A recent study published by MetLife entitled Study of Employee Benefit Trends: Findings from the National Survey of Employers and Employees highlighted the importance benefits play in driving employee loyalty which in turn can impact companies ability to retain top performing employees.
When asked to identify the importance of work-related elements that give employees a feeling of loyalty, 81% of employees surveyed cite health benefits as important, second only to salary/wages, while only 60% of employers say the same. Similarly, among employees retirement benefits are tied with advancement opportunities as an important factor in loyalty, cited by 72% of those surveyed compared to just 41% of employer
The results are very interesting because the study does not address if benefits were an initial attractor to the employees when deciding to accept an offer, only that it is an attribute impacting loyalty. Bernard Hodes’s Employer Brand Awareness Index Study (EBAI) addressed initial attraction and showed at 30 days of tenure, when respondents were asked to rate the attributes that attracted them the most in choosing the employer, Career Opportunity far outweighed any other aspect. Location still played a level of importance, more so in certain industries. For example, in retail, location is a prime factor in choosing an employer. Benefits and culture were tied, and training was the lowest initial attractor. So overall benefits did not play a significant part in attracting candidates however, benefits did have more of an impact in retaining the employee – unfortunately it was negative.Our results showed the New Hire’s view of benefits, over the first year as being a key point of retention, negatively declined. So do our results contradict the MetLife findings that benefits can build loyalty and impact retention? No, what our findings demonstrate is the effect of not properly educating and marketing benefits to new employees can cause. Most Human Resources Departments include benefits as a topic to cover during a New Hire’s on-boarding process within the first 30 days of hire. However, a lot of employees don’t become eligible for benefits until the 1st day following the completion of 90 days. Most of the information between these two points is lost. For the most part, employees truly don’t understand the scope of benefits until they start utilizing them. So it is important for companies to continually educate employees on the benefits being offered.
Educate: When companies provide a consistent and accessible opportunity for employees to thoroughly understand their benefits and have access to HR for assistance than yes, loyalty will develop. Companies need to provide multiple opportunities for their employees to have access to information regarding their benefits. Opportunities to educate could include Benefits Page on the company website, Quarterly Benefits Newsletter, Benefits Hotline or Quarterly Employee Benefit Reviews.
Market Companies spend thousands of dollars a year to offer their employees benefits and yet typically do not market the value or options the benefits can offer an employee. It is very important for companies to market their benefit offerings. Employees will learn and understand the basics of what the medical, dental, and vision plans have to offer. However, they may not know the special programs and offerings that go along with them. For instance employees might not be aware that the medical plan offers a Wellness option that could assist them with weight loss - reduce gym memberships, stop smoking or alternative medical options. Employees are concerned about rising prescription drug cost however, they may not be aware of the cost savings associated with mail order for regular prescribed medications. These types of benefits are typically not highlighted or marketed however do have value to an employees overall perception and utilization of their benefits. It is my experience as a HR manager, the more an employee utilizes benefits the higher their satisfaction. Higher satisfaction can lead to greater loyalty
Posted in Human Resources Analytics, Human Resources, Recruiting, Retention 
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Bradley Savoy April 30, 2008 No Comments »
I recently came across two interesting launches by Starbucks and Chrysler that are utilizing both social networking and a voice of the customer approach to drive improvements in their customer experience and a further extension of their brands.
My Starbucks Idea is a social networking Voice of the customer site that acts as a forum for Starbucks customers to rant and rave about the Starbucks experience and drive improvements to their products. Chris Bruzzo, CTO of Starbucks states that he hopes the site “Fosters authenticity, transparency, and encourages our customers to be part of shaping the future of Starbucks. Over 200,000 ideas have been generate in just over a month, and one of the recent results of this effort is the advent of the “splash stick” which solves that pesky problem of having your coffee splash out of the sip hole in your cup.
Chrysler Listens is another example of listening to the voice of the customer and empowering them to drive improvements. Chrysler has created a Chief Customer Officer position to encourage collaboration with customers and employees. Chrysler claims 400 improvements have been made thus far through this program.
These are just a couple of examples of companies realizing how powerful the voice of the customer is in driving improvement with their products. The Voice of the Customer approach is a Six Sigma concept of continuous improvement to a process or experience. An organization seeks to capture requirements and/or feedback from the various customers to consistently provide them with a world-class experience. The process is all about being proactive and constantly innovative to capture the changing requirements of customers over time.
This same Voice of the Customer approach can be applied to building and sustaining your Employer Brand, as we do with Hodes QTrac. Your organization needs to begin by asking itself some simple, but fundamental questions: Why do people consider working for your company? Why do they join? Why do they stay, and why do they leave? Fortunately, there are hundreds, sometimes even thousands, of people just waiting to give you an answer. They’re called employees, and you need only ask them.
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Jasmine Flowers April 25, 2008 No Comments »
“Nearly one-third of U.S. employees work while listening to music via an iPod, MP3 player, or similar personal music device,” according to a 2006 poll conducted by Harris Interactive for Spherion.
Why is this important? According to a recent article in HR Magazine entitled, “Working to the Beat,” many companies are incorporating music into their recruiting strategies for younger candidates. Results from the Harris Poll are driving this strategy based on the findings that 90 percent of workers age 18 to 24, and 89 percent of those 30 to 39, said that music improves job satisfaction, productivity, and turnover.
This concept, although new to corporate environments, is not a new trend. Retailers and factories have historically used music as a means to influence shoppers’ behaviors and “ease workplace drudgery” for factory workers. Researchers believe that workers who listen to music are more productive simply because music puts them in a better mood.
I agree that music can positively impact your work day. Now, I am not someone who listens to music everyday but on the days where I am crunching away on the computer and need something to break up the monotony of the day, music is my solace. In general, it is nice to know that a company is supportive and flexible with the way in which I am most productive and happy.
An HR Director was quoted in the HR Magazine article stating that,
“when it comes to recruitment and retention, companies need to be creative. Some people concentrate fine with music. I don’t. But if you can fine. The thing that’s important is that we value flexibility.”
I think more companies will find that by using flexibility as a competitive advantage, without compromising safety, health, productivity, culture, and quality of work, the reputation will speak for itself and candidates will naturally gravitate towards those companies.
Contrarily, it is argued that music in the workplace compromises business etiquette in the sense that it makes other people feel uncomfortable when others have headphones on and it gives the impression that the person is disengaged. “Etiquette is about making people feel comfortable,” according to a business etiquette consultant quoted in HR Magazine. Business leaders are also concerned that the “generation that has grown up with technology and has never learned the importance of nonverbal cues…that say I’m here, I’m in the game.”
Honestly, I think it is ridiculous if the concern is that headphones make other employees feel uncomfortable or to make the correlation between the technology generation and lack of business etiquette. How difficult is it to walk to a coworkers cube or office and simply tap them on the shoulder to get their attention and if you are hiring the right talent they will know how to operate in all situations whether it be verbal or nonverbal.
These traditional views of the corporate workplace need to evolve if companies want to compete for the best and the brightest talent. Remember, it is this generation coming in the door that will be the future leaders so there needs to be a level of flexibility and adaptation in the workplace where change is embraced and not rejected out of fear.
Posted in Recruiting, Retention, Workforce Management No Comments »
