Recently, we talked about
the four signs that you might need an employee benefits advisor. From the amount of time that researching all of the different benefits plans takes to the often conflicting needs of employees and finding the right balance of plans and options, there are many reasons why an HR manager may need to employ the services of an employee benefits advisor.
Naturally, any decision regarding the use or allocation of company resources should be rooted in a sound understanding of the needs of the business and whether or not the return will be worth the cost. After making the determination to use an employee benefits advisor to assist you and your organisation in choosing and maintaining employee benefits schemes, it is time to make a business case for using said advisor.
How can a business case for using an employee benefits advisor be made? To answer this, we here at Simon Shirley Advisors have assembled a short list of ways you can justify the use of a dedicated benefits advisor in your business.
Business Argument #1: It Allows You to Focus on Increasing Productivity
Human Resources managers have a plethora of tasks to handle, from the recruiting, interviewing and hiring of new talent, to consulting with top executives for strategic planning, to the dozens of everyday interactions with employees designed to keep said employees happy, engaged, and working for your company instead of the competition. These tasks alone are enough to fill any HR manager’s day, and having to spend hours upon hours of time performing the kind of detailed research required to find an employee compensation and benefits scheme that balances the needs of all your company’s personnel detracts from your ability to dedicate time to your other duties.
By utilising the services of an employee benefits advisor, you can get a sampling of the top employee benefits packages that best suit your company’s needs and means. This saves you time on digging through the ever-changing list of available benefits packages yourself, time that you can dedicate to ensuring that employees are performing at their best.
Business Argument #2: It can Help Reduce Employee Attrition
One of an HR manager’s biggest concerns is to minimize employee attrition. Whenever an employee leaves, your company has to:
- Find a suitable replacement.
- Train said person for the role.
- Get that new hire settled in.
These activities all take time and money from your company. To find that one perfect replacement might take dozens of interviews. Even after a replacement is hired, it may take some time for this new person to become as proficient at producing value for the company as the staff member they’re replacing. Keeping employee attrition low helps to prevent dips in productivity and efficiency caused by a need to constantly cycle in new employees.
How does an employee benefits advisor help to reduce employee attrition? By helping to ensure that your company’s employee benefits and compensation schemes are up to par. In a recent study cited by business publication Inc.com, 74 percent of employees who leave their jobs cite “subpar benefits” as an annoyance factor that contributes to their decision to quit.
Keeping benefits schemes up to date helps to keep employees happy and working for you, and a dedicated employee benefits advisor can help you make sure that your company can deliver best-in-class employee benefits. Employee benefits advisors can make this task easy by checking your current benefits schemes against what is available on the market, managing existing plans to ensure the coverage of all eligible employees, and bringing to your attention any new schemes that may be attractive options as they become available.
Business Argument #3: It can save Capital
As was mentioned in the above section, the time and money that is spent on replacing lost talent with new hires can be higher than the cost of retaining the old employee.
How much more does it cost to find a new hire and get him or her up to speed rather than keeping an employee on staff? According to research by the Society for Human Resources Management, “direct replacement costs can reach as high as 50%-60% of an employee’s annual salary, with total costs associated with turnover ranging from 90% to 200% of annual salary.”
To illustrate the above example, say an employee makes €50,000 per year. If that employee leaves the organization, the cost to replace this person could be as high as €100,000 after you take into account lost productivity, training costs, and paying out the old employee’s accrued paid time off, among other expenses.
However, using the services of an employee benefits advisor can save your organisation capital in more ways than simply preventing employee turnover. By assembling a complete list of the available employee benefits and healthcare schemes on the market, your company get the best coverage for the money spent, and minimise liabilities from employees not being properly placed under the coverage. For example, not being able to collect on a key personnel insurance policy because that employee was not registered for the plan.
With the support of a dedicated employee benefits advisor, your company can save capital, improve employee engagement, and reduce employee attrition. Learn more by contacting Simon Shirley Advisors today.