By Gary R. Thornton, SPHR, CEBS
It has long been a fact that the key to the successful
attainment of your goal of providing great customer service lies
in the retention of your "front line" associate. Many
organizations that have undertaken a review of turnover in their
ranks, are now focusing a considerable amount of energies on exit
interviews, employee opinion surveys and simply put . . . asking
the worker what they like and did not like about the employee benefits
program. Not surprisingly and in spite of the significant expenditure
of operating income, many organizations are discovering that their
best attempts at meeting the needs of the worker are falling miserably
short. Herein often is the reason for employee dissatisfaction and
one's motivation to seek employment with other organizations that
offer more contemporary and user friendly total compensation programs.
The often undervalued and non-understood retirement
plan is now quite typically competing for a worker's discretionary
income. Escalating health costs and the resulting cost shift to
employees is leaving a bad taste in the consumers mouth and often
is a bone of contention when one "values" their employer's
benefits programs. As employers seek to get more value for this
significant expenditure, there seems to be a resurgence of recognizing
length of service when developing and revamping benefit programs
and in particular strategies for cost sharing with the workforce.
These strategies include a methodology, which shifts greater costs
to the above average income worker and phases out the sharing over
a certain period of employment. This obviously translates to a worker's
willingness to not make a career move as the relative value of their
total compensation program takes on new meaning and increases over
time.
A common theme coming out of many employee surveys
is not having enough time for personal business and the competing
demands on one's time as they attempt to balance their personal
life with their work life. This has led to the development of many
"value added" programs to the benefit mix of more progressive
employers. Common in the mix are services that do everything from
pick up laundry at the work site to photo processing and the like.
The shift from paternalism by the employer, i.e. direct company
involvement in retirement and traditional health and welfare benefits,
to this employee empowerment philosophy of picking benefits that
have a certain life cycle appeal, must be done carefully. It is
advisable to not just crank out programs of this type without any
wisdom or forethought. Following the trend and doing what's in vogue
typically will not translate into any meaningful or quantifiable
results and more importantly, will do little to distinguish you
from the employer down the street.
Technology advances are also allowing many to
reevaluate the way they accomplish their work and is offering opportunities
for more flexible work arrangements. Telecommuting, flex scheduling
and the like are taking great strides in improving employee satisfaction
and morale. Studies are now confirming that these career/family
initiatives are translating to high job performance, employee satisfaction
and employee retention.
As you focus your efforts on continuity of your
workforce, it is prudent and wise to evaluate the effectiveness
of your benefit programs and the resultant role they play in the
retention of your employees. It is quite likely that reallocating
the mix of total compensation expenditures will produce significant
contributions to morale, productivity and loyalty by those with
whom you partner to achieve your mission and goals. This evaluation
does not necessarily have to translate into greater expense, but
rather a redeployment of the benefit delivery system to accommodate
the changing world and workplace of today.
Gary R. Thornton, MBA, SPHR, CEBS, RPA, GBA is the
Principal of Thornton & Associates, a human resources management
consulting firm located in Scarborough, ME. He has more than 25
years’ experience in human resource management for both private
and nonprofit organizations. He holds credentials as a Senior Professional
in Human Resources (SPHR), Certified Employee Benefits Specialist
(CEBS), Retirement Plan Associate (RPA) and Group Benefit Associate (GBA). He currently serves as a Special Expertise Panel Member - Total Rewards, Compensation & Benefits for the Society for Human Resource Management (SHRM). He has also
held leadership roles in the Maine Employee Benefits Council and the Human Resources Association of Southern Maine. For
more information about the information contained in this article,
you may contact him at 207-885-9333 or email gthorn@ThorntonAndAssociates.net
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