Employee retention is essential to the success of any business. Retaining top-performing employees can help lower turnover rates and decrease the costs of recruiting, training, and onboarding new staff members. Offering benefits and perks like health insurance is one of the best ways to boost employee retention.
Lower Turnover Rates
Employee turnover costs organizations a lot of money. Whether it’s the expense of recruiting and training new employees or the lost productivity of a revolving door, it’s costly to businesses with high turnover rates. High turnover rates are mainly caused by job insecurity, which frequently forces workers to seek new opportunities. This can create a toxic work environment that drives good employees away. Additionally, inflexible working hours are another significant factor contributing to employee turnover. To lower the turnover rates, companies can offer fully remote or hybrid positions as more and more employees seek flexible work arrangements. Expanding employee health benefits can significantly improve employee retention. Providing access to quality healthcare helps employees stay happy and engaged at work. Payers that offer a comprehensive wellness program, including free primary care and health coaching, can drive higher member engagement and lower turnover rates. Unlike perks and special events, which can lose their appeal to employees, health benefits are a highly valued benefit that improves employee retention. This translates into more significant revenue and improved productivity for payers who can deliver an engaging experience to their members.
Increased Employee Engagement
Employee engagement is a term used to describe how invested employees are in the goals and success of their organization. Employees engaged with their company care about their work and are likelier to help their colleagues. They are also more likely to perform at a higher level. A recent study found that disengaged employees have a 24% lower productivity rate than engaged employees. Keeping employees engaged in their jobs is essential to decreasing turnover rates. Turnover is expensive and can impact a company in several ways. There are hiring costs, lost productivity, training costs, and a loss of morale from other employees. It is estimated that replacing them costs one to two times an employee’s annual salary. Companies prioritizing employee satisfaction and creating a healthy workplace culture have lower turnover rates. These companies understand that high turnover is costly in the long run. They realize that recruiting and training new employees takes time, energy, and money. It is also challenging to create a cohesive team when a company has so many different employees. Creating an engaging workplace requires more than just making employees happy and content. It is a complex process that involves listening to employees and catering to their needs. Employees want to be recognized for their efforts (emotional needs), feel energized by their colleagues and the workplace environment (physical needs), and are interested in learning new things (growth needs). When these needs are met, workers become highly engaged with their jobs.
When designing an employer-sponsored group health plan, it is essential to consider employee retention. This factor impacts corporate performance, company culture, and employee satisfaction. A good retention policy is designed to keep employees happy, motivated, and engaged in their jobs. This, in turn, can lead to better work quality, increased productivity, and higher customer satisfaction. Persistent turnover is costly for companies. According to one estimate, recruiting, hiring, and training a replacement can cost 1.5 to 2 times an employee’s salary.
Additionally, it takes time for new hires to adjust to the workplace and build relationships with customers and coworkers. In addition, a company that experiences frequent turnover can suffer from low morale and poor workplace culture. Researchers have found that the benefits of employee retention are substantial and measurable. Employees who stay with a company for a more extended period become familiar with its processes and procedures, which can increase their efficiency in the workplace. Additionally, they may have built strong relationships with their coworkers throughout their tenure and can contribute to a positive team culture.
Payers that offer attractive employee benefits such as free primary care and access to health coaching can encourage employees to take ownership of their wellness.
Increased Employee Satisfaction
Employee satisfaction is a critical aspect of business success. Employees who are satisfied with their jobs are happy to come to work and feel aligned with their professional lives. When employees are satisfied, they are less likely to leave their employer, which saves time and money in recruitment, hiring, and training. Increased employee satisfaction can result from many different factors, such as salary, benefits, and work-life balance. However, the most effective way to measure employee satisfaction is through surveys. Employee surveys allow businesses to understand what is working and what needs improvement, which enables them to make meaningful changes that will impact employee retention. The key drivers of job satisfaction are often related to company culture and internal communication. Employee satisfaction can be increased by promoting mental health, offering flexible work hours, and encouraging open communication within the organization. These aspects of company culture are crucial in ensuring that the remaining employees are engaged, satisfied, and productive. A large portion of a business’s revenue is derived from its employees, so maintaining employee retention is a top priority for most companies. High turnover rates can be costly and detrimental to a business, especially when the company loses talented and hard-working employees who are critical to its success. Employee retention is complex but can be easily improved with practical strategies and proven tactics.