How can an employer retain current employees and attract new applicants when their needs are constantly changing and the cost to do business is SKYROCKETING?
Across the world, no matter the industry, we are all experiencing the infamous Great Resignation or Great Reset or Great Opportunity. Call it what you want, employers are required to react and adjust to this climate. For the first time in what feels like forever, this is an employee driven market and the demands are heavy.
For employers, the greatest asset is human capital, and the focus needs to be on recruiting “A” talent and retaining that talent. Business owners recognize this need but are struggling to adapt accordingly. Can it be as simple as raising people’s pay? Not so fast.
Let’s be honest, raising pay is simple on the surface but can have a trickling effect of other challenges. Employers operating costs are skyrocketing for employers with extraordinary inflation, supply chain issues, and increasing employee costs. Employers need to consider how a short-term increase can affect the bottom line in the long term.
Employers understand their “A” player’s mentality – going above and beyond for that above and beyond compensation. How do employers reward that behavior while mitigating burnout? Turns out employees care about things like mental health, work life balance, high ethical standards and managers that care about their overall well-being, too. And if they don’t have these things, they become unengaged, less productive, and soon will be gone. According to the polling and research company Gallup, companies with disengaged workers suffer from 16 percent lower profitability, 18 percent lower productivity, and 37 percent lower job growth. Organizations with engaged employees, however, receive 100 percent more job applications.*
So, what can employers do?
For starters, let’s look at the overall retirement package for employees. As a retirement plan advisor, we know we can strive to help employers counteract the trend by reviewing these programs and work towards making them more competitive. We seek to help employers make sure they not only have the very best plan in place, but also look to leverage new offerings in the marketplace. Did you know around 70 percent of people said they would choose a job that offered retirement income solutions over one that did not. An in-plan lifetime income option is a highly valued benefit, according to recent TIAA survey.**
Oswald offers a holistic process of evaluating an employer’s offering. Employers are asking what else is out there to help employees right-side their finances, prepare for the future, and take care of their employees.
Our comprehensive approach looks at every dollar that is spent by an employer for an employee’s retirement package. We help you make sure you are aware of where each dollar is being spent, and if there is a more effective way to spend that dollar.
We help employers leverage their current offerings and update their program. First, we analyze and benchmark what they currently have in place. Then instead of assuming what employees want, we just ask them! With a simple survey, employers can not only show employees their input is valued, but it can also highlight what’s important.
After we know what is currently being offered in the program, and what employees value, we then go to the market with this info and work with our partners to help you design custom solutions.
Improvements may include outside the box solutions like:
- Personal money coaches or financial advisors
- Debt & budgeting counseling
- Emergency savings strategies
- Investable HSA Solutions
- Innovative PTO solutions
These solutions do not always cost employers more. By guiding efficient budget spend and prioritizing what is valuable to employees, many times we can help you reduce the overall cost.
We offer individual coaching for an employee to understand and coach to their unique situation. It’s not a broad sweeping approach, these are individualized meetings and specific time spent to understand each person needs and how we can allocate resources.
In the end, Oswald doesn’t want to just help you manage your retirement program – we want to help you leverage what you currently offering and tailor it to what your employees need, today and tomorrow.
Though providing retirement options can seem expensive, compare this to the cost of employee turnover. Replacing a single employee cost approximately 20 percent of that employee’s salary, according to estimates from The Center for American Progress. ***
Dedicating time and resources to a retirement plan program may cost money but let us help you spend it strategically, to help reduce turnover and perhaps lead to more revenue and retention for your company.
Oswald Financial offers financial professionals who specialize in the retirement plan space. Our experience strives to make a lasting impact on your employees’ future. If you want to talk more about ways to retain current employees and attract new applicants leveraging your retirement program, please contact Doug Stalter.
Douglas Stalter, CPFA, QKA
Retirement Plan Consultant
Oswald Financial, Inc.
216-250-3920
Email
References:
* Gallup Workplace Study 2022
** TIAA 2021 Lifetime Income Survey Executive Summary
*** Clutch HR Resource Study – “What Employs Value Most”
Disclosures:
Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Global Retirement Partners, DBA Oswald Financial, a registered investment advisor and separate entity from LPL Financial. This information is not intended as authoritative guidance or tax or legal advice.
Annuities are long-term, tax-deferred investment vehicles designed for retirement purposes. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Withdrawals made prior to age 59 ½ are subject to 10% IRS penalty tax. Surrender charges apply. Guarantees are based on the claims paying ability of the issuing insurance company.