HR Solutions: Decrease turnover by offering right benefits

Expanding current benefit packages to retain quality employees is rapidly gaining popularity among area companies. However, increasing existing programs may be an ineffective, knee-jerk reaction that will raise costs without realizing any return on investment.

Corporate dollars

To ensure that corporate dollars spent on fringe benefits impact your turnover, consider the following strategic retention plan:

Conduct benefit surveys

Develop a written employee survey.

Examine staff choices regarding benefit needs presently not met by the organization.

Solicit thoughts on fresh avenues.

Include detailed inquiries concerning benefits already in effect.

Do not assume personnel need or even want what you offer.

Topical queries for traditional insurance options might include medical, prescription drug, life, dental, dread disease, vision and short- and long-term disability. More novel perks encompass professional liability insurance, prepaid legal plans and discounts for auto, home and personal property.

Probe for time-off benefit preferences and policies in the areas of vacation, sickness, funerals, jury duty and personal reasons.

Assess quality of life aspirations for tuition reimbursement of relevant classes, degrees and seminars. Additional possibilities to investigate entail the new, popular counseling services being offered regarding careers, conflict resolution, stress management, fitness, nutrition, grief-coping skills, and child and elder care.

Insert financial questions about stock options, retirement plans, credit unions and expanded banking services.

Require associate signatures on the survey for follow-up purposes.

Evaluate the information and dispense a general summary of results to all staff. Create and implement action plans based upon workable ideas, and explain if certain suggestions are not feasible. Hold regular meetings to present updates on progress. Communicate recommendations that will take a while to research.

Do not conduct the survey more than once a year. You have to have time to react to the data. If not, team members will question the seriousness of management and thoughtful participation will decrease on future polls.

Calculate your turnover prior to deleting, changing or adding a benefit. Then recalculate every time you implement another change. Try only one modification at a time. Otherwise, it will be challenging to ascertain which of the changes impacted retention.

To determine a monthly turnover figure, divide the number of personnel who left during the month by the total number employed at the middle of the month. In addition, you may want to tabulate turnover rates for each quarter or year using the same formula.

Exit questionnaires

Another valuable tool is an exit questionnaire. Ask parting associates questions similar to your benefit survey. Look for trends in benefit expectations and initiate those perks to prevent turnover in the future.

A solid benefit package will increase retention. However, do not vary your existing program simply on a hunch. Conduct a proper analysis and use sound statistics to make logical choices.

(Lynne Haggerman is president/owner of Haggerman & Associates, an employment, management training, human resources consulting, and outplacement firm.)