More employers are citing employee retention as the primary objective in putting together a benefits plan

The study by MetLife which consisted of 1,514 interviews with benefits decision-makers at companies found a correlation between benefits satisfaction and job satisfaction. Among employees who are “highly satisfied” with their benefits, 80 percent indicated strong job satisfaction.

Seventy-two percent of employees who responded to the survey said workplace benefits were a reason for joining their current employer, and 83 percent said it is a factor for remaining there.

The cost of high turnover

It is possible to compute a ‘not less than’ figure very easily by working out what it costs on average to replace a leaver with a new starter in each of your major employment categories. This figure can then be multiplied by the crude turnover rate for that staff group to calculate the total annual cost of turnover. The major categories of costs to take account of are:

• Administration of the resignation

• Recruitment costs

• Selection costs

• Cost of covering during the period in which there is a vacancy

• Administration of the recruitment and selection process

• Induction training for the new employee.

Many of these costs consist of management or administrative staff time (opportunity costs), but direct costs can also be substantial where advertisements, agencies or assessment centres are used in the recruitment process.

More complex approaches to turnover costing give a more accurate and invariably higher estimate of total costs. A widely quoted method involves estimating the relative productivity of new employees during their first weeks or months in a role and that of resignees during the period of their notice.

According to the 2008 Recruitment, retention and turnover survey report less than 3% of respondents were able to provide figures relating to the estimated costs of labour turnover. Based on this sample, the average cost per employee was £5,800, rising to £20,000 for senior managers or directors.

First Direct: Investment in call centre staff delivers tangible benefits

In the UK’s biggest ever Call Centre benchmarking exercise, conducted by independent market research company GfK NOP (October 2008), First Direct were recognised as the Top Call Centre in the UK for Customer Service.

Staff turnover rates at First Direct are well below industry averages. First Direct has a refreshingly traditional explanation for its success: its people.

“Here at first direct, we recognise the need for our amazing people to de-stress once in a while, and with this in mind we hold a Stress Down day each year.  This year we called in the fabulous services of the Five Minute Angels.

All three massage therapists were friendly, hard working and really made a difference to everyone they saw.  I think a fantastic way to show just how well they were received is to recall some of our people’s comments….

‘A great escape for 5 minutes’……’Five Minute Angels certainly sums them up’….’The massages were AMAZING!’……..’When are they coming back?’

As you can see, our people really appreciated the stress busting massages and we won’t hesitate to call them in for future campaigns” Fiona Hill, Social Leadership Coordinator, First Direct.

Satisfied employees mean satisfied customers, says Alan Hughes, First Direct chief executive. “With call centres there’s a great temptation to set targets for everything – and customers can sense that. They just want a human being at the end of the line who understands their problem.”