More satisfied employees help you create a more productive, profitable business. Find out how benefits and PEO support can play a role.
Employee retention is a multi-variable challenge in 2024.
The past few years have brought a more competitive job market with increasing employee demands. Employees have shifted their career goals to align more with their ambitions. Organizations struggle to retain people when they’re always looking for the next best thing.
Beyond retention alone, employee satisfaction is closely linked to business success. A Harvard Business Review study found businesses that could move from the bottom to the top quartile in employee experience metrics – such as well-being, diversity and technology use – could increase their revenue and profits by around 50%. Keeping employees engaged and happy is important to sustaining a successful organization.
How Better Employee Benefits Can Improve Workplace Satisfaction
Employee satisfaction and commitment mean higher retention, performance and well-being.
Health insurance and retirement plans remain top priorities for employee benefits.
PEOs help businesses leverage competitive benefits offerings and improve employee satisfaction.
One way to improve satisfaction is by offering a competitive employee benefits package. Working with a professional employer organization (PEO) ensures your business can leverage competitive offerings that would typically only be affordable to large companies.
With better benefits come improved satisfaction and retention.
Why Employee Satisfaction Is So Important
Whether employees are satisfied at work involves several factors:
Job Satisfaction
Are they happy with their role and the work they’re doing?
Engagement
Does the daily work keep them engaged and interested?
Morale
Do they feel positive about their work, company and colleagues?
Work-Life Balance
Are they able to meet both personal and professional goals and needs?
Professional Development
Do they feel they’re able to move up and continue growing in their career?
Work Environment
Do they have a safe and comfortable place to work and succeed?
Recognition
Do they feel recognized for their work and how they’re contributing to the whole?
These are just a few important causes of employee satisfaction, which in turn leads to enhanced production. McKinsey and Company data shows that the more satisfied and committed employees are, the higher their performance and well-being at work.
Because employee satisfaction impacts performance and productivity, it also affects profitability. Additionally, satisfied workers are more likely to stay in their jobs, which also helps the bottom line because turnover is expensive.
How Competitive Employee Benefits Impact Employee Satisfaction
Employee benefits show time and again to be a critical factor in employee satisfaction and engagement. MetLife research found that:
Employees who are satisfied with their work benefits are:
1.6x
more likely to be PRODUCTIVE
1.5x
more likely to be ENGAGED
1.5x
more likely to be LOYAL
Elevated employee benefits offerings show employees the organization values their well-being and wants them to succeed in and out of the workplace. This boosts morale and establishes a workplace where people want to stay.
According to MetLife, employee benefits particularly help improve retention and satisfaction when employees are:
- Aware of what benefits are available
- Choose to enroll in benefits
- Use the benefits that are available
- Experience positive outcomes from using these benefits
MetLife also found that employees who feel cared for by their employers are 1.3 times more likely to report satisfaction and engagement at work.
So, what benefits increase these feelings of care and satisfaction in workers?
- Health insurance: Health plans continue to top lists for the most important benefits to employees. A PEO can help you assess options and find more high-quality plans.
- Retirement plans: Saving for retirement is a top priority for professionals, so gaining access to an employer-sponsored plan is a must.
- Wellness programs: Wellness programs that focus on physical, financial and mental well-being are becoming commonplace as employees navigate work-life balance.
- Flexible work arrangements: Flexible work options like remote work and nontraditional scheduling are on the rise.
Start with these areas when upgrading your benefits package. Working with a PEO to fully leverage its purchasing and negotiating power can help your business stay competitive by accessing premium employee benefits at affordable rates.
Working with a PEO to fully leverage its purchasing and negotiating power can help your business stay competitive by accessing premium employee benefits at affordable rates.
How PEOs Helps Businesses Offer Competitive Employee Benefits
One of the biggest benefits of working with a PEO is access to comprehensive solutions. For employee benefits, PEOs offer a holistic approach encompassing health insurance, 401(k) retirement plans and wellness programs.
Businesses get higher-tier health plan access while adding on any desired additions like supplemental, life or disability insurance. And alongside these perks, PEOs offer additional wellness benefits like financial wellness programs, commuter benefits, flexible spending accounts (FSAs) and more.
Another proven benefit of working with a PEO is cost efficiency. A PEO’s buying power makes it possible to provide benefits at lower costs to your organization. The National Association of Professional Employer Organizations (NAPEO) reported that the annual return on investment through cost savings from using a PEO was 27.2%.
27%
The annual return on investment through cost savings from a PEO
Source: NAPEO
Offer More Competitive Employee Benefits with PrestigePEO
If you want your business to retain and attract the best talent, and continue increasing your bottom line, working with a PEO to improve the employee benefits you offer can help.
PrestigePEO can help your business achieve these goals through customized employee benefits packages and comprehensive HR solutions. Learn more on how a PEO like Prestige can help you improve employee satisfaction by contacting us today.
Contact PrestigePEO today to get started with our team of experts.
