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HR Professionals Invest In Benefits After Great Resignation

January 2, 2023, by New City Insurance

notepad and figure with sign the great resignationEmployers across the United States are experiencing tremendous changes amid the Great Resignation. Starting in early 2021 in the wake of the COVID-19 pandemic, the economy experienced an elevated rate of voluntary employee resignations. The Great Resignation, also referred to as the Great Reshuffle or the Big Quit, led to millions of job openings as the demand for workers skyrocketed.

Resignation trends continued into 2022, with a record 4.5 million employees quitting their jobs for reasons other than retirement in March 2022, according to JOLTS data. By the end of March 2022, there were 11.55 million job openings, the highest on record.

To attract and retain employees, many employers are choosing to restructure their current benefit offerings. In fact, a study conducted by CITE Research revealed that 84 percent of HR professionals report improving employee benefits, and more than half (58 percent) of businesses have increased their health-care coverage. Nearly all (94 percent) of organizations believe that parental leave benefits should be a top priority to attract and retain workers.

Record High Employee Turnover Highlights Retention Issues Across Industries

Despite steps taken to draw in job candidates, many employers are still struggling to attract and retain employees. According to a recent Job Openings and Labor Turnover Summary published by the US Bureau of Labor Statistics, the average turnover rate in 2022 remained 20 percent higher than the annual turnover rate at pre-pandemic levels.

When companies fail to understand why their employees are resigning, and what they might gravitate to, business leaders are putting their businesses at risk. To address these issues, many employers are taking the initiative to develop a thriving post-pandemic organization that caters to the needs and wants of a modern workforce.

Why Employee Turnover Is So High

Many factors have contributed to employee turnover since the start of the pandemic. While these reasons can be frustrating for both employers and employees, it is important to recognize what reasons may be preventing workers from staying and what benefits could encourage them to remain loyal to the business.

employee leaving the office permanentlyAccording to a recent Pew Research Center survey that analyzed the top reasons why US workers left a job in 2021, the majority (63 percent) say low pay, while 63 percent also said no opportunities for advancement. The survey also revealed other reasons for quitting, such as feeling disrespected at work (57 percent) and childcare issues (48 percent).

Lower on the list include not having enough flexibility to choose when to put in hours (45 percent), poor benefit options (43 percent), wanting to relocate to another area (35 percent), working too many hours (39 percent), working too few hours (30 percent), and finally, the employer required a COVID-19 vaccine (18 percent).

HR Professionals Are Looking to Improve Benefits for Stronger Retention

Throughout 2021 and 2022, employees left their jobs in record numbers in search of better opportunities and benefits. With so many vacant positions in nearly all industries, the current job market continues to be favorable to job seekers. With a high demand for workers, employers must be diligent to retain the employees they have and to find opportunities to attract new workers.

Improving benefit offerings is one of the best ways to improve employee satisfaction and boost retention. According to a Fractl survey of 2,000 workers, 88 percent of job seekers said that they give “some consideration” or “heavy consideration” to better health, vision, and dental benefits when choosing between a lower-paying job with better benefits and a higher-paying job.

There are several highly sought-after benefits that modern employers should consider adding to their current benefits package or reelevating for effectiveness, such as health and wellness benefits, retirement benefits, educational benefits, professional development benefits, remote work opportunities, and other benefits that will attract and retain employees.

Employees Want Better Health-Care Coverage

Health-care benefits may be optional for smaller employers but are no less important for employee retention. The Patient Protection and Affordable Care Act requires all employers with 50 or more full-time or equivalent employees to provide adequate health coverage. However, even employers that are not mandated by law to offer health-care coverage should consider adding health and wellness benefits to their benefits package to attract and retain top talent.

employee health benefits conceptAccording to a CITE Research survey, approximately 58 percent of organizations have improved health-care coverage. In addition, about 36 percent of HR decision makers have reported that employees are asking for better health coverage.

Employers who offer health insurance can also benefit in other ways, such as through tax advantages. By offering employees benefits that increase their compensation package, employers can get an income tax deduction for the contribution, meaning any out-of-pocket costs are less than the value of the benefit to the employee.

Employees Are Financially Stressed

Having access to financial benefits is more important than ever before when it comes to attracting and retaining employees. High levels of inflation and a looming recession are forcing many businesses to rethink their benefit offerings as employees voice that they are financially stressed and looking for benefits to help.

According to the CITE Research survey, 62 percent of HR leaders reported that their workers’ financial-related stress levels have increased within the past year. In addition, 80 percent of HR professionals believe that offering employees competitive benefits like 401(k) retirement matching is more important for attracting and retaining workers than it was just one year ago. The survey also found that 36 percent of HR decision makers have reported that employees have asked for increased financial benefits.

Employees Are Routinely Asking for More Benefits

Since the start of the pandemic, the demand for bigger and better employee benefits has steadily increased. More employees throughout the country are routinely asking for benefits to help them achieve financial stability and provide better care for their families. Results from the CITE Research survey showed that 94 percent of employers say that parental leave benefits are some of the most important benefits to attracting and retaining workers.

people holding hands2022 was also a major year for new policies that impact women and the LGBTQIA+ community. The survey revealed that 66 percent of respondents support coverage for hormone replacement therapy, a benefit important to the modern workforce.

In addition, 60 percent stated that funding and leave for abortion are critical for employees. Finally, 58 percent say they support travel benefits for medical purposes if a particular procedure is not available in the employee’s state.

Partner With New City Insurance and Structure Employee Benefits to Meet Employee Needs

While the Great Resignation has made waves for businesses across America, many believe that this economic trend has changed companies for the better. Many employers are taking the necessary steps to adapt to workers’ needs by addressing employee mental and financial health, wellness, and by offering remote work opportunities, among other things.

It can be difficult for businesses to take the initial steps to alter their benefits plans and invest in new benefits. To maximize employee benefits cost savings while meeting employee needs, work with a results-driven benefits consultant at New City.

We build custom plans that enable employees to keep their networks and achieve greater overall satisfaction in the workplace. To get started, contact New City Insurance at 888.210.2765 or request a consultation online today.

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New City Insurance
New City Insurance
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Carol Zhang
Carol Zhang
04:29 06 Mar 22
As a rapidly expanding national media organization, the employee benefits strategy and administration that New City has provided us during our growth has been invaluable. They have been proactive about informing us of the different benefit strategies available to us as we grow as well as managing the additional compliance laws and reporting requirements at each stage of our growth.
Claudia Villalobos
Claudia Villalobos
20:14 03 Mar 22
New City Insurance made navigating through all the health insurances super EASY. Their documents are highly informative, professional, and easy to work with. Thank you for making the process of choosing a health plan so simple. You guys are THE BEST!
Philippe Salas
Philippe Salas
17:02 22 Feb 22
I never expected to have a good time talking to an insurance salesman, but let me tell you Brendan was quite the treat. He was very helpful explaining the options and has a wonderful sense of humor. I hope to speak with him every time I call.
Jennifer Polito
Jennifer Polito
17:15 09 Feb 22
Super easy enrollment process. Fast and friendly customer service. If you are looking for an insurance company that is there for you every step of the way I highly recommend New City Insurance.
Rocky Salas
Rocky Salas
23:46 07 Jan 22
So friendly, I hope to speak to him again in all my future insurance needs.
Rocky Salas
Rocky Salas
23:38 07 Jan 22
So friendly and soft spoken. I hope to speak to him again in all my future insurance needs.
Jose Brena
Jose Brena
13:20 06 Jan 22
Eric Calciano has been extremely helpful in finding and selecting the right insurance coverage for our company. With many options out there Eric assisted us on getting a low cost provider saving more than 20% than from our competitors and providing excellent coverage for our employees.
Anastasia Beaverhousen
Anastasia Beaverhousen
17:05 28 Dec 21
Signing up for insurance was quick and easy. Felicity Sundsboe
SFCC
SFCC
22:08 29 Nov 21
Jeff Stoltey and his team provide excellent customer service. Jeff has always provided my company SFCC with straightforward options. I went to a larger insurance company only to RUN BACK to Jeff at New City Insurance. I recommend them to anyone needing insurance without hesitation.
Kevin Luby
Kevin Luby
19:13 22 Oct 21
Quick, easy & informative. We were able to secure quality insurance for our small business on a tight deadline. Thanks for the help New City.
Theresa Ruybol
Theresa Ruybol
19:30 01 Jul 21
Eric was so great with us. He was very patient and kind as we are a newer smaller organization who is growing rapidly. With that said, we had made our inquiry, he had great rapid response and mostly had to wait on me. Any request that we made and/or questions we had, he was great answering and helping us understand. Then when we were ready for all documents and to move forward, Brendan helped with getting that together and the two of them worked their magic on New City's end to notify me of what was needed, assist me in that process and confirming that all was complete and approved for the coverage. I just want to say thank you all again so much, as insurance has always been confusing to me, and you all made that process go a lot smoother.Thank you
Andrea Ordendorff
Andrea Ordendorff
21:06 07 May 21
I've been working with both Clayton and Brendan for well over a year. As the purchase of our dental practice was delayed well over 14 months they both patiently supported me and continued to make themselves available. When we were officially ready to sign up they made the whole process seamless and super easy. This team is highly knowledgeable, professional, supportive, and efficient! I can't thank them enough for everything they've done.
T W
T W
22:32 30 Aug 20
I love New City Insurance. I never had a good experience dealing with insurance brokers until I started working with Brendan. He’s awesome! He is patient with me and takes the time to answer all my questions. I’m very grateful for all his help and hard work!
Mary Jane Deyette
Mary Jane Deyette
00:57 11 May 20
Jeff Stoltey is so awesome...even thru my company had only two employees, he took the time each year to research and find the best plan for us. The only reason I am leaving New City Insurance is because we no longer have any employees. Thank you Jeff
Alma Ortiz
Alma Ortiz
22:25 23 Feb 20
Brendan was awesome! I couldn't figure out how to pick my plan and he returned my call on a weekend to help me. Outstansing service!
jessica kavanagh
jessica kavanagh
19:53 13 Feb 20
Brendan was so helpful I definitely recommend him if you’re in need of good help and getting it done promptly. Thankyou so much again.
Tricia DeYoung
Tricia DeYoung
19:49 13 Feb 20
I was very thankful I inquired about this info. with Brendan. He was very helpful so I understand the benefits available much better now. Thank you Brendan.
B Bayer
B Bayer
17:43 24 Sep 19
NCI handled almost everything from start to finish. Clayton and Brendan made the plans easy to understand and walked me through the application process. They got me my ID numbers before my cards arrived so that I could keep an appointment I had already scheduled. My last broker wouldn't have done that. 5 stars!
Jessica Lehr
Jessica Lehr
03:36 07 Jun 19
Our staff was interested in a health plan, but we didn't know how beneficial a solid employee benefits package would be for our business to expand. We'd lose prospective employees because they had more options for their medical insurance which was sometimes more valuable than more pay. The New City team was amazing and gave us as many affordable options as possible so that everyone had their needs met.
Mike McClay
Mike McClay
19:36 03 May 19
My employer uses New City as their insurance broker, and I'm always amazed when I call in for assistance by how knowledgeable and attentive their staff is with my requests. Their online benefits platform makes selecting insurance plans pretty darn easy. I would highly recommend their services.
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