Solving The Ongoing Recruitment And Retention Dilemma
What’s the biggest problem facing most employers today? Recruiting and retaining talented employees is more challenging than ever, with 93% of companies concerned about retention.
What’s the biggest problem facing most employers today? Recruiting and retaining talented employees is more challenging than ever, with 93% of companies concerned about retention. The statistics paint a picture of the current landscape: the median tenure for an employee is 4.1 years, and more than 47 million employees quit their job voluntarily in 2021 — the most the Bureau of Labor Statistics has ever seen since it began tracking turnover in 2001.
The changing labor market
The current labor market is a sea change from previous generations when employees commonly stayed at jobs for 20, 30 or even 40 years. One factor driving this long-term trend is the shift from pensions to 401(k)s that started in the 1980s. To encourage employee loyalty, employers must give employees a reason to stay and reevaluate their retirement programs, eventually helping Americans retire with financial stability and peace of mind.
The high cost of employee turnover
People are a company’s most valuable resource, and the cost of turnover is very high — employers spent more than $700 billion on employee turnover in 2021. The cost of just one employee resignation is enormous, costing the company 33% of their base pay on average. It adds up to approximately $15,000 for the average employee, with the turnover cost doubling since 2009.
Investing in a robust retirement package is an excellent way to cut turnover expenses and attract and keep employees. With many Americans stressed over saving enough money to retire, offering help is a great way to set your company apart as an “employer of choice”. The numbers show that companies that offer defined benefit (DB)/pension plans have an advantage in employee retention. 68% of workers with pension or retirement plans said the plans were a critical deciding factor, plus 62% said they were a crucial factor in remaining at a job.
Exploring modern retirement plan designs
Thankfully there are modern DB plan designs that make it efficient and affordable for employers to offer a guaranteed lifetime income with known costs, while meeting the needs of the modern workforce. With a hybrid program that encourages employees to save their own money while employers put away money on their behalf, a personalized retirement option is available.
Be an “employer of choice” and gain an edge when recruiting employees. Reach out to see how an innovative retirement program can be tailored to fit your company’s unique needs and budget.
Are you concerned about America's looming retirement crisis? So are we. Don't miss our latest infographic that breaks down the stats and facts you need to know. If you're a plan sponsor or retirement investment advisor, this is one resource you can't afford to ignore. Click here to get informed and take action today!
https://learning.linkedin.com/content/dam/me/learning/en-us/pdfs/workplace-learning-report/LinkedIn-Learning_Workplace-Learning-Report-2023-EN.pdf https://info.workinstitute.com/hubfs/2022%20Retention%20Report/2022%20Retention%20Report%20-%20Work%20Institute.pdf https://www.bls.gov/news.release/pdf/tenure.pdf https://info.workinstitute.com/hubfs/2022%20Retention%20Report/2022%20Retention%20Report%20-%20Work%20Institute.pdf https://www.businesswire.com/news/home/20190711005002/en/Multi-Country-Survey-Finds-Workers-Cite-Pension-Retirement