As a business owner, your bottom line is probably top of your priority list. Pay cuts, layoffs, and fewer benefits for workers are tempting solutions to saving your company money, but for a lasting change try adding something — add Taab. Offering a travel benefit may seem like it will cost your company money, but the financial impact of vacationing actually puts money in your pocket while simultaneously improving the lives and attitudes of employees. Here are the five important ways offering Taab will grow your bottom line.
Everyone wants the best workers, but with unemployment at historic lows, attracting top talent can feel like shouting in a crowd at a heavy metal concert. With so much competition for only a small pool of applicants, you need to put yourself ahead of the pack. In a survey by Glassdoor, the three most important benefits that influence job decisions are (in order) health insurance, vacation and paid time off, and a retirement plan.1
Employees are beginning to value experiences over things and this is changing their priorities and influencing the jobs they choose. Offering Taab not only shows that you have PTO (like 89% of companies with over 500 employees 2) but also proves that you truly support using that time off. When potential hires see that your office culture promotes travel and a healthy work/life balance, they will be better swayed to join your company without other expensive recruitment tactics.
Money makes the world go ‘round, but more money may not be what your employees really want. Raising hourly rates or salaries results in a direct expense to your company — an expense most employees won’t even appreciate. What do they appreciate? Travel. That’s right, 96% of employees say they are motivated by travel incentives.3 With the amazing benefits your employees will gain from their travels, this is a great thing for your company.
The US Travel Association says that an employer would need to provide an 8.5% salary raise to match the value of travel.4 For an employee making $50,000 annually, this would be an increase of $4,250. Offering Taab instead can save you money. The average employer using Taab contributes about $100 per month or just $1,200 annually to support travel benefits for an employee. The next time you think about offering a raise or a bonus, consider a travel benefit like Taab instead.
Turnover is a reality in every business and can cost your company big time. Averages vary, but many studies agree that the cost of replacing an employee is approximately six to nine months of that employee’s annual salary. For your employee making $50k a year, this spells a cost of $25k — $37.5k for recruitment, on-boarding, training, and the lost productivity while trying to fill the position. Considering ⅕ of workers leave their jobs voluntarily each year and an additional ⅙ are let go, this can add up to huge expenses.5
Eighty-eight percent of employees receiving the benefits of Taab at their workplace report an increase in loyalty to their employer. Not only that but the physical and mental rest that comes with time away from the office also reduces burnout, a common contributor to employees leaving jobs. Of the reasons employees leave, 75% are preventable.6 Offering Taab can help reduce your turnover rates and save your company money.
There’s a lot of research into the science of productivity and the results show that travel is a huge productivity booster. Employees need work recovery, time away from the office and stressors of their jobs, to recharge the brain and body and work more efficiently. Travel provides this relaxation time better than any other benefit.
Employers are using a wide variety of benefits to reward workers and help them be more productive, but most of these are just distractions. Offering free meals, alcohol, haircuts, ping pong tables, and other “modern” benefits is really just taking employees away from their duties. Meanwhile, being rewarded with travel benefits resulted in an 18% increase in productivity and a 112% return on investment.7 Taab can provide the incentive you need to increase productivity and add to your bottom line.
While paid time off is commonly cited as one of the top benefits employees want, over 70% of employees leave their paid vacation days on the table every year. This results in a huge detriment to your bottom line. As paid vacation accrues, it becomes a liability to your company and can easily get out of hand. If an employee has five vacation days with a total value of $1000 and the next year that employee is given a promotion with a 20% raise, the value of their unused vacation will rise to $1200.
With 54% of companies allowing limited rollover and an additional 8% allowing unlimited rollover, unused vacation days will affect nearly ⅔ of all companies.8 By offering Taab, you will be actively encouraging employees to use their vacation days and reduce the amount of unused PTO on your books.
If you are looking for an innovative way to save your company money, add Taab to your list of benefits. Not only will you attract new talent and reduce turnover, but your employees will also be happier and more productive while reaping the benefits of travel. Schedule a demo of how Taab works today!