Understand the relationship between turnover and employee benefits

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Understand the relationship between turnover and employee benefits

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It is practically a consensus in the market that it is more worthwhile to create actions to maintain employee engagement than to create a vicious cycle of turnover. For this reason, many companies are taking into account the turnover ratio and employee benefits.

No wonder one study Kronos and Future Workplace showed that 87% of HR leaders recognize that talent retention is a top priority for companies. This is because the continuity of an employee is synonymous with results.

Therefore, there is a great turnover and employee benefits. Since employees are the company’s cogs and the happier and more motivated they are, the greater the chances of delivering good results to the organization.

Currently, the salary is no longer sufficient to attract or retain a talent.

A good benefits package it is in fact a differential. Even for 90% of people it is he who makes them decide whether or not to stay in a certain company, revealed a Insper research.

Do you want to know more about the turnover relationship and employee benefits? How, for example, the costs between the two, benefit options and how to reduce turnover? Follow this article and learn how to keep your employees happy and motivated.

The turnover rate

THE turnover rate or turnover indicates the length of time employees are in the company. If the value is high, the tendency is that the company has been spending excessive time and resources for new recruits and training.

To calculate this index, just list admissions and dismissals, according to the formula below.

However, it is necessary that the value be below 5%. If he is bigger than that, you need to understand what is preventing his employees to engage with the company. In many situations there is a turnover relationship and benefits for employees.

The lack of benefits can encourage employees to seek new air or an environment where they can feel good and valued.

Turnover costs

According to the Work Institute by 2021 more than 47 million employees will leave work voluntarily. In the US, more than $ 2.9 million a day is spent searching for new employees.

Turnover costs around a third of a professional’s annual earnings, according to the American Labor Institute and 33% are spent on temporary workers and recruitment processes.

In Brazil the reality is no different, since the country is the champion of the turnover, with an increase of 82% since 2010, revealed Robert Half Global Survey. We can highlight among the main problems caused by turnover:

  • dismissal costs;
  • new admission costs;
  • spending on new training;
  • reduced productivity;
  • decreased results.

That is why it is so important to understand the relationship between turnover and employee benefits. Every strategic action can make the employee feel satisfied in the work environment and give up leaving a company.

The use of talent retention benefits

In order to understand the relationship between turnover and employee benefits, it is necessary to know the employees’ desire. In the current market, over 40% of professionals value and say they are attracted by a good package of benefits, according to Catho research.

In other words, there is a turnover and employee benefits relationship that must be considered in the strategic plans of attracting and retaining talent.

This is because when a professional is valued, he tends to increase his productivity and satisfaction with the company. Even because a happy employee raises his productivity by 31%, revealed a University of California study.

With a good package of benefits the company tends to:

  • potentiate the team productivity;
  • increase results;
  • increase employee satisfaction;
  • reduce the turnover rate;
  • attract and retain talent.

But what benefits can I offer my employees? Meet some of them below.

Benefit Tips: What can I use

The turnover and employee benefits relationship can also be seen in a research conducted by Ziegler Investment Banking, where for 79% of executives, talent recruitment and retention is the biggest concern.

In this sense, some strategies can help in the relationship between turnover and employee benefits. Where an attractive package can be a differentiator to create a fair and friendly relationship between employee and employer.

Discover some of the most attractive benefits on the market.

Home-office

The facilities of the home-office can remedy possible friction in the turnover relationship and employee benefits. Since this type of advantage is extremely attractive in the market.

81% of the country’s professionals would like to have this flexibility at work, to work from home or in another external environment, indicated a survey by the National Confederation of Industry (CNI).

Training

“Recognition is the best way to stimulate someone” Mário Sérgio Cortella

Training, encouragement to study and much more. The turnover and employee benefits ratio necessarily goes through a thorough analysis of the valuation of its employees.

And so, it is essential to take into account benefits such as education and training.

When the employee recognizes that the company is betting and believes in their professional growth, they tend to work more motivated. However, in Brazil, the scenario of investment in benefits directed to training is very low.

One recent survey by the UK residents Training Association signaled that companies in the country invest only R $ 788 per employee per year, while in the USA the average investment per employee is US $ 1,200, more than R $ 4,000.

Health insurance

The health system in the country is not at all good, which is why medical plans are seen as one of the main benefits in the market.

About 74% of employees, according to a survey by Catho, see the agreement as a motivating item within a good benefit plan, becoming a differential and determining factor in hiring and retaining talent.

Job and salary policy

Any employee wants not only to be valued by the company he works for, but also to have a career path where you can have the necessary direction to evolve in the company.

This can even be a great incentive to maintain your high productivity. In this turnover and employee benefits relationship, a good Plan for jobs and wages therefore, it can contribute to retaining talent.

Since the employee will know exactly which path he must follow in the short, medium and long term. Having an accurate notion of what you need to go through to ascend in the company and how long it should take.

Salary On Demand

O on-demand salary it is the newest benefit that reduces turnover and benefits the employee, because there are few companies that care about the financial well-being of their employees.

The benefit allows the employee anticipate salary when and where you want, avoiding abusive overdraft interest, or revolving credit card interest.

Therefore, the HR Consultant UKy is the platform that allows the collaborators of a company to advance the salary for a much more affordable price than the employees. fees.

The importance of investing in a benefit plan

One Warwick University study revealed that happy and satisfied employees work about 12% more than those who are dissatisfied.

Part of this satisfaction, in the current market, has to do with a good package of benefits that companies offer.

92% of employees put benefits as determinants for job satisfaction, showed a Society for Human Resource Management (SHRM) research.

Therefore, it is essential that companies pay great attention to the turnover and employee benefits. Because, the happier employees are, the greater the chances of retaining them in the organization.

And not only that, with the decrease in turnover, the chances of results and growth of the professional and the company itself increase. Since this way she will have a more experienced and engaged team.

In the current market, benefits have not only become an important and complementary part of the salary, but an almost mandatory advantage for companies that want to beat the competition.

Want more tips on how to reduce turnover in your company? Read our article on the subject clicking here.

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