Flexible Benefits as a Retention Strategy: Letting Employees Choose What Matters

So, you’ve got some great talent, which is wonderful. But, the hard part here is: how do you retain them? In this crazy job market today, just paying a good salary isn’t going to cut it sometimes. Folks want more, and really, what “more” actually means is really individual. So, let’s talk about flexible benefits. It’s a revolutionary retention technique because it’s all about allowing your employees to choose the perks that really matter to them.

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Why “One Size Fits All” Just Doesn’t Cut It Anymore

Consider your staff for a moment. You’ve likely got people just beginning their careers, others with young families to raise, and some close to retirement. Each demographic has completely different needs and priorities. A one-size-fits-all, by-the-book benefits package simply can’t accommodate that sort of diversity.

Everyone’s Different

Your employees are a melting pot of various ages, life cycles, family configurations, and personal aspirations. A one-size-fits-all health plan and a set vacation policy may suit some, but will fall short for others.

More Value, Less Waste

When workers are able to pick benefits that fit their lives, they end up valuing them. Rather than receiving a gym membership they’ll never use, they may choose the childcare assistance they sorely need. It makes their entire compensation package richer.

Stand Out from the Crowd

Amid a competitive hiring market, being the firm that genuinely cares and caters to its employees’ varied needs is a massive differentiator. It demonstrates you’re progressive, compassionate, and intelligent.

How Flexible Benefits Keep Your Best People Around

It’s not about being nice; flexible benefits do have a tangible, real-world impact on retaining your top performers and keeping them engaged.

Happier Employees, Plain and Simple

When individuals are able to choose benefits that relieve their individual stresses–perhaps it’s assistance with student loans, additional mental health care, or more flexible schedules–they feel truly cared for. And happy employees remain.

Improved Work-Life Feeling

Most flexible plans benefit employees by helping them balance life outside of work in the first place. Consider subsidizing childcare, eldercare, or even professional development classes. When individuals have improved work-life integration, they’re more engaged at work.

Less Stress, More Flow

Let’s face it, life is full of curveballs. Money concerns, medical ailments, family obligations–these are all potential causes of stress and burnout. Providing options to alleviate these helps foster a more tenured and less stressed employee base, resulting in improved long-term retention.

It Shows You Get It

Providing choice communicates an awesome message: “We notice you, we recognize you’re one-of-a-kind, and we believe in you to make the best choices for yourself.” That type of belief and individualization creates incredibly strong loyalty.

Creating Flexible Benefits to Work in Your Organization

So how exactly do you make this work without creating a complete HR mess? It’s completely possible with some planning.

Ask Your Team What They Want

Don’t guess! Send out surveys, conduct some focus groups, or look at your HR data to determine what benefits your employees truly value and require. Their feedback is gold.

Combine “Must-Haves” with “Choices”

Begin with a good base of essential benefits (such as minimum health coverage and retirement options). Then, build a menu of discretionary benefits where staff can opt-in and opt-out, perhaps with a flexible spending allowance or point system.

Tech Is Your Buddy

You’ll require decent HR software to manage the choices, enrollment, and monitoring. It makes it all so much easier for your staff and your HR crew.

Discuss It Up, Frequently

Flexible benefits might take some getting used to. So, just talk about it clearly and frequently. Describe all the possibilities, how they work, and why they’re great. Provide employees with tools to allow them to make informed choices.

Make It Refreshing

Employees’ requirements change, and so should your benefits. Periodically review what’s doing well, and what’s not, and be willing to introduce new possibilities or modify existing ones based on comments.

Finally, flexible benefits are not just an extra; they are an investment in your most important asset–your people. By providing them with the ability to select what really allows them to excel, you’re creating a happier, more committed, and phenomenally stable workforce.

Author - Samita Nayak

Samita Nayak is a content writer working at Anteriad. She writes about business, technology, HR, marketing, cryptocurrency, and sales. When not writing, she can usually be found reading a book, watching movies, or spending far too much time with her Golden Retriever.