Employee Freedom Can Reduce Turnover

Work looks different today & benefits should reflect that

HR departments have weathered tumultuous change for the last several years, with turnover rates skyrocketing, costs rising, and pandemic uncertainty threatening business operations.
 

In 2021, a record 47.4 million U.S. workers voluntarily quit their jobs during the Great Resignation. The trend may have peaked last year, but there were still 4.5 million U.S. workers that quit their jobs in March 2022.

Even employees who aren’t actively resigning or job-shopping have different expectations from their employers now. After navigating the ups and downs of Covid-19, people have become more vocal at work. They’re willing to speak up and demand more, whether that be a flexible schedule, a higher salary, a promotion, or better benefits.

But that means they are willing to push back as well, particularly on tasks that aren’t their “passion” or don’t “play to their strengths.” By “quiet quitting,” employees are meeting the minimum expectations of their roles but taking on nothing more. This is changing the flow of productivity that some companies may be accustomed to, placing a strain on resources and challenging leaders.

And with the cost of benefits, healthcare, compensation, and legal compliance items all rising, companies need to listen to their employees’ feedback to ensure they’re investing in those employees in the most efficient ways.

Workers are showing interest in non-traditional benefits that help them prioritize a better work-life balance such as flexible time off and employer-sponsored travel rewards.

With all this change, it’s a gratifying time to be in HR. The work landscape is evolving into something new, and employers have the opportunity to start fresh and rethink their employee benefits based on what workers actually want.

Today’s Top HR Challenges Require Balanced Solutions

All HR professionals today are struggling at some level with talent retention and worker engagement. Employees are a company’s most valuable asset, and it’s undeniable that it’s an employee’s market right now in many industries.

Workers are drawn to benefits like a fully remote or hybrid work schedule, as well as the pay bumps they get by switching jobs. New roles are being posted at higher pay rates to combat inflation, outpacing the frequency that employees are promoted at their current jobs.

This benefits workers but strains employers, as attracting and retaining new talent has become increasingly difficult and expensive. A company also loses organizational knowledge and sees productivity dip with high turnover.

Just as big of a challenge as talent retention is engaging existing employees. After dealing with the blurred lines between work life and home life during the pandemic lockdowns and often experiencing burnout, workers are now less likely to go “above and beyond” in their roles.

Avoiding extra work responsibilities by quiet quitting means employees are prioritizing their personal lives over their jobs, and potentially freeing themselves up to search for a new role. Now that they know they have options, especially with the ease of finding jobs online and working remotely, the days of workaholics are over.

This goes hand-in-hand with new expectations for mental health support; 68% of Millennials and 81% of Gen Zers said in a survey that they have left jobs for mental health reasons, and 91% of respondents believe that a company’s culture should support mental health. Workers want their employers to recognize and address these needs with transparent communication, realistic job requirements, and covered treatment.

HR has always faced challenges in striking the right balance with employee benefits, but many of these concerns have become heightened in the past two years. That means companies need to throw out the old rule book and consider a new approach to differentiating themselves in the competitive talent market.

Retain Employees by Giving Them More Freedom

The meaning of work and its importance in their lives has fundamentally changed for many employees. When the world realized the office could be anywhere, policies and systems had to be adjusted accordingly. It’s time that employee benefits get the same treatment.

Travel has been much more highly valued by employees post-pandemic because people feel like they missed out while stuck at home. Not only do they miss traveling, which has led to a lot of pent-up demand, but the pandemic also caused people to place more value on experiences.

Prior to Covid-19, employer-sponsored travel benefits were rare, though companies were beginning to experiment with flexible schedules and unlimited paid time off. Now that remote roles are the norm, employees are looking to take advantage of that freedom by bringing their work on the road.

Employee-sponsored travel benefits are still relatively uncommon, so it’s possible that they can distinguish one company over another and be a deciding factor in attracting and retaining talent. With work-life balance more important now than ever, people are aspiring to unplug and explore by traveling.

Travel benefits provided by a company give workers assurance that their employer supports their interests and desires for both a change of scenery and schedule flexibility. When employees have fulfilling experiences away from the office, it strengthens their mental health and helps their productivity.

Employers can offer these benefits in different ways. More paid time off allows workers to travel, but companies can do even more to get directly involved. A popular option is letting employees enroll in a branded loyalty and rewards program to directly book trips with discounts, deals, and other exclusive offers.

These types of partner programs can often be customized by companies to reward or incentivize employees with travel benefits when they complete certain activities or reach milestones.

With a fresh perspective on benefits that fits the realities of the post-pandemic work landscape, HR teams can overcome their top concerns and challenges in employee attraction and retention.

Showing employees that they are valued by providing benefits and services they care about helps companies to build a trusting relationship with their workforce. This will ultimately reduce turnover, increase productivity, and meet the work-life balance that today’s workforce is demanding.

Author Bio

Jennifer Strauel is the Chief People & Diversity Officer for arrivia, a travel technology company that provides travel loyalty, booking and marketing solutions to consumer-facing companies. Jennifer leads arrivia’s international human resource functions, focusing on developing total rewards and talent management programs that foster an inclusive and rewarding environment for the employment experience of arrivia’s global workforce. In a previous role, she managed HR for Carhartt in their US supply chain operations center and unionized manufacturing facilities in Kentucky and Tennessee, specializing in succession planning, performance management, and labor relations. Connect Jennifer Strauel