Your employees’ health and wellness are crucial determinants of employee retention at the workplace. You aren’t alone in worrying about employee turnover; a survey of 572 HR leaders in 2021 shows that 91% are concerned about turnover. People instinctively feel the pain of a superstar at the workplace leaving and the cultural challenge and gap associated with a good employee departing.
Employee turnover is expensive; an exit can cost the company 1.5 – 2 times the employee’s salary.
Health benefits increase employee retention by targeting their social, mental, physical, financial, and emotional well-being hence increasing:
- Job satisfaction
- Productivity as highlighted below
Improve Job satisfaction
Employee job satisfaction is the extent to which employees feel contented, self-motivated, and satisfied at the workplace. It includes job stability, career growth, and a satisfying work-life balance. With changing economic times, employees yearn for more at the workplace, and you must design competitive benefits packages to retain top talent and reduce turnover costs.
According to SHRM, workers feel that choosing health plans is essential and would like more options. Health insurance and benefits are critical in winning the talent competition; companies that offer the best reap the most talented and promising employees. A study revealed that 6 of 10 workers who are extremely satisfied with their benefits are also extremely satisfied with their job.
Job satisfaction is inversely related to turnover—the higher the job satisfaction rate at your workplace, the lower the turnover costs.
Employee engagement is when an employee feels they are positively contributing to your company’s shared values, vision, and mission. Employee engagement is vital to the growth and retention of your workforce.
Engaged employees are happy, more productive, motivated, and are more likely to stay with their current employer amidst looming offers from other companies. Engaged employees are more likely to be brand ambassadors for your company, increasing profitability.
A survey of 19000 employees and HR leaders reveals that the most satisfied employees estimate their level of engagement as 11.5% higher than the average and 23.5% higher than the least satisfied employees.
Further, the SHRM Employee Benefits Report of 2018 denotes that 92% of employees appreciate the value of benefits and engagement to their overall job satisfaction. Feelings of appreciation, care, and contribution to the company’s affairs connect employees to the organization, leading to higher retention rates and lower turnover costs.
Healthier employees are more productive, which increases the ability of your company to grow. Companies that support workplace health programs have a higher chance of employees being present for work every day, which lowers the rate of absenteeism and the costs associated with the replacement of the sick employee.
Preventative medicine helps stop issues before they become severe and impact your company’s productivity.
A survey by Health Enhancement Research Organization reveals that more than 90% of business leaders believe that promoting the health and wellness of employees can affect employee performance and productivity.
Health benefits are viewed as an investment in human capital to control health care costs and enhance long-term value from good employee health. Increased retention through engagement and job satisfaction means less productivity drain when new hires have to get accustomed to their jobs.
Attractive Health Benefits Equals Employee retention
Today, the world is a battlefield of talent acquisition, and employers cannot underestimate employee benefits’ value. Employee benefits are a powerful channel to communicate to your employees that you support their well-being and care for them inside and outside the work environment.
Health benefits are just the start of an excellent benefits package. Consider other core benefits, like retirement plans, to cushion your employees after retirement. Disability insurance is also vital for employees’ safety and for creating an all-inclusive, non-discriminatory work environment. Flexible work hours, leave days, and work-from-home packages are crucial in encouraging a healthy work-life balance.
The right mix of health insurance and other job benefits cuts retention costs while improving productivity, engagement, and job satisfaction. Improving health benefits ensures your company keeps employees for the long term.