Employee turnover remains one of the biggest challenges for top management. More and more people consider changing career paths or simply look for better job opportunities. This is due to the increasing competition in the job market and overall lifestyle changes resulting from the Covid-19 pandemic. Addressing employee retention issues is very challenging due to its complexity. Fortunately, there are various strategies that help managers tackle high turnover. In this article, we will share with you how can wellness programs have a beneficial effect on employee retention.
What is employee retention?
Employee retention describes a company’s ability to retain its employees and prevent high turnover. It refers to policies and strategies that allow employees to stay at the company for a long time.
The challenges of employee retention
Employee retention is a complex subject and can be difficult to implement in daily corporate life. Nowadays, employee retention is a bigger challenge than ever. As a result, this topic gets more attention from the top management than before. Gladly, there are a lot of methods for retaining employees. However, the diversity of retention programs is not solely a good sign. It mostly shows how complex the issue is and how many different techniques we need to apply to ensure that good employees stay in the company.
When we are talking about employee retention, we are trying to understand why employees quit and how we can manage this process. Here are major challenges that we face in terms of employee retention:
- Better job opportunities on the market
- Hiring unsuitable candidates
- Lack of motivation
- Workplace anxiety
- Different job expectations
- Salary dissatisfaction
Through retention strategies, you should tackle these challenges and decrease the reasons why employees quit. Remember that you cannot prevent employee turnover, which is simply unrealistic. However, you can manage the process and design it in a way that turnover is low.
The disadvantages of employee turnover
Before we move on to solutions, it is important to understand how harmful high turnover can be for your company. The biggest cons of employee turnover include:
- Turnover is costly – it leads to higher recruitment and onboarding costs
- Lower productivity – high turnover affects the morale of the whole team, which leads to decreased productivity. Additionally, new employees always take some time to reach the productivity of an experienced person.
- Damage to brand image – high turnover rate is not attractive for potential candidates; therefore, talent acquisition becomes more complicated
- Performance – High turnover has a negative impact on the long-term performance of a company.
Why should I implement wellness programs?
Wellness programs are designed to improve the mental and physical health of the employees. Corporate wellness can include a variety of programs and perks that benefit employees as well as your company.
A wellness program is a great tool to attract talent and retain high-performing employees. So, when you create wellness programs, you send a clear message that your organization cares about its employees. This has a very positive impact on your brand and future prospects. While money is a great incentive to retain employees, it is not the sole motivation. People are looking for appreciation and respect in the workplace. This can be achieved through wellness programs.
The critics of wellness programs assume that it is costly and requires excessive resources. However, this is not the right approach. In reality, when you implement wellness programs you are investing in your company and team. If you start working with this mindset, then you will get better results. Additionally, a wellness program does not necessarily mean huge projects. Start with the smallest things, such as an employee health survey or a challenge to encourage a better work environment.
Impact of wellness programs
The impact of wellness programs is undeniable. Especially on employee retention since people who are happy at their workplace tend to stay at the company for a long time.
In the article, “What’s the hard return on employee wellness programs”, the authors have identified different issues that were impacted by wellness programs adopted by different companies.
- Lower Costs – According to the study, wellness programs resulted in decreased health care costs for employees.
- Greater productivity – wellness programs lead to lower absenteeism and decreased productivity loss.
- Higher morale – wellness programs increase the commitment and trust among employees. They take more pride in their job, which leads to improved retention.
These results clearly show that, ultimately, wellness programs have a positive impact on the overall performance of the company. Different wellness activities have influenced employee retention as well as productivity.