Benefits Offer Flexibility
Robust benefits programs may help increase employee loyalty and reduce turnover.
When it comes to recruiting and retaining top talent, both employers and employees might assume that salary is the ultimate factor in staff loyalty. However, most employees say benefits are one of the most important reasons why they remain with their employer. Considering turnover can cost companies up to 150% of an employee’s salary, building a robust benefits package may help companies save a considerable amount of cash.
Beyond health insurance and a 401(k), cost-effective benefits that take into account employees’ time management and budget concerns are key to keeping them loyal and productive. “An enriched benefits package can increase job satisfaction and help build and retain a quality workforce,” says Delores McNeely, senior vice president and program manager for the Company Benefits Banking Department at Union Bank.
Time management
Flex scheduling and telecommuting are easy and cost-efficient ways small business owners can reduce turnover. Employees can come into the office a few days a week and work from home on others, or come in to work at times other than normal business hours. These options are especially attractive to Gen Y employees, who have grown accustomed to working online, from anywhere at any time.
Other benefits that help employees manage their time include daily services that can be done at work, such as dry-cleaning services that pick up and drop off clothing to the worksite, on-site daycare, personal shopping, and errand and concierge services.
Budgeting
Benefits that help employees balance their budgets also are great ways to improve retention. These range from direct deposit to commuter reimbursement. For example, as gas prices rise, many companies offer their employees gas cards to help offset the cost of their commute. Some reimburse employees for their daily train or bus fares.
Other benefits include financial management services, such as Union Bank’s Company Benefits Banking program1. Through this service, employees receive a checking account with no regular monthly service charge, a $50 welcome bonus, a welcome package with free checks, a debit card, online banking and bill pay, special value Visa credit cards, discounted safe deposit boxes, and a variety of other products and services.
Through Company Benefits Banking, Union Bank representatives come to the workplace so employees can enroll in the program on site, McNeely says. Overall, the program, which is free to employers, can help save companies money through lower payroll expenses and reduced turnover.
“The more folks sign up, the more companies can reduce payroll costs because they’ll no longer have the expense of printing that check,” McNeely says. “And it enhances their existing benefits program.”
An enhanced benefits package can lead to greater employee satisfaction, which means you might be able to reduce the time and money you spend on filling key staffing needs.
For more information on Union Bank’s Company Benefits Banking program, call Janet Burgin, vice president, company benefits relationship manager at 1-619-230-4128 or visit unionbank.com/benefits.
1 A minimum opening deposit of $100 is required if account is opened at a banking office. Other charges, such as overdraft fees, will still apply. An early account closure fee will apply if the account is closed before it has been open at least 90 days. See our All About Personal Accounts & Services Disclosure and Agreement for complete details. If employee discontinues direct deposit of their payroll check, the Company Benefits Checking account will convert to a Regular Checking account, and the regular monthly service charge for that account will apply. All new accounts are verified through ChexSystems. Electronic direct deposits to the account for each monthly statement period must be at least $100 in order to remain eligible for this program.
Also In This Issue
- Going Global
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- Keeping Employees Up When the Economy is Down
- Here are some tips to help you motivate your staff when times are tough.
- Keeping Overhead Under Control
- The costs of running a small business can seem daunting, but there are ways to save on overhead expenses without compromising your company’s bottom line.