At Matrix Benefits, we work closely with businesses to help them build high-performing, people-first cultures. One trend we’ve seen time and again is the clear link between inadequate employee benefits and poor staff retention. In short: if your benefits package doesn’t support your employees, they’ll start looking for one that does.
Retention Isn’t Just About Salary
While competitive pay remains important, it’s no longer the only factor employees consider when choosing to stay—or leave—a job. In today’s workplace, individuals are looking for more holistic support: flexibility, health and wellbeing resources, professional development, and a sense of value and belonging.
A lack of meaningful benefits sends a message, intentionally or not: that your people are not a long-term investment. The result? Higher turnover, increased recruitment costs, and a loss of institutional knowledge that can be difficult—and expensive—to replace.
The Cost of High Turnover
High employee turnover doesn’t just affect your HR department—it impacts productivity, morale, and your reputation as an employer. Replacing a team member can cost anywhere from 30% to 50% of their annual salary when you account for recruitment, onboarding, and lost productivity.
What’s more, constant churn often places additional pressure on remaining staff, which can quickly lead to burnout and further resignations. It’s a cycle many organisations fall into—and one that can often be prevented with a stronger benefits strategy.
What Employees Really Want
Surveys consistently show that employees prioritise benefits that support their health, time, and growth. These include:
- Flexible working arrangements
- Comprehensive healthcare and mental health support
- Pension contributions above the statutory minimum
- Opportunities for learning and development
- Family-friendly policies, such as enhanced parental leave
If these aren’t part of your benefits package, it’s likely your competitors are already offering them. And in a competitive labour market, that could be the deciding factor for whether top talent stays—or walks away.
Benefits as a Retention Tool
At Matrix Benefits, we help businesses build benefits packages that are both strategic and sustainable. When benefits are aligned with the real needs of your workforce, they become a powerful tool for retention.
They help build trust, loyalty, and long-term engagement. Employees who feel supported are not just more likely to stay—they’re more likely to thrive.
Start Building a Better Benefits Strategy
Retention challenges rarely fix themselves. But by taking a proactive approach to employee benefits, your business can build a foundation for long-term success. We believe that retention is a reflection of how people feel at work. And people who feel valued don’t leave.
Let Matrix Benefits help you turn your benefits into a true business asset.
Contact us today to discover how we can support your retention strategy.
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