The Great Resignation has led to a labor shortage for companies across the country. As of June 2021, more than 3 million employees had quit their jobs, and that number has continued to rise. In the manufacturing industry in particular, the stats are even more concerning.
According to the Association for Manufacturing Excellence, the average manufacturing company has an approximate absenteeism and turnover rate of 37%. Employers in this industry are making changes to combat this issue; one area they’re focusing on is employee benefits.
Here are three ways manufacturing companies are restructuring benefits to increase employee retention:
1. Taking On Increased Costs
Health care costs continue to rise. Historically, either these price increases would ultimately trickle down to employees, leading to higher deductibles and out-of-pocket costs, or employers would reduce benefits to avoid increased costs.
Manufacturing companies are changing this narrative, instead choosing to shoulder increased costs themselves without reducing benefits. In fact, many employers are starting to cover dental and vision coverages — benefits that were previously employee-paid.
Not only are companies focused on helping their employees avoid cost increases, they’re also actively looking for ways to offer lower deductibles and out-of-pocket costs.
2. Offering Additional Optional Benefits
Employers recognize that in today’s fiercely competitive job market, they must go above and beyond in their benefits offerings to hold on to top employees. Because of this, many companies have decided to offer additional optional benefits, such as pet insurance and identity theft coverage.
These unique offerings are intended not only to increase retention of current employees but also entice prospective employees. Organizations that choose to differentiate their benefits plans are likely to have an edge over those that stick with the status quo.
3. Improving Employee Assistance Programs
The pandemic has had a serious impact on employee mental health and wellbeing. Manufacturing workers tend to face long hours with little flexibility, making them more susceptible to burnout and mental fatigue.
What makes matters even more complex is the stigma that surrounds mental health, especially in the manufacturing industry. Many of these employees don’t feel comfortable openly discussing mental health, much less asking for help should they need it.
Employers are trying to solve this problem by greatly enhancing their Employee Assistance Programs (EAPs). Through an EAP, employees can access confidential assessments, free counseling and follow-up services. Organizations that take the time to improve their EAP and truly ensure that their offerings are meeting workers’ needs are likely to see increased retention in the coming year.
Overall, there has been an industry-wide shift in how employers approach their benefits offerings amid the Great Resignation. Manufacturing organizations are focused on making it easy and cost effective for employees to get the services and coverage they need without regard to increased company expenses.
Organizations that choose to embrace this change are likely to see a significant return on their investment in the form of increased retention of their most valuable asset — their people.
Your team at CBIZ Employee Benefits Services is proud to offer personal service paired with national resources. Connect with our benefits experts today to discuss how your organization can leverage your benefits offerings to increase employee retention.