Over the last two years, talent shortages and retention challenges have risen to the top of the corporate agenda. Today, organizations are finding ways to attract and hold on to their best people. The pandemic made workers rethink their priorities, and many chose time with family and loved ones over long working hours and stressful commutes.
This is what eventually led to The Great Resignation, where millions of employees across industries exited the workforce to find more flexible jobs, start their own businesses, or retire early to have more time with loved ones. In light of what’s happening in today’s workplaces, we’ll explore if and how employee benefits reports, also called total compensation statements, can help stem turnover.
Hiring and Retaining Talents in the New Normal
As HR leaders and their strategic advisors work on ways to hire and retain talents, they face the challenge of offering employees what they want while keeping the business running effectively and at a profit.
One of the first steps to achieve this goal is to consider restructuring employee benefits. But this isn’t the silver bullet. You still need to nurture a positive workplace culture, offer flexible working schedules and competitive salaries, and show your people that you value, respect, and care for them.
Before restructuring employee benefits, consider conducting a comprehensive audit of the current benefits and follow up with a survey to better understand what your employees want. Afterward, you can compile a comprehensive report that will inform your decision-making.
Cost of Employee Turnover
When employees leave your organization, especially your top performers, it’s often an indication that your retention strategies are broken or not competitive. Some factors that drive employees out of the workplace are poor company culture, lack of flexible work schedules, and non-competitive pay and benefits. Others are poor internal mobility and lack of career development opportunities.
Employee turnover costs the organization in many ways. First, employee departure negatively affects the morale of the remaining staff, who may also be compelled to leave. Other costs come from advertising for open positions, recruiting, training, and onboarding new hires.
Depending on the quality of acquired talents, you may also spend a lot of time and money accelerating new hires to ensure faster time to traction. And if the new hires fail to work out, you’ll have to start over again.
Making Employee Benefits Work
The employee benefits package aims to ensure workers feel comfortable, satisfied, and motivated working for your company. Without a well-implemented employee benefits plan, you will surely lose your top talent to your competition. That said, not all employee benefits work. Some are nice-to-have packages that offer little to no value to most employees.
When done right, you may find that it’s more beneficial to replace paid family leave with flexible work schedules or to allow employees to choose between options, such as free gym memberships and caregiver benefits, instead of making it a “take-it or leave-it” plan.
A secret to implementing effective employee benefits is to get to the bottom of employee needs and what matters to them. Instead of speculating what your people want, you should listen more to understand employee grievances before restructuring the benefits.
At the end of the day, you’ll have the benefits you have. But what so many employers neglect to do is to spell out for employees their entire compensation package using total compensation statement software such as COMPackage.com. After all, if you are being generous and your people understand what they’re getting, they are simply more likely to stay with you.