Perspective - Jan 15, 2005

Ann Bauer

Employee Retention through Employee Benefits

Most HR professionals would agree that employee benefits provide a powerful tool for not only attracting but retaining top-notch employees. When designing a retention-oriented benefits program, keep the following implementation steps in mind:

• Create a benefits mission statement than encompasses the company's desire to care for its employees.
• Identify the specific benefits wants and needs of the employees you wish to attract and retain.
• Outline a benefits budget that is adaptable to the financial constraints of the company as well as economic changes that will occur.
• Provide employees with the ability to control their benefits and choices as much as possible. Web-based applications are a great resource to make that option available to employees.
• Clearly and concisely communicate the plan to all HR professionals so everyone is on board with the retention-oriented benefit program.

According to the latest Job Recovery Survey produced by SHRM and CareerJournal.com, when HR professionals were asked which programs or policies they use currently to help retain employees, the following three were the most common:

• 62% provide Tuition Reimbursement
• 60% offer competitive vacations and holiday benefits
• 59% offer competitive salaries.

Based on this information, these three programs should be your key retention strategies.

In the same survey conducted by SHRM and CareerJournal.com, employees listed "Seeking better compensation and benefits" as the number one reason to begin a job search.

When the job market rebounds, employee retention will be a concern for HR professionals if the key strategies are not in place. Professionals throughout the industry agree that employee turnover will rise and retention efforts will be necessary to keep the best employees on board.

About Granite Solutions Groupe

Granite Solutions Groupe (Granite) is a San Francisco based recruiting firm that specializes in recruiting and placing highly-skilled senior-level Project Managers, Business Analysts and IT Managers at global firms throughout the financial services and IT Market. Contact them online at www.granitesolutionsgroupe.com.