Employee retention, in today’s high-stress environment, has more to do with benefits than with bonuses.
Attracting and retaining a talented, committed workforce in the automobile industry has never been more important than it is today. Research shows that an employee’s attitude toward his health and retirement program is related almost directly to his or her choice of employment and overall morale and level of engagement in the workplace.
A Towers Watson report shows employers with effective wellness programs perform 55 percent better than their industry peers, with higher average revenue per employee, and lower turnover rates.
Employers that are able to place an emphasis on health and retirement benefits for their employees have a great potential for hiring individuals who will bring value to their organization and retaining those who have been long-standing team members. Studies show that employers whose benefits programs meet the needs of the employees enjoy a competitive advantage in a congested automobile marketplace.
Addressing employee concerns
Employee concerns over rising healthcare costs have made many of them look towards their employer benefits, and studies show that those employers who offer programs experience sustainable engagement within their team.
There are a number of components to a traditional employer healthcare program… let’s look at the most common:
Life Insurance: Most often offered as a multiple of earnings or a flat amount, it is usually the most economical of all the components and offers an employee the assurance that if a death should occur, a specific amount will be paid to his/her beneficiary.
Accidental Death and Dismemberment: A partner to the life insurance benefit, it provides that should an employee die as a result of an accident the amount of insurance will double. The dismemberment portion of the program offers a varying payment to the employee should he or she lose a limb, experience a loss of hearing or sight etc. as a result of an accident.
Dependent Life Insurance: Usually a flat amount of life insurance made available to your eligible dependents.
Extended Health Care: This is one of the cornerstones of any benefit plan. It is divided into several parts health services, medical equipment and supplies, registered specialists/therapists and prescription drugs.
Short/Long-Term Disability: Whether the absence is short or lengthy, productivity can be disrupted. These two benefits provide protection for the employee and employer from financial strain by providing benefit payments equal to a portion of their salary.
Vision Care: A benefit that provides savings on eye exams, glasses and contacts.
Dental Coverage: The other cornerstone of a benefits plan. It helps employees pay for eligible dental expenses that are provided by a licensed dental professional
Many companies ask a lot from employees in recent years, including working longer hours and taking on added responsibilities. The toll can be stress and burnout. Employees want more financial security for greater effort. Health and retirement benefits are part of the foundation of a reward package. Employees are in favour of employers taking an active role in their health and retirement saving.
Willis Towers Watson released their Global Benefits Attitudes Survey for 2015 and found that health and retirement benefits rank second and third on a list of what employees value.
Note that three-in-10 would choose an enhanced retirement or health program over additional pay. The survey went on to say that employees place great value on an employer driven retirement program that is not impacted in a major way by market forces. There is an element of vulnerability amongst employees that they generate a strong desire for security. The study goes on to say they are prepared to pay for that security.
Clearly, there is a definite link between benefits for employees and an employer’s ability to attract and retain employees. The competitive advantage is built in part on a stable workforce, and the potential for growth rests in part with the ability to develop a talented workforce that provides the edge all businesses seek.