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employee retention and recruitment

The crucial link between benefits engagement and retention and recruitment success

February 22, 2024

Employee retention and recruitment are significant challenges for companies who strive to stay ahead. To create a loyal and high-performing workforce, it’s important to recognize the role employee financial wellness and benefits engagement play in improving employee retention and recruitment. In our latest blog post for our employee benefits engagement series, let’s take a deeper dive into how employee financial wellness and benefits engagement lead to improved retention/recruitment.

Don’t forget to check out the rest of our benefits engagement four-part series:

Understand employee concerns 

In May 2023, we conducted a participant survey that shed light on the pressing concerns and questions employees have regarding their benefits. The survey revealed that a significant portion of employees expressed uncertainty about their benefits, with 34% of respondents rating their confidence in their benefits comprehension at a 7 or lower on a scale of 0 to 10. Additionally, 23% felt that the benefits offered by their employers did not adequately address all their needs. 

When employees don’t understand how to fully take advantage of the financial perks of their benefits, they are less likely to engage with their benefits and their overall financial wellness might decline. That’s why it’s important to evaluate your benefits communication and education initiatives and structure your benefits offerings to support your employees’ needs best and help them see the value of their benefits. 

The impact on recruitment and retention

Another interesting finding from our survey was the mean score of 9.11 when respondents were asked to rate, on a scale of 1 to 10, the importance of health benefits when considering a job. Your benefits offerings play a crucial role in the overall job satisfaction and decision-making process of prospective employees. Companies that prioritize creating a well-rounded benefits package and implementing effective benefits engagement strategies gain a competitive edge in the talent market. 

According to a survey we conducted with our employer and consultant advisory boards, 70% of respondents acknowledged the very or extremely important role of financial wellness and benefits engagement in their recruitment and retention strategies. When employees feel supported in managing their health expenses through clearly communicated and comprehensive benefits, the positive effects on job satisfaction and loyalty are evident. And when individuals are confident in their benefits decision-making and utilization, they are more likely to stay with their current employer.

Build a well-rounded benefits package

To enhance recruitment and retention efforts, companies should focus on building a well-rounded benefits package that addresses the diverse needs and concerns of their employees. This includes not only health benefits, but also wellness programs that provide employees with tools and resources to help them manage their finances and lifestyle needs effectively. Effective communication is another crucial aspect. Employers need to ensure that employees understand the full potential of their benefits throughout the year, from healthcare coverage to retirement plans. Regularly engaging employees through workshops, webinars, or personalized communications can go a long way in creating an atmosphere of benefits understanding and appreciation.

Overcome the benefits engagement barrier

Check out our guide to learn more about how employee financial wellness and benefits engagement leads to improved retention and recruitment!

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax and investment advisers. 

WEX receives compensation from some of the merchants identified in its blog posts. By linking to these products, WEX is not endorsing these products.

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