It’s remarkable how much productivity top talent can provide an organization. Research shows that high-performing employees are 400% more productive than average-performing ones.
But for some organizations, attracting and retaining top employees can seem almost impossible. The high-performing employees leave after reaching a certain level, and the high turnover rate drains the company’s resources.
Attracting and retaining the very best employees is almost effortless for other companies. So, what’s the secret ingredient for hiring and retaining top talent for your company? Let’s see below.
The secret ingredient — retirement benefits
Retirement benefits, among other benefits, have been identified as the main secret ingredient for attracting and retaining top employees. In fact, research shows that 72% of millennials are likely to take a job with lower pay but better benefits.
Given that millennials represent the most significant segment of the United States’ workforce, these are insights employers can’t afford to ignore. Some business owners are already working on enhancing the employee experience through retirement benefits.
Research also shows that about 75% of employers have already changed their retirement benefits in the past two years and expect to improve the plans in the coming years. At the same time, 14% haven’t made a change but are planning to.
Why retirement benefits?
Offering better retirement benefits is an intelligent move to attract and retain top talent. This is especially true given that a retirement plan is cited as the second most important benefit program after health insurance. As an employer, improving your retirement benefits program will also benefit you in three ways.
1. Cutting your recruitment costs
The average U.S employer spends approximately $4,000 on recruiting an employee, according to recent research by Glassdoor. Even worse, the employer must spend more than 24 days to hire the new employee and often longer to train them.
Tip: Leverage a 401(k) plan as a retention tool. For instance, you may add a profit-sharing feature to the plan. This may help reduce your recruitment costs by minimizing employee turnover.
2. Increased productivity
Retirement benefits, among other benefits, increase employee satisfaction. Retirement benefits also help retain the high-performing employees who are 400%+ more productive than average performing employees.
3. Enhanced customer satisfaction
Happy employees are the key to satisfied customers. But making your employees happy demands more than just better pay. Offering a 401(k) plan improves workforce morale and, thus, customer satisfaction.
The bottom line
Recent Labor Department data shows that job openings in the United States outnumbered available employees. In response, employers are going the extra mile to improve the employee experience, for instance, using retirement benefits as a recruiting tool.
If you’re struggling to create the best program to help you hire and retain the top talents, it may be time to contact Quantum Strategies Human Resources. We are an HR and Benefits Consulting firm that can help you attract and retain top talent. Contact us today for more information.