Losing an employee can be costly for any business, especially when it comes to replacing them. The cost of employee turnover can be up to 213% of the employee’s annual salary. This includes the cost of recruiting, training, and lost productivity while the new employee gets up to speed.
One way to reduce the cost of employee turnover and keep top talent engaged is using a Supplemental Executive Retirement Plan (SERP). A SERP is a retirement benefit offered to key employees that supplements their regular retirement plan. It provides additional income for these employees upon retirement, making them more likely to stay with the company for the long haul.
The benefits of a SERP go beyond just retaining top talent. A SERP can also help businesses save time and money in the following ways:
- Reduced Recruiting and Training Costs: By retaining key employees, businesses can avoid the time and cost of recruiting and training new employees. This is especially important for roles that require specialized knowledge and skills, as it can take a significant amount of time and resources to bring a new employee up to speed.
- Increased Productivity: When employees feel secure in their future with a company, they are more likely to be engaged and productive. With a SERP, employees can focus on their work instead of worrying about their retirement plans.
- Enhanced Reputation: A high employee turnover rate can harm a company’s reputation and make it difficult to attract top talent. With a SERP, businesses can demonstrate their commitment to their employees and improve their reputation as a great place to work.
Overall, a SERP can be an effective tool for retaining top talent and reducing the cost of employee turnover. By investing in the long-term success of key employees, businesses can save time and money and improve their overall productivity and reputation.
