Employee Retention – How do Flexible Benefits help?
A businesses’ ability to retain employees, and prevent or reduce the number of employees who choose to leave the business, is known as Employee retention.
Being able to increase, or having high employee retention has a positive impact on business performance and the overall success of the business, it helps the company to reduce productivity losses, as happy and engaged employees are more likely to build and maintain customer relations and are known to be more productive.
Generally, according to research, an employee retention rate of 90% or more is classed as good.
High employee retention rates are usually found in industries such as:
Low employee retention rates are usually found in industries such as:
Ways to Improve Employee Retention
Employers can do various things to improve their employee retention, these include strategies such as:
- Ensure you have a good onboarding programme for new starters
- Invest in employees and their training and development
- Introduce flexible working practices to help prioritise work-life balance
- Flexible benefit packages
- Good communication to all employees
- Recognition and reward processes
- Performance Management
- Well-being support and Employee Assistance Programmes
- Having good and attractive employee benefits can help with employee retention rates. Companies that have competitive and attractive benefit packages for employees can assist in retaining employees at the Company and therefore resulting in employees being less likely to want to leave the Company, this is due to them feeling engaged and proud working for the Company.
How do Flexible Benefits help increase Employee Retention?
Flexible benefits allow employers to provide a variety of benefits to their employees to which they can pick which ones they would like that suit their personal circumstances.
A flexible benefits scheme can contain a range of benefits for employees, which can include optional and non-options benefits which are usually core benefits that are available to all of the employees.
Flexible Benefits can include:
- Gym membership schemes
- Trading of annual leave entitlement
- Cycle to Work Schemes
- Child-Care Benefits
- Private Medical Insurance
- Share-Save Schemes
Offering employees flexible benefits has become more popular with employers over the last few years, as employees needs have changed hugely over the years, and flexibility with every aspect of employment is key to helping employees with their lifestyles and work-life balance.
A standard benefits package for all employees no longer meets the needs of all employees, by implementing flexible benefits it allows employees to ‘pick’ which benefits suits them or which benefits they want and therefore can lead to higher employee engagement and good employee retention.