What’s the cost of losing a great employee? More than you might think. Replacing employees can cost up to twice their annual salary when factoring in lost productivity, hiring expenses, and the time and resources needed to onboard and train new hires. Yet one of the most effective ways to boost employee retention is often overlooked: wellness benefits.
Discover how the right mix of wellness perks can help your employees feel valued, supported, and motivated to stay.
The Retention Problem: Why Employees Are Checking Out
It may be surprising to learn that one in three employees is thinking about leaving their current job. This trend is especially strong among younger workers, with nearly half (47%) of 18 – 27-year-olds looking for new opportunities. And employee engagement is also falling. A recent poll found that only 31% of employees feel engaged at work, the lowest level in a decade.
This aligns with the broader trend of shorter employee tenure. In 2024, the average worker stayed with a company for just 3.9 years, with significant differences by age. While employees 55-64 had a median tenure of 9.6 years, younger workers (25 – 34) lasted just 2.7 years. This highlights the challenge companies face in keeping talent.
Increased Stress, Decreased Well-being
Why are so many employees looking for an exit? Stress is a major factor. 74% of employees report negative mental health at work, and 49% say they experience stress every single day. Research shows that nearly half of workers feel emotionally drained, used up, or burned out, with younger workers facing higher stress levels than ever. While some pressure is expected in any job, constant stress can lead to burnout, making retention an uphill battle.
The Connection Between Wellness and Employee Retention
Today’s employees want more than just a paycheck. They want to work for a company that prioritizes their well-being. That’s why companies that offer robust wellness programs tend to have higher employee retention rates, as people are less likely to leave when they feel supported. Consider these statistics:
- 87% of employees consider health and wellness benefits when choosing a job.
- 54% of Gen Xers and 58% of millennials consider wellness programs important or extremely important.
- 45% of employees at small to mid-sized companies would remain with their employer longer because of the wellness programs.
Investing in employee well-being isn’t just the right thing to do; it’s good business. It can lead to higher job satisfaction and lower turnover rates. In fact, companies with effective wellness programs report significantly lower voluntary attrition of 9%, compared to 15% for those with less effective programs. This shows that a strong wellness strategy is also an effective employee retention strategy.
Why Wellness Works for Employee Longevity
Introducing a wellness initiative goes beyond simply offering a few extra perks. It’s about creating a culture where well-being is truly valued. This foundation of well-being is essential for building a high-performing organization. When employees feel like their health is a priority, they feel valued and appreciated, leading to greater trust, morale, and engagement. Simply put, happy, healthy employees are more likely to stay with the company. It’s clear that if employee retention is a priority for your company, then wellness should be, too.
Learn more about Aaptiv employee fitness and wellness benefit solutions.
