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10 Workplace Incentives that Promote Employee Retention

Electronics OEMs are quickly realizing that retaining employees is a critical component for success, as the demand for talent quickly outstrips supply. For the average worker, salary is important, because life can be expensive. At the same time, it’s the extras that enhanbce life and health that can make a big difference.

Consider this:

  • A vacation for a family of four costs $4,580.
  • Daycare costs more than college in some states, ringing up at an average $11,666 per year.
  • Healthcare costs employers $2.2 billion annually.

These statistics, compiled by Company Folders, make it clear that trying to create a healthy standard of living is difficult for both employees and employers. However, there are ways that organizations can save money and increase employee retention by offering better benefits.

It sounds crazy, until you start examining recent studies. For instance, one-third of people would rather work from home than make more money. By letting behind-the-scenes employees work remotely, you could pay lower salaries, save money on real estate, and increase job satisfaction (in turn increasing company loyalty).

Or consider offering flexible schedules: letting employees choose their hours reduces turnover by 10%, which results in massive savings since it takes at least 50% of their salaries to replace employees who quit.

Onsite gyms or paid health club memberships will reduce employees' stress levels, boost morale, and cut into those $2.2 billion healthcare dollars employers have been shelling out. Even better, consider offering mental wellness programs. Half of all American adults will have a mental health crisis at some point in their lives, so it's critical for workers to know that their employers won't reject them if they struggle with mental health issues. While these programs and incentives appear to cost more money upfront, the savings are almost immediate—and so is the boost to employee retention.  

Talented employees strive to do their best, and they want to work in an environment that facilitates their efforts. You can create a positive, motivating workplace with lavish perks like fully funded retreats and unlimited vacation, or you can keep it simple with a designated game room or free snacks.

Whether you emphasize one perk or combined ten of them, there are some simple ways that help employees stay relaxed and focused. Remember, though, that not all workers are alike; organizations can (and probably should) customize its program to suit the employees who work in different parts of the organization. To see which employee incentives work best—and why—check out the top ten infographic. Then let us know what you would want to see happen in your organization in the comments section be3low.

— Hailey Lynne McKeefry, Editor in Chief, EBN Circle me on Google+ Follow me on Twitter Visit my LinkedIn page Friend me on Facebook

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