People ask us all the time, does offering better employee benefits REALLY matter? Well, Best Buy thinks so.
Best Buy cut staff turnover by 14 percentage points over the past four years, from 46 percent in 2014, to 32 percent in 2017. This is well below the average retail turnover rate of 60 percent, according to the National Retail Federation. With national unemployment rates now at 3.7 percent, retaining employees is vital for employers throughout the country.
Best Buy recently received recognition from The Wall Street Journal‘s Management Top 250 project on its employment practices. The Drucker Institute, which commissioned the study, praised Best Buy specifically on reducing turnover with offerings such as tuition assistance, backup child care and paid time off for part-time employees.
“Their employees are pretty much across the board highly engaged and confident in the company,” said Zachary First, Drucker Institute. “They’re willing to accept lesser pay to work there.”
Much of what Best Buy has done for employees relates to its benefits, and training its employees. Full-time employees are offered reimbursement for tuition costs and course-related expenses for eligible courses and degree programs. This includes up to $3,500 for undergraduate-level coursework, and $5,250 for graduate-level coursework.
This year, Best Buy introduced a paid caregiver leave program where employees can receive up to four weeks off at 100 percent of base pay for family care of a spouse, domestic partner, parent or child with a health condition. Best Buy also announced additional paid time off benefits for part-time employees earlier this year, which will roll out in 2019. Jeff Shelman, a spokesperson for Best Buy, said the company has expanded mental health resources and tools this year, along with training for employees and managers. He said the new benefits Best Buy has rolled out are funded, in part, by savings from tax reform.
At Moore Benefits, we know ruling your world means keeping your employees really happy. Best Buy has been able to cut staff turnover and keep its people, which gives it an advantage in the business world. My team of employee benefits and health insurance experts can help you unlock that competitive advantage as well! Contact us anytime!