Loyalty is a two-way street. Companies that fail to provide good benefits will see their employees take a hike in the opposite direction. As the job market strengthens, your business will find key workers migrating to competitors if the benefit plan selection is inadequate.
Don’t think that your business can get away with skimping on benefits. According to “Declining Employee Loyalty: A Casualty of the New Workplace,” published by Knowledge@Wharton, the quality of benefits has a direct impact on employee loyalty:
Whatever the actual figures, some employees are clearly feeling disconnected from their work. Among the reasons cited for this: the recession, during which companies laid off huge swaths of their employees with little regard for loyalty or length of service; (and) a whittling away of benefits, training and promotions for those who remain.
Workers want to feel valued. Offering inadequate benefits can hurt employee productivity. According to Indiana University Health, the perceived value of benefits influences employee satisfaction:
Similar findings emerge from MetLife’s 13th Annual U.S. Employee Benefits Trend Study, which found that employer empathy drives employee loyalty; and a robust benefits offering coupled with perceived employer empathy leads to a more satisfied and loyal workforce. In fact, when employees worry less about their wellness because of their benefits, they are far more likely to be satisfied with their jobs.
The most popular benefits for employees include health insurance, retirement savings plans, paid time off, and flexible and/or remote work. Many small- to medium-sized businesses may not be aware of the different types of benefit plans that are available. When you decide to offer your employees new benefits, the employee benefits professionals at Progressive Employer Management Company can help you choose the right plan that fits your business needs.