Without a robust total rewards strategy, you’re nearly twice as likely to face employee retention problems.
What drives an employee from one organization to another? If you said salary, you’re not wrong. There are a lot of factors at play, but pay is a big one. In fact, Robert Half found that 44% of employees say they would switch jobs for higher pay.
When it comes to benefits, however, the numbers tell a surprising story. The 2018 Aflac WorkForces Report indicates that 55% of employees say they would be open to taking a job with lower compensation, as long as it included a more robust benefits package.
It’s not just job seekers. Another survey found that 78% of employees said they’re more likely to stay with their current employer because of the benefits program they have.
The bottom line is this: benefits matter, especially in this tight labor market.
But, the power of benefits to influence an employee’s decision to stay with their employer is limited by one important factor: the degree to which they understand and appreciate their benefits.
To facilitate this, more and more employers are implementing total rewards solutions — fully integrated online platforms that provide each employee with a complete view of their entire benefits and compensation package. A total rewards solution can help you reveal your employees’ hidden paycheck.
With a total rewards solution, you can show your employees exactly how much you are contributing to their health coverage, retirement accounts, voluntary benefits, and tax-advantaged savings accounts, like FSAs. Some of the more robust and flexible total rewards solutions available today can even allow you to display the money you’re helping each employee save due to free on-site parking, fitness center access, regularly catered meals, and other financial advantages of working for you.
Then, there’s the ability of total rewards solutions to drive behavior. For example, Gary has a health savings account. But, like 49% of Americans, he doesn’t know how HSAs work. He only pays attention to his take home pay — that part of his paycheck that isn’t hidden. You’ve tried to educate Gary about the tax advantages and the employer match, but so far, he hasn’t contributed to his account. Then, one day, Gary logs in to his total rewards portal on his phone, and discovers how the numbers of an HSA add up. That’s all it took. Numbers. Side-by-side. The next thing you know, Gary has maximized his HSA benefit and given himself one more reason to keep working for you.
Of course, simply having a total reward portal isn’t enough. You need one that is comprehensive, configurable, integrated and accessible. And, it must be driven by a strategy that helps you achieve your organization’s unique talent retention goals. A recent survey found that 40% of companies that lack a total rewards strategy have problems retaining employees. But, among companies that have invested in a robust total rewards strategy, only 25% (nearly half as many) experience the employee retention problems.
With the right tool and the right strategy in place, employers have an opportunity to make a big impact on their workforce by ensuring their employees can see — right in the palm of their hand — all the measurable advantages of staying with their employer. To learn more about crafting a total rewards strategy and finding the right tool, check out our new white paper, Break Through with Benefits.
Read the full white paper below.