Abstract
This paper focuses on identifying the workplace benefits that are valued by the employees most of all and that are actually useful to retain them effectively. The paramount purpose of this research is to reveal the mentioned benefits through the thorough literature review published within the last three years as well as the discussion. The study starts with the introduction and the background of the employee retention problem, thus clarifying that the role of non-monetary (or indirect) benefits increases rapidly. The majority of the reviewed sources show that modern employees value change, comfortable workplace, professional growth, the opportunity to learn continuously, and other motivational benefits. On the contrary, one of the studies indicates that the employees prefer stability and steadiness at their work.
Nevertheless, the situation in the United States is that the absolute majority of employees expect indirect benefits that significantly enhance retention rates. The paper then discusses the collected data and provides some essential issues regarding the employees’ attitudes and aspirations. The section of recommendations focuses on a hypothetical company and clarifies how leadership and management should act to retain employees based on the identified benefits. It is emphasized that not only the accessibility of indirect benefits but also their representation and provision matter. In particular, some communication tips are provided to help an employer to attract and retain employees successfully. The conclusion summarizes the key points of the research revealed throughout the paper and presents the concluding statement regarding the given topic. The key finding of this paper is that the employees need to feel valued and comfortable at the workplace along with respect and motivation as retaining strategies.
Introduction
The indirect benefits that are also called intangible motivation as a tool to increase employee loyalty in recent years are gradually going beyond the traditional methods of rewarding – giving diplomas or providing additional days of leave. They are gaining more importance than merely financial motivation. The indirect benefits include health and life insurance, corporate cars, pension funds, annual leave, and so on. This paper will focus on revealing the benefits that are preferred by the top employees and that work to retain them.
Literature Review
To retain employees solely by increasing wages leads to a deliberate losing of positions and, moreover, it is too costly for the companies. The increasing wages make a temporary effect, and then they almost completely cease to work (Dean & Taylor-Gooby, 2014). Standard benefits for all employees are also not an option since in this case, an employee does not feel that the company cares about him or her. All people are different, and the motives of all are specific. If the company has a group of people or a team that translates the vision of business development, an employer needs to constantly maintain a spark of motivation like team spirit and corporate value.
Today, companies compete with each other in a variety of ways regarding non-monetary benefits to attract and retain their employees. Organizations sometimes have to show remarkable ingenuity, providing more and more intangible benefits to somehow stand out from the background of others. At the same time, several benefits, which a few years ago could be considered a significant advantage when choosing a job, now do not represent effective tools for motivation due to their widespread prevalence (Dean & Taylor-Gooby, 2014). For example, the importance of voluntary medical insurance tends to be lost since it is difficult to find a serious, developing company that does not provide it. In the same situation, there are such variants of non-monetary motivation as the provision of a comfortable office and the organization of recreation areas, sports, and cultural events, and so on. It is safe to assume that these types of motivation become a mandatory program for all large companies and corporations.
Another scholarly study conducted with the help of the International Employee Benefits Association (IEBA) focuses on the longevity of employee benefits. In particular, the author of the research Zhavoronkov (2015) states that the respondents pinpointed the connections with their families, life history, and predictable decisions. With this in mind, the author claims that the majority of employees, especially those of older age, value predictable decisions, and stability in terms of the conservative approach. It should be noted that this study results contradict those of the above one. The mentioned study indicates that every person is unique, and he or she may have different preferred benefits (Zhavoronkov, 2015). Therefore, there is a need to apply an individual approach to retain top employees, considering their background and expectations.
A promptly developing body of scientific knowledge indicates that it is also critical to correctly set clear goals for employees. Dau-Schmidt, Finkin, and Covington (2016) point out the common mistake of companies: when developing the motivation of subordinates, management often forgets a very important point – statement of the task and the goal. The procedure for setting goals with the right approach is the most powerful method of motivation as the employees develop an orientation towards achieving results and the performance criteria become clear to them. At the same time, some freedom of decisions should be offered to employees in terms of legal considerations (Dau-Schmidt et al., 2016). It does not mean that a company should give up its right to decide what skills its personnel should have to maintain competitiveness and what training it needs. Instead, it is a fact that every employee has the right to select the training and acquisition of the versatile professional experience necessary for the perfection of knowledge and skills. The employees have the right to minimize the risk of being in a career stalemate or under the threat of dismissal. In other words, employers and employees are to unite their efforts so that the process of retaining and improving their professional skills goes on continuously.
Human Resource Management (HRM) is an integral part of ensuring proper employee benefits. According to the study by Ko and Hur (2014), managerial trustworthiness and procedural justice are the two key issues that are valued by the employees. The authors state that the above points positively impact an employee’s satisfaction and create negative associations with employee turnover. The strategy for creating a climate of confidence is the only basis upon which it is possible to build commitment. The situation when there is a discrepancy between what is said and what is done undermines trust, generates cynical attitude on the part of the employees, and reflects the contradictory nature of a managerial thought (Ko & Hur, 2014). Trust should be viewed as social capital – a goodwill foundation allowing employees and employers to cooperate.
The term “psychological contract” is widely used throughout the US scholarly community and organizations to study the behaviors of employees in their relations with the organization and form effective personnel strategies and policies (Low, Bordia, & Bordia, 2016). However, more important is not the knowledge of these landmarks, but the understanding of how the expectations associated with them in the conditions of a particular organization affect the behaviors of the employees as well as the development of relations with the employer. Low et al. (2016) consider that psychological contract as the implied emotional connection between the employer and the employees unofficially includes mutual obligations and expectations that largely depend on employees’ career stages. The above article shows the close relationship between motivation, the productivity of work, employee loyalty, and the preference of the psychological contract. The role of differential expectations in the company is stressed by the authors as a factor affecting their preferences. If one employee values family-orientedness most of all, then the other one is likely to be attracted by career growth.
The core task of companies is to create the most comfortable working conditions for their employees. It should be merged with the corporate culture of a certain company, so that top employees do not have thought of changing their jobs. It may be advantageous to provide employees with more freedom by eliminating the rigid limits of the beginning and the end of the working day. For example, an employer may let the working day start at a convenient time from a given interval, let us say, from eight AM to ten AM. An employee who sleeps and does not want to stand in the morning traffic jams would be able to work with much greater productivity than those who are forced to get up early and work having no time for their breakfast. If the position and duties of the employees allow it, it is possible to provide them with the opportunity to work from home. Fortunately, employees will not have a limit, and for the company, the home office mode is also an additional benefit due to the reduction of office and administrative expenses. Customized benefits and a comfortable corporate culture – that is what will help the employees and the company to be together for a long time.
It should also be stressed that the trend of blurring the borders between the office and the house is one of the key ones. Bullock, Stritch, and Rainey (2015) single out the general trend of development of non-material motivation: the transformation of the workplace for an employee into a closed system. A microenvironment seems to encompass all areas of life, including recreation, hobbies, family, finances, health, and so on, helping the employees to remain social activity in the closest possible contact with their work. Probably, in the future in the labor market, the companies that will offer a candidate maximum freedom of action in all spheres of life on the job would have the best specialists.
While offering the employees the indirect benefits, it is critical to ensure proper communication to explain their value and make sure every employee understands the role of the proposed options (Shields et al., 2016). The following are the key points that clear communication strategies in terms of employee benefits:
- adaptation programs in the organization – explaining the organization’s policies to the newcomers as well as the generally accepted procedures and key values, indicating the standards of effective work expected in such areas as quality, customer service, and flexibility requirements (Morgan, 2014);
- stimulation of performance management development processes, which contribute to the harmonization of expectations for performance and regular revision;
- encouragement of the use of personal development plans, which describe the ways to achieve a continuous increase in labor efficiency, mainly through self-regulatory training (Morgan, 2014);
- creation of the maximum possible amount of contacts between managers and team leaders and team members to achieve a mutual understanding of expectations, provision of facilities and conditions for mutual communication, and establishment of psychological contacts (Bullock et al., 2015);
- implementation of a general policy of transparency that promotes the information of employees on all matters relating to them, explaining the causes of the current and possible consequences for employment, development, and prospects;
- development of procedures aimed at working with complaints, disciplinary sanctions, equal opportunities policy, promotion, and dismissal, ensuring fair and systematic implementation of these procedures.
Discussion
The key reasons why employees decide to change their jobs are dissatisfaction with the working environment, the inability to grow, a lack of interest, understanding that in another place they will be able to do better and valued more. The paramount purpose is to understand which components of the benefits package are the most important for employees. Conducting meetings, one needs to draw the attention of employees on the benefits of working in a certain company. These advantages are to be discussed in advance: for example, career growth and well-coordinated staff of young employees. The individual conversations with the most valuable employees are another strategy to understand what they expect. Frequently, employees want leadership to sympathize with them and pay attention to their ideas and concerns.
Once the preferred benefits are determined, it is necessary to identify goals and objectives for employees to retain them. While granting some extent of freedom in decisions, one should not forget that a person wants to know where he or she is going. However, it is not appropriate to force the subordinates to guess what the employer expects of them. Often such conjectures lead in the wrong direction. A small five-minute meeting will make it possible to prioritize, eliminate doubts, and provide the employee with a sense of confidence. It is also critical to be closer to the team in general and to each team member. For example, the delegation of some tasks is important and necessary, but letting the employees decide, the employer should stay with them on the same wave. The leadership and management are to keep abreast of all the processes, be interested in the successes and problems of everyone, and then the statement of dismissal is not likely to appear much often (see Table 1).
One should remember that approximately a quarter of employees are dismissed merely because they want to change. If the range of positions in a company is small, it is important to be sure to think about the horizontal growth of staff. This may be achieved through organizing corporate training, expanding the responsibilities of an experienced employee, and entrusting them with the development of a new direction. If the budget does not allow attracting coaches from the outside, it is possible to conduct training inside the company and share experience to promote self-education of subordinates. Internal communications and comfort are two benefits that also matter. It is unsafe to leave employees alone with their duties and deprive them of feeling part of a larger process. Speaking out loud about the success of the company, thanking the colleagues, discussing with them plans for the future compose the effectiveness of the offered indirect benefits. This will serve as an excellent anchor for retaining valuable personnel. To take care of the employees, it is critical to ensure that they feel comfortable. For example, an employee should not carry stationery from his or her house, and if his or her computer mouse is broken, it is the responsibility of an employer to react immediately. In other words, showing people care and respect allows saving time and avoiding search of new competent candidates.
It is also of great importance to be sure to offer the top employees some alternatives. For instance, the most competent staff may share with others their knowledge and skills. In the mentioned program, it is appropriate to involve seminars, which will be led by representatives of related units. Trying to distract the team from the problem by launching a new project or announcing the preparation of a significant event, for example, the company’s birthday, it is possible to involve employees in the preparation of such an event.
Recommendations
The above literature review and discussion section help to understand what are the preferred benefits of employees, what they want, and how to attract them. To understand how to act, one should first get answers to important questions: What makes your employees happy and satisfied? What motivates them to come to the office daily, solve complex issues, and help you achieve your goals? What do they value the team and management for? For managers, the task with the highest priority is to ensure customer satisfaction. Considering that employees expect from the business high-quality service, individual approach, and non-standard solutions not only in the overall performance but also in the context of employee benefits, it is essential to employ an individual approach to the top employees. They want to work on interesting projects, know that the company is listening to their opinion, and to be sure that the leaders are interested in their training and development.
It is important to treat everyone as an individual since personalization is important. Before doing something for the employees, an employer should find out what they want. As shown by the research body earlier in this paper, people want to work in an environment where their individuality is valued. It is important to be flexible and ready to, let us say, adjust the work schedule of employees. Perhaps, someone from the team is more comfortable working from home or coming to the office before the rest. In this regard, this opportunity should be given to them. The availability of health insurance, the adaptation package for beginners, and extended maternity leave also matter (see Table 2).
The creation of an extremely simple organizational structure seems to help the top employees to work quickly and efficiently. Therefore, it is important to provide them with the opportunity for personal and professional growth. The studies have shown that many employees emphasize the opportunity to learn and develop a key when choosing a place of work. More to the point, focusing on innovative training programs and allowing managers to become coaches and leaders who can share knowledge and skills, the company may significantly improve employee retention rates. The idea is to allow the best employees to open their potential and allow them to work in the way they feel comfortable. In other words, a manager should become a trainer, who helps employees to perfect their skills and gives them prompt feedback.
Conclusion
In conclusion, the best companies are interested in long-term cooperation, and they invest their energy and time in the growth of the recruited specialists, especially the top employees. The core benefits target to allow everyone to feel important for the work of the whole team. In case the top employees know that they are valued, can work in a comfortable environment, and realize their role in the common cause and understand that they are making positive changes in the lives of others. This research indicates that the employees value such indirect benefits as the opportunity for both personal and professional growth, adequate motivation, proper communication, and comfort. At this point, the mentioned benefits may work as retaining strategies. Not only their availability but also appropriate presentation matter. In case the employees feel that they are valuable for the company and that leadership understands the role of their contribution, then the risk of employee turnover is minimal. Therefore, summarizing the answer to the question stated at the beginning of this paper, it is essential to emphasize that the employees do value work environment, recognition, and development, which actually help to attract and retain the top professionals.
References
Bullock, J. B., Stritch, J. M., & Rainey, H. G. (2015). International comparison of public and private employees’ work motives, attitudes, and perceived rewards. Public Administration Review, 75(3), 479-489. doi:10.1111/puar.12356
Dau-Schmidt, K. G., Finkin, M., & Covington, R. (2016). Legal protection for the individual employee (5th ed.). St. Paul, MN: West Academic.
Dean, H., & Taylor-Gooby, P. (2014). Dependency culture. New York, NY: Routledge.
Ko, J., & Hur, S. (2014). The impacts of employee benefits, procedural justice, and managerial trustworthiness on work attitudes: Integrated understanding based on social exchange theory. Public Administration Review, 74(2), 176-187. doi:10.1111/puar.12160
Low, C. H., Bordia, P., & Bordia, S. (2016). What do employees want and why? An exploration of employees’ preferred psychological contract elements across career stages. Human Relations, 69(7), 1457-1481. doi:10.1177/0018726715616468
Morgan, J. (2014). The future of work: Attract new talent, build better leaders, and create a competitive organization. Hoboken, NJ: John Wiley & Sons.
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Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P.,… Plimmer, G. (2016). Managing employee performance & reward: Concepts, practices, strategies (2nd ed.). New York, NY: Cambridge University Press.
Zhavoronkov, A. (2015). Longevity expectations in the pension fund, insurance, and employee benefits industries. Psychology Research and Behavior Management, 8(1), 27-39. Web.
Appendix A
