How Shedding Light On Employee Benefits Improves Employee Retention

According to a study by the Bureau of Labor Statistics (BLS), the average American stays with an employer for just 4.1 years (Bureau of Labor Statistics 2022). In 2021 and 2022 alone, over 47 million U.S. workers quit their jobs—a phenomenon now known as the Great Resignation. This mass exodus prompted employers to consider the root causes (Bureau of Labor Statistics n.d.). What drove so many to leave? Was it the uncertainty brought about by the COVID-19 pandemic, or was something deeper at play?

Kim Parker and Juliana Menasce Horowitz, in an article titled “Majority of Workers Who Quit a Job in 2021 Cite Low Pay, No Opportunity for Advancement, Feeling Disrespected,” highlighted findings from a Pew Research Center survey that identified several reasons for the wave of resignations—many unrelated to the pandemic itself. The survey revealed that 57% of those who quit did so because they felt disrespected at work, while 43% cited inadequate benefits, such as health insurance and paid time off, as key reasons for leaving (Pew Research Center 2022).

While the landscape has shifted somewhat since then, employers continue to grapple with the factors driving employee turnover. 

How to Know If Your Employees Are Struggling Too

The solution is simple: get to know your employees better. Understand how they think, what they need to feel valued, and which of the benefits you offer they appreciate the most. This approach directly addresses the 57% of employees who, according to Pew Research Center’s Survey, left due to feeling disrespected. Surveys are an effective way to gain this understanding.

Pendant, for example, helps you gauge which benefits your employees value the most and offers insights on how to better promote those benefits they might not fully understand. You can even use it to test the waters on potential new benefits by asking employees if they’d be interested before making any decisions. Making them feel heard is crucial.

By acting on the insights gained from Pendant employee surveys, you can show the 43% of employees who quit in 2021 that you are committed to improving the company’s benefits package.

Educate Employees About All Your Perks—Especially the Ones They Don’t Understand

You might be surprised by how many employees don’t fully understand their benefits. This lack of understanding can lead to underutilization of valuable resources that could improve their overall well-being and job satisfaction. For example, mental health benefits are increasingly important in today’s workplace, yet many employees might not be aware of the full extent of support available to them.

You can address this challenge by creating easily accessible resources that employees can use whenever they have questions. Consider providing a library of step-by-step benefit tutorials and checklists or implementing a chatbot specifically designed to help employees understand and utilize their benefits—all features offered in Pendant’s flagship product. This proactive approach, ensuring that employees are well-informed and able to make the most of the perks your company offers.

When employees understand and utilize their benefits, they are more likely to feel valued and supported, which in turn enhances their loyalty to the company, leading to higher retention rates and a more engaged, satisfied workforce.

In today’s competitive job market, employee retention is more critical than ever. Shedding light on the benefits you offer and ensuring that employees feel respected and valued can make all the difference. By taking the time to understand your employees’ needs and preferences, you can tailor your benefits package to better meet their expectations. Moreover, educating employees about the benefits already available to them significantly impacts their overall job satisfaction and commitment to your organization.

Invest in these strategies, retain top talent, and foster a positive work environment where employees feel appreciated and empowered with the help of Pendant.

Sources
1. Bureau of Labor Statistics. (2022). Employee Tenure in 2022. Retrieved August 27, 2024, from https://www.bls.gov/news.release/pdf/tenure.pdf

2. Bureau of Labor Statistics. (n.d.). Job Openings and Labor Turnover Survey (JOLTS). Retrieved August 27, 2024, from https://www.bls.gov/jlt/

3. Pew Research Center. (2022, March 9). Majority of Workers Who Quit a Job in 2021 Cite Low Pay, No Opportunity for Advancement, Feeling Disrespected. Retrieved August 27, 2024, from https://www.pewresearch.org/short-reads/2022/03/09/majority-of-workers-who-quit-a-job-in-2021-cite-low-pay-no-opportunities-for-advancement-feeling-disrespected

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