The Impact of Employee Benefits on Recruitment and Retention

In a competitive labor market amid an uncertain economy, responsible organizations must maximize cost-efficiency and streamline operations. Employee turnover and poor job satisfaction can be significant detriments to such aspirations, potentially forcing your company to unnecessarily spend time and money on recruiting, interviewing and onboarding. Understanding how employee benefits can curb such spending through optimal attraction and retention is key.

What Employee Benefits Should My Company Offer?

Employee benefits refer to various programs, opportunities and alternative forms of compensation that may subsidize your staff’s direct wages or salary and offer greater incentives while potentially improving their employment experience. Although every employee’s ideal benefits package may be unique, organizations often find offering the following valuable:

• Health insurance

• Life insurance

• Disability insurance

• Retirement plans (e.g., 401k plans)

• Student loan reimbursement programs

• Flexible working hours

• Paid time off

• Education and skill development opportunities

• Wellness incentives

• Vision insurance

• Dental insurance

• Pet insurance

How Can the Right Benefits Help Attraction and Retention?

Offering a desirable employee benefits portfolio can reap a multitude of advantages for your organization, including helping you hire, develop and retain top talent. Consider the following ways optimal offerings might help:

• Greater compensation—Certain benefits, such as health insurance and 401k plans, can provide measurable financial value, with some employees even valuing ideal offerings over higher direct pay.

• Increased job satisfaction—When employees feel their employers have their best interests in mind, it can contribute to better workplace morale and organizational culture.

• Higher engagement—Employees given opportunities to grow and learn, such as through a benefits portfolio’s educational and skill development components, may remain more passionate and dedicated to their work.

• Improved health—The right benefits can help employees maintain their wellness, potentially enabling them to remain with the company and continue working even through injuries, illnesses and other hardships.

• Better work-life balance—Employee benefits, such as flexible schedules, remote work environments and paid time off, can help staff manage other obligations while remaining committed to their jobs.

We’re Here to Help

Contact BenefitsDrive in Vienna, Virginia, today to learn more about employee benefits and their impact on attraction and retention in your organization.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.