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.
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:
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:
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.
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.
Wellness programs benefit workplaces by boosting:
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.
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:
Benefits of developing these policies clearly with open communication on their importance include:
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.