Group Benefits… the way to an employee’s heart and mind.
Do you know what it costs to lose an employee?
The Society for Human Resource Management (SHRM) predicts that every time a business replaces a salaried employee, the cost to you is 6 to 9 months’ salary on average. But when you get into the specifics, the numbers are frightening… often reaching twice an annual salary, especially for a high-earner or executive-level employee.
In fact for executive level people a CAP study found average costs to replace an employee are up to 213 percent of annual salary for highly educated executive positions. For example, the cost to replace a $100K CEO (which is low and in fact more like VP or even director-level compensation) is $213,000.
Plus there are many soft and thus untracked costs associated with turnover that makes predicting the true cost of employee turnover nearly impossible. But one thing’s for sure… it’s a lot.
According to Josh Bersin, Global Industry Analyst at Deloitte the "total cost" of losing an employee includes:
Hiring (advertising, interviewing, screening, hiring)
Onboarding (training, management time)
Lost Productivity (up to 1-2 years to reach existing productivity levels)
Lost Engagement (morale of fellow employees who see high turnover disengage and lose productivity)
Customer Service Errors (longer, less adept problem solving)
Training (typical investment costs equal 10-20% of an employee's salary)
Cultural Impact
Your people are actual capital that appreciates (thus the term “human capital”). The longer one remains within an organization the more productivity the organization achieves.
How important is the right benefit package to current and future employees?
According to Glassdoor’s 2015 Employment Confidence Survey, about 60% of people report that benefits and perks are a major factor in considering whether to accept a job offer. The survey also found that 80% of employees would choose additional benefits over a pay raise.
At August Benefits…
we believe that the most productive and profitable workplaces are the ones where the personnel are happiest. And according to most recognized research reports, benefits ranks up there as part of the package that drives workforce satisfaction.
Your company’s most valuable assets walk out the door at the end of every day. By offering exceptional benefits, you can help attract and retain the best and brightest. Easy, right?
Actually, building the perfect plan to attract the right mix of high-performing, loyal employees can be hard. Making sure that the plan for your team meets legal, regulatory and other requirements is even harder. An off-the-shelf package won’t cut it. You need a program customized for your size, location, employee count, demographics, type of business—and your bottom line.
Our corporate clients benefit from the depth of our benefits experience and, as an independent firm without allegiance to a specific set of products, our ability to deliver exactly the right solution for you. To help keep your employees happy and healthy, we’ll work with you to understand your pain points and the big benefits picture. Then we will carefully craft a program that supports and reflects your company’s vision.
Our broad range of programs includes:
Group Health
RETIREMENT PLANS
Life
Dental
Disability Insurance
Voluntary Benefits
Executive Deferred Compensation Programs
We also coordinate programs such as Cafeteria Plans, Health Savings Accounts, Health Reimbursement Accounts and Qualified Retirement Plans to provide a comprehensive benefit program. Even better, our credentialed team streamlines the entire benefits administration process and assists in meeting ever-changing compliance requirements.