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Employee Benefits Retention, and Turnover

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Institution

Course

Instructor

Date
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Employee Benefits Retention, and Turnover

Slide 1

Employee benefits are one of the cornerstones of an employee’s overall compensation.

They exceed the usual rate of payment, which is wages or salary for labor. These other

advantages are specifically formulated in a way that would enhance above and beyond the

financial success of the employees, but also their general health and job satisfaction. In the

current competitive labor market, these advantages are mostly used for luring and retaining the

best skills. They come in different shapes and include health insurance plans, leave systems, and

bonuses such as profit sharing (Glassdoor Team, 2018). These schemes represent an alignment of

an organization with employee welfare as a whole. By offering such beneficial incentives and

benefits, employers can establish a healthy work environment where people love it and are happy

to work there, thus staying and growing within the corporation. In this presentation, we will

discuss the key role of employee benefits, employee retention, and employee turnover

relationships.

Slide 2

Employees benefit can be an effective tool to motivate and retain employees. Payment

schemes aren’t only about the amount of money a person gets. Job satisfaction largely depends

on the employee benefits that are provided. Even in cases where the employee’s base pay is low,

good benefits can serve to improve their overall job satisfaction. On the other hand, if employees

find that the benefits provided are insufficient, this can be a strong push factor for turnover.

Slide 3
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Employee benefits are an essential part of an organization’s pay package providing a rich

variety of benefits for both employees and the employer. These advantages also include

beneficial facilities such as medical insurance, disability coverage, and the life insurance and

retirement plans, which ensures employees health and financial security. Paid leave such as

holidays, sick leaves, and annual vacations enables employees to have a combination between

work and family life. Workplace culture is aided by fringe benefits such as tuition assistance and

childcare help. Besides, profit sharing promotes ownership and motivate employees. All these

benefits combined improve job satisfaction, engagement and overall moral resulting in a

decrease in turnover rate. Organizations investing in full-service benefit programs are able to

attract and retain the best talents, increase productivity, and be recognized as employers of choice

in the competitive hiring market.

Slide 4

While it is beneficial for employees, attractive benefits to employees come with many

benefits to an organization as well. One of the major benefits is motivation. Benefits that are

attractive encourage employees to perform beyond expectation. If employees feel that their work

results in a meaningful incentive, they would be more likely to be involved and dedicated to the

accomplishment of their purposes. Satisfied and engaged employees generally perform better and

are more productive. Companies with complete benefits packages will usually enjoy a more

productive, effective, and focused workforce. This enhancement of efficiency can result in better

profitability and competitive edge. Another considerable benefit to the organization is low

turnover. When the workers are happy with their benefits, job satisfaction is high, and as a result,

the workers are less likely to leave the organization in search of better opportunities. This lower

turnover rate does not only help reduce recruitment and training costs for the organization but
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also promotes consistency and stability in the workforce. Apart from the cost savings associated

with turnover, competitive employee benefits may result from cost savings in other areas. Costly

legal and HR interventions will not be required since satisfied employees are less likely to get

themselves into work-related conflicts or disputes. Additionally, organizations that offer good

benefit packages attract more positive attention in the job market. This positive picture provides

an additional advantage that enables the organization to recruit and retain talented employees

who are the high performers. Prominence in the provision of employee benefits can also

contribute to the organization’s brand and status in the sector.

Slide 5

Employee perks form an essential part of an organization’s compensation scheme and

they provide a wide range of benefits to both the employees and the organization in general.

Employee benefits most importantly increase morale of the employees. When employees believe

that their organization is concerned about their welfare and offers meaningful rewards, it

increases their overall job satisfaction. This, in turn, creates a favorable working culture in which

employees are active and motivated on a day-to-day basis. Another essential advantage for

employees is financial assistance. Health insurance and disability coverages are examples of

employee benefits that act as a cushion in difficult times like, when one falls ill or becomes

disabled (Doyle, 2019). The knowledge that they can take advantage of financial aid makes the

employees calm and stress-free motivating them to concentrate more on the job duties. Attractive

employee benefits attract enhanced engagement as their natural outcome. Employees are more

likely to be emotionally attached to what they do when they feel appreciated and cared for by

their organization. This higher level of engagement increases performance and productivity for

the organization, thereby impacting improved bottom lines. In addition to this, complete
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employee benefits packages tie into overall job satisfaction. Apart from the typical salary,

benefits are a major component of the employee’s total remuneration. Employees who are

satisfied with their benefits contribute to their overall satisfaction with their jobs, therefore

increasing the likelihood of them remaining with the organization (Doyle, 2019). Furthermore,

employee benefits could lead employees to feel that they are secure at their workplace. Knowing

that such benefits as health insurance and retirement plans are available to them, the employees

are less likely to seek for other opportunities. This results in lower levels of turnover intention

within organizations leading to retention of quality talent and hence reducing recruitment and

training costs.

Slide 6

The employee retention is the ability of an organization to retain its employees for a

given period that minimize turnover levels (Al-Suraihi et al., 2021). Retaining talent is important

because high turnover has both disruptive and costly consequences for businesses. Several

variables determine whether employees opt to remain or depart from the company. Such factors

may include job satisfaction that is usually associated with the level to which employee

expectations and needs are met in the company. Pay is another crucial aspect where workers

should feel given just compensation for their effort. Work-life balance and career growth

opportunities are also key factors in retention. Effective employee retention requires

organizations to put in place appropriate strategies, which can speak to their workforce. Some of

these approaches include competitive benefits, career development opportunities and a satisfying

work environment where staff members feel appreciated. The advantages of effective employee

retention are very many. The result is decreased recruitment and training costs alongside

increased productivity resulting from the stable and experienced workforce. In addition, it
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promotes keeping knowledge about the institution, which is an important aspect of long-term

success. In most cases, organizations measure retention by monitoring turnover statistics,

administering employee satisfaction surveys and conducting exit interviews to identify

weaknesses that can be addressed. In truth, employee retention is not just about retaining the

workers but creating an environment where the workers are motivated to remain and contribute

to the success of the organization.

Slide 7

Organizations need to monitor the employee turnover rate as one of the most important

measures. It includes turnover rate, which may reveal by the state of the organization’s staff’s

health. Two basic types of turnover exist - voluntary and involuntary, each having unique

consequences. Turnover causes might also differ but are usually associated with the satisfaction

of employees as well as the conditions of the workplace (Al-Suraihi et al., 2021). High turnover

often results in higher costs and demoralized other employees. In order to reduce turnover,

organizations may consider initiatives that target the underlying factors and provide a better

environment for their employees.

Slide 8

In analyzing the link between employee benefits, employee retention, and employee

turnover, Herzberg's theory is vital. Herzberg argued that employee benefits are essential in

generating job happiness (Holston-Okae & Mushi, 2018). This employee retention, in return, is a

major determinant of job satisfaction. On the opposite ends of the employee lifecycle continuum

are employee retention and turnover. Employee retention means keeping the employees actively

involved in the tasks assigned to them while the turnovers are concerned with employees leaving
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the organization. Dissatisfied employees and those who feel underappreciated are more likely to

resign from the organization. Here is where the value of employee benefits has become clear.

The appeal of benefits such as competitive salary, superior health benefits, and career

advancement opportunities could lead to greater levels of employment satisfaction, and retention

(Hamill, 2019). On the other hand, when there is no considerable incentive attached to the job,

the employees may turnover. If employees believe they are underpaid or unable to advance their

careers or find opportunities for career advancement within the company, they might resign and

look for better opportunities elsewhere.

Slide 9

While they are very important, employee perks do not determine employee retention by

themselves. Many aspects are associated with the episodes of multidimensional job satisfaction.

While benefits are a major component of job satisfaction, they should fit within a broader

framework of competitive salary, pleasant working conditions, recognition, and opportunities for

career advancement (Sanicola, 2011). Organizations should seek the equilibrium of these factors

instead of the benefits to enhance employee retention.

Slide 10

Two key measures of employee performance in an organization are retention and

turnover. Retention is defined as the ability of an organization to keep its employees happy, with

stable and consistent performance (Al-Suraihi et al., 2021). The other factor is the turnover rate

which refers to the rate at which the workers vary from their employment leading to chaos and

costs. These include pay, job growth, and workplace conditions all contribute importantly to rates
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of retention and turnover. Organizations need to strike the right balance that makes employees

want to stay but want less employees leaving.

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References

Al-Suraihi, W. A., Samikon, S. A., & Ibrahim, I. (2021). Employee Turnover Causes, Importance

and Retention Strategies. European Journal of Business and Management Research

(EJBMR).

Doyle, A. (2019). Types of employee benefits and perks. Retrieved from

https://www.thebalancecareers.com/types-of-employee-benefits-and-perks-2060433. (Be

sure to click on the links within this source to gain depth about specific benefits.)

Glassdoor Team. (2018). 11 Companies with seriously impressive benefits. Retrieved from

https://www.glassdoor.com/blog/companies-seriously-impressive-benefits/

Hamill, L. (2019). Workplace culture: The invisible perk your employees actually need: Good

benefits can create hype, but they fail to address employees' greatest need: Care.

Employee Benefit News, 33(5), 33. Available in the Trident Online Library.

Holston-Okae, B. L., & Mushi, R. J. (2018). Employee turnover in the hospitality industry using

Herzberg’s two-factor motivation-hygiene theory. International Journal of Academic

Research in Business and Social Sciences, 8(1), 218-248.

Sanicola, L. (2011). Employee Benefits Basics, pp. 7-29. Scottsdale: WorldatWork Press.

Retrieved from EBSCO eBook Collection in the Trident Online library.