Most Human Resources managers would know that replacing an employee can be very costly. Retaining good employees is important if you want the business to keep going at a certain pace. If you take into account the separation pay, training costs and even the time incurred to train a new employee, the loss can amount to more than $3,000 per resigned employee. How can a company reduce employee turnover? What can a company do to retain good employees?
In order to reduce employee turnover and increase employee retention, it is crucial to understand why staff are searching for other opportunities. According to surveys, the number one reason why employees consider separating from a company is to seek better opportunities - this refers to, of course, compensation and benefits.
What can a company do if it has no extra resources to provide higher salaries or more attractive benefits to employees compensation management software comparison? A detailed employee benefits statement can make staff realize what they are currently receiving thus making them think twice about seeking opportunities elsewhere. Although you will not be able to increase salaries or offer more benefits, employee benefits statements can be very helpful in informing employees about their total compensation package.
Employee benefits statements provide a dollar value to company benefits such as 401(k), health insurance, paid vacation leaves and time off and other perks such as company cell phones, laptops and even free parking. It will look like a regular pay statement so it will be easy to understand and these are generated through a compensation statement software at very low cost.
Employee benefits statements will let an employee know how much their compensation and benefits package is truly worth. Most employees have no idea how much their compensation in a company is really worth that many are surprised to find out how much they are really receiving at work. When an employee's total benefits and perks are taken into account, it may actually discourage them to accept another job offer or seek other job opportunities.
When employees realize and understands the monetary value of their company benefits, their perception will change and understand that the grass at the other side may not be greener than it looks. This can increase employee retention by reducing employee turnover, which benefits the company by cutting down hiring costs. The money saved from the reduction of employee turnover can be invested in providing additional company benefits, salaries or bonuses. Checkout compensation software reviews for more.
You may also take a look at http://www.ehow.com/about_4810653_effective-compensation-benefits-systems.html if you want to read/watch further.