AUGUST 9TH, 2022

The Secret to Managing Costs and Retaining Talent? Expanding Your Employee Benefits

In the current employment landscape, one thing is clear: People are unafraid to leave the comfort of their current jobs and bet on themselves. 

According to a 2021 McKinsey survey, 40% of respondents believe they’re “somewhat likely” to leave their current jobs in the next three to six months. And of that group, 60% are willing to take that leap without a new position lined up.

The trend becomes even more interesting to track when you consider the current state of the global economy. Inflation is leaving no stone unturned, increasing the prices of everyday items like gas and food while making big-picture necessities like healthcare harder to afford. Look no further than this jarring stat: Thanks to inflation, the healthcare budget of someone earning $50,000 annually is actually $2,500 less than what it was a year ago.

The sad reality? Paychecks aren’t going as far as they used to, and people are exploring additional income streams and other employment options — even if their current jobs are solid overall. Workers fuel organizational success, but they’re unafraid to answer the door if another lucrative opportunity knocks.

How can employers stand out from the crowd? Expanding their employee benefits packages could help companies gain attention in this competitive market.

Better Employee Benefits Lead to Improved Employee Attraction and Retention

Gartner suggests companies could see worker turnover that’s 50% to 75% higher than usual. Add in the inherent costs of hiring and the fact that it’s taking 18% longer to fill positions than it did before the pandemic, and the issue becomes clear: Companies must use every resource available to keep talented employees in-house and bring new ones aboard.

Expanding employee benefits beyond previous standards is a great way to start. Here’s why: 

1. You save money.

Losing an employee isn’t just a loss in productivity — it can leave a noticeable mark on your bottom line. Replacing one employee costs about six to nine months’ worth of that position’s salary, and it usually takes several months to get the new employee up to speed. While there’s no guarantee that expanded benefits will reduce those costs, reimagined offerings could boost your employee attraction and retention efforts. There’s a reason a McKinsey study of post-pandemic workplace health concerns revealed an increase of 11 percentage points in the number of employers who consider benefits “very important” to talent management. 

Look at competing companies and other industries to see what benefits are trending. Then, figure out what might be feasible for your team. Take the time to educate potential, new, and current employees on the latest and greatest parts of your benefits offering. One new feature could be enough to convince an employee to stay put and save you time and money.

2. You inspire loyalty. 

Employees become engaged when they feel fully supported by their companies. Salary is one way to show that appreciation, but a comprehensive benefits offering is an equally valuable tool for building loyalty internally and buzz among prospective hires. 

Something as widely used as flexible work opportunities, for example, can bolster your benefits offerings. One study found that 41% of employees would take a salary cut if their company offered them a hybrid work setup. And employers are responding: a Willis Towers Watson study found that 70% of companies are revising their remote work offerings due to increasing demand. 

By adding extra work flexibility on top of more conventional benefit offerings like health insurance and PTO, employers can catch the attention of current and future workers. 

3. You give your team options.

By offering an extensive array of benefits, your company essentially empowers your employees to pick and choose their ideal benefits package.

They can choose in-person or remote work — or a mixture of the two! They can choose a health plan that meets their family’s needs. They can choose to grow professionally by taking advantage of tuition reimbursement opportunities. They can build a nest egg for retirement — or embrace financially healthy ways to access and afford care.

And every step of the way, your team can keep employees informed of new or revised benefits. By being knowledgeable and forthright about your benefit offerings, you can put your employees at ease and help them feel more comfortable exploring the full array of benefit offerings. 

Robust, comprehensive benefits are a valuable asset for engaging current employees and attracting new hires. From fully stocked health insurance to flexible HSA and FSAs, the more you allow workers to take care of themselves, the more they’ll feel valued and excited to come to work each day.

Learn how Paytient helps companies of all sizes.

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