Employee benefit customization is in high demand. Are you prepared to meet that demand?
According to MetLife, approximately 70% of all employees say benefits customization would increase their loyalty to their current employer1. So, offering benefits customization is a good place to start for companies looking to increase their employee retention rate. In this post, we explain what benefit customization is, why it’s beneficial, and where to begin if you’re interested in becoming part of popular employee benefits trends.
What is Benefits Customization?
Benefits customization means the employee can tailor their benefits package. It’s sort of like letting an employee load of a plate full of benefits at a buffet. They get to choose what they want from a variety of pre-set options. Employees benefit by selecting what they want or need, and employers enjoy retaining control over what’s offered.
Why is Customization Beneficial in Employee Benefits Programs?
Employers have the most to gain from offering employee benefit customization. Companies offering benefit customization have an easier time attracting and retaining top talent. And, they have an easier time pleasing the different generations that work side by side in the office.
Because the employee benefits trend is not likely to go away anytime soon, employers smart enough to get on board will enjoy several benefits, such as:
• Increased loyalty—67% of baby boomers and 76% of millennials believe the ability to customize their benefits will increase their loyalty to their employer.2
• Better employee retention rates— it’s not just one employer who loses out when an employee leaves, with the rise of contract and freelance work, it’s several. Approximately 51% of employees are interested in freelance work because the work offers a more flexible schedule, project variety, and the ability to work from home. Basically, employees are looking at their situation like this: If I’m not able to customize my benefits and my work at the office, why not take control over my work and customize my life?2
• The ability to please different generations that must co-exist in the office and who rank what’s important to them differently.2
• Cost savings— Retaining employees means saving on recruitment costs and fees associated with onboarding new employees. A study by inc.com indicated that employee turnover costs the company about 150% percent of that employee’s annual salary.3
• Increased productivity—businesses who retain top talent spend less time training new staff and more time developing and growing their business.
Where Should Employers Start?
Millennials make up the largest portion of the workforce and are the driving force behind benefit customization. So, businesses should offer benefit customization in their choice of employee benefits program if they want to attract and keep younger talent.
Getting started with benefits customization is easy. Just reach out to your local benefits administrator and tell them you’d like to offer employees the ability to customize their benefits.
When you work with a benefits administrator, you can offer more than just health benefits. For example, you could include Clarity Benefit Solutions commuter benefits and use their commuter benefits administration team to handle benefit admin. Expanding your offerings to include such benefits not only makes your selection of benefits more attractive, but it also meets employee demands.
Start Today
The demand for employee benefit customization will grow. The end of the year is the perfect time to reflect on your current benefit offerings to consider how you might improve them. What better way to show employee appreciation this holiday than gifting them with the ability to choose the benefits they need?
1. http://www.winstonbenefits.com/the-employee-benefits-blog/benefits-trends-2016-year-in-review
2. https://www.plansponsor.com/benefits-customization-key-to-employee-retention/
3. http://buyerads.com/blog/?p=450
