Read: Keeping employees happy goes beyond their salary
According to a recent report, the key to employee retention resides in the perks and benefits you provide that create a pleasant workplace and not just monetary compensation.
Anja Smith, managing partner for All Clear Plumbing in Greenville, South Carolina writes in Plumbing Magazine that three of their employees quit within a month.
This resulted in the morale being low.
“In their exit interviews, we asked why they had made their decision,” she writes. “We got a variety of answers, but each brought up money as an important factor.”
A few months later, two of these employees wanted their jobs back because the little extra cash at their new job wasn’t worth it because they just weren’t being treated well.
Anja says that part of recruiting and retaining employees is compensation but their salary isn’t the whole story.
“Benefits and perks may impact workers more than you think.”
Employee satisfaction requires job security and financial stability:
These are simple concepts but ones you can only influence, not control. You can’t govern people’s emotions, so “making” them feel confident is not possible. You can compensate them well, but how they spend their money and past mistakes may undermine their security.
Everyone brings their own insecurities, baggage, and assumptions into a professional relationship:
It’s impossible to make certain everyone feels protected in their position and well-compensated all the time. One point you can’t argue, though, is that it’s about more than just a paycheck.
What’s more, there are clear differences between a benefit and a perk, and both of these can help you retain employees:
A benefit refers to nonwage compensation that supplements pay. These programs often take care of basic needs like health coverage, disability or life insurance, paid time off, and retirement accounts. They are expensive but have a huge impact on employee retention.
If you think you can’t afford employee benefits, it is encouraged that you seek help and get innovative. Talk to a business insurance broker and see what options are available to you. It’s OK to start with something small.
The good news is that this is your benefit, too. Employee benefits bring home-life stability and financial security. This translates into more reliable and lower-risk workers.
Perks are more like bonuses that relate to business culture or values and help employees do their jobs better. Examples include gym memberships, access to financial wellness programs, and company-sponsored meals.
Here you can let the personality of the company shine. It may be as simple as letting your employees run a personal errand in the company truck or a grand gesture like box seats for a big sport match.
What matters most is to have fun and get creative.
Value and Gratitude:
Both benefits and perks have positive effects on morale, motivation and engagement at work. Still, employees will ask for raises. In most cases, the effect of a raise is very short term. Research shows that pay increases do little to motivate employees or earn their loyalty. It is said that the small boost of positivity lasts only a few weeks. Then, employees adjust to their new reality — and the new car payment — and go back to feeling as poor and undervalued as always.
It can also come down to a bad fit.
If your compensation package doesn’t satisfy an employee, it may be time to suggest they find new employment.
Before you add a perk or benefit, understand the price tag. Expenses that hit your bank account aren’t the only ones that matter. There are “hidden” obligations.
Before you spend big on well-intentioned benefits that might not matter to your team, talk to them about your ideas. Be transparent about the costs and help them recognize what they are giving up instead. An open dialogue can reap big rewards and help steer you in the right direction for how to use your limited resources.