Employees play a significant role in every company. They are the backbone of every business. They work hard to keep things in order and keep the company running smoothly. Without employees, a company would not be able to function properly. So they are an essential part of every business.
However, employee turnover is a big problem for many companies. It can be costly and time-consuming to train new employees. It can also disrupt the work environment and morale of the other employees. It’s estimated that it costs companies about $3,500 to hire an employee who can fully do the job. This cost includes indirect and direct costs such as training, loss of productivity, and advertising.
For big companies that often lose ten employees at a time, that’s equal to $35,000. This is a significant loss for companies, and it’s something that they try to avoid. That’s why employee turnover costs the country over a trillion dollars.
Many experts believe that retaining employees is better than hiring new ones. Here are the main reasons why employees leave your company and what you can do about it.
Poor Health Insurance
Health insurance is one of the most important benefits that employees look for in a job. A study found that most employees would consider leaving their job if they didn’t have health insurance. This is because health insurance is essential to many people. It helps them pay for doctor’s appointments, hospital visits, and prescriptions.
While some companies offer health insurance, the coverage is often not very good. It might have high deductibles, copayments, and coinsurance. It can make it difficult for employees to afford their health care. As a result, they might leave their job to find a company that offers better health insurance.
If you want to avoid this issue, you should have multiple ride-on in your employee’s health insurance. The most common ride-on is dental insurance. Dental insurance can give employees the chance to visit the local dental office without having to worry about the cost. It can also help them save money on their dental bills.
You should also have a vision plan. It’s a plan that helps employees pay for their vision care. For example, it can cover the cost of glasses, contact lenses, and eye exams. Having a vision plan can help your employees see better and feel better about their appearance.
You should also consider having a health savings account. This is a tax-advantaged account that employees can use to pay for their medical expenses. For example, employees can use health savings accounts to pay for deductibles, copayments, and coinsurance. Employees can also use them to pay for dental and vision care.
If you want to offer health insurance to your employees, you should consider having various plans. This way, they can find a plan that fits their needs and budget.
High Cost of Living
The cost of living is rising all over the country. This is especially true in big cities. The cost of rent, food, and transportation can be very high in these areas. As a result, many employees find it difficult to afford their living expenses.
This is one of the main reasons why employees are leaving your company. They might move to a cheaper city or state to save money. Or they might quit their job and start their own business.
If you want to keep your employees, you should consider offering them a raise. A raise will help them cover their living expenses and keep them from leaving your company.
You should also consider offering them other benefits such as housing assistance, transportation reimbursement, and food allowances. These benefits can help your employees save money and afford their living expenses.
Lack of Opportunities
Many employees feel like they’re not progressing in their careers. They might feel stuck in their current position and not moving up the totem pole. As a result, they might leave your company searching for new opportunities.
If you want to keep your employees, you should offer them opportunities for growth and development. Development programs can include training programs, mentorship programs, and educational opportunities.
You should also consider promoting your employees. Promoting them will give them a sense of progress and help them feel like they’re moving up in their career.
You should also consider offering your employees flexible work hours. This can allow them to have a better work-life balance. It can also make your company more attractive to potential employees.
The Bottom Line
The reality is that employee turnover is a very fixable problem if only you’re willing to put in the effort to find the root of the cause. No matter the reason for turnover, you can take steps to address it. By doing so, you can keep your best employees and improve your company’s bottom line.