Handling morale and employee turnover
One of the keys to handling morale and turnover is
in the benefit package. Employees feel better about their employer when they are offered more benefits at little or no additional cost. For example, fringe benefits can make or break morale. In the hotel industry, a working-condition fringe benefit can make an enormous difference in morale. Take parking for instance. To park in a garage in Washington D.C. would cost $20 per shift worked. The employer, i.e. the hotel, can cover the cost of parking for the employee. It is an expense for the employer that minimizes income tax expense and is excludable income for the employee if the amount is less than $200 per month. Equally important are the des minimis fringe benefits, things such as coffee and employee parties, that the employee receives. Employee morale is higher when the employer provides such small comforts. To a corporation that values gender diversity as expressed by a % of workforce, this benefit is crucial. A single mother who can take her child to an on-site facility is going to be more productive and more happy than the single mother that has to find an outside sitter, especially since she can exclude up to $5,000 per year of this employer provided benefit.
Bottom line, the key to low turnover is high morale and a component of high morale is the feeling of security provided by a benefits package.
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