Mercer is one of the world’s leaders in talent, health, retirement and investments. Their 2014 Australian Benefit’s Review found that organisations with effective employee benefit plans reduce their staff turnover to 12 per cent from the general rate of 15 per cent. Their report, based on the findings from 353 organisations, showed that companies with such employee benefit plans provide more equality in the workplace, improved work–life balance and associate benefit with anticipated business outcomes.

Head of Talent for Mercer’s Pacific business, Garry Adams, states ‘On one level it’s simple, when employers give more they get more, but for real business impact, employers need to establish meaningful links between innovative benefits and the desired behaviour of their workers . . . Today’s workforce holds the attitudes, values, and goals of four generations, which presents a massive challenge for employers to engage and retain workers to achieve business success.’ He goes on to say that way are already seeing a shift away from stock standard competitive benefits and that the trend will continue. The report reveals that a range of benefits that companies are starting to offer include the development of sustainable commute benefits, such a $10 for employees who arrive to work any way other than solo commute, reducing demand for car parks, decreasing the environmental footprint and boosting the health of employees if they get to work by walking or cycling. Other schemes include mental health days, flexible workplaces and earlier finishing on summer days.

QUESTION

Why may multiple benefit programs be effective in reducing staff turnover?