Wage Benefits and Employee Retention: Understand The Relationship

Some companies inevitably have high employee turnover. Has your business been in such a scenario? So you know the number of resources that are mobilized in these situations. The costs range from job interviews to training for new workers. And that’s the main reason employee retention is an investment, not an extra expense.

The latest statistics from the Brazilian Institute of Geography and Statistics (IBGE) present exciting data. In a decade, we almost doubled the number of Brazilians with a university degree. This shows us that we are specializing more and that the labor market is becoming more empowered.

The increase in training, in turn, increases the demand of companies for skilled labor – and, consequently, the need to invest in the retention of employees.

We’ll go into what the benefits optimized employee retention can bring. Next, we’ll explain why pay benefits can positively contribute to a company’s financial health. Read on to learn more!

What are the benefits of employee retention?

Technical empowerment is just one of the factors that impact a job well done. Think about your day to day life and the problems you face in your company. Consider: Do they happen due to technical difficulties of their employees or to interpersonal misunderstandings?

Forbes gives us the answer. According to her, 23% of small businesses that declare bankruptcy have friction within the team. Therefore, it is essential not only to work with those who correctly perform the service. We must also value the employees, betting on a harmonious coexistence.

Why are salaried benefits an investment?

Maintaining employees in the company generates costs. From paying taxes to the workers’ salary – several financial factors to take into consideration. Similarly, retention of employees demands resources, such as the provision of health plans and benefits such as transportation vouchers.

Analyzing the benefits of employee retention, however, we have a new factor to take into account: interaction with the team. In any industry, getting used to new members generates a drop in productivity so that it may be only transitory, but it can also be permanent, beware !.

How to carry out retention effectively?

We have already understood that retention of employees is beneficial and brings stability – financial and productive – to the company. Some strategies are commonly used by companies.

You should keep in mind that most workers look for alternatives to current jobs. Even if they do not think about changing at the moment, this option provides them security in case of a resignation, for example.

So your goal is to highlight the decisive factors for him to stay in your company. Like the fact that the employee lives close to work, for example, he will not want to exchange it for more distant service. In addition to strategies such as granting benefits, among them:

  • transportation vouchers;
  • food stamps; and
  • health insurance.

If you are interested and want to increase the retention of employees in your company, investing in this additional can be a good option.

What Does It Take To Continue Using The Company’s Health Plan?

First, to continue to enjoy the health plan, the employee must have contributed to the project during the entire period that he worked in the company.

If the company was 100% responsible for paying the monthly fees, then the right of continuity is not guaranteed.

The dismissed person must pay 100% of the health insurance monthly payments after leaving the company, that is, despite remaining in the plan, which was previously paid by the company, will automatically be paid in full by the former employee. The benefit is only valid as long as the official is unemployed.

Continuing with the Plan is still advantageous.

Since there are no adjustments in the monthly fee of the plan, it is advantageous for the former employee to keep on the health plan of the company, after all the monthly payments are cheaper than an individual project and the benefits offered by the health plan are the same.

If you have been fired, be calm, even though it is a difficult time, try not to despair. Think about your health, safety, and comfort in the first place. After all, unforeseen can happen to anyone and paying for a private consultation is not cheap at all.