Employee health benefits may be key to retention for small businesses

Monday, 25 July 2011 16:00

News - Employee Health Benefits

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Employees who work for small companies tend to choose such workplaces for various reasons, including a more personal environment and the opportunity to watch a business grow. A new MetLife study reveals that employee health benefits are also an attractive factor for these workers.

The survey found that 72 percent of small business employees who felt they had good benefits also felt a strong loyalty to their employer. Conversely, half of small business staffers who thought their perks were inadequate expressed a desire to change jobs.

"One area small businesses may overlook is whether their benefits programs are designed as strategically as they could be. It is not necessarily about spending more, but optimizing offerings to attain three top objectives: employee retention, increased productivity, and cost control," said Jeffrey Tulloch, VP of U.S. Business at MetLife.

The study also revealed that there has been an 18 percent decline in employee loyalty in the small business sector between 2008 and 2010, from 62 percent to 44 percent of workers reporting a strong sense of loyalty.

Improved employee health benefits may lead to a healthier staff, which could, in turn, improve employee performance and reduce workplace stress.