In spite of a slowing economy and the largest spate of layoffs in years, employers continue to do whatever they can to hold onto talented employees.
Why? Replacing them is an expensive proposition, for one.
“Every time an employee quits, the employer faces lost productivity and replacement costs equal to six months of the employee’s salary,” says Brian Hondru, chairman and CEO of The HDH Group Inc., a Pittsburgh insurance brokerage and employee benefits consulting firm.
While benefits can be a lure for top-flight workers, benefits administration can be complex and expensive. Hondru says employers have traditionally spent more than $1,000 per employee a year to administer benefits packages worth $11,000 annually.
Hondru’s firm offers employers the opportunity to outsource benefits administration and, says Hondru, cut the costs.
“The challenge to employers is offering a creative benefits package without breaking the bank,” says Hondru.