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Employee benefits are forms of non-cash compensation that companies provide to workers, such as health insurance, retirement plans, vacation pay and life insurance. Many workers expect to receive benefits; sick leave and health insurance through their employer, so failure to offer such benefits can make workers more likely to leave for better opportunities.
Studies reveal that employees at firms that offer benefits are about26 percent less likely to quit in a given year than employees who don't receive benefits
To retain the employees turnover, compensation and benefits are attractive. Organizations earned their revenue through human resources, if they pay to their employees in shape of compensation and benefits, it is for their own interest and employees work hard for the betterment of their organizations.
People work for wages, if an Organization is compensating the way they should be then they do not leave the organization and that ultimately help the organization to retain the employee and vice versa.
If an organization has high turnover rates, it can result in management decreasing benefits and compensation due to the fact that they are not capitalizing their return on investment (ROI).
The compensation and benefits have direct bearing over the employees’ turnover. The employees leave the companies for number of reasons/factors, such as, work environment, management’s role, compensation, benefits, incentive, etc. But employees have a tendency to look for a better compensation to bear his/her personal life. However, compensation may be compensated by giving other benefits also. So, the management needs to view both the parts equally for the retention of employees. This case is tested practically in my life.
i agree with Ms Samar,
the compensation is the process of paying people money for their work son you compensate them for the effort the do for your organization... most of turnover cases are because of higher salary. if you compete as an organization with the market in this area then comes the benefits. the benefits are non paid expenses that simply help people to think that the organization is thinking about them.
as consultant i experienced this point many times. you can simply make a satisfactory survey focusing on this point to see how much is your policy is good.
finally i shall mention something that is very important: Bad Managers are the most common reason for turnover in middle east
A clear salary schame will be usfull with minimizing the gaps in the same level, on the other hand, the employee needs to have a vision for the future " sucssesion plan".
Employees seek several qualities in an employer, and a good compensation and benefits package is one of them. If an organization provides a good compensation and benefits package to its employees the turnover rate would be much better than any other organization with a lower compensation and benefits package provided other variables are common between the two organizations.
A good compensation & benefits package is one of the foremost things which attracts a potential employee to an organisation and also it helps in retention of employees. Benefits may also include non-cash benefits which provide comfort to an employee & his family like Medical Insurance, Accident insurance, Flexible work timings, Work tools like mobile phones / computers etc. All these go a long way in making the work environment conducive for employees.
There are multiple reasons of employee turnover and one the factor could be C&B practices of the company. There are other so like, less-engage employees, boss & sub-ordinate issues, lack of opportunity for growth and unable to meet the job requirements. Multiple research and survey are avaialble online where money was secondary reason for leaving the job. But the fact is very clear that those forms who offer much lucrative salary package tend to attract more candidates than a normal form but the retention of employee is not solely depend on this. If any organziation has been facing high turn-over than HR must analyze the root-cause of it and take appropriate actions to overcome it.
Thank you all for sharing your knowledge with the other . And I think this is the objective of this
wonderful Website.
Thank you and wish you a wonderful career
