Employee turnover continues to plague businesses. Over 80 percent of workers of all ages are open to new job opportunities. The Center for American Progress reports that when an employee leaves, employers spend between 16 percent to 213 percent of the lost worker’s salary, depending on the job level, to hire someone new to fill the position. Employers need a strategy to slow the turnover trend. One key step is to offer attractive benefits and experiences that provide employees with choices.
Provide benefits employees can tailor to their needs
Most employees highly value their benefits. An American Health Insurance Plans study found that 56 percent of employees surveyed would stick with an employer because of the benefits they receive.
Employees don’t want canned coverage that offers only one or two choices. They want to pick the coverage options that will best serve their needs. They also look for ways to minimize out-of-pocket costs.
Since employees spend over $10,000 on average a year for medical care, many employers offer benefits with preventive care options that help employees cut costs. By taking advantage of health screenings, potential problems can be found early, such as serious medical conditions, oral health concerns, or vision issues.
Educate employees so they can make smart choices
Recently, HSA Bank found that only 10 percent of employers believe employees understand their plans. Workers often are confused about the terms and covered services, such as co-pays, out-of-pocket expenses, or deductibles.
Over 80 percent spend less than an hour researching their benefit choices. Employers should invest time in helping employees understand their benefit choices, so they pick the right plans. Provide a list of questions for employees to use when reviewing plans to make sure the coverage and cost is the right fit.
Offer a menu of benefit choices
Medical insurance is a primary benefit employees value to help them take care of serious health problems. They also rely on dental, vision, and hearing coverage to provide preventive care choices.
Financial well-being. Next on the list are benefits that help employees with financial well-being, such as budgeting, investments, savings plans, and help to pay off student loans.
Many employees are not saving for the future, including unexpected medical expenses, retirement or their kids’ college costs. Most employers offer matching contributions to retirement funds, but two-thirds of workers aren’t putting money away in a 401(k). A common reason for that is pressing financial concerns of student loan debt. Research shows that each year employees leave $24 billion in 401(k) matches on the table.
With the new BenefitEd Employee Choice, employees can apply the matching funds employers provide to pay down student loan debt. Over 44 million people collectively have $1.5 trillion in student loans, the Federal Reserve reports. About 65 percent of this amount is owed by people under age 40.
Savings. Another way employees can use employer-provided matching-funds is to direct them to retirement plans or college 529 savings plans.
Learn more about these options at YouBenefitEd.com.