Attract Top Talent
Being an employer of choice helps attract and retain the best talent. 75% Of Canada’s Top 100 Employers agree that one of the most important reasons for implementing a wellness program is to improve their corporate reputation.
We’re living in a market where there are more jobs than candidates in many industries. Recruiters and Hiring Managers are facing an increasingly demanding and competitive talent market.
Standing out as a brand of choice will help you to cut through the noise and capture the attention of top talent.
Plus, job perks can offset the benefits package for candidates- according to the Conference Board of Canada, 48% of employees would prefer to have a health benefit plan than an extra 20,000 a year in cash.
The Center for America Progress reported that the cost of losing an employee can cost anywhere up to 213% of the salary for a highly trained position. Plus you need to thinkabout the expenses of on-boarding and training, advertising for the position and any recruitment fees that add up. That means that if the average salary for an employee is 50,000, you’re losing up to $106,500 when all is said and done.
Yet, these cost can be minimized by employers investing in their staff’s well-being. Investing in a few perks could reduce your turnover costs by 40% . Of that $106,500 you’re losing to turn over, you could save $42,600. Not chump change.
Increase Productivity & Customer Satisfaction
By investing in health related perks, employers are not only able to retain top talent, but increase their productivity and overall customer satisfaction.
The Canadian Institute of Stress (Bell Canada Operator Services research) found that stress control programs resulted in a 7% improvement in productivity and 13% improvement in service quality.
Plus, Health and Safety Ontario’s study reported that for every 5-unit increase in employee satisfaction in one quarter, there is a 1.3 unit increase in customer satisfaction in the next quarter and a 0.5 unit increase in revenue (above national average).
The Cost of Inaction
Although the benefits of standing out as an employer of choice and reducing your turnover rates might not be a top priority, the cost of not improving the health of your workforce might sway that.
Stress-related absences cost Canadian employers about $3.5 B per year. Lifestyle is a contributor to this cost. Health and Safety Ontario found that employees with lifestyle risk factors (sedentary, overweight, smoker, high alcohol intake) are absent 50% more than those without and cost the business 2-3 times more in health care costs.
Also when’s the last time you looked at what you’re spending in health benefit claims? You might be surprised to see what you are spending on a workforce with higher than average health risks, and this is only increasing. A Mercer Report predicts that well before 2019 drug costs will soar by 2.5 to 3 times their current levels or between 3% and 5% of payroll.
There is a lot to be gained by investing in health related perks for your staff. Again no surprise that top employers and performing companies have already made this shift.
Calculate Your Costs
Interested to see how much you’re currently spending on the state of your workforce’s health? Pull your latest cost for recruitment and severance costs to give you a sense of what you're currently spending on talent retention and attraction.