When considering a job change, don’t forget about the total package.
That’s what a recent survey by the National Association of Insurance Commissioners (NAIC) advises for any American considering leaving their job.
The survey found that most people fail to consider the total compensation package when making the switch, and that many job-hunters only consider salary and end up in worse shape.
According to the NAIC survey, 40 percent of voluntary job switchers cited “improve my financial situation” as a key influence on their decision to quit. However they encountered problems when they took a narrow view of what affects their financial conditions.
While 73 percent of job switchers spent some or significant time thinking about salary, only 41 percent spent as much time considering insurance benefits, and less than 30 percent thought as much about out-of-pocket costs or insurance coverage effective dates before making the switch.
According to the Bureau of Labor Statistics, insurance benefits can average nearly 10 percent of total compensation.
The NAIC survey found that ignoring the benefits component can be costly. Nearly 25 percent of job switchers surveyed said after accepting a new job, insurance-related changes either “slightly or greatly worsened” their overall financial situation.
“Total compensation is more complex than salary alone,” said Adam Hamm, NAIC president and North Dakota insurance commissioner.
Young people are particularly likely to jump jobs after just a few years in employment. Some 60 percent of Millennials, those who are 18 to 33 years old, born 1981-1996, are expected to leave their employers within the first three years, according to The Jacobson Group.
So what can organizations do to keep employees, young and old, engaged? The key lies in your organization’s culture. Here are a few things that The Jacobson Group recommends.
- Offer desirable perks and benefits.
- Develop a comprehensive rewards strategy that encompasses several components, including performance recognition, work/life balance and career development opportunities.
- Fast track high-performing employees. If you want to keep today’s young, talented individuals within your company, make sure you are placing your best and brightest on the road to success.
- Foster an inviting and inclusive culture. Don’t overlook the importance of employee morale. Relationships between employees and leadership are key to building engagement.
- Engage in community service and volunteer activities. Employees that find their work to be fulfilling and meaningful are much more connected to employers.
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