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EMPLOYEE BENEFITS RETENTION,

AND TURNOVER

Student’s Name
Course
Institution
Date
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INTRODUCTION
• Employee benefits are a crucial part of an employee's
compensation package.
• They encompass various forms of compensation
beyond regular wages or salaries.
• These benefits are intended to improve workers'
general well-being and contentment at work.
• Some common employee perks include profit sharing,
medical insurance, maternity and paternity leaves ,
disability coverage, life insurance, company holidays,
education, sick leave, and personal holidays, among
others (Glassdoor Team, 2018).
• These benefits contribute significantly to employee
satisfaction and retention.
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EMPLOYEE BENEFITS

• Employee benefits play a significant role in motivating and

retaining employees.
• According to motivation theorists, these benefits are
closely tied to job satisfaction.
• Even if an employee receives a lower base salary,
attractive benefits can compensate for it, leading to higher
job satisfaction.
• Conversely, the absence of meaningful benefits can result
in employee turnover.
 Medical Insurance

 Life Insurance

 Retirement Benefits

 Disability Insurance

FORMS OF EMPLOYEE  Profit Sharing

BENEFITS
 Paid time off

 Overtime pay off

 Education (Sanicola, 2011).

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THE IMPACT OF EMPLOYEE BENEFITS

ON ORGANIZATIONAL PERFORMANCE
• Motivation
• Attractive benefits motivate employees to perform at their best.
• Performance and Productivity
• Personnel that are satisfied with their work are usually more
productive.
• Reduced Turnover
Benefits to the • Comprehensive benefits packages can reduce employee turnover.

Organization • Cost Savings

• Lower turnover rates result in cost savings for recruitment and training.
• Conflict Reduction
• Satisfied employees are less likely to engage in work-related conflicts.
• Positive Reputation
• Offering competitive benefits enhances the organization's reputation.
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• Improved Morale
• Job Security
Benefits to • Financial Support
employees • Enhanced Engagement
• Increased Job Satisfaction
• Education
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EMPLOYEE RETENTION
• Employee retention is the ability of the organization to
hold onto its workforce for a given time.
• It is critical for organizational equilibrium, perpetuating
productivity, and being cost-effective.
• The dependent variables that affect retention are job
satisfaction, remuneration, work-life balance, and
prospects for growth.
• However, using beneficial approaches such as competitive
compensation, employee training, and creating a healthy
work atmosphere can improve retention.
• Retaining employees has several benefits, such as lower
recruitment and training costs, increased productivity and
the retention of institutional knowledge.
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EMPLOYEE TURNOVER
• The employee turnover rate is defined as the number of
employees who left an organization and were replaced by
other employees.
• Turnover may be measured as a figure calculated by dividing
the average number of workers over a certain time by the
number of workers that leave over the same period (Al-Suraihi
et al., 2021).
• Turnover has two major classifications.
• The voluntary turnover (voluntary resignation of employees).
• Voluntary turnover (employees quit voluntarily).
• Job dissatisfaction, limited career growth options, low pay,
and poor work-life balance can lead to employee turnover.
• Turnover rates often have a negative impact on an
organization, such as increased recruitment and training costs,
decrease in morale among the employees who remain in the
organization, and some disturbance to operations.
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EMPLOYEE BENEFITS, EMPLOYEE

RETENTION, AND EMPLOYEE TURNOVER
RELATIONSHIP

Job Satisfaction Leads to Employee Retention

• Employee retention is higher in an environment where work satisfaction is high.
Employee Retention vs. Turnover
• Employee retention represents the retention of employees who are content with their roles.
• Turnover, on the other hand, occurs when employees leave the organization, often due to dissatisfaction.
Dissatisfaction Drives Turnover
• Employees tend to leave the organization when they are dissatisfied with various aspects of their job.
Benefits and Employee Retention
• The presence of attractive benefits is directly linked to higher employee retention rates.
Lack of Benefits and Turnover
• Conversely, a lack of meaningful work-related benefits can lead to increased turnover rates within the
organization.
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EMPLOYEE BENEFITS VS RETENTION

Benefits Retention

• Employee benefits play a • Job satisfaction results in employee

significant role in motivating retention.
employees for job satisfaction • It is influenced by multiple factors,
which is influenced by various including
factors, including; • Work environment
• Rewards • Recognition
• Compensation • Career growth
• Training • Compensation.
• Development
• Recognition.
Retention vs. Turnover

Retention Turnover
• Retention is the organization's ability to keep • Turnover is the pace at which personnel
its employees within the company for an depart the organization, whether freely or
extended period. involuntarily.
• High retention rates lead to a stable • High turnover can disrupt workflow,
workforce with experienced employees. decrease morale, and lead to increased
• It reduces recruitment and training costs. workload for remaining employees.
• Consistency in the workplace improves • It results in recruitment, onboarding, and
overall productivity and morale.
training expenses.
• Frequent turnover can damage the
organization's reputation.
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CONCLUSION

• Employees are invaluable assets for any organization, shaping its growth and success
• Employee benefits directly impact job satisfaction and retention.
• A lack of employee benefits can demotivate employees, leading to turnover.
• A holistic approach to employee rewards, encompassing various aspects, is essential for
long-term retention.
• Retaining employees is essential for building a positive reputation and attracting
competent talent.
THANK YOU
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REFERENCES
• Al-Suraihi, W. A., Samikon, S. A., & Ibrahim, I. (2021). Employee Turnover Causes, Importance and Retention
Strategies. European Journal of Business and Management Research (EJBMR).
• Doyle, A. (2019). Types of employee benefits and perks. Retrieved from https://www.thebalancecareers.com/types-
of-employee-benefits-and-perks-2060433. (Be sure to click on the links within this source to gain depth about
specific benefits.)
• Glassdoor Team. (2018). 11 Companies with seriously impressive benefits. Retrieved from
https://www.glassdoor.com/blog/companies-seriously-impressive-benefits/
• Hamill, L. (2019). Workplace culture: The invisible perk your employees actually need: Good benefits can create
hype, but they fail to address employees' greatest need: Care. Employee Benefit News, 33(5), 33. Available in the
Trident Online Library.
• Holston-Okae, B. L., & Mushi, R. J. (2018). Employee turnover in the hospitality industry using Herzberg’s two-
factor motivation-hygiene theory. International Journal of Academic Research in Business and Social Sciences, 8(1),
218-248.
• Sanicola, L. (2011). Employee Benefits Basics, pp. 7-29. Scottsdale: WorldatWork Press. Retrieved from EBSCO
eBook Collection in the Trident Online library.