How Employee Benefits Can Help Reduce Turnover

If you’ve been in business for a while, you’ve probably seen your fair share of employees come and go. But lately, for many workplaces, it may seem like more people are heading for the door. A recent survey suggests 60 per cent of Canadian employees are actively looking for new jobs or open to switching within the next year.

It’s tempting to think salary is the biggest factor driving this turnover. Competitive pay is important, but it’s only one piece of the puzzle. Employees are increasingly prioritizing work-life balance, well-being and personalized benefits. A report shows that businesses offering comprehensive and customizable benefits packages can see a 30 per cent decrease in employee turnover.

Canadians are also struggling to find a family doctor. A major shortage of family physicians in Canada is driven by factors like high administrative burdens, outdated compensation models and a lack of medical school and residency spots. As a result, over 6.5 million Canadians are without a family doctor. This makes access to health and medical benefits even more important.

What Do Employees Want?

Employees are moving away from “always-on” work culture and prioritizing their health. While 72 per cent say they value personalized benefits, only 41 per cent say they have access to a choice-based system. Many feel undervalued and are looking for better benefits with health coverage, retirement savings and mental health programs topping their lists.

Today’s workforce wants more than the basics. They’re looking for:

• Mental health support including access to counselling and stress management resources, which can be provided through an Employee Assistance Program (EAP). Today’s EAPs offer a range of services, including financial advice, legal consultations, career coaching and support with achieving work-life balance.
  
• Comprehensive health coverage including dental and vision care and, ideally, access to virtual health care options. Canadians with access to comprehensive benefits report better health than those without them.
  
• Retirement savings plans that help with planning and saving for the future, including matching contributions.
  
• Well-being options or a Health Care Spending Account (HCSA) that includes coverage for perks like gym memberships and wellness initiatives, as well as flexible work arrangements, show employees their health and happiness matter.

Retirement Reality Check

Retirement savings are a major concern for many employees. Nearly half (46 per cent) believe employers should help them with retirement planning, and 45 per cent want support for their well-being. Over half of employees say they would even trade their current benefits for better retirement options.

This heightened concern over saving for retirement is understandable given the current economic climate. With rising living costs, three-quarters of Canadians say they feel unprepared for retirement and acknowledge a growing retirement income crisis. With climbing housing prices and everyday expenses on the rise, it can be difficult to set aside anything for retirement by the end of the month. We’re also living longer, which means any savings needs to stretch further, and health care costs in retirement can be unpredictable and substantial. This creates a sense of overwhelm and uncertainty, which makes comprehensive benefits even more attractive.

Slow the Revolving Door

Employers who provide competitive benefits and factor this into their strategic planning make smart investments in their business. A well-thought-out and comprehensive benefits plan helps attract and retain talent, can help reduce turnover costs and create a more engaged workforce.

Contact us today so we can help you design a plan that makes sense for your team, and keeps your employees committed for the long run.

Suggested Reading

Why Comprehensive Benefits are Key to Attracting Talent

Canadians with a Benefits Plan Report Better Health: Survey

Additional Resources

Sixty Percent of Employees Plan to Move Jobs This Year, Aon Study Finds