Forty-nine percent of U.S. executives reported their organization had experienced a much higher rate of turnover than usual within the last 6 months, according to a July 2021 survey by the Society for Human Resource Management (SHRM), and 84% reported job openings were going unfilled for longer than before the pandemic.
- A second SHRM report found 41% of workers were actively seeking a new job or planned to start seeking over the next few months, citing better compensation, better work/life balance and better benefits as the top reasons for leaving.
- While the second SHRM report also revealed that 58% of employers responded to the wave of resignations by offering higher starting salaries and wages than last year, a pay raise alone may not be enough to stem the tide. Employees want to feel valued and appreciated as whole people, and they will seek employers who feel that way.
Embracing DEI as Part of Your Recruitment/Retention Strategy
More employers have come to embrace diversity, equity, and inclusion (DEI) initiatives as a way to improve workplace culture and demonstrate they value their employees as people, not just workers. Harvard Business Review found that 65% of U.S. executives say DEI is a high strategic priority, and organizations on the leading edge report multiple organizational benefits related to their DEI work, including increased employee engagement, innovation, and success in recruiting and retaining employees.
3. Additional studies suggest that taking the right actions to improve DEI can also lead to better financial outcomes for the organization. There are many areas where employers can make small adjustments that have a big impact:
- Pathways to Parenthood: Family-Forming Benefits
- Healthcare Access
- Financial Wellness
- Retirement
- Policies and Communication
Employers seeking to nurture and retain their existing workforce and attract new candidates should work to ensure employees feel welcome, included, and can see opportunities for growth and development. While many organizations want to invest in retention strategies that support and value employees, employers are struggling with increasing costs that make it challenging to focus on these areas. How can employers balance the need for workers to drive growth with keeping the lights on?
Support DEI With Employee Benefits
There are many opportunities for employers to make small, impactful adjustments, especially to employee benefits, programs, and policies. These adjustments can be easier and cheaper than you might think.
Pathways to Parenthood: Many health plans cover some type of fertility treatment, but the scope of treatment options may inadvertently exclude certain plan members and family structures, such as transgender individuals, same-sex couples, or single individuals, as well as members who need donor tissue or are seeking fertility preservation. Making changes to the types of treatment covered by the plan can significantly expand access to these services and demonstrate its commitment to diversity, equity, and inclusion (DEI).
Access to Healthcare: People from some racial and ethnic minorities continue to face multiple barriers to accessing healthcare, such as lack of health insurance, proximity to care, access to childcare, or the ability to miss work. Social determinants of health—the conditions in the places where people live, learn, work, play, and practice their religion, which affect a wide range of health risks and outcomes—have historically prevented certain groups from having equitable access to healthcare. Taking steps to ensure your employees have fair and equitable opportunities to stay as healthy as possible can help reduce their financial burdens and overall health plan costs.
Financial Well-Being: Benefits and programs that support your employees’ financial well-being demonstrate that you value and support them and their needs. Helping employees address their financial concerns can also help increase their engagement and reduce absenteeism and presenteeism.
Retirement: A recent Federal Reserve report revealed that among middle-aged families (ages 35-54), 44% of African American families and 28% of Latino families have at least one retirement account, compared to 65% of white families. Addressing the importance of retirement and presenting it in a meaningful way to employees can help reinforce retirement readiness. For example, use a tailored approach to communicating financial wellness to different employee groups.
Policies and Communication: Expanding policy offerings and eligibility beyond what is required by law is a simple and often inexpensive or free way to demonstrate your commitment to increasing diversity, inclusion, and equity (DEI) in your workplace. For example, adjust time-off policies to include a broader range of reasons so more employees can better balance their work and personal lives.
Ways Employers Can Help Employees With Financial Wellness
Caregiver Needs: Offering or expanding support and benefits for caregivers can help employees better manage their work-life balance and avoid absenteeism and burnout.
Educational Needs: Tuition reimbursement or student loan programs can help first-time college students or low-income employees invest in the education and professional development often required to be hired and advance. Developing and communicating a clearly defined career path can also signal to employees that you are willing to invest in their growth and development and can contribute to increasing diversity at the management and leadership levels of the organization.
Healthcare Needs: Ensuring employees have active communication with a primary care physician can help improve employee health and reduce out-of-pocket costs. Helping employees address behavioral health needs, such as stress, anxiety, depression, alcohol and substance use, and other conditions, can also result in improved overall health, engagement, and productivity.
responsibilities, and/or update existing employee handbooks, policies, and communications with more gender-neutral language. Training your HR and benefits admin employees, as well as people managers, on how to address employee questions and concerns in an inclusive manner can also help foster more open communication and better understanding.
Work with your benefits providers and/or a third-party administrator (TPA) to determine what coverages, services, and solutions may already be available to employees, or programs to enhance or expand. Employers may also choose to engage third-party solutions or service providers to address needs not currently being met.
- Shane Attebery – USI Northwest
- Employee Benefit Consultant
- 541-659-9288
- shane.attebery@usi.com