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How Does Employee Turnover Impact Your Business?
Article originally posted on www.insuranceneighbor.com(opens in new tab)
A loyal, dependable workforce is a critical aspect of business success. When a company is experiencing a high turnover rate, it is imperative that you discover what is driving the exodus before it worsens. The costs of employee turnover to a business are more than financial, and include the following:
Workplace relationships are important, and when a valued employee leaves, it impacts the morale of the entire team. An employee who moves to another company and who has built strong relationships often stays in contact and may urge other team members to leave. Your employees may be forced to cover the duties of lost personnel, with added stress and reduced work satisfaction.
Work performance suffers.
New hires require training to become fully integrated and functioning, and the entire team production can take a downturn when a seasoned employee moves on. Less experienced employees are more likely to make errors or perform at a slower pace, significantly impacting your bottom line.
HR is overwhelmed.
Your HR department must now place ads to attract new candidates, schedule interviews, select candidates, onboard and train them, at a high cost.
Confidence in management is reduced.
When a company has a high turnover rate, it reflects on the skills of management, with employees feeling less confident, less satisfied, and more concerned about a future with the company.
Destabilizes the workforce.
A work team is often destabilized when critical personnel leaves. The company culture can shift from positive and confident to fearful and uncertain about the future, leading to more turnover.
Benefits Packages and Employee Retention
The benefits you offer your employees can make the difference between a workforce that will stay with your business for years or constant turnover. In a competitive work environment, the more appealing the benefits package you offer, the better. Employees may choose to leave for other employment simply for the benefits package. The top talent in your industry expects more – do you offer a benefits package that will attract the best of the best? A full benefits package could include:
- Group health insurance: Quality group health insurance is arguably the most important of all employee benefits. When choosing a group health plan, ensure you know what your employees need and want, rather than putting a “one size fits all” plan in place. The more options for customization that you offer, the better. The quality of your group health plan can be a deciding factor for new hires, and for retaining the best talent.
- PTO: Paid time off has become an attractive option, as employees can use their PTO days for whatever they want, rather than the traditional model of vacation days, personal days, or sick days.
- Dental and vision insurance: Dental and vision insurance can be some of the most valued benefits.
- 401K matching contributions: Matching your employee contributions (to a specific limit), is one of the benefits most appreciated by your employees. These plans can be designed in a manner that the employer-matched funds are only vested after a certain number of years, as an incentive to stay.
If you need to update your group health insurance, the cost is always a factor. Connect with one of our local agents for guidance. We will work closely with you to identify a group health plan that works best for your budget, and for your employees.Filed Under: Group Benefits | Tagged With: Employee Benefits, Group Benefits