As the economy recovers and improves, the unemployment rate continues to decline. This means potential employees are being more judicious when it comes to accepting job offers. A competitive salary is no longer enough to attract and retain talent. Employers need to revamp their benefits package if they want to maintain their workforce.
The Cost of Employee Turnover
Losing an employee is more than reduced personnel. The loss affects morale and overall productivity as well—both of which can cut into the company’s profits. Reports show that employee turnover costs the company slightly more than 1/5 of that employee’s annual salary. This includes a loss in efficiency plus the time and cost of hiring and training a new employee.
For an employee making $100,000, this equates to slightly more than a $20,000 loss. That is enough to bring start-ups to the verge of collapse and hinder small to mid-size businesses. Large corporations with employees earning significant salaries face an even bigger financial loss. While they are often robust enough to withstand the financial setback, too many turnovers can become a liability.
Innovative Benefits to Attract and Retain Employees
The obvious solution is to prevent employee turnover whenever possible. However, this can be a difficult task to achieve. One way to put your business above the competition is with a healthy benefits package featuring unique options. An example that is rising in popularity is pet insurance. This may seem like a frivolous expense but consider the facts. About 65 percent of households own a pet. These pets get sick just like humans, except the owner must pay their pet’s medical bills out of pocket. Pet insurance helps pay for these medical bills including preventative care.
Offering unconventional benefits can give your company a competitive edge over those that do not. Optional packages like pet insurance may seem odd, but they are gaining ground in the workplace. One investigative report found that 68 percent of surveyed employers offered pet insurance. Employees are comparing benefits packages, so now is the time to distinguish your benefits from the competition. To learn more about incorporating benefits into your hiring strategy, contact the experts at Chelten Consulting.