When Employees Know the Benefits of their Benefits
Many workplaces offer valuable benefits in addition to salary and wages. When employees understand the true value of these benefits, they generally feel that the company cares about them and their families. Retention increases because employees are less likely to leave on a whim or for a small increase in pay.
However, workplace benefits have the most impact on employee retention when employees understand their value. For instance, the cost of an employee's health insurance, often fully or partially covered by the employer, can be substantial. Tell your employees how much you are paying each month for this valuable coverage. Don’t leave them in the dark.
Another common practice is for employers to match portion of the employee’s contributions to their retirement plan such as a 401(k). This can greatly increase retirement savings. And, when employees understand the power of compound interest they are more likely to start retirement savings at a young age to benefit from this employer-funded boost to their account.
Additionally, employers often pay for life insurance equivalent to one year's salary. Employees and their families appreciate the financial security this provides in the event of a tragedy.
Offering such benefits and ensuring employees understand their value strengthens employee commitment and retention.
