Benefit Your Peeps with What They Value Most
It’s acompetitive world out there, isn’t it? The job market is fluctuating, andbelieve it or not, some employees still choose to switch jobs despite the WallStreet prognosis of our economy. Gone is the golden age when a person hired andretired from the same company. Longevity is no longer valued by eitheremployees or employers as it once was, and it affects your business inunexpected ways.
A recent USI cited study estimated that in this COVID environment, the cost of hiring and training a new employee is six to nine months of a salaried employee’s wages. Suppose you are hiring someone at $60,000…that would be a chunk of $30,000 to $45,000 costs in recruitment and training. Ouch! Is that the high end or the low end? The Center for American Progress estimated that an entry level job can cost an employer 16% of annual salary for a high turnover role. The cost to replace an employee earning $10/hour would figure at about $3328. The price goes up to 20% on midlevel employees, roughly $8,000. Look at the high and the low end and you’ll come to this conclusion: No business can sustain that right now. It behooves a company to find ways to keep and supplement their hired hands.
So why are people leaving? A key reason is money, as suspected. A valuable employees can earn a modest pay increase if he/she stays with you, or a leap in take home pay with a new hire. It’s hard to compete with that. Another reason folks switch jobs is to gain new experience and expand their resumes. Again, it’s hard to justify switching roles every few months when you’re factoring in the time and money to accommodate those changes. Sometimes people just leave because they can’t get along with the boss…and if that’s you, it is worth thinking about ways to woo and keep your employees.
Thecliché of the gold watch belongs in a bygone era, thank goodness! Launchwayslisted what employees are looking for these days, and it’s not your daddy’s HRbenefit plan:
Student loan assistance is a biggie.
Financial wellness programs, ensuring a hopefulfuture
Flexible work schedules
Flexible PTO scheduling, unlimited PTO asopposed to a capped vacation
Opportunities for advancement
Health benefits
Does it really matter? A studycited in Bravosuggested that 80% of employees would stick with a job despite the salary ifthe benefits were just a tad more tempting. Offer the usual fringe benefits, butconsider a few more creative gems. You can do this by giving your employees avoice. Listen to their suggestions. Not everything has to be out of your pricerange or insanely difficult.
Ask simple questions: Would you prefer a 3%raise and a free cruise for you and your companion, or would you prefer a 4%raise this year? You can always book multiple cruises at a cheaper rate andleave the details to a local travel agent.
Offeryour peeps a chance to job-share and develop new skill sets. You won’t loseproductivity as much as you will have a better pool of employees.
Create a healthier culture. Gym memberships and an open door policy facilitate health and morale…both valuable commodities.
Bringin outside help to lighten the load. You can outsource company newsletters,blogs, Facebook marketing, and content writing without paying benefits orincreasing your employees’ workload.
That open door and open discussionis vitally important. People are bored with current life restrictions and tiredof uncertainty…but a new job isn’t going to cure that. Keep them from jumpingoff the ledge with compassion and a listening ear. The bottom line is simple:Keep your employees and save money!