Employers use perks and benefits to counteract the Great Resignation

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Many firms are providing new benefits and allowing more flexible schedules in response to the prolonged tight labour market, which has seen workers resign at record rates. 

Firms  have been beefing up benefits

KPMG, an accounting and advising business, will make automatic 401(k) contributions of up to 8% of a worker’s compensation rather than matching individual contributions, among other benefits changes.

KPMG U.S. Chair and CEO Paul Knopp said on LinkedIn in late October that “we will replace our present KPMG 401k match and pension plans with a single, automatic firm-funded contribution inside the 401k plan equal to 6-8 percent of qualifying W-2 compensation.” “The new plan will offer market-leading flexibility,” he added, “since all workers will get the contribution without having to pay any of their own money.”

The official statement was followed by a 10% decrease in healthcare costs for 2022, as well as additional health-care assistance programs, 12 weeks of maternity and paternity leave to bond with a newborn baby, up to 3 weeks of additional paid caregiver leave, new caregiver concierge programmes, and an extensive employee recognition programme.

Is it time for a Great Resignation or a Great Reckoning?

According to the ‘Mercer’s 2021 Inside Employees’ Minds survey report, based on responses from more than 2,000 U.S.-based workers surveyed previously this year, the COVID-19 pandemic ended up causing front-line, low-wage, minority, and lower-level employees to think about leaving their employers at rates considerably higher than historical norms.

While “the Great Resignation” connotes a widespread flight of employees from all demographics, “Great Reckoning” denotes that just certain groups of workers—those who believe their employers are failing to satisfy their needs—are considering quitting.

“Employers must now think differently about front-line and lower-level workers and create a compelling value proposition that meets their demands,” said Melissa Swift, Mercer’s transformation leader in the United States.

Employers should concentrate on how they can improve their workforce’s economic security and make front-line hourly employment more appealing. Employers should prioritise pay, as well as perks such as reasonable health care and services to help employees improve their financial well-being.

Companies React to Employee Migration

According to research by the Society for Human Resource Management, 42 percent of Human resource professionals who said their organisation had experienced higher or much higher turnover in the previous six months have put in place new or additional remote-work as a way to lower turnover, 32 percent have deployed new or additional employee referral bonuses, and 28 percent have introduced new or additional pay raises.

“Employees are leaving their positions in historic numbers to explore new opportunities, making attracting and keeping talent a substantial problem for companies throughout the country,” said SHRM’s president and chief executive officer, Johnny C. Taylor, Jr., SHRM-SCP. “It’s a candidate’s market, and businesses must adapt by rethinking how they attract and retain talent, revising perks and flexible work hours, and expanding the talent pool for available positions.”

Increase the number of hours that can be worked on a flexible basis.

The results of Randstad’s Next Normal poll, which was just released, revealed that workers’ expectations about benefits are changing. Flexible work hours are the most essential job advantage, according to 24% of the 1,227 U.S. respondents to the August study, while child care services are the top priority for 20%.

The findings of the poll are similar to past Randstad USA research, which revealed that American workers anticipate additional benefits and incentives from their employers.

Option to choose where and when to work

According to a survey of 2,800 senior managers conducted by staffing agency Robert Half in June, 41% of those questioned allow workers to pick when they work, and 27% of those managers don’t mind if their direct reports work fewer than 40 hours per week as long as the task is done.

However, according to the firm’s August survey of 1,000 employees, 72 percent require at least 8 hours per day to complete their tasks, and 48 percent never entirely detach from work during business hours, feeling obligated to reply to messages and requests immediately, including during breaks.

“While employers are constantly adopting schedule flexibility, they don’t always have complete visibility into their team members’ duties and workloads,” according to Paul McDonald, senior executive director at Robert Half. “When workers have too much on their plates, the choice to work whenever they want might cause more stress than relaxation,” according to the study, converting a benefit designed to keep staff on board into one that could drive them away.

Workers want higher pay and more flexibility.

Many employees now have the power to demand from new or present employers more compensation, better benefits, and/or more flexible working arrangements.

“Cash is king for job searchers,” said Nick Bunker, Indeed Hiring Lab’s North America economic research director. He claimed that after corporations like Amazon, Chipotle, and Bank of America announced raises to their minimum salaries, searches on the Indeed job listing network surged, demonstrating that “wages are still the most crucial issue.” 

See how HealthBoxHR can help your business to manage the retention and recruitment of staff with our Recruitment and Performance management features – without any hassle! 

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