The Cost of Low Employee Productivity

In an ideal world, employees would be as productive as possible for all their working hours; however, in the real world, employee productivity is often below capacity. This lowered productivity costs companies big bucks. According to Gallup, globally checked-out employees cost a staggering $8.8 trillion dollars annually. Furthermore, Gallup reports that only about a third of American employees are actively engaged at their jobs.

Boosting Employee Productivity

A key way to boost employee productivity is to increase employee job satisfaction and loyalty. When employees are happy with their job and feel valued, they are more likely to put in the extra effort to increase their output and help the company succeed. One of the most influential ways to achieve this is through providing employees with additional fringe benefits.

The Power of Fringe Benefits

Companies often balk at the idea of offering employees more benefits for fear of the effect on their pocketbooks. While benefits can be costly, there are ways to provide them without risking the bottom line – there are even ways to boost profitability while offering more benefits.

In fact, using our CapstonePlus program, companies are:

• Providing their employees access to a full suite of additional health benefits including telemedicine, RX benefits, and an indemnity plan
• Employees see an increase in take-home pay of between $100 and $170 per month
• Employers see a reduction of ~$500 in employment taxes per employee per year
• All at no net cost to the employer or employee

To learn even more, check out our previous articles, where we discussed offering healthcare to employees at low costs and a way to save money on FICA taxes while providing perks to employees. To learn more, read our articles “Offering Benefits without Breaking the Bank” and “Employers are Leaving Money on the Table (for their Employees and Themselves)”.

Key Strategies for Enhancing Productivity

1. Healthcare Benefits: Offering affordable healthcare benefits can greatly improve employee satisfaction and loyalty.
2. Tax Savings Programs: Implementing programs that save on FICA taxes can provide additional perks to employees without added costs to the company.
3. Employee Engagement: Actively engage employees by recognizing their efforts and providing opportunities for growth and development.
4. Work-Life Balance: Promote a healthy work-life balance by offering flexible work schedules and support for mental health.

Key Takeaways:

• Global Cost: Disengaged employees cost companies $8.8 trillion annually.
• Engagement Statistics: Only about a third of American employees are actively engaged at their jobs.
• Boosting Satisfaction: Increased job satisfaction and loyalty lead to higher productivity.
• Fringe Benefits: Offering additional benefits can improve employee morale and productivity without significant costs.

Stay tuned for more insights on innovative strategies to enhance employee productivity and overall workplace satisfaction in our upcoming newsletters. Subscribe now to stay ahead of the curve!