This is how you give all your current (and future) employees what they want

Give every employees what they wantHow do you compete as a business if you’re recruiting for highly skilled talent, but can only offer to pay market value? And how do you ensure your current employees stay put when wages are the single draw card?

The great news is that for businesses that don’t have more cash to give, the answer isn’t money.

What you need are unique differentiators. Added extras that are compelling enough to attract the right people to your business’ front door, and keep them from leaving out the back.

Although fair remuneration is a must, persuasive benefits play a critical role in developing an organisation’s ‘hard to say no to’ Employee Value Proposition. The right perks not only encourage work/life balance, they show an employer’s ongoing investment in people in a way that salary alone cannot.

All while costing less and delivering distinctly higher returns.

Ensuring they stay

According to research by Swinburne University, the financial impact of losing an employee in the first year is estimated at three times their annual salary, with recruiting costs on top of that of up to 30%. Looking at an employee that earns a conservative $50,000 per annum, that’s a loss far exceeding $150,000 for the business. Now multiply that figure by the amount of staff that get up and walk for something better every year, and the number is alarming.

The moral here is that it pays to hang on to your best people. Competitive benefits that meet the various lifestyles and financial priorities of a workforce can result in 60% of employees seeing them as an important reason for staying.

Getting them to the front door

But what about replacing the ones that do jump ship? Even a business that ticks all the boxes will never reach a 100% retention rate, nor should they necessarily want to, when new faces are key to the introduction of fresh ideas and different perspectives.

Based on research by Towers Perrin, employee benefits are one of the top ten drivers for attracting staff to an organisation. An employer that takes a keen interest in their people can fill job vacancies based on their ability to offer tangible, and intangible, value adds. Lifestyle benefits like gym memberships, insurance and travel complemented by flexibility, recognition and opportunity are all proven to help employers keep their noses in front in the battle for talent. In fact, a massive 80% of working Australians see these types of employee benefits as an important consideration when joining an organisation.

What could $1 do?

Even with a small budget, there is a strong ROI for a business that develops and maintains benefits including reduced turnover, higher attraction, stronger employer brand, shorter recruiting times, and a more satisfied and productive workforce.

One small Australian based agency calculated the return on every $1 they spent on employee perks in a 12 month period. For the nominal amount put into initiatives like wellbeing, travel and a games room – $11 was returned.

Not bad. All for just a little effort partnered with an equally little financial outlay.

 

Image credit: Shutterstock.com

Sources: Swinburne University, Human Resources Magazine, “Inside Employees’ Minds, Navigating the New Rules of Engagement” – Research on Broader Drivers of Engagement, Towers Perrin, Annual Trends Survey, MetLife, 2013, Corporate perks. Engagement Catalyst?