Five Employee Benefit Schemes to Reduce Your Employee Turnover Rate
The workplace eco-system in India is full of challenges and opportunities both. These factors affect the performance of an employer and an employee both. An employer has the choice to hire the best people available, but at the same time, it is always at risk of losing any good resource to competition. Likewise, any individual employee is given multiple opportunities to showcase her talent. She can perform well in the same organisation or choose to join an organization which offers a wider scope of talent growth and engages her better.
As per reports, The banking industry, which is one of the largest employers in India, has an employee attrition rate of 16-22% every year. It is also one of the most key sectors in India given the scale of operations and number of banking institutions in the country.
In this scenario, it is the employer who has to bear the brunt of attrition. Employees shifting jobs is no longer a distant probability, as many Indian corporates are now facing a mammoth task of effectively retaining their talented workforce. It’s also hard to hire a good resource as many companies are always eyeing top talent available at competition. Even if an employer is lucky enough to hire the best talent, the job is far from over. An organisation is responsible for nurturing its talent, and therefore, opening the right windows to retain its workforce.
Employee retention can be approached differently depending upon various factors. However, the key fact is-it should benefit individuals. Employee benefit schemes have now become the most important measure for the organisations to incentivize employees. In other words, these schemes make any workplace better. Some of them may also help employees bond with their employer over a long time.
Types of Employee Benefit Schemes
Group Life Insurance
Group term life insurance cover is a useful tool to provide life risk cover to an individual. It primarily includes a death benefit. If you think your organisation does not need a group life cover, think again. In the high-pressure corporate scenario, every employee is exposed to some level of risk from work-life stress. Offering this benefit can help employers to maintain a healthy retention of talented employees. Also this insurance will provide financial protection to the employee’s family in case of their demise.
Group Health Insurance
A group mediclaim policy is another employee benefit which is a direct investment in your employee health. All employees are covered under uniform risk cover. This insurance covers their hospitalisation expenses and also has the facility to cover maternity expenses. The benefit of this policy is that there is no waiting period for pre-existing diseases and no medical checkup is required while covering the employees. Group health insurance policies cover the maximum risks to the health of an individual, that too at a very affordable cost.
Group Leave Encashment Scheme
An employee of a company is entitled to paid leave as per standard rules and regulations. An employer, on the other hand, is obliged to grant those leaves. Similarly there’s leave encashment that can be offered to employees. The lapsed leaves can be cashed and can cost the exchequer a huge bill. But an employer has a choice to cover this cost by buying a Leave Encashment facility for their employees. Some schemes also include life cover benefits in case of a death of an employee.
The retirement benefit is a preferred employee solution. An employer has an option to buy a group pension scheme or superannuation policy, to provide retirement income to its employees. All the group pension plans are subject to a set condition, which is withdrawal at the time of retirement only. It offers a single benefit of retirement saving and benefit in the form of retirement pension.
There are still more employee incentives like team building initiatives, off-site workshops, holiday packages, and rest, which help in striking a generous work-life balance.
Group insurance coverages are a must have and a sensible workplace investment. An organisation also benefits from the collective insurance cover cost. An affordable premium against a collective risk is how employers and employees will benefit.
An employer has flexible options to choose from. He can choose to cover only a select base of employees for a certain type of insurance cover benefit. Like an insurance cover only for field workers against personal accident risk.
Another workable option is the Group health insurance coverage. It not just enriches the employee with better access to healthcare facilities and resources but also creates an employee-friendly corporate environment. An individual employee is covered under a standard insurance cover and can avail maximum financial benefit including, pre and post hospitalization expenses besides the hospitalization cost.
Additional Read: How does a Group Health Insurance benefit an organisation?
There are many tailor-made insurance packages available now to benefit an organisation. Depending upon the nature of work, or the number of employees to be covered, flexible group plans are available.