Utilizing a Personalized Employee Benefit Statement as Part of the Employee Retention Plan

Utilizing a Personalized Employee Benefit Statement as Part of the Employee Retention Plan

Guest writer Ron Wilson offers insight into employee benefits tonight in, “Utilizing a Personalized Employee Benefit Statement as Part of the Employee Retention Plan.”

Employee retention plans have become an important part of the organization’s overall recruitment process. As we know the cost to recruit, hire, and train a new employee can exceed the cost of investing in the current employee, especially when we include the revenue lost while we are trying to fill the position.

Although effective Retention Plans have many elements, it is worth our time to focus on one specific element, a Personalized Employee Benefit Statement. Below is an example of how a Personalized Employee Benefit Statement was utilized in retaining a key employee.

A highly productive Product Support Sales Representative scheduled a meeting with me and during the meeting he presented a letter of resignation. We spent some time reviewing the reasons for wanting to leave the company, where he was going, and reemphasizing the importance of his role within our organization. As we were wrapping up our discussion, I gave the letter of resignation back to the employee explaining that I would not accept the resignation at this time and asked that he compare the benefits his “new” employer would be providing as to what he was currently receiving. 

 We would review what he found out the following day and at that point if he still wanted to resign, I would accept his letter of resignation.

Later that evening the employee called me and asked if he could withdraw his letter of resignation. During his review of the “new” employer’s benefits, he discovered their medical coverage was insufficient to what he was currently receiving and his accrued time off was far less than what he was currently receiving.

The Personalized Employee Benefit Statement played a key role in the retention of this key employee. There was work to be done to address some other issues, but we now had some time and an open dialogue to continue strengthening our relationship.

Content of a Personalized Employee Benefit Statement

There can be many elements within a Personalized Employee Benefit Statement, but we will review only a few:

    • Employee Information- Name, employee number, years of service, job title
    • Company Information- Vision, Mission, Values
    • Salary Information- Including base salary, bonus, commissions, overtime.
    • Benefits Summary- This is the most important piece of the statement. Most employees do not see, and may not fully understand, some of these benefits and the cost.
      • Health Insurance- including premiums, deductible, and coverage, along with Wellness programs that are available. (Dental, vision, prescription drugs, etc.)
      • Retirement Benefits/Stock Options- This would include 401(k) match and other retirement plan information.
  • Life insurance and Disability insurance coverage
    • Paid time off (vacation, sick days, holidays)
  • Tuition Reimbursement and Training that has been provided to the employee.

There is no doubt many other examples you can recommend be added to a personalized employee benefits statement based on your organization’s information.

There were two key elements that contributed to the employee deciding not to resign. The medical insurance coverage provided by the new employer was insufficient due to some family medical needs and the new employer’s time off was insufficient to what the employee was accustomed to receiving.

The ability to quickly access this information and spend time with the employee to ensure their understanding of what is included within the current plan, what they may be giving up provided an environment of transparency and building trust. 

This discussion may also identify areas the current employer may need to address as it relates to a competitive benefit package.

To effectively build a Personalized Benefit Statement requires:

  • Information pulled together from payroll, benefits, training, and other key databases to consolidate into an individual employee statement.
  • Supervisors and Human Resources personnel being comfortable discussing the information and listening to the employees as they identify the areas of most importance to them.
  • Provide the personalized employee benefit at least once a year and be accessible to address the immediate situations that arise.

What would you include in a Personalized Benefit Statement? Have you had similar situations and were able to retain an employee that was resigning?

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A Changing Mindset on Training: Activate the “Hidden Workforce”

A Changing Mindset on Training: Activate the “Hidden Workforce”

Guest writer Ed Gordon comes back this week with valuable advice on employee development in, “A Changing Mindset on Training: Activate the ‘Hidden Workforce.'”

At long last, there are signs that companies are increasing employee training and participating in talent development programs. Why is this finally happening?

 A recent Federal Reserve program held in Chicago focused on how companies in four Midwestern states are partnering with their local communities to upskill younger entry-level workers. Companies from many businesses sectors are collaborating with K-12 and post-secondary institutions to offer both career information and educational programs aligned with current job requirements.

 This program also included a public high school graduate who told the audience how mentorships and a career exploration program interested him in pursuing a STEM career. He is now eager to begin post-secondary education that will qualify him for a career in information technology.

 A barrier that discourages publicly traded corporations from developing human capital is now being challenged. Arcane financial accounting rules currently classify employees of these companies as costs rather than assets. The Securities and Exchange Commission (SEC) is now considering proposals to require publicly listed companies to report spending on training and other human capital outlays. This may be a step toward moving the Financial Standards Accounting Board (FASB) to change accounting rules thereby giving companies the option of capitalizing and depreciating employee development as an investment, rather than expensing it as a cost that reduces earnings.

The Current U.S. Labor Market

Employer job training is also growing as an answer to the unprecedented demographic meltdown. Over this decade 10,000 workers are retiring each year (approximately 3.6 million workers annually). This will continue into the 2030s. Up to 66 percent of job openings are to replace these retirees.

 A recent National Federation of Independent Business survey reported that 42 percent of their members (companies with 500 or fewer workers) had vacancies they cannot fill. The number-one problem facing members of the Association of General Contractors is the shortage of skilled labor. Contractors are reporting that this is causing them to turn down new construction projects.

 In 2021 U.S. business experienced over 8 million job vacancies that resulted in a profit and productivity loss of over $1 trillion. By 2022 this had risen to over 12 million jobs and a $2 trillion loss. This trend seems to have abated somewhat this year. However, labor cost per unit rose to 6 percent in 2023. Average hourly earnings have increased 4.3 percent above last year as employers have raised wages to find qualified workers. Wage inflation is likely to continue unless businesses begin to enlarge the pool of skilled workers.

But where can this “hidden workforce” be found? According to U.S. Department of Labor reports, about 100 million Americans of working age are not participating in the labor force. Our research shows that at least 20 million of these workers have given up looking for employment because they lack some of the specific skills a job requires. They can fill such job vacancies if employers offer the job training needed to mobilize these skilled workers.

 As many other nations are dealing with a declining working-age population and significant skills shortages, it is important to develop all our own resources. There are hidden workers in our midst who could become productive employees if their skills are updated. Are U.S. businesses now beginning to realize that persistent job vacancies cost them more than it would to start entry-level skills training or to participate in community partnerships that are renewing local talent pipelines?

 Edward E. Gordon is the founder and president of Imperial Consulting Corporation in Chicago. His firm’s clients have included companies of all sizes from small businesses to Fortune 500 corporations, U.S. government agencies, state governments, and professional/trade associations. He taught in higher education for 20 years and is the author of numerous books and articles. More information on his background can be found at  www.imperialcorp.com. As a professional speaker, he is available to provide customized presentations on contemporary workforce issues.

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How Do Employee Engagement Strategies Combat Quiet Quitting?

How Do Employee Engagement Strategies Combat Quiet Quitting?

Guest writer Ed Wallace returns this week with a blog post on building the kind of environment that fosters employee satisfaction in, “How Do Employee Engagement Strategies Combat Quiet Quitting?”

The term “quiet quitting” describes the phenomenon whereby employees become disengaged and disinterested in their work, but instead of leaving the company, they work less productively. One of the best ways to counter quiet quitting is by implementing employee engagement strategies. According to a recent Gallup poll, “quiet quitters” make up at least 50% of the U.S. workforce. In addition, the ratio of engaged to actively disengaged employees is now 1.8 to 1, the lowest in almost a decade.  

Quiet quitting is a significant challenge for leaders, as it can cause long-term damage to company culture, morale, and business outcomes. Read on to learn about employee engagement best practices. 

What is Employee Engagement?

Employee engagement is the level of commitment an individual has to their work and the company they work for. 

Countering quiet quitting requires an initiative-taking approach to employee engagement, which can help to boost motivation, job satisfaction, and productivity. 

Engaged employees are more likely to be enthusiastic about their work, more committed to their employers, and more willing to go the extra mile to achieve company goals. This is crucial because it can impact employee retention, customer satisfaction, and business performance. Companies with the highest rates of employee engagement are 21% more profitable and 17% more productive than those with a more disengaged staff.

How to Use Employee Engagement to Increase Motivation.

To combat quiet quitting, business leaders must invest in employee engagement best practices. Here’s how. 

Cultivate a Positive Company Culture 

Company culture is the attitude or environment within an organization. Businesses with positive cultures value diversity, inclusivity, open communication, encourage collaboration, and have higher rates of employee satisfaction. They also ensure employees don’t feel like they don’t matter or are replaceable. 

Positive company culture is one of the most critical employee engagement strategies because it helps employees feel more connected to their work, team, and the company’s mission. 

Promote Employee Well-Being

Workplace initiatives, such as wellness programs, flexible working arrangements, health screenings, and mental health resources show employees that their well-being is a priority. In addition, a more positive environment that rewards employees who perform well can help reduce burnout and anxiety. When they feel supported and cared for, they are more likely to be motivated and engaged at work.

Provide Growth Opportunities

Providing growth opportunities is one of the key employee engagement best practices. When employees see a future for themselves within their company, they are more likely to stay engaged and motivated. Invest in employee training and development opportunities to inspire them to learn new skills, take on challenges, and progress in their careers. 

Foster Meaningful Relationships 

Strong relationships among team members create a more supportive and collaborative work environment. When employees feel personally connected to their colleagues, they are more likely to be engaged and more committed and loyal to their work and team. 

Recognize and Reward Employee Contributions

Rewarding employee contributions is among the top employee engagement best practices. Acknowledging splendid work also boosts morale, increases confidence, and encourages employees to perform their best. 

Employee Engagement Examples.

Here are some tangible actions to boost employee engagement within your organization. 

Conduct a Survey 

An anonymous employee survey helps you gauge your baseline. You can structure the survey with a rating scale, open-ended questions, or multiple-choice questions. Consider topics such as employee and management interaction and overall company mission. The survey results will help you identify areas that require the biggest boost.

Pay Employees to Volunteer 

Paying employees to volunteer shows them that your company has a greater purpose beyond its bottom line and is making a positive contribution to society. Choose nonprofit organizations that align with your company’s mission and area of focus such as homelessness, books for underserved kids, or veterans. 

Create a Mentoring Program 

Mentorship supports employees as they progress in their careers by supporting them so they can identify their goals and overcome challenges. They also provide guidance and are particularly beneficial for underrepresented groups. A study from the University of California Haas School of Business found that mentoring programs are especially important for young women. 

To design a mentoring program, create a clear structure that addresses key components such as how long it will last and how mentees will connect with and pair with their mentors. Lastly, provide an opportunity for mentors and mentees to give insight into their experience.

The Bottom Line: How to Use Employee Engagement to Increase Motivation.

Business leaders must prioritize employee well-being, foster positive company culture, provide development opportunities, foster meaningful relationships, and recognize and reward employee contributions. By implementing these strategies, leaders can create a more engaging and supportive workplace, ultimately improving employee retention, productivity, and overall enterprise success.

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Lessons from Honeybees

Lessons from Honeybees

Guest writer Alex Weaver continues with his theme of lessons to be learned with this week’s blog, “Lessons from Honeybees.”

My most recent blog “Three Lessons from Dad,” I listed some of Dad’s interests and work. Beekeeping was on the list.

For my dad, bees and beekeeping were a labor of love, respect, and business. My Dad, his dad and a brother kept and tended several “apiaries,” or groups of hives. Maximizing production by moving them from SW Missouri to Iowa in the summer for Alfalfa pollination. Alfalfa produces great tasting honey. They produced and sold honey all year. There is a seasonal focus on beekeeping depending on what plant is blooming. A bee yard was fifty to several hundred hives. Not in one location but scattered across several locations, usually farms in southwest Missouri or southern Iowa. My Dad became a bit of a “Bee Whisperer” and often discussed his observations that became life lessons. He was very observant as he worked with the bees. 

Honeybees are essential in our lives. Honeybees are big money makers for U.S. agriculture. These social and hardworking insects produce six hive products – honey, pollen, royal jelly, beeswax, propolis, and venom – all collected and used by people for various nutritional and m medicinal purposes. Honeybees pollinate $15 billion worth of crops in the United States each year, including more than 130 types of fruits, nuts, and vegetables. Honeybees also produce honey, worth about $3.2 million in 2017 according to USDA-National Agricultural Statistics Service (NASS).

Why is learning from Honeybees important? Because they have been successful for a long time.

“Bees lived during the time of the dinosaurs. During the Mesozoic era on earth, the earliest dinosaurs appeared about 245 million years ago and disappeared after an asteroid hit earth around sixty-five million years ago. The oldest fossil bees are from circa one hundred million years ago, found in Myanmar.” – Mann Lake LTD

So, what can we learn from Honeybees that apply in our workplace and our homes?

My comments here echo information available in many books today about honeybees. Scientists have studied and continue to study these hardworking and extremely focused insects. But I also include some of my dad’s comments. 

Teamwork –

“Honeybees are nature’s ultimate team-players. They cooperate in everything they do. They also behave as if it were an individual matter, while at the same time keeping the common good of the hive as their priority. If one bee is suffering or falling behind, the others step up and do the work, making sure that collective productivity is never reduced.” – 

Using teamwork, they produce honey. It is the only food that includes everything that is necessary to sustain life – water, minerals, enzymes, and vitamins. Honey also contains pinocembrin, an antioxidant associated with improved brain functioning. 

Without teamwork, the honeybee ecosystem could not achieve its goals.

Roles and Responsibilities – 

Every member of the hive population has a job to do. The queen is dedicated to reproducing, repopulating the population. The queen can lay as many as 2,000 eggs per day. Drones give up their lives to mate with the queens and contribute to succession. Worker bees can serve multiple roles. Scout bees are on the lookout for the next area to harvest pollen. They escort forager bees and soon a “pipeline” is formed. Forager bees haul pollen to the hive and return “empty” for the next load. Guard bees provide security.

Clearly Defined Roles and Responsibilities drive increased production and success.

Efficient – 

“Honeybees don’t multitask. Instead, they focus only on the top priority. They each have different jobs and they stick to them. This is how they are efficient, wasting no time on anything other than living their purpose and contributing where they are most capable.”

You have heard the expression, “Busy as a Bee – because they work hard every day. “It takes three hundred bees visiting two million flowers to make one pound of honey. Rest is part of being efficient. Honeybees spend two-thirds of their time resting. Bees need five to eight hours rest. Or they become inefficient.” – Paul Rigby

Work hard, but rest is important.

Process – 

Honeybees can be fun to observe. My Dad taught me this. Air Traffic Control. If you observe closely, there is no traffic jam around the entrance to the beehive. Bees that are inbound with pollen approach the hive at about 45 degrees, on the left side of the entrance, and once they have deposited their load, they depart, at about 45 degrees on the right side of the hive entrance, as you face the hive. Other bees flying around or near the hive can be on “orientation” flights, which is how recently hatched bees learn   which hive is their home and how to fly in and out.

Process defines productivity.

Communication – 

Scout bees find forage and flowers to harvest. A scout bee can waggle its body to send out the scent of the flower and this permeates the hive. The foragers know what flower to harvest.

Constant, clear communication improves productivity.

Security – 

Ten to Twenty guard bees remain airborne, near the entrance to the hive watching for predators. Bears, skunks, hive beetles, raccoons, and opossums seek Honeybee hives to raid for the honey and the bees. The bees defend their hive by stinging the predator in groups. The larger the predator, the more bees join in to sting and thwart the invader. Honeybees understand they face threats and are prepared to defend their hive, their factory and home. 

Lately Honeybees have come under attack by a “disease” called Colony Collapse Disorder. Much research is being done to identify the cause and protect the bees.

Without vigilant security, the Hive (Enterprise) won’t survive.

Interesting Next Step – 

As mentioned above, the Honeybee population is declining. One industry pundit has suggested that the decline could be slowed if there were more “Hobby” beekeepers. Maybe, many households could each set up and manage two honeybee hives. It is more work than a cat or dog, but extremely rewarding. The first time you remove a full frame of honey from a hive, cut the honey from the frame, and put it in a bowl, your kitchen is changed forever. Honey and honeycomb, fresh from your hive, is wonderful. Honey can be used to flavor recipes, spread on baked goods, base for sauces, including baked Salmon. 

Beehives are a good teaching venue for teenagers and family members. Several years ago, my younger sister and young adult daughter kept two hives in their backyard. Also, I helped my neighbors set up two hives. The hives flourished and they grew to five hives and produced enough honey for their own consumption, and some left to sell. In both instances the hives resided in suburban backyards.

In many communities there is a Beekeeper’s Club. Such clubs offer help to newcomers wanting to get started. There are hundreds of books available in print and online. I will list a few below.

The time is now. Why not give two beehives a chance? You and your family can be successful and help our honeybee population grow. And enjoy your fresh “Honey from the Hive.”

Books for your consideration:

“The Five Habits of Highly Effective Bees” – Thomas R. Seeley

“The Wisdom of Bees” – Michael O’Malley, PHD

What The Hive can teach business about leadership, efficiency, and growth

“Honeybee Democracy” – Thomas R. Seeley

“A Book of Bees” – Sue Hubbell

“Honeybee:  Lessons from an Accidental Beekeeper” – C. Marina Marchese

Books currently in my library:

“The Beekeeper’s Handbook – Diana Sammataro and Alphonse Avitabile

“The Backyard Beekeeper” – Kim Flottum

“Keeping Bees and Making Honey” – Alison Benjamin and Bran McCallum

“Natural Beekeeping” – Ross Conrad

Honeybees have been around for one hundred million years – as quoted above. They have a proven successful operating model. We can learn a lot from these little insects.

Credit where credit is due:  There is text in the above document highlighted by parenthesis. If I knew the author, their name follows the text. Some I did not have, so understand, these are not my words, and I don’t take credit, but agree with the message.

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