Dive Brief:
- As employers add benefits to their offerings, turnover decreases, according to a new data from Paycor. The data also showed that the turnover rate for the average employer with no benefits is 157%, while organizations offering at least six benefit plan types experience a 138% decrease in turnover.
- When participants in the study were asked to prioritize employers' offerings, benefits came in second only to compensation among all age groups, except those 30 to 34 years old. This youngest of all groups of participants rated benefits fourth after: 1) compensation; 2) flexibility/worklife balance; and 3) company mission.
- Paycor said the key criteria in offering benefits is offering the right mix. It recommended that employers ask the following questions in considering their benefits offerings: 1) Is there something for everyone in our benefits offerings?; 2) Are we a wellness company?; 3) What non-traditional benefits should we offer?; and 4) How can we afford it?
Dive Insight:
Paycor's conclusion that workers value money above all is one that agrees with other pieces of research. A Glassdoor report found money is the No. 1 motivator for 67% of job seekers. While money is still the main motivator for most workers, employers shouldn't discount the importance of offering benefits that workers value.
Core benefits like healthcare and retirement savings plans are essential, of course, but today's workers also value others such as paid family leave, development opportunities, flexible work schedules and remote work opportunities. It's worth noting that employers have reported fringe benefits — such as bring-your-dog-to-work policies — as engagement drivers, too.
As the employee-driven labor market continues to push employers to compete for talent, employers are pressed t to deliver what employees say they need and want in benefits and perks. When employees don't see their benefits as worthwhile, they may consider leaving for a company that can boost both their pay and offer more valuable benefits, as this study indicated.
