Implementing an emergency savings account helps you improve satisfaction, retention, productivity, attendance, and much more. Show your employees you support their financial well-being.
An important component of hiring and recruitment is measuring key performance indicators (KPIs) to assess effectiveness and efficiency, but also to evaluate employee satisfaction and engagement. Metrics such as the time it takes to recruit someone, absenteeism, and performance can tell you a lot about the state of the workplace.
Implementing a benefit like an employer-sponsored emergency savings account (ESA) can elicit significant positive impacts on these KPIs. Employees want the kinds of benefits that show them you support them as holistic beings. Without satisfied workers and an efficient HR process, it’s impossible for the business to keep improving.
HR KPIs to measure
Metrics help organizations create goals, reach targets, assess employee sentiment, evaluate ROI, and measure profitability, among other purposes. For HR, KPIs indicate a great deal about recruitment processes, company culture, and employee attitudes.
Some of the most important HR KPIs you need to start keeping an eye on include:
Establish systems to start measuring these KPIs. Bring in software that will help you track and assess metrics. Talk to employees and team leaders about why it’s so important to track HR KPIs. Create a process for sending out surveys to gather information about employees and their opinions.
Benefits of implementing an ESA/KPIs most affected by an ESA
A great benefits package plays a role in many of these HR metrics and employee sentiment in general. Unfortunately, many benefits are expensive to administer and don’t have much impact on the most important HR KPIs. An ESA, on the other hand, is cost-effective, simple to manage, and affects HR KPIs significantly.
An emergency savings account empowers people to prioritize a better financial future. Here are a few ways the ESA impacts HR KPIs:
Reducing stress and financial distractions
Employees are stressed about money, which impacts their work performance and, in turn, the company’s bottom line. A PwC report found that employees’ top financial concern was not having enough emergency savings, with only 28% of financially stressed employees believing they could cover unexpected expenses.
This kind of stress impacts their work productivity, health, relationships, and attendance. PwC estimates that the impact of financial-stress distractions equals $3.3 million per year for an employer that has 10,000 employees.
An ESA helps employees save for emergencies, reducing financial stress and financial distractions at work.
Shortening time to recruit
ESAs have become a very desirable benefit, as employees want more support from their employers in their personal lives and goals. Offering an ESA helps you stand out from other employers, making your company more attractive to great talent.
This competitive edge then leads to faster hiring and reduced time to hire, which ends up saving the company money. The average cost per hire is almost $4,700, according to SHRM research, and the longer the position is open, the more expensive recruitment becomes.
Increasing employee satisfaction and retention
Employees who are more financially secure and who feel supported by their employer are going to be more satisfied with their workplace. People want to be able to pay for their current expenses without stress, as well as to be set up for success in the event of an emergency and into retirement.
Employers play a big role in employees’ financial well-being. When they’re offered a benefit like an, they’re more likely to prioritize saving for emergencies. They’ll feel like their well-being is a priority to the company, both inside and outside of work.
This one small step can increase employee satisfaction and engagement substantially, leading to a more positive company culture. This is the kind of workplace where people want to be, so they’ll also be more likely to stay, which helps your retention rate.
Lowering the administrative burden
ESAs are extremely easy to administer and manage, unlike other benefits and perks. HR staff can simply use a platform where employees enroll in the benefit, and contributions are automatically transferred each pay period. Employees can use the platform to view their balances, make withdrawals, and track their progress toward goals.
Implementing an ESA takes minimal time for HR so staff can focus on tracking and measuring KPIs and otherwise supporting employees. An ESA pays off substantially for employees and the company as a whole.
SecureSave makes it easy to offer your employees an ESA to set them up for a better financial future and show them how much you care. Learn more about how SecureSave’s employer-sponsored ESA can be a differentiating factor for your company.