For any successful business, employee retention is one of the most important factors. High turnover will reduce productivity and result in the loss of institutional knowledge.
Compensations are one of the ways to retain employees. In this article, we will discuss what are the different benefits you can provide to your employees:
The importance of employee retention in the current business scenario
Employee retention has become critical for businesses because workers no longer hesitate to switch jobs. Also, retaining workers is far less expensive than hiring new ones. High employee turnover can also add to the non-required costs spent by the company. Therefore, retaining employees is better for organizations because:
1. Hiring is not an easy process
The HR department has to select suitable candidates from the pool of people. The candidates have to go through a rigorous process of interviews. It takes a lot of time and effort for the human resource team to select the ideal candidate.
2. Time and money required for the training
It doesn’t matter if you are hiring a fresher or experienced employee, you have to train them. The training might include compliance, induction, product training, or any skill training. When employees leave after a short time, the time and money invested in training go to waste.
3. Older employees know better
It takes time for any employee to adapt and reach his or her full potential. An older employee will be more familiar with your business and will help in the scaling of the product or service.
4. Increased productivity
Employees take their time learning about the company and honing their skills to be perfect for the position. When there is a large turnover rate, productivity suffers.
5. Improved company culture
Retaining employees help improve business culture. The culture of a company is an essential factor in attracting employees, and with more tenured employees, it is simpler to establish a positive image in front of your target audience.
How do compensation and benefits in employee retention?
As we have already discussed, the importance of compensation and benefits for an employee. Let us discuss in detail what different compensation and retention you can provide for your employees to help them retain them better.
Salaries and bonuses are the most common form of compensation that is given by any company. Additionally, bonuses and incentive-based payments are also another way of getting compensation. Financial incentives will help to keep the employees motivated and help them excel in their respective jobs. When the employees are more engaged, they tend to perform better.
Health insurance, retirement plans, or any such benefits help retain employees better. It helps in letting the financial burden off the shoulders. This will also help the employees to maintain the work-life balance and that will help in maintaining peace of mind as well.
This will include things like flexible work hours, remote work, and positive company culture.
How can you improve the benefits or compensation for the employees?
Creating a competitive package for employees is a difficult job that should not be undertaken hastily. It is critical that you determine all parts of it before deciding on your policies. Let’s go over some of the benefits and rules you can implement to boost employee retention:
1. Insurance plans
The business contributes a certain amount of money to employees’ medical expenses. Accidents, disabilities, and unexpected fatalities can all be covered by insurance.
2. Disability insurance
The employer pays the salary of the employees if they become disabled.
3. Tuition fees
If the employee enrolls in a course, the employer may choose to pay the fee in portion or in full.
4. Discounts if you are a product-based company
When you run a product-based business, you can offer your employees discounts on your products. It is also advantageous for your business if you want to test your products internally. Employees can provide honest input on your new products.
5. Paid vacation
You can compensate employees even if they are not working. However, you must set a limit so that workers do not take advantage of the benefits.
6. Retirements plan
If any employee is retiring from your company after serving a great tenure, he or she should be eligible for the retirement plan offered by your company.
7. Paid sick leaves
It is critical to take care of your workers. When your employees are forced to work while sick, it has a direct effect on their productivity and efficiency at work.
8. Performances bonuses
You can offer your workers performance bonuses based on their performance. The cycle is entirely dependent on the viability of your company. You can distribute bonuses regularly or annually.
9. Paid paternal leaves
Providing time off to your male employees to take care of their family or the newborn is also now offered by many companies.
10. Childcare facilities
This helps the employees of your company who are parents to maintain the work-life balance. It can include baby-care spaces in offices or work flexibility.
11. Employee training
It is an essential factor in recent scenarios where employees want to upskill. You must provide engaging training for your workers to retain them.
The Learning Management System can also assist you in better training and teaching your workers.
12. Free food and beverages
You can make your workers feel valued by providing them with free food and beverages. You can devise policies and benefits to assist employees in adjusting to the office environment and retaining them.
Additionally, you can add these to your policies:
- Pet-friendly office
- Free library membership
- Different clubs for photography, board games, or music.
What do millennials want from their jobs?
- Student loan assistance
- State-of-the-art technology
- Bonuses through time off
- Including corporate responsibilities
- Personal growth development
- Remote working
It is significant to consider your employees’ well-being rather than just their pay to retain them. You must first determine your employees’ needs to establish a healthy and productive environment for them. You can easily ask them what their needs are by sending them anonymous surveys.