Reduce Employee Turnover Through Benefit Statement Software
Frequent employee turnover can set back the company a huge loss when expenses such as interview costs, training and separation pay are considered. As per the Society for Human Resource Management, the company spends around $3,500 to replace a single employee with an hourly wage of $8 – and this number is the minimum according to studies on the expenses of turnover.
While turnover costs seem high now, many experts project that these turnover costs may even go up. A lot of employees reaching 60 are about to go into retirement. Employers may be in trouble finding new talent since the new generation joining the workforce is just below 33 million. Hiring employees will be more expensive if employers have less quality employees to choose from.
One way to reduce turnover is to to understand the reasons why employees are resigning from the company. Employees who were considering resigning from the company they work for were surveyed by the Society for Human Resource Management for the factors influencing their decision. To look for better compensation and benefits was the number one answer given by survey panelists.
The Essentials of Software – 101
A company may not have enough budget to increase their current employees’ salaries or improve the benefits provided.How will the company prevent employees from leaving the company if they do not have enough money to sustain the increase in salaries?
Why Companies Aren’t As Bad As You Think
Despite salary increases and improved benefits package, employees may still decide to resign or look for other opportunities in other companies. Detailed employees benefits statements could make them rethink their decision to leave or resign from the company. Looking similar to a traditional payslip, a total compensation statement attaches a dollar value to company-provided benefits such as 401(k), vacation leaves or time off, health insurance and even other perks like company cell phones or free parking. Companies can generate these statements at a very low cost by utilizing a compensation statement software.
By informing them of the monetary value of their benefits, employees may realize that the grass in not necessarily greener at the other side. Utilizing this software can help a company reduce its employee turnover rate and also save from additional hiring costs. The money saved by the company from reduced staff turnover can be used to increase employees’ salaries and provide them new or better benefits.
An employee benefit and compensation statement is a great tool that a company can use to inform employees on the true value of their benefits and compensation package. It many not be easy to choose given the number of compensation software programs out there, but you will find one that is easy to use as well as able to provide accurate, relevant and timely information. A total rewards statement helps in retaining current employees, aid in recruiting highly-qualified staff for the company and boost overall morale.