The 9th Annual Study of Employee Benefit Trends released recently by MetLife delivered a clear message to employers: Employee loyalty is on the decline. Employers need to bolster employee loyalty and satisfaction, or economic recovery may arrive with unanticipated setbacks for employee retention and productivity.
According to the study, 47 percent of employees report feeling very strong loyalty to their employer, down from 59 percent just three years ago. Yet many employers may be caught unaware by this downward trend since they believe their employees feel the same loyalty toward them today as they did several years ago. About half (51percent) of surveyed employers today believe that their employees have very strong loyalty to them, and half believed the same in 2008.
Further, one in three employees hopes to be find a different job with a new company in the next 12 months. Interestingly, employers do not appear to be tuned in to this potential flight risk. A loyal, satisfied workforce is an essential part of the foundation of future and continued business growth. Widening cracks in this underpinning may force employers to pay a price in reduced retention and productivity when the job market improves.
These findings present a terrific opportunity for brokers to consult with employers to speak to the advantages of offering non-traditional voluntary benefits programs like Purchasing Power to their employees. Offering a well-devised benefits plan, which includes employee purchase programs allowing employees to purchase name brand products through payroll deduction, is a simple solution. Be sure to remind employers that this type of program makes benefits packages more competitive, while supporting employee retention and work-life balance. Retaining high performing employees will help position an organization for future growth.