Our latest UK Business Risk Report has shown that the mental health and wellbeing of employees is the single biggest concern for UK businesses – almost half (49%). At the other end of the people risks spectrum, around a fifth (19%) were concerned about talent management, acquisition, retention, and succession, and 12% were worried about managing employee benefits.1 But the reality is that these are inter-related issues and you can’t address one without the other.
High employee turnover and failure to engage existing staff impacts the ability of an SME to build a tight-knit culture and a high performing team. In fact, latest findings suggest that three in five employees feel disengaged from their workplace as organisations struggle to form a post-pandemic work culture in the hybrid world.2
According to research by Oxford Economics and Unum, the average cost of turnover per employee (earning £25,000 a year or more) is £30,614. This means if you replace three employees on this wage in one year, the cost of employee turnover will be close to £92,000. In addition, it takes a new employee up to 28 weeks to become as fully effective as the person they replace.3
It’s therefore not surprising then that many employers struggle with the cost of recruitment and retention. Losing talent to larger organisations offering larger salaries and additional perks is a constant threat – so how do you compete with that?
Know your competition
Large businesses have a history of hiring highly skilled workers and paying them good wages.4 Their size may have gained them access to exclusive pension schemes and a variety of employee benefits including private medical insurance (PMI). A benefit highly regarded by employees as part of a reward package. Large businesses can usually provide more opportunities for career progression or generous bonus schemes to engage their staff. All of these factors are used to attract and retain top talent.
We’re seeing an increasing number of SMEs improving their rewards packages too, offering more than just a salary and pension. The market has evolved and many of the employee benefits enjoyed by staff at large firms are now accessible to SMEs. This is game changing. SMEs including the smallest of microbusinesses employing less than 10 people, are now choosing to offer employee benefits like PMI, as well as the technology to deliver and communicate these benefits effectively.
Make your move
More than half of employees (55%) place high value on the employee benefits offered.5 This is why 73% of employers have woken up to the power of using benefits to attract and retain staff.5 Introducing small business employee benefits could save you time and money spent on both recruitment and motivating your workforce. Today, the benefits market offers more ways for you to gain a competitive edge and increase your attractiveness as an employer. And they don’t have to cost the earth.
You can put together a personalised range of benefits that your workforce will truly value, and use the latest benefits management platforms to deliver them. The right employee benefits package can help:
- attract new talent,
- engage and reward existing talent, and
- keep everyone happy and healthy at work.
Plus, studies show that a disengaged employee can cost their organisation an estimated fifth of their annual salary, so it’s well worth the investment.2
Personalised and well delivered benefits can show your employees that they are more than just a number. They can show them that you take an interest in their overall wellbeing and know how to value their contribution. Find out more about how you can build a robust wellbeing strategy.
What’s employee turnover really costing you?
Calculate the figure for your business in seconds and discover strategies to help you reduce the cost of recruitment and retention in your personalised report. Launch the employee turnover calculator.
Here to help
Explore the key findings from our UK Business Risk Report 2022 and access tools to help you address your business’s biggest risks. Visit our risk hub.
You had your say, the results are in
Our UK Business Risk Report features findings from 1,700 businesses just like you. The report brings together insight, expert commentary, and guidance on how to turn today’s challenges into tomorrow’s opportunities.