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Employee Loyalty – A Huge ‘Benefit’

David P. Lind BenchmarkAccording to MetLife’s 10th Annual Study of Employee Benefits Trends report (released in March 2012), only 42 percent of employees indicated they felt a strong sense of loyalty toward their employer – a seven-year low. Interestingly within this same report, 59 percent of employers felt a strong sense of loyalty toward their employees…a seven-year high!

Another part of this study caught my attention, yet I’m not all that surprised.

About 61 percent of employees (generations included – Boomers, X, and Y) who were very satisfied with their benefits said they felt a strong sense of loyalty to their employer versus only 24 percent of employees who were very dissatisfied with their benefits. If offering strong benefits provides greater loyalty from employees is more causation (rather than a correlation), employers have hope on developing a long-lasting sense of loyalty to their employees.

Not a bad thing!

A few other interesting tidbits from this study include:

  • More than half of surveyed employees (58 percent) said that benefits were an important reason to stay with their employer, and this was highest among Generation Y (born 1981 – 1994) at 63 percent and with Generation X (born 1965 – 1980) who followed at 62 percent.
  • While 66 percent of employees said that health benefits were an important driver of their loyalty, only 57 percent of EMPLOYERS believed this to be the case.  Hmmm…
  • 59 percent of employees indicated that retirement benefits were “very important” when influencing loyalty to their employer, while only 42 percent of employers recognize this. Another Hmmm…
  • A large majority of employers see opportunities to leverage their benefits programs to engage their employees. Leveraging benefits can retain employees more effectively, increase employee productivity, and attract employees.

How loyal are your employees? If loyalty is high, maybe your benefits package is a bigger contributor than you might think. If it is low, there is hope, according to this study! Offering quality employee benefits can be very expensive, but it might be more costly to NOT offer such benefits.

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