Employee Perks to Boost Retention
Low unemployment, concerns about upward mobility, and a desire for work and life balance are creating new employee demands. On the business side, maintaining a competitive edge means blending innovation and pricing with employee perks and retention. In both cases, keeping valued employees happy and on the payroll is a given. PayScale has released its 2019 report about practices a that promise to guide you in keeping employees during competitive times.
Top Reasons for Leaving a Job
In 2018 a study was done on the top reasons employees left current positions. The top three account for over 60% for the representative sample of over 7,000 respondents. The data is listed from the highest and reveals a vital trend for you to consider as part of retention planning:
- Personal reasons
- Professional advancement
- Better compensation elsewhere
Trends in Employee Perks
This data provides a revealing balance to that of reasons for leaving. Roughly one third of organizations are now offering:
- Flex time—this benefit permits employees to care for family, pursue advanced education, or other life goals.
- Remote work interests by some employees is receiving more employer support.
- Paid family leave supports employees who are caring for a new family member, senior relatives, or a loved one who is ill.
- 10% of organizations are instituting 4-day work weeks that offer these and other advantages for employees.
- The report describes a recent doubling in organizations offering paid time off (PTO) that benefits employee well-being.
Compensation Trends and Retention
The report projects increased organizational interest in compensation incentives to boost retention. These include:
- Increases in base pay rates.
- More variable pay benefits for high performing employees. One example is the award of bonuses outside of annual salary.
Despite these positive changes, organizations are still reluctant to be transparent with wage scales. One finding of the PayScale research is that employees of businesses that focus on a “strong pay brand” are more satisfied. Yet other businesses have yet to pay branding as one means of boosting retention.
You can download the Payscale report here.
For more information about Ways to Motivate Employees, click here