A recent MetLife Trends study conducted in 2016 reported that employees who are satisfied with benefits are nearly three times as likely to say they are very satisfied with their jobs and are also less likely to plan to leave their current employment as are employees who are very dissatisfied with their benefits.5
A study done by the Center for American Progress6 said that for all jobs earning less than $50,000 per year, or more than 40 percent of U.S. jobs, the average cost of replacing an employee amounts to fully 20 percent of the person’s annual salary. While the costs of losing a “normal” employee are high enough, CAP found that the cost of losing an executive is astronomical — up to 213 percent of the employee’s salary. According to a report by the Institute for Research on Labor and Employment at UC, Berkeley, turnover in management positions often costs 150 percent of that person’s salary.
Many studies have established that effective communication of benefits is the key to employee satisfaction with those benefits. An average plan communicated effectively creates higher levels of satisfaction than a less effectively communicated plan with better benefits. EOI focuses on best practices to help employers realize the maximum value from their benefit program in helping to retain key employees.