employee benefits improve retention

How Employee Benefits Improve Retention

The Affordable Care Act, enacted in 2010, ensured that everyone was able to receive health insurance regardless of if they have pre-existing health conditions or for any other discriminatory reasons. This Act gave employees the ability to leave their employers if the only reason they were staying was insurance reasons. Employees who were stuck in their jobs to receive benefits now had the opportunity to look for opportunities elsewhere.

employee benefits improve retention

When employees leave a company, that company incurs many costs to their business, in addition to the added inconvenience. A study done in 2016 by the Society for Human Resource Management discovered that the average cost for companies to find replacement employees is $4,129, including turnover costs, and the average 42 days of lost productivity to find a new employee.

 If that employee holds a job that requires higher skills, that number increases, according to the Center for American Progress. The economic cost for finding a replacement goes from 5.8% of a year’s compensation to up to 213% for a highly skilled employee.

So how does a company prevent employees from leaving their company?

In short, the answer is simple: offer better benefits. While the ACA ensured benefits for all, you can differentiate your company by providing great options for their benefits. 

Around 75% of employees said that being able to customize their benefits package based on their specific needs is an important consideration they take when accepting a new job. Not only will it attract new people to your company, but 88% of employees say that the ability to customize their benefits package leads to higher overall job satisfaction. 

With these statistics in mind, if you offer voluntary benefits like vision, dental, accident, critical illness, hospital indemnity, and life insurance options for your employees, you will be able to retain and attract great employees.

At SBMA, we want to help you attract and retain those employees. Contact us to get started on your employee benefits packages. 

2 replies
  1. Social Media Marketing
    Social Media Marketing says:

    I am extremely impressed together with your writing skills as smartly as with the structure on your weblog. Is that this a paid subject matter or did you customize it your self? Either way stay up the nice quality writing, it is rare to look a great blog like this one today.

    Reply
  2. Earn Online
    Earn Online says:

    I am extremely impressed together with your writing abilities and also with the structure for your weblog. Is this a paid topic or did you customize it yourself? Either way stay up the excellent high quality writing, it is uncommon to peer a nice weblog like this one today.

    Reply

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *