If you're struggling with how to improve employee retention and consistently hitting revenue goals, remember that you're not the only one. According to recent research, only 10% of businesses consistently hit their revenue goals, and more than half of global organizations disclosed difficulty retaining valuable employees.
The reason is often pretty simple. Companies aren't investing enough money into the health and well-being of their employees. Fortunately, the benefits of employee wellness programs far outweigh the costs, increasing employee retention rates and ROI.
So, what's the solution? Proper onboarding, training, employee health and wellness programs, and compliance policies. Here's everything you need to know to increase your ROI while improving the well-being of your employees.
What's the Connection Between Employee Retention and ROI?
Employee retention is the rate a company prevents employee turnover (i.e., an organization's ability to keep employees). A high turnover rate means your company is continuously rehiring, whereas high retention means your company is doing very little rehiring (mostly hiring for new positions rather than existing ones).
How are these rates connected to ROI?
Your company can't make money if you're putting more time into filling and replacing job positions than you are putting into the job itself. In this case, it means hiring the right people and taking care of them because the alternative is poor employee retention.
And the impact of poor employee retention on successful business is much like rust on boats — it's only a matter of time before it eats away at the very foundation that keeps it afloat.
On the other hand, retaining employees boosts ROI in the following ways:
- Less money spent on rehiring.
- Fewer hours are spent on training, which means more hours are allocated to increasing the company's bottom line.
- Employees willing to stay are happy employees — happy employees are 20% more productive.
How Important is Employee Training for Your Business?
When considering what factors influence a higher employee retention rate, you should immediately reevaluate your training. While hiring the wrong candidate for a position often leads directly to rehiring, improperly training a suitable candidate can be just as bad.
The appropriate onboarding and training are essential in preparing suitable candidates for the job ahead of them. New employees can catch up much more efficiently with the rest of your staff by having a complete understanding of expectations, and how to meet the companies goals. They are also more likely to stay with the company because:
- They are immediately satisfied with the company.
- Have a thorough understanding of the job and what is expected of them.
- Gets employees smoothly acclimated into the workplace, allowing them to spend more time being productive than struggling to keep up, inherently improving mental health by decreasing stress and anxiety.
Did you know that more than 30% of new hires leave within the first six months? The top two reasons are that they didn't receive clear guidelines (23%) and training wasn't effective (21%).
Ongoing training is also important. A LinkedIn survey found that 94% of respondents reported that if their company invested in their ongoing training and professional development, they would stay there longer.
Do I Really Need a Wellness Program to Increase ROI?
The answer is: yes, absolutely! Employee well being can increase productivity and service, leading to a better ROI.
Think of it this way: Do humans need to be in good health to function properly — mentally and physically? Yes! And considering employees are the heart and soul of your company, their wellness is crucial to the success of your business.
A wellness program ensures your staff is mentally and physically healthy by reducing major health risks like smoking, obesity, stress and anxiety, and more. This can include educational content on managing stress, exercising programs, assessments, and even friendly weight-loss competitions.
How Wellness Programs Benefit the Workplace
Wellness programs benefit workplaces by boosting:
- Engagement — the global objective for wellness programs globally is to improve employee engagement and performance (82%), and with the right plans, that goal is achievable.
- Retention — Happy employees are more likely to stick around for the long haul, and according to Limeade, a staff with better wellbeing is 83% more likely to enjoy their work and 91% less likely to leave.
- Morale — Companies site morale (54%) as the most improved metric of wellness programs.
- Satisfaction — more than half (70%) of employees enrolled in wellness programs have reported higher satisfaction with their jobs than those not registered.
- Health —better health means better attendance! Research shows that at least 38% of people say a wellness program allowed them to take fewer sick leaves.
- Acquisition — struggling to attract the right people? You won't with a wellness program. According to Safety and Health, 73% of an Office Team survey reported considering health and wellness packages when job seeking.
What About Company ROI?
There are several ways wellness programs can positively impact your bottom line. First and foremost are the healthcare costs you save on by improving your staff's health and wellbeing. Then there are the cost savings of improving lifestyle management which inherently reduces medical absences and sick days and improves productivity.
Companies implementing wellness programs in the workplace can expect on average $1.50 ROI for every dollar spent. Furthermore, the return for disease management alone can earn you as much as $3.80 for every $1 spent and another $0.50 for every dollar invested in lifestyle management.
Are Compliance Policies Going to Retain Talented Employees?
Compliance policies protect both the company and its employees by ensuring everyone follows the rules and regulations enforced by the law. It clearly defines all the guidelines and expectations employers and employees must follow, setting the tone for workplace culture and day-to-day procedures.
A good employee compliance policy should include:
- Anti-harassment and anti-discrimination policies
- Occupational Safety & Health Administration (OSHA) Regulations
- Code of Conduct Policies
- Confidentiality Policies
- Conflicts of Interest Policies
- Acceptable Use Policies, and More.
Benefits of developing these policies clearly with open communication on their importance include:
- Reduces Liability
- Improves Reputation
- Promotes Equal Opportunities
- Creates a Positive Workplace Culture
- Improves employee retention and morale by making employees feel more valued (81% of workers say they would stick around longer and work harder if they felt valued by their employer)
Maximize Your ROI with a PEO
Training, wellness, and compliance create a cohesive workplace system that fosters better retention and an increase in ROI. Happy employees that are taken care of are more willing to stay and help their company grow, even when faced with other opportunities. The key to enjoying the benefits of employee retention is to invest more in your employees to ensure they're just as devoted to the company as you are.
A trusted PEO can be beneficial in this case because we can ensure your organization is complying with important laws and regulations, offering some of the best health and wellness programs, and keeping up with all the latest in onboarding and ongoing training. Contact us for more tips on boosting retention with a satisfied team and developing healthier ROI in the process.
