Compensation involves far more than just wages and salaries. Today, it takes more benefits to attract and retain the best quality of employees. Your human capital is what determines the success or failure of your business. Ideally, you need to offer amazing employee benefits that are better than your competitors’ benefits. Things like employee discounts and tuition assistance can lure top employees away from your competition.
With a few changes to your benefits program, you can start enjoying better retention rates and lower turnover rates.
1. Tuition Assistance
Younger workers are concerned with college debt. Today, 66 percent of students graduate from public colleges with student loan debt. On average, public students end up with $25,550 in debt when they graduate. This is 25 percent higher than it was in 2008. Students who go to private, non-profit colleges have a 75 percent chance of having debt.
Student debt is a concern for your employees, and it can lead to potential conflicts with their job goals. Many people have to work multiple jobs in order to handle their college debt. This means your employees could be exhausted or thinking about their other job while they are supposed to be working for you. Some companies are already addressing this issue by offering tuition assistance. Employee benefits like tuition assistance make your employees interested in remaining at your company.
Tuition assistance can include options like offering to pay for the student’s ongoing education. You could also offer to pay off existing debt. If you want to reduce your employee turnover, you can try paying off a set amount of student debt for every year that the employee stays with your company. As a result of this kind of program, you can enjoy better employee satisfaction, lower turnover rates and a more committed workforce.
Tuition assistance is one of the key ways to attract a young, educated workforce.
2. Employee Discounts
A great way to improve employee retention strategies is to offer employee discounts. This really is one of the best employee benefits. When you make paying for day-to-day products and services easier, it makes your employees more satisfied. An estimated 92 percent of employees say that getting benefits boosts their overall job satisfaction.
You could use discounts in a variety of different ways. If you sell a product your employees might want, you could obviously give them a discount on your company’s products and services. You can also offer outside discounts. For example, give your employees a discount to gym memberships and wellness programs. In addition to making your employees happier, these options could also improve their overall health. You could also offer discounts on day-to-day items like public transportation, travel discounts, educational classes, and other options.
Employee discounts are a quick way to add value to your employee benefits package.
3. 401(k) Plans
A 401(k) plan is an important benefit for you and your employees. According to one survey, the majority of employees wanted help with their retirement planning. Unfortunately, only 16 percent of companies say that they are very confident their workers will be prepared for retirement. Unfortunately, the Internal Revenue Service (IRS) estimates that the average person needs 80 percent of their current income to retire comfortably. Once your employees retire, they may live for another 30 years or more. Social Security only provides an average of $1,200 a month per person.
Once your employees have a 401(k) plan, they will be less likely to switch employers because they do not want the hassle of moving their retirement account. In addition, they would lose any future employer contributions. You can also benefit because tax credits and other incentives can lower the costs of starting a 401(k) plan. Your contributions will also be tax-deductible.
To make sure your plan helps your employees, find the right company and set up an account for your business. Notify all of your employees about the plan and how to join it. Encourage your employees to join by educating them about the benefits and matching contributions.
If you want ideas about creating a retirement plan, you can learn from top companies like Boeing and Conoco Phillips. These two companies are known for having the best retirement plans available today. Both companies offer excellent employer contributions as well as top investment options like index funds.
401(k) plans take some time to set up, but they pay off through higher retention rates and better engagement levels.
4. Paid Time Off
Paid time off might not be a federal requirement, but it is one of the best things you can do for better employee retention and engagement. Studies show that paid time off leads to better productivity, lower stress levels, and better mental health. If you want satisfied and engaged employees, you need to give them a mental break to recuperate. To make sure your employees make the most of this benefit, make it a requirement to actually use paid time off each year.
With paid time off, you can improve your employee satisfaction levels while reducing mental burnout.
Wrapping it Up
The right employee benefits make a difference in your company’s satisfaction levels. When employees are satisfied, they are less likely to look for a new job or quit. In addition, better benefits improve productivity and morale in your workplace.