In December 2018, the unemployment rate rose ever-so-slightly to 3.9 percent.
However, forecasters expect the unemployment rate to be 3.7 percent by the end of this quarter and trend to around 4.5 percent by 2020.
What does that mean? The war for talent and desperate need to retain your current workforce is not going anywhere.
Clearly this unemployment rate is great at its core, it puts the employee in the driver’s seat to be more selective, demand more and negotiate harder for the jobs they are passionate about. However, for employers, it adds a difficult dimension to the day-to-day. With already limited resources, and less manpower for manual tasks, HR teams are looking for new, creative ways to hold tight to their current staff and keep retention levels at an all-time high.
But the good news is, there are some very simple, yet effective actions you can take now, to help drive your retention strategies and highlight the importance you have in their lives that goes beyond the day to day.
Employees are demanding more benefits.
Sixty percent of people report that benefits and perks are a major factor in considering whether to accept a job offer, and 80 percent of employees would choose additional benefits over a pay raise. Additionally, 81 percent of employees who can easily access their benefits said they feel loyal to their employer and 79 percent say they were proud to work for their organization.
The stats could go on and on, but suffice it to say, in this tight labor market employees are putting a larger emphasis on benefits and employee perks when making job decisions or when deciding to stay with their current employer. But do those same employees actually realize their entire benefit package and the investment that their employer is making? More often than not, they don’t.
That’s why engagement is so important!
Employers must find ways to engage in a year-round benefits conversation with their employees and Total Rewards must be a part of that. By showcasing Total Rewards programs to employees throughout the year, you ensure they understand that the benefits being provided go beyond pay and healthcare.
The benefits are there, but employees lack the understanding and education to understand their value.
Sending an annual Total Compensation Statement is a great start to a Total Rewards conversation, but that’s not enough! While providing that detail once a year is a springboard to Total Rewards engagement, employers must also provide easy access to that information throughout the year to help educate their employees to do more.
Interesting in learning more about Businessolver’s Total Rewards service?