A review of high-performing companies by the Harvard Business Review Analytic Services found that those who provided strong employee benefits packages engendered loyalty which had a positive impact on growth.
Of the employers surveyed, more than 70 percent said the benefits offered had a signficant impact on both employee loyalty and retention. In addition, the majority said they provided a competitive advantage, helped with recruitment and improved employees' feelings of security.
"As one HR director puts it, you can't have customer satisfaction without employee satisfaction. A good benefits program’s connection to employee security, motivation and performance couldn't be more clear," said Angelia Herrin, research and special projects editor of Harvard Business Review.
Many companies also continued to add to their benefits offerings over the past several years. More than 70 percent of companies have added some sort of wellness programs, while many others have changed their healthcare programs.
Employee retention can help significantly reduce costs associated with turnover. Data from the Society for Human Resource Management found that it cost more than $3,000 to replace one employee making just $8 per hour.
