Employees that receive benefits are 50% less likely to consider leaving their job: report
Less than half of working Australians have felt valued by their managers in 2023, according to Flare’s recent National Employee Benefits Index. The report added that 30% of workers said they lacked adequate opportunities to use their skills at work.
The findings come amid Australia’s job mobility rate, which increased by 18% to 1 in 10 people switching jobs in February 2022. By 2023, 1.3 million Australians switched jobs – the highest rate since 2012.
“It’s not hard to draw a connection between job satisfaction and turnover,” the report said. “When employees feel undervalued, poorly compensated, or underutilised, they’re significantly more likely to consider other opportunities.”
For employers, it means fostering an environment that recognises and benefits workers.
Understanding employee benefits
According to Flare’s National Employee Benefits Index, one in three employees are considering leaving their current employer. But employees with benefits were 50% less likely to think about leaving.
While benefits describe extras that typically provide lasting value to employees, perks are often smaller, day to day advantages like free meals, coffee or Friday afternoon drinks. Employee benefits on the other hand range from flexible work arrangements to health and wellness subsidies to career development and mentoring.
“While perks may provide fleeting enjoyment or convenience, employee benefits demonstrate a deeper commitment to employees’ overall welfare and help to create a supportive and rewarding work environment,” the report said.
In Flare’s report, the top five benefits that lead to employee loyalty are:
- flexible schedule options (47%)
- support for reasonable work hours (34%)
- career development and leadership development programs (31%)
- subsidies and support for physical health – such as gym discounts (29%)
- virtual working options (27%).
Choosing the right benefits
While employee benefits can result in boosting employee engagement and increasing retention, not all benefits are equal, the report said. For employers, this means finding meaningful ways to support employees.
“Businesses need to conduct a thorough evaluation of benefits that genuinely matter — those that make a tangible difference to the work and personal lives of their employees and can bring about greater engagement, satisfaction, and retention,” the report said.
Find out more about employee benefits in Flare’s National Employee Benefits Index.
