The Transformative Impact of Voluntary Benefits on Employee Retention
Employee retention is one of the most pressing challenges facing businesses today. With the cost of turnover estimated at 50% to 200% of an employee’s annual salary, organizations are increasingly seeking innovative ways to support their workforce and reduce attrition rates. One often overlooked yet impactful strategy? Offering voluntary benefits like BenefitsMe, which enhance financial well-being and foster employee loyalty.
The Power of Financial Wellness in Retention
Financial stress is a leading cause of employee dissatisfaction, with many workers citing a lack of financial support from their employer as a factor in seeking opportunities elsewhere. A survey from the American Psychological Association revealed that 72% of adults feel stressed about money at least some of the time, and this stress inevitably spills over into the workplace.
Voluntary benefits programs like BenefitsMe directly address this issue by providing employees with a financially safe alternative to access items they need. For example, employees who need essential items—such as home appliances or electronics—can purchase them interest-free through payroll deductions. This eliminates the need for high-cost alternative lending or credit cards, allowing employees to meet their needs without jeopardizing their financial stability.
As one of our client companies shared:
“The flexibility BenefitsMe offers our employees has been transformative, allowing them to purchase essential items without financial strain. This convenience has had a positive impact on our employee workforce and their financial well-being.” – Richard, JD, SPHR, CHRO, 2,000 employee organization
Why Financial Well-Being Leads to Loyalty
When employers prioritize financial wellness, they send a clear message: We care about you beyond the workplace. Employees who feel supported in this way are not only more likely to stay with their organization but are also more engaged and productive. Research supports this connection—companies with high levels of employee engagement experience 59% lower turnover rates, according to Gallup. Voluntary benefits also empower employees to plan for the future. By reducing immediate financial stressors, programs like BenefitsMe help employees focus on long-term goals, such as saving for retirement or emergencies, rather than depleting their resources to cover short-term
needs.
A Comprehensive Approach to Benefits
Today’s employees expect more from their benefits packages, and businesses that meet these expectations stand to gain a competitive edge. While traditional benefits like health insurance and retirement plans remain important, voluntary options provide an extra layer of support that can differentiate an organization. BenefitsMe, for instance, is a unique offering that allows employers to enhance their benefits packages without additional costs. Employees gain access to interest-free purchasing options for essential items, promoting both convenience and financial responsibility.
One HR director from a BenefitsMe client company noted: “The feedback we have received since adding BenefitsMe to our benefits offering has been unequivocally positive. we believe we are providing an option of access to those
who would have otherwise been unable to make these purchases” Cathy, CHRO, 15,000 employee organization
Investing in Retention for Long-Term Success
For employers, the bottom line is simple: happier, financially secure employees are more likely to stay. Offering voluntary benefits is a proactive approach that demonstrates care, builds trust, and fosters loyalty—all key ingredients for retention.
By integrating programs like BenefitsMe into their benefits strategy, employers can address a critical gap in employee well-being while simultaneously reducing turnover costs. The result? A healthier, more stable workforce and a thriving organization prepared for long-term success.
Are you ready to explore how BenefitsMe can transform your employee benefits strategy? Contact us today to learn more about supporting your workforce and enhancing retention through voluntary benefits.
Sources:
Center for American Progress: There are significant business costs to replacing employees.
https://www.americanprogress.org/article/there-are-significant-business-costs-to-replacing-
employees/
International Journal of Scientific and Research Publications: Effects of Pay and Work
Environment on Employee Retention https://www.ijsrp.org/research-paper-0415/ijsrp-p4077.pdf
American Psychological Association: Stress in America
https://www.apa.org/news/press/releases/stress
Gallup studies on employee engagement’s impact on business outcomes
https://www.dyckerhoff-
bdu.de/images/Downloads/Dyckerhoff_Gallup_Studie_How%20_Employee_Engagement_Drive
s_Growth.pdf