According to a recent Employee Benefits News article, executives from two of the top 10 companies ranked for employee financial wellness by Principal Financial Group, benefit programs can be closely linked to retention and customer satisfaction. Good health care and retirement may be attractive to new hires, they say, but the real return on investment is retaining talent and nurturing an employee within the company.
This raises an interesting question–are your benefits more about retention than attracting top talent?
Pamela Peterson, Vice President of Human Resources for Davidson Technologies, has a turnover rate of only 4%, which keeps production “on solid ground.” Retaining the right people keeps customers happy. They continue to experience high levels of satisfaction by working with the same, highly educated and skilled workers.
When it comes to attracting the right employee, benefits play a significant role there too. After all every employee you are retaining was once a prospective employee you were attracting. Inevitably, your benefits package represents the overall brand of your organization. Just as compensation, culture, and other perks dictate your company culture, benefits are one of the first tangible things an employee can identify about your brand and what it may be like to work at your organization.
Maintaining a benefits plan that is attractive in the beginning means it will also continue to help retain the right employees in the future. While it isn’t the only factor in retaining employees, it can have a significant impact on what current and prospective employees believe about your company and how they might grown within it.
By: Lauren Simonetti, Marketing Specialist at AFG