How Does Offering High-Quality Insurance Benefits to Your Employees Minimize Turnover?

Posted November 23, 2020 in Health Benefits, Health Insurance

2 Minute Read: 

One of the main things people look for when choosing a company to work for is employees’ insurance benefits. While many employers may view high-quality insurance benefits for their employees as an additional, unnecessary cost, it can actually save you money in the long run.

The True Cost of Losing Employees

Every employer knows it’s expensive to lose employees. You have put time and resources into an employee, and when you lose them, that investment in them walks out the door. So, how much does it cost, really? According to some experts, losing an employee costs:

• 16% of the annual salary of a low-paying employee (earning under $30,000 per year)
• 20% of the annual salary of a midrange employee (earning up to $50,000 per year)
• Up to 213% of the annual salary of a high-range employee (earning above $50,000)

This means that every time you lose an employee, it costs you anywhere from $4,800 to $213,000. So, while high-quality benefits may seem like an additional cost, it’s clear that this decision can save your company thousands of dollars by minimizing employee turnover.

Get a quote for employee insurance benefits today from Gallant Risk & Insurance Services, Inc. We offer high-quality benefits that will be in your budget and keep your employees happy. Call today for a quote at (951) 368-0700 or contact us online.

How Does Offering High-Quality Insurance Benefits to Your Employees Reduce Turnover?

Employee Happiness

Providing high-quality insurance benefits to your employees can keep your employees happy and let them know they are cared for on a personal level. Employees understand that companies don’t have to offer high-quality insurance benefits; they could very well go with providing the bare minimum. So, when a company goes out of their way to choose this option, it’s abundantly clear that they are willing to invest in keeping their employees happy and cared for.

Feeling Protected

Insurance can provide individuals with the knowledge that they and their families will be protected in case of tragedy or accident. This can bring an enormous sense of relief, especially to households where the other income-earner doesn’t have life or disability insurance. Or, if the employee performs dangerous job functions, having this type of employee benefits shows them that the employer recognizes the danger and is willing to put policies in place to protect them.

A Competitive Landscape

In today’s connected world, it’s becoming much easier for employees to find other work. Additionally, the information available online often makes it easy to find out what other companies are offering their employees in terms of insurance benefits. If another company provides better insurance, your employees may go seeking employment elsewhere.