Sticky benefits: How voluntary options can double employee tenure

 

Employee retention and engagement continue to be major challenges facing companies today. Corestream, in collaboration with students from Duke University’s Fuqua School of Business, analyzed the relationship between employee tenure and voluntary benefits enrollment in 1.4 million employees nationwide and found voluntary benefits may be the key to solving the employee engagement and tenure conundrum. Voluntary benefits include accident and critical illness insurance, financial wellness programs, pet insurance, and student loan assistance programs that are outside of typical medical, dental and vision offerings.

Low job satisfaction, lack of available job training or professional development opportunities, ineffective leadership, and employee benefits that don’t meet the needs of the workforce are some contributing factors to employee turnover and lack of engagement. When employees are not satisfied, they are not engaged. Nearly one-third of employees are disengaged at work, costing U.S. employers $450B to $550B per year.

What can employers do to increase employee engagement and mitigate turnover? Studies show that a comprehensive benefits package that includes voluntary benefits has a direct, positive impact on employee tenure.