Beyond Benefits: Best Practices to Tackle the Great Resignation
Getting to the Root Causes of the New Phenomenon Troubling HR Managers
The U.S. Bureau of Labor Statistics reported a record-breaking 4.5 million workers in the U.S. quit their jobs in November 2021, continuing a trend that has now been going on for months. With this not so new phenomenon – dubbed the “Great Resignation” but more like the great renegotiation – how can employers struggling with turnover help prevent resignations and make sure their employees stay with them longer?
If this is something your organization is experiencing, one way to get to the bottom of what is causing your people to leave is to find out the root cause – or causes. In order to identify what they may be, here are some questions you can ask yourself about your company:
- What does our onboarding look like?
- Are our salaries competitive for our industry?
- What are our benefits and perks?
- Is there something for everyone in our benefits mix?
- What other perks could be offered?
- How is our workplace culture?
- What are our policies?
While you may not be able to control every reason behind why employees are leaving your organization, why not take the time to ensure you are “controlling the controllables”?
It Starts with Onboarding
According to the Society for Human Resources Management (SHRM), onboarding is a crucial time to impress your new employees and leave them with a lasting impression. If you start off with a great onboarding experience, 69% of your employees are more likely to stay with you for three years.
If you have a manual onboarding process, you’re not only making it difficult for yourself but are also giving your new hires the wrong impression from the start. No one enjoys filling out a gazillion forms or a skyscraper of paperwork on their first day, and the more manual the process, the more room for errors – errors that can be costly and make your new hires want to leave before they’ve even started. With an easy-to-use onboarding program, your new employees can get started on their paperwork early, making their first day special.
Are Your Benefits on Par with Your Industry (and We Don’t Mean “Medical Benefits Only”)?
A total compensation package that includes a variety of benefits targeted to your specific workforce can keep employees from jumping ship. Now, more than ever, employees want a complete package beyond just a competitive salary and basic health offerings – whether your company adapts to those needs can significantly affect retention.
In addition to traditional benefits, like medical, dental, and vision insurance, can your organization offer extra perks that employees would appreciate? Here are some common examples that can be considered:
- Training and development
- Retirement plans
- Flexible work hours
- Remote work options
- Maternity/Paternity leave
- Multiple pay options
- On-demand pay
- Profit sharing
- Adoption benefits
- Mentoring programs
- Gym reimbursements
- Wellness plans and health assessments
- Tuition/Student loan reimbursement
- Milestone celebrations
- Time to spend on passion projects
- Career development coaching
- Childcare options
- Pet insurance
- Additional office perks, like dry cleaning pickup, game rooms, cafeterias, relaxation rooms, etc.
Are You Investing in Training and Development?
The results of a 2021 Gallup report, The American Upskilling Study, especially emphasizes the importance of providing training and development to your employees. Gallup surveyed around 15,000 adult workers in America across a variety of industries and demographics and found that 61% of respondents considered the availability of additional training and development to be “very” or “extremely” important when deciding whether to stay with their current employer.
Additionally, 48% said they would switch employers if provided with an opportunity to upskill, and 65% responded that an employer-offered program is a very important factor when assessing a job offer.
This means that organizations that are falling short on their training and development programs – if they have any at all – could be missing out on both keeping their best employees as well as attracting top talent. Simply offering a robust T&D program could be one way to minimize the impact of the Great Resignation. And in this day and age, where everything is digital and easily accessible online, there’s no reason not to give your employees the option to access learning material from anywhere, at any time.
Options, Options, and More Options – On-Demand Pay Is a Must!
With the pandemic first and now also the Great Resignation, many jobs have been transforming, replacing old and outdated norms with those more beneficial to employees. One major trend includes flexible pay – bi-weekly pay can now be easily improved by providing your employees with access to multiple pay options, allowing for more flexibility and better financial freedom.
Access to Earned Wages
One great pay perk you can provide your employees with is the option to access their earned income at an earlier date than pay day – right when they need it. Providers like DailyPay can do just that. By providing employees with immediate access to their earned pay, they can harness the power of their pay to meet unexpected expenses, pay bills on time, and save money before pay day. With DailyPay, transfers can be made to any bank account, debit card, or paycard.
DailyPay recently conducted a user survey and found that employers who offer a daily pay benefit experienced cost savings through a reduction in employee turnover by an average of 50%, the ability to recruit for open positions in half the time, and a reduction in employee absenteeism, as employees using the benefit reported that they were more motivated to go to work. Additionally, 74% of employees using DailyPay reported that it has helped them reduce their financial stress, leading to higher productivity at work.
Don’t Forget Paycards
Based on information provided by the American Payroll Association, up to 10% of employees in the U.S. are “unbanked” and unable to set up direct deposit, but employers can offer the option of paying these employees with paycards. Paycards are like debit cards: an employer can deposit pay onto a paycard, and then employees can access their funds using an ATM machine or by using their paycards to make purchases.
How Can All This Help with Turnover and Combatting the Great Resignation?
Retaining employees is much more efficient and cost effective than recruiting, hiring, and training new employees. Having the right combination of compensation, benefits, growth opportunities, flexibility, and recognition can keep employees from looking elsewhere. By considering what adds value to your employees and carefully crafting what you offer, you can improve workplace morale and substantially increase retention.