How to Keep Employees with Employee Group Plan and Retention Benefits
Getting a job is not as easy as it seems. On the other hand, losing employees can threaten the stability of a company. A lot of employees often jump from one job to another for various reasons. Some are not satisfied with their paycheck while others just don’t find any fulfillment in their work.
Whatever reason they have for leaving their current job, one of the most common factors that affect their decision is they are not happy with their employer and feel that they are not compensated well enough.
If you want to know how employers can retain their employees, discuss the options with an expert at Save Corporation Tax.
The Impact of Losing an Employee
Losing a good employee is a headache for managers. Finding a suitable replacement is not as easy as you think, especially when the person resigning plays a critical role in the business. The hiring process may take a while which means that someone else is going to have to assume the responsibilities of the person leaving. Also, when a new hire comes in, it will also take some time before he can grasp the duties and responsibilities of the job.
The departure of a key employee can have a major impact on your company as well as the other employees. There is also a huge possibility that other employees will start thinking about their own job and if the former employee’s reason for leaving is valid.
Quick employee turnover is not a good sign for a business and at the same time, expensive too. In most cases, an employer may cost an employer twice an employee’s salary just to replace that person. Hence, employee satisfaction and employee retention programs should always be on the top list of business owners.
So, how can you prevent this from happening to your company? In this article, we’ll discuss some tips on how companies can keep their employees by following a number of employee retention strategies.
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Employment Retention Strategies
A successful employee retention plan requires effort from the part of the employer. Not all strategies are the same for every company. Therefore, employees will have to consider several factors when planning their retention program.
Each company has their own objectives and goals. However, you should also put into consideration the type of industry you are in and the average income bracket of the employees. All employees want the assurance that they are paid fairly and hopefully above market rates. On top of their salaries, employees also factor in other additional benefits.
Remember that their decision hugely relies on what you can offer them in comparison to other companies. Therefore, you need to provide an attractive package to get them to choose you. Hence, here are some of the most effective ways to ensure that new employees will stay with your company for a long time.
- Job orientation
A new hire should always be set up for success from day one on the job and the same goes for current employees. This means that every aspect of the job should be discussed clearly during the orientation.
Some job orientations may last from a couple of days to a few weeks. It helps the employees learn about the position, the company’s culture, and expectations from both parties. The discussions are also opportunities to learn about the new hire and how an employer can better provide support to its employees.
- Salary
An employee’s compensation is an essential piece for attracting and keeping employees. Salary is often the number one reason why a worker decides to leave his employer. Some industries have stiffer competition when it comes to hiring employees.
If your industry is one of them, you should seriously consider making an attractive compensation package including an above the market rate, bonuses, paid leaves, health benefits, retirement plans, and insurance among many others. An employee should fully understand his employee benefits to ensure that both the employee and employer are on the same page.
- Insurance
Not all companies offer life insurance to their employees. However, incorporating insurance into an employee package can significantly attract new employees as well as keep the existing ones. Some of the most common insurance policies offered by an employer include life insurance, workers’ compensation, disability insurance as well as retirement plans.
- Training and development support
Employees are often looking for opportunities for advancement. Hence, a lot of companies are willing to sponsor trainings to enhance the skills and professional development of their employees. Trainings will significantly help employees sharpen their skills and learn new techniques as well.
Some companies pay for their employee’s training or reimburse their schooling. Many also send their employees to attend conferences and are sponsored by the employer. Employees who feel that the company is investing in them by helping them grow so they can do better at work will appreciate this. At the same time, it can also build a stronger sense of loyalty to the company.
Common Types of Insurance Offered by Employers
Not all insurances are mandatory for employers. However, it is always best for employees to understand the different types of insurance offered by employers. This additional benefit can attract a potential employee and may become one of the reasons why they choose your company over your competitors.
Helping them understand how each type of insurance policy works can also add more value to their work and productivity, especially if they know how they can benefit from it. Get in touch with Save Corporation Tax to know more about the most ideal insurance plans for employees.
- Life Insurance — A group life insurance usually offers smaller terms enough to cover certain expenses that are often equal to the amount of an employee’s one-year salary. Even though the benefits may be smaller, employees are not required to undergo a medical exam which makes it easier for them to acquire insurance.
- Healthcare Insurance — A lot of employers offer group healthcare insurance with varying plans. It can include basic coverage or a more comprehensive plan. In most cases, companies offer different options wherein an employee can select the type of insurance more suitable to their needs.
- Workers’ Compensation — Some states may require businesses to have workers’ compensation while others may not. Often, it depends on the company’s number of employees. This insurance pays for medical expenses in case the employee gets injured while performing his job. It also covers part of the employee’s income while he is unable to work.
- Disability Insurance — If an employee suffers a serious illness or injury and is unable to come back to work, this insurance can help replace his income. However, the policy must cover the illness or injury indicated in the terms.
The Importance of an Employee Retention Strategy
In case you don’t have a strategy yet, it’s time to come up with an employee retention plan. It can positively impact your company by increasing productivity, quality of work, and employee satisfaction. All these factors contribute to the overall success of your business. Each company uses its own strategy depending on what works for them best and not all businesses follow the same model.
However, what they all have in common is that they make it a point to invest in their employees to ensure that have the best experience with the company. At the same time, companies who know how to value their employees have a higher percent of keeping their employees.
An employee who has been with the company for a long time is an indication that they are valued by the company and that their knowledge in the business operations is one of the reasons for the company’s success. There are different forms of retention strategies including opportunities or career advancement, salary increase, bonuses, educational and training support, insurance packages, and many more.
These benefits show how an employer recognizes the achievements and hard work of the employees. It also fosters a good relationship between the employer and the employees. This helps strengthen the loyalty of the employees so they will continue to work for the company.
Conclusion
Now that you understand the importance and need of having an employee retention plan for your company, it’s crucial for employers to follow the tips above when planning for a strategy. An effective employee retention program promotes the success of the company, especially when your industry has heavy competition.
Having quality employees will produce better service which will benefit the company, the employees, and the customers. At the same time, businesses will be able to sell their products and services better compared to other companies that have a lower quality output. In most cases, some of your competitors may offer better packages and take away your key employees.
Hence, by protecting your employees, you are also protecting your trade secrets. An attractive, supportive, and good working environment can separate you from your competitors.
