The percentage of employees with a retirement plan from their employer has been dropping sharply according to the Employee Benefit Research Institute (EBRI). An article in the Harvard Business Review on “Managing People,” stated seventy percent of the employees surveyed stipulated they want better employee benefit packages from their employers. The retention of top-notch talent is getting increasingly more difficult in the current economic climate because the demand for quality employees substantially exceeds the supply available.
There is a solution to the apparent paradox of employers cutting back on offering employee benefit packages in the face of an ever-growing number of employees who are looking to jump ship for a better offer. The answer lies in the fact that there has been a massive paradigm shift in the benefits arena over the last several years.
Strategic Shift in Employer-Provided Benefit Packages
Employers have moved away from a strictly paternalistic model that focuses on “looking after your employees” to an approach where the purpose of offering benefits is to assist the business improve its financial performance.
The debate is centered on two different management assumptions. One assumption is that employee benefit reductions increase profitability. The other assumption is that the employee and employer relationship is to be cultivated and nurtured.
Based on results, cultivating the employee and employer relationship provides the best results. This is because increasing the financial health of the organization is in the best interest of everyone in the company. The process aligns your employees’ performance with your company’s long-term goals. Your employer provided benefits package serves as an incentive for your employees to stay with your organization allowing it to continue to grow.
Increased Employee Loyalty
Pacific Crest Group’s (PCG) Human Resources and Employee Development Services are a huge advocate for fair and equal treatment of employees. PCG provides systems that encourage your employees to make a strong commitment to the profitability of your business for all concerned.
Pacific Crest Group knows companies must hire people who are the most qualified for the job. Once you have them, you want to keep them for as long as possible. Employee benefits should focus on your employees’ emotional needs not just their financial requirements in order for them to stay with your firm over the long haul. It is imperative that you give them plenty of reasons to remain loyal to your organization.
How We Can Help You
Pacific Crest Group (PCG) provides professional services that keep your business focused on your critical objectives. We provide strategic Accounting and Human Resource (HR) services created specifically to help you meet your goals. Through exemplary customer service, clearly defined policies and procedures as well as a forward-looking perspective, we provide the outsourced solutions your business needs to grow. A PCG professional is happy to meet with you to discuss solutions for your unique requirements designed to maximize all your business opportunities.