To exacerbate the issue, the average ‘employee engagement’ is only 32%, and that hasn’t changed in 10 years!
What can companies realistically do to improve and elevate the employee experience at the organizational level?
Kacie recently worked with a data company and recommended a cultural overhaul that was supported by total rewards statements. When she was hired, the company had a 24% turnover rate, which cost the company $38,000 per employee to replace. Over one year, she was able to help them reduce that to 20%, saving $1 million. Over three years, she reduced it even further and saved the company $4.16 million.
These changes are hard, but the right kind of hard, and the results can be extremely rewarding.
50% of employers have an active enrollment, which is very important! When Justin started working with the City of Cincinnati, however, they were buried under mounds of paperwork, inefficient processes and disengaged employees.
A short look at the current city structure—they have over 6,000 employees spread across 30 departments and 88 buildings. The city is comprised of a very diverse workforce from every angle of that definition—age, income, education, etc.
After partnering with 4myBenefits and upgrading to a modern, online benefits experience, the city saw unprecedented results. 98% of employees were enrolled on time and 33% enrolled within the very first week. The city also saw a 240% increase in HDHP enrollment, a 200% increase in worksite product participation, a 20% increase in voluntary product participation and did all of this with a 16% reduction in annual premiums.
How, you ask? A simple equation. 4myBenefits implemented PlanSource as the new benefits administration software and reinforced the modern experience with an employee contact center, decision support tools and a custom benefits package through Voya. And, the city used a holistic communication strategy using 4myBenefits’ ‘communications escalator’ approach to actively engage employees throughout the experience.
Altogether, the City of Cincinnati was able to provide a better benefits experience and invest in a modern technology solution at no additional cost while driving down premiums—a win/win for all parties.
This particular success story took place earlier this year (2019). As we all know, retirement plans can go up and down and there are no guarantees in life. A new client approached Merrill Lynch. The company was small, only 4 employees, but had several challenges that they wanted to address through a creative retirement structure.
First, the company had no existing retirement plans, which was a problem in itself. The owner was worried that they were going to lose existing talent because they had a clear gap in their benefits; two of the roles had a very high turnover rate for this reason. Furthermore, there was an employee that had been with him from the beginning (20+ years) and he wanted a great way to thank that employee for their loyalty and provide an incentive for them to continue to stay with the company. And finally, the owner himself had no funds set aside for retirement.
Merrill Lynch looked at adding a creative retirement plan structure through PlanSource to address some of these complex issues through creative plan design. PlanSource enabled this to work through flexible configuration tools that allowed a ton of flexibility and customization.
With PlanSource, Merrill Lynch designed a multifaceted retirement plan that addressed the key issues the client faced: maintaining an attractive and competitive compensation package, rewarding the loyal employee with a generous package, providing the owner peace of mind with a comfortable retirement plan and creatively using funds to lower the company’s annual tax billing—all of which was totally legal and financially ethical.