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Posted by: Altura Benefits in Insurance Money
Workers keep quitting. If you want to keep your workers, it’s time to take a serious look at your benefits package. You might need to up your game.
The Bureau of Labor Statistics says that 4.0 million workers quit in July, while the number of open jobs was 10.9 million. CNBC’s Q3 2021 Momentive Small Business Survey found that nearly one-third of small business owners report having open job positions that they haven’t been able to fill for at least three months.
Around the country, there have been reports of businesses closing or reducing their hours because of worker shortages. Some other businesses have managed to stay open, but they’ve had to ask customers to be patient as staffing shortages cause delays. You may have seen some of the signs yourself.
In addition to putting daily operations in jeopardy, high turnover rates can also increase overhead costs. For small businesses, the average cost of training a new employee exceeded $1,500 in 2019, according to Investopedia. And training costs are just part of the equation. The direct and indirect turnover costs associated with an employee earning $8 per hour could come to around $3,500.
Workers are quitting for many reasons. Some feel forced to quit because they don’t have affordable childcare options. Others are burned out or fed up with their positions. Some feel they’re being taken advantage of, and they don’t want to work until they’re given the compensation they believe they deserve.
The right benefits can help with all of these issues.
Great benefits aren’t quite a silver bullet. If your workers have decided to open up their own business, or if they’ve won the lottery or inherited a fortune from a long-lost uncle, even the best benefits package in the world might not convince them to stay. But for many workers, generous benefits might be exactly what they need to stick around – and lackluster benefits might send them looking for greener pastures at another company.
A survey from Digital.com found that 44% of Americans who quit did so because they want better pay and benefits. That’s a lot of workers. And while cash is great, benefits may be in even higher demand. According to Glassdoor, 80% of employees prefer additional benefits over a pay raise.
So, be honest – are the benefits that you offer enough to keep workers around? Or are you giving your workers one more reason to join the Great Resignation? Don’t rush to answer. While you consider the question, here are some benefits to look at.
Health insurance is a staple, and for good reason. Many Americans depend on job-based insurance coverage. According to Gallup, one in six adult U.S. workers who get their primary health insurance through a job say they are staying in a job they might otherwise quit because they don’t want to lose their coverage.
Simply offering some health insurance might not be enough, though. If employees don’t like the coverage, they might not be convinced to stay. Here are some elements to consider:
According to ThinkAdvisor, a 2020 study found that 62% of Americans were more concerned about retirement than they had been just one year earlier. Many Americans are worried about saving enough for retirement, so a good retirement plan might give them another reason to stay.
The Bureau of Labor Statistics says that 67% of private industry workers had access to retirement benefits through their job in March 2020. Most employers that offer retirement plans offer defined contribution retirement plans, but some offer defined benefit retirement plans, and some offer both.
Employers have many different types of retirement plans to choose from, including 401(k) plans, 403(b) plans, SIMPLE IRA plans, Simplified Employee Pensions, profit-sharing plans, employee stock ownership plans, and more.
In addition to health insurance and a retirement plan, your employees may expect a few more common benefit staples. Here are some important insurance products to consider:
One in five U.S. adults has a mental illness, according to the National Institute of Mental Health. Even more Americans experience high levels of stress. The 2020 Stress in America study found that 84% of adults reported feeling one or more emotion associated with prolonged stress, such as anxiety, sadness or anger, in the prior two weeks.
Many workers are quitting because they feel stressed and overworked, so this is something that employers should think about.
The right benefits can help employees deal with stress and mental health:
Childcare has always been an issue for working parents. Because many schools have switched to remote classes during the pandemic, it’s become even more of a struggle. If employers want to retain working parents, they may need to help employees with childcare.
To make your company stand out in the talent war, you may want to consider additional benefits that appeal to your workers. Here are some ideas:
There’s a lot to consider as you build an appealing and affordable employee benefits strategy. We can guide you through every step of the process and help you design a plan that works for your budget.
Contact us to learn more or check out our Google Reviews to see why clients give Altura Benefits a 5-star rating.
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