Principal Survey: Company Benefits Significantly Boost Employee Retention, Loyalty

When asked about the impact of their employee benefits, 75% of respondents said their company offerings have “significantly” increased employee retention, as compared to 25% who the offerings have had “some impact.” Similarly, nearly three of four of those polled 72% note their benefits have boosted employee loyalty, as compared to 28% who cite some impact.

Companies’ employee benefits have likewise positively impacted other company objectives. Among those noted in the report: employees perception of financial security (68% report significant impact versus 30% some impact); recruitment of new employees (60% versus 38%; ability to maintain a competitive advantage (58% versus 40%) and employee engagement (47% and 47%).

When probed about changes to employee benefits in their organizations over the past decade, nearly three in four (74%) said they added a wellness program and 70% said they changed healthcare plans or programs. Fewer respondents indicated they added retirement benefits (16%) or a non-qualified plan (14%). Just one in ten (11%) noted they migrated from a pension to a 401(k) plan or reduced a company contributions to a 401(k).