Recruitment Versus Retention
Employee Benefits Insurance and Recruitment Versus Retention
Employee benefits insurance is a crucial factor in both recruitment and retention strategies for organizations. While recruitment focuses on attracting external talent to join the company, retention emphasizes internal efforts to retain and engage existing employees. Both of these concepts can help save employers money and time, which is an important fact to heed as, according to Statistics Canada, more than one out of four (26.6%) Canadian businesses have experienced difficulties retaining employees, prompting 14.5% of businesses owners to improve their benefits plan. Employee turnover can inevitably cost Canadian businesses quite a lot of money, where 18% of Canadian businesses stated in 2021 that it has already cost their businesses up to $50,000, which is a number that can continue to grow as 68% of these businesses have also claimed that their employees have experienced more of a burden and heavy workload due to high turnover. High turnover is conducive to 37% of employees feeling a need to resign to unburden themselves from a growing workload and to seek out better benefits and pay elsewhere and causing these businesses to become a less appealing option for those seeking out new work–showcasing the need for businesses to factor in both recruitment and retention.
Learn more about these concepts and their significance to employee benefits insurance, and highlight the distinction between recruitment as an external approach and retention as an internal approach to talent management.
Recruitment: Attracting External Talent
- Creating an Appealing Package: More than two-thirds of Canadian employers are enhancing average salaries to align with the rising cost of living and to be also able to attract external talent. While employers are working to raise their salaries to garner new employees, one central element that cannot be ignored is creating a comprehensive benefits package. Recruitment efforts center around creating an appealing employee benefits package that can entice external talent. Such a package often includes competitive salary structures, health insurance, retirement plans, and additional perks like flexible work arrangements or wellness programs. By offering comprehensive benefits, organizations can position themselves as desirable employers, ultimately standing out in a competitive talent market.
- Marketing the Benefits: During the recruitment process, organizations need to effectively market and communicate the employee benefits package to potential candidates. Emphasizing the advantages and value of the benefits can help attract external talent and vastly increase their interest in joining the company. In fact, 44% of Canadian employees who participated in a survey stated they planned to update and improve their rewards packages in 2023 as attraction and retention have become challenges in relation to benefits choices. This external marketing approach aims to showcase the organization’s commitment to both employee well-being and work-life balance.
Retention: Nurturing Internal Talent
- Building Employee Engagement: Retention strategies focus on nurturing internal talent and ensuring their long-term commitment to the organization. Employee benefits insurance plays a vital role in employee job satisfaction, engagement, and loyalty. Benefits such as performance bonuses, career development opportunities, paid time off, and recognition programs contribute to a positive work environment, fostering a sense of belonging and loyalty among employees.
- Tailoring Benefits to Employee Needs: Retaining existing employees requires a deeper understanding of their needs and preferences, and, as a result, organizations often customize employee benefits to align with individual aspirations and goals. Avoiding turnover with a comprehensive benefits plan is particularly crucial as employee turnover can cost a business an average of $57,150 per year, relating to the loss of productivity and costs to rehire. Retaining is deemed an internal approach that aims to create a supportive work environment that caters to the specific needs of employees, thus cultivating loyalty amongst employees and reducing the likelihood of substantial turnover.
Recruitment and Retention: An Interconnected Approach
- Recognizing the Synergy: While recruitment and retention are distinct approaches, they are interconnected in terms of employee benefits. Effective recruitment efforts set the foundation for a strong workforce, attracting external talent through appealing benefits packages. Retention strategies then build upon this foundation by providing ongoing benefits and opportunities for growth and development, nurturing internal talent.
- Striking a Balance: Organizations must strike a balance between recruitment and retention efforts when designing their employee benefits packages. Recruitment-focused benefits aim to attract external talent and should be competitive and appealing. Retention-focused benefits, on the other hand, cater to the ongoing needs and aspirations of existing employees, creating a sense of resolute commitment.
In the realm of employee benefits, recruitment and retention strategies represent different approaches to talent management. Recruitment focuses on attracting external talent through appealing benefits packages, while retention emphasizes internal efforts to nurture and engage existing employees. Both approaches are essential for building a strong workforce. By recognizing the distinct nature of recruitment and retention in terms of employee benefits, organizations can create a holistic strategy that attracts external talent while nurturing internal talent, ultimately leading to long-term success and growth.
At Health Risk Services, we help managers of benefits plans make strategic decisions to craft cost-effective personalized plans that can assist you and your organization understand the recruitment and retention elements that should be considered when making plans for your current and future employees. Whether the solution of preference for your company is adding additional support programs, renovating your existing coverage, or crafting intentional messaging, Health Risk is here to help!
To schedule your Complimentary Consultation with Health Risk Services, please call 403-236-9430 OR email: [email protected]