One hot topic in employee compensation are workplace benefits. As of June 2012 benefit packages comprised of 31 percent of total employee compensation. Employer sponsored health insurance in particular is a critical workplace benefit. Critical, because it helps ensure that employees and their families receive the health care they need during the times of illness without having to spend their savings for care.
The workforce in America is growing more disloyal because of offering poor or no benefits at all. Companies who fail to respond to these trends are likely to pay a high price. When the job market improves, these companies will lose key workers to competitors, and the company suffers from reduced employee productivity.
The answer here is a well-designed employee benefits package can help restore loyalty, drive employee engagement and encourage workers to stay longer. This is extremely important because now a significant amount of workers are willing to change jobs.
According to Metlife, 36 percent of all employees hope to be working for a different employer within the next year. The workers who were inclined to move on cited poor job security and increased workloads at their current jobs.
36 percent might seem like a low number but consider these factors: Just 51 percent of employees reported they they were satisfied with their jobs- this down 9 percent from only four years ago. Only 47 percent felt a strong loyalty to their employers. This is at a three-year low and down almost 11 percent from four years ago. Only 33 percent felt that their companies were strongly loyal to them, down almost 10 percent from four years ago.
With the anticipation of the Baby Boomers retiring from the workforce, companies were focused on retention. But that focus has changed with a low rate of voluntary turnover during the recession. The Metlife study suggests that many employers are not even growing discontent with their employers either, with 51 percent believing that their employers are loyal to the company.
How do we rebuild this loyalty? Employees are making it obvious that employers should focus on employee satisfaction and engagement. Employees who are the most satisfied with their benefits are the most loyal, with 71 percent of those employees reporting that they are very loyal to their employees.
The importance of benefits to employees across all generations will only increase as millennials begin to take over the workforce. Employees and employers acknowledge the importance of salaries and health benefits to employee loyalty. But other benefits are important pillars of loyalty among employees. The aspect of retirement benefits and nonmedical benefits including life, dental and disability insurance is incredibly important, yet only 37 percent of employers recognize this. The bottom line is good benefits continue to attract and retain employees.