Employee benefits are one of the simplest ways to attract talent and boost retention rates. According to a recent Grant Thornton State of Work in America Survey, the manufacturing industry has one of the highest rates of employee turnover, with 22% of respondents having sought new employment in the past year.
Offering sought-after employee benefits in the manufacturing industry can help keep workers healthy and happy while boosting productivity, enhancing morale, and increasing retention. The right strategies can help organizations optimize their employee benefit programs affordably and without impacting benefit quality.
The Challenge of Retaining Your Best Employees
Employers in all sectors have struggled to retain employees in recent years, especially since The Great Resignation, in which more than 50 million Americans quit their jobs to look for better career opportunities.
Organizations face many challenges concerning employee retention, from hiring the wrong candidate to setting unrealistic expectations. The introduction of new technologies, the growth of side incomes, and a changing workforce in which younger workers choose not to be held down by a static job directly affect retention rates.
Attracting Skilled Employees
Attracting skilled workers to an organization can help drive business success. However, targeting and acquiring the right candidates is no easy feat. Today’s competitive job market has made recruiting top talent for available positions increasingly challenging.
Some ways that employers can attract skilled employees include:
- Creating well-written job descriptions.
- Offering competitive compensation.
- Building a comprehensive employee benefits package.
- Providing employee development opportunities.
- Recognizing workers and making them feel appreciated.
- Prioritizing company culture.
- Communicating the company vision and goals.
Employee Benefits for Retaining Employees
While there are many reasons why today’s workers decide to leave their jobs in search of better opportunities, one of the main drivers of employee turnover is benefits. Employee benefits can help organizations retain employees by meeting the unique needs of workers and keeping them engaged.
Basic compensation packages include a wage or salary with few additional benefits. To attract and retain engaged, high-performing employees, companies must offer comprehensive compensation packages that go beyond wages and salaries or exceed the minimum legal requirements.
Employee Benefits in Manufacturing: Trends and Best Practices
When building a comprehensive benefits package, employers must consider the cost of benefits and the value they give to the workforce. An ongoing labor shortage in the manufacturing industry has significantly impacted employee retention. According to the National Association of Manufacturers, approximately 2.1 million manufacturing jobs could go unfilled by 2030.
In 2023, there is pressure on organizations to stand out from their competition and attract and retain employees that will help drive the company forward. This requires businesses to review current trends and implement best practices.
The Most In-Demand Employee Benefits
In a fast-paced and competitive job market, organizations must prioritize what benefits they offer to attract and retain top talent. The landscape of employee benefits has significantly shifted in recent years, with modern employees expecting personalized benefits rather than a one-size-fits-all solution.
Some of the most sought-after employee benefits include:
- Health insurance
- Retirement savings plans
- Financial wellness programs
- PTO and flexible work arrangements
- Professional development
- Health and mental wellness programs
- Family financial assistance
- Life insurance
- Employee discounts
Improving Productivity and Reducing Costs
Modern organizations recognize employee benefits’ essential role in retaining engaged and productive employees. A well-crafted employee benefits plan promotes a healthy work-life balance, which is essential for high levels of productivity.
Flextime, remote work options, compressed workweeks, and similar arrangements can help employees better manage their personal obligations while meeting work demands.
While it may seem as though introducing new benefits will be a costly investment, businesses often find that they save a sizable sum in other places. Attractive incentives help reduce employee turnover, minimize recruitment costs, and reduce overall productivity loss due to absenteeism.
Reducing Financial Stress of Talented Employees
Concerns about financial security, retirement plans, and savings have mounted considerably in recent years. According to a State of the Workplace study, approximately 71% of employees report that money-related stress has negatively impacted both their personal and work lives, up 7% from 2021.
Offering financial wellness benefits as part of a comprehensive benefits package can help improve retention, reduce employee stress, and boost productivity in the workplace. Financial wellness programs are designed to aid financially stressed workers by helping them better manage their day-to-day finances and save for the future.
Utilizing Employee Benefits Technologies
Technology continues to change how employee benefits are administered, managed, and utilized by workers. Employers who implement new technologies are more likely to gain a competitive edge and attract skilled workers.
Flexible technologies can be used in a variety of ways, such as by empowering employees to make smart healthcare choices. Instead of skipping an important doctor visit due to lack of time or transportation, technology enables employees to book telehealth visits with their healthcare provider.
Restructuring Benefits to Increase Employee Retention
Change is inevitable in the manufacturing industry and employee benefits are no exception. Organizations must be willing to restructure their benefits to boost employee retention and combat issues that lead to a high rate of employee turnover.
Some ways that employers are restricting benefits include the following:
- Employers are taking on increased benefits costs to keep expenses low for employees.
- Companies are now offering additional optional benefits to hold on to top talent, such as pet insurance.
- Organizations are enhancing employee assistance programs (EAPs) to include access to free counseling services, confidential assessments, and similar services.
Innovating Employee Benefits Strategies
Today, employee benefits are not just limited to traditional benefits such as health insurance and retirement plans. Organizations can stand out by developing more innovative employee benefits strategies that include creative perks. For example, providing workers with paid birthdays can help enhance employee morale. Time off during the holidays can have the same effect.
Remote work opportunities are also becoming an effective strategy for increasing employee retention. Although many employees would prefer to work at home, few businesses offer remote work options. Introducing a remote work arrangement or hybrid schedule can help retain talent.
Optimizing Costs Without Sacrificing Benefit Quality
Every employer is looking for ways to cut the costs of employee benefits without sacrificing quality or compromising employee satisfaction. Restructuring benefit options should be approached carefully to ensure workers continue getting the benefits they need to remain happy and healthy.
Optimizing benefit costs may require companies to switch medical carriers to obtain the best rates for the most comprehensive coverage. Medical plan or pharmacy plan redesigns can also help businesses bring down the cost of benefits. In addition, offering voluntary benefits is an effective way to add value to a benefits package without increasing the share that employees pay for benefits.
Optimize Employee Benefit Programs with New City
Optimizing employee benefit programs is essential for attracting and retaining talent, establishing a company as a benchmark business in the manufacturing industry, and creating a productive work environment. The insurance professionals at New City Insurance understand the importance of balancing cost and value when building employee benefits packages. Contact New City today at 888.210.2765 to learn more.