The Great Resignation has arrived. If you’ve never heard this term before, it refers to the mass exodus of employees that’s been happening in the workforce since the beginning of this year. Data from the U.S. Department of Labor report that April, May, and June of 2021 saw a massive 11.5 million workers leave their jobs—and the momentum hasn’t stopped. Microsoft discovered that 41% of surveyed workers are thinking about quitting, and according to research from Monster, 95% of employees are looking to make a transition.
The COVID-19 pandemic served as a major catalyst for the trend. Pandemic-related business restrictions drove one of the most significant recessions in United States history, resulting initially in business closures and layoffs, and now, employers struggling to fill their open positions.
So what are employers to make of all this? While the situation may look bleak, it isn’t hopeless. There are many ways you can utilize your company’s benefits package to stand out from the competition and reduce the risk of turnover in your organization. In fact, benefits are so important that Glassdoor recently discovered 80% of new hires would take a better benefits package over a pay raise. According to research by the Society for Human Resource Management, employers across the board are upping their game in 10 primary categories (in order of prevalence):
1. Wellness
2. Health-Related Benefits
3. Career Development
4. Employee Programs and Services
5. Flexible Working
6. Retirement Savings and Planning
7. Leave
8. Family-friendly Benefits
9. Housing and Relocation
10. Business Travel
Health care was found to be the most highly-coveted benefit (40%), followed closely by retirement savings (30%), flexible scheduling (a.k.a. remote work), and pension (31%). While different employees might rank specific benefits differently, all of these numbers point to one core truth—employees want to feel their employers are invested in them. Employees who have this assurance have been found to be more involved in their jobs and stay longer at the companies they work for, resulting in better performance and lower rates of turnover for their employers.
In such a time as the Great Resignation, being in tune with employee demands and offering competitive benefits is crucial to remaining in the game. An attractive 401(k) plan can be a great place to start. In addition to showing employees you care about their financial wellbeing, a 401(k) offering can often be the difference between an employee choosing to work for you over another company with a similar salary offer. Furthermore, the highly-coveted 401(k) plan is a desired benefit for virtually all top talent, making it harder for employees to consider leaving your company down the line. While there are many factors to consider when designing your company’s 401(k) benefit, industry-standard advice includes offering immediate eligibility and an employer match to best appeal to talent.
Employee turnover and unfilled roles are huge expenses for any company. The cost of recruiting and training a replacement can be astronomical, and there is significant risk associated with going through that whole process if employees aren’t going to stay long. However, there are things you can do to tip the balance back in your favor, many of which involve your company’s benefits package.
At the Segrust Group, our focus is on guiding employers through the world of benefits to design a plan that works for them. We can help you put together the pieces of a benefits package that attracts the type of talent you want, and provides the most incentive for them to stay at your company over the long haul. To get started on your ideal plan, contact us today.