Employers Can Increase Employee Retention

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Thesis Statement Research indicates that employers can increase employee retention, increase employee productivity, and reduce employee healthcare costs by implementing a workplace wellness program. Introduction America has a bleak outlook towards the costs associated with employee turnover, productivity decline, and increased employee healthcare costs due to chronic health care conditions. The cost of healthcare is increasing, and employers typically bear the brunt of these costs. Employers also face financial loss in regards to productivity decline and retention. In a Rand report, commissioned by the U.S. Government and compiled, by Matke and others, showed that the cumulative losses of all three domains associated with chronic…show more content…
When an employee must leave, the employer encounters substantial costs in relation to hiring new employees to replace those who have left. Additional costs such as temporary employees can also accrue, when there is an immediate need for replacement, and training for new hires is significant. One way employers are attempting to retain employees is job perks. Employee perception of the benefits they receive can impact how long they stay with a particular employer. According to the Aflac Workforce Report, employee perception of wellness programs can lead to employee retention through job satisfaction and morale (Aflac, 2012). Additionally a report compiled by Dr. Dursi of the University of Rhode Island showed that health promotion programs positively impact employee retention. Her research was able to show that employees who participated in wellness activities, sponsored by an employer, had longer employment tenure than those employees who did not participate (Dursi,2008). Employers today come up against many obstacles regarding employee productivity. Some of those concerns include health related absenteeism and presenteeism.. Matke and others observed there is a shift in burden to employers due to Americas aging workforce that results in loss of productivity brought on by illness related absenteeism and presenteeism (Matke and others, 2013). A report by Berry, Mirabito, and Baun show that absenteeism and presenteeism account for lost productivity costs that are
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