According to a recent report by Glassdoor, employees and would-be employees have an edge in today’s job market, with 90 percent of recruiters surveyed saying it’s a candidate-driven market. The report also reveals important points for businesses looking to hire and keep the most qualified workers. In today’s candidate-driven environment, companies need to prioritize employee retention. Employee benefits and employee engagement is a big part of that.
The year is still young, but a survey conducted at the close of 2016 indicates that small business owners are confident about growth in 2017. According to data gathered by the National Federation of Independent Business (NFIB), optimism among small business owners increased by 7.4 points in December 2016—the biggest single jump since 1980 and the highest surge since 2004.
Studies show that employee turnover can be one of the biggest costs for businesses. On average, businesses must spent the equivalent of six to nine months of an employee’s salary to locate and train their replacement. For a worker who earned $60,000 annually, this means a company must shell out up to $45,000 simply to get another person in the door—and that’s before the company has spent a dime on the new employee’s salary. Considering the high cost of replacing and retraining, it makes sense for businesses to think about why employees leave in the first place—and to focus their efforts on employee retention rather than making counteroffers when employees threaten to move on.
As baby boomers move into their retirement years, younger generations will continue to step into their shoes in the workplace. According to a Pew Research Center report, millennials—defined by the U.S. Census Bureau as those between the ages of 18 and 34—have now overtaken baby boomers as the country’s largest living generation. For businesses, these generational shifts mean making adjustments to the benefits they offer. Businesses interested in employee retention have found themselves faced with a younger workforce in search of different types of benefits than those sought after by their parents and grandparents.
For many small businesses, employee retention efforts include offering comprehensive health insurance benefits. However, rising health costs have caused some businesses to cut certain aspects of their health-related coverage, including spousal benefits.
According to the World Health Organization, the average person spends one-third of their life at work. With so much of our time unfolding in the workplace, it makes sense that we should all strive to live healthier lives, whether we’re on or off the clock. Increasingly, companies across the board are recognizing the importance of supporting employee wellness in their workforce, with many implementing programs that promote overall health. Such programs can boost productivity, improve employee retention, and create a more positive working environment.
As 2017 gets underway and a new political administration takes over, businesses across the country are likely to confront a variety of changes in the workplace, including shifts in the employee benefits sector. In its 14th Annual U.S. Employee Benefit Trends Study, MetLife identified five areas businesses should keep an eye on as the year progresses.
Operating a small business can seem overwhelming at times, and finding reliable resources to help you problem-solve can be a struggle. Online resource Manta frequently conducts surveys among their members and releases the data on their website. One such survey looked at the effect that the Affordable Care Act (ACA) had on small businesses’ profitability, growth, hiring practices, and employee retention.
Employee retention can be an elusive thing. How are you supposed to know if your employees are happy at work? One form of measurement is your net promoter score (NPS). Here at Zane Benefits, we’ve found calculating our NPS on a frequent basis to be incredibly helpful, and we want to share the wealth. Here’s how your NPS can help strengthen your employee retention strategy.
Disclaimer: The information provided on this website is general in nature and does not apply to any specific U.S. state except where noted. Health insurance regulations differ in each state. See a licensed agent for detailed information on your state. Zane Benefits, Inc. does not sell health insurance.