another. If you run a remote team, you can offer Zoom meetups and one-on-one feedback.

7. Reimburse Tuition

Workers desire improvement and continuous opportunities for growth. If you don’t reimburse tuition, you may miss out on top candidates and also lose current employees to turnover. They’ll seek out positions with companies that do pay for their continuing education.

Some companies choose to offer their own degree by teaming up with a local community college and encouraging a leadership path based on courses and training completed. Others offer to pay for tuition for courses that can apply to their industry.

Unusual Perks Keep People On Board

Look for the unusual perks that no one else offers to keep your employees engaged. Give a few more weeks of maternity leave, offer a new pet vacation or pay for vacations. When you invest in your employees, you’ll reduce turnover and keep the top workers in your firm loyal to your brand.

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George Meszaros is the editor and co-founder of Success Harbor where entrepreneurs learn about building successful companies. Success Harbor is dedicated to document the entrepreneurial journey through interviews, original research, and unique content. George Meszaros is also co-founder of Webene, a web design and digital marketing agency.