|Thursday, July 17, 2014 ― Vol. 13, No. 7|
|Employee Benefits | Hiring | Human Resources | Retirement | Risk Management & Safety | Healthcare Reform|
Help employees with their financial security to improve productivity and retention
It is commonly known that employees who don’t have to worry about healthcare or financial issues are more engaged, productive, loyal and in the best position to help grow your business.
Recent studies show that employee financial security is impacting company performance more than ever. For years, employers have improved their employees’ productivity and retention by enhancing their financial fitness. In addition to their pay, how are employers helping personnel stay financially fit?
Retirement is the obvious choice for future financial security, but today more employees are counting on other employer-paid and voluntary benefits to help make ends meet. According to a 2014 MetLife study:
The link between healthcare and financial security
As the cost of healthcare increases, so will the link between financial security and your health plan. Top talent will race to employers who help them the most with healthcare.
While employers don’t perceive a strong connection between their health plan and an employee’s finances, a MetLife survey shows 64% of employees say health coverage is “important for achieving financial security.” When making employment decisions, employees will consider the cost and quality of the health plan.
Financial security leads to lower turnover
According to the United States Department of Labor, the average voluntary turnover rate is 21%. A study published this year in Harvard Business Review indicates that businesses offering long-term financial security to employees have less than half industry averages in turnover.
That means these employers have lower hard and soft costs related to turnover. The hard costs include administrative expenses, recruitment, hiring and training the new employee. The soft costs are more difficult to quantify as they include lost expertise and knowledge, decreased productivity, disruptions in workflow and missed deadlines.
Improve your corporate brand with the right benefits
Organizations are looking for new ways to foster loyalty among employees. Employers who add value to existing benefits programs and provide new offerings will maintain or establish the organization’s position as an employer of choice.
Promoting employee financial security is a reliable strategy. There is a correlation between employee satisfaction, financial security and benefits. Of the employees in the MetLife study who say their workplace is great, 69% say the benefits meet their needs.
Most employee benefit programs are equal to 30% or more of an employer’s total compensation package. Consider how important it is to ensure your compensation and benefit offerings are not only competitive, but are communicated properly to attract and retain top talent.
For more information, contact us at 800-258-3190 or info@AssociatedFinancialGroup.com.Top
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