Your Ultimate Guide to Lowering Employee Turnover with Health and Wellness Benefits
Employee turnover is a challenge that every business leader and HR professional strives to manage and reduce. Employees leave for various reasons, including seeking better pay, new challenges, burnout, desire for flexibility, or improved work-life balance.
While turnover is natural, employers can reduce it by offering health and wellness benefits that meet employees’ needs. This guide from Pacific Prime Dubai covers the impact of turnover, common reasons for leaving, and eight wellness benefit solutions to attract and retain talent.
The Negative Impact of High Employee Turnover
A stable rate of employee turnover is acceptable, as it’s natural for employees to come and go. However, a high turnover rate raises concerns and often signals deeper issues within the organization that may need immediate attention to prevent further disruption.
The truth is, high turnover can severely impact your business operations and bottom line. From the costs of hiring and training to the loss of knowledge and productivity, the effects can be widespread. Below are a few key ways that excessive turnover can hurt your company.
1. High Costs
When an employee quits, businesses must quickly fill the gap. Entry-level roles are often easy to recruit for, but senior or C-suite positions usually require recruitment agencies—a costly option many HR and business leaders prefer to avoid if possible.
Spending more to recruit the right candidate
Unless your business already has someone suitable to step up and fill the position, you’ll have to set aside enough funding for the recruitment process. The costs of having to find a replacement can even increase during turbulent times like the COVID-19 pandemic.
More so, potential local candidates or candidates from abroad may not want to travel given pandemic-related concerns. Of course, if you do find a suitable candidate from abroad, you may have to make special arrangements to interview and/or hire them.
However, this approach will likely increase costs when tallying in the expenses for logistics and accommodation bookings, etc.
2. Resource-intensive
Additionally, the process of recruiting, hiring, onboarding, and training the candidate is considered resource-intensive, as it requires input from different departments.
Time and money are limited resources
Managements and colleagues will surely be called upon to invest additional effort and time, which can end up disrupting their roles and responsibilities.
Note: Time is considered the most valuable commodity, and diverting this finite resource could hurt other areas of the business.
Even after hiring, there’s no guarantee the candidate will stay. If a salesperson or account manager leaves, clients may follow them to their new employer, risking lost contracts and long-term revenue, ultimately impacting the company’s bottom line.
3. Low Morale is Associated with High Employee Turnover
In business, an indicator of low morale is high turnover. The negative impact of employee turnover is worrying because of its tremendous impact both financially and on productivity levels across the business.
More importantly, when employees leave for another employer, they take with them the knowledge, experience, skills, and abilities that helped contribute to the long-term goals, revenue, profit, and performance of the organization.
Impacts business reputation
If news of employees leaving in a short time frame reaches the job market, it can damage a company’s reputation. Frequent turnover may raise red flags for candidates, who might assume there are deeper issues like poor management, lack of support, or a toxic work culture.
This perception can lead people to believe the company is unstable or not doing well financially. Even strong employer branding may not be enough to overcome doubts, as potential hires may think, “Why is everyone leaving?”—and choose to look elsewhere for opportunities.
Therefore, one way to address turnover is by focusing on employee wellbeing.
The Real Reasons Why Employees Leave Their Jobs in the UAE
There are several reasons why employees choose to leave, such as stress and burnout, the lack of flexibility, and the lack of work-life balance, to name but a few. Now, let’s go through them to understand better.
1. Seeking a Better-paying Position
Employers know most workers will seek a pay rise eventually. The Hays 2021 Emiratisation Salary and Employment Report found nearly half of UAE employees expected one. Still, many employers face financial limits due to industry conditions and challenges like the COVID-19 pandemic.
2. Looking for New Challenges or to Gain New Job Skills
The adage “Climb the ladder of success” clearly rings true for many. Ambitious employees generally want more and will often look for new challenges and skills to help them grow. These individuals are happy to take the risk and accept new opportunities that work towards their goals.
But in the eyes of employers, these ambitious employees are valuable as they can push the business to greater heights.
3. Ongoing Stress and Burnout
Stress has increased in recent years, and ongoing stress has led to burnout, particularly at work. In fact, work-related stress in the UAE was higher at the end of last year than at any time since January 2020, according to a Cigna Insurance Survey.
Employees tend to ignore or even brush aside any signs of stress without realizing its significance until it’s too late. In the past, mental health-related stress was considered taboo, and people often considered it to be a physical problem, according to Gulf News.
As stress typically occurs in both their personal lives and when working, employers can address this larger issue by offering several employee benefits solutions to deal with stress head-on.
4. Wanting More Flexibility When Working
According to the 2021 Work Reimagined Employee Survey, 54% of employees want flexibility in when they work, while 40% prefer flexibility in where they work. These results highlight shifting priorities, and if unmet, many employees would rather leave.
Meanwhile, 86% of UAE employees want to continue remote work after the pandemic. Professions across the UAE seem highly satisfied with flexibility, which is also represented across other regions globally.
5. Wishing for a Better Work-life Balance
The notion of achieving an optimal work-life balance has become a key goal for working professionals, young and old. Lack of balance in one’s professional and personal life can often cause elevated stress, apathy, decreased productivity, and most likely burnout.
Knowing so, employers can themselves choose to put the needs of employees above everything else and promote a work-life balance. Learn how in the following section, as Pacific Prime Dubai offers ways to retain employees or at least reduce employee turnover.
8 Ways a Business Can Reduce Employee Turnover
It goes without saying that businesses with employee health and wellness programs tend to improve employee satisfaction and reduce employee turnover in the long run. Here are 8 strategies a business can employ to reduce turnover:
1. Hire the Right Employees and Manage Expectations
To build the right team, start with smart hiring. Hiring managers should invest time in screening and background checks to ensure candidates fit the company culture and have the right skills for the role, helping secure long-term success and workplace harmony.
Additionally, you should clearly outline all work and salary expectations in the job description before the employee starts working in your business. This should also include any specific and attractive health and wellness benefits that may be of help to them.
2. Follow Best Practices in Salary Increases
When discussing pay rises, it’s crucial to be transparent about your budget and clearly communicate what can realistically be offered. If a raise isn’t feasible, consider offering an exclusive performance-based bonus instead—helping retain talent while managing financial constraints.
More so, you should also take into account what competitors are offering to help you benchmark and negotiate reasonably with your employees. However, if you cannot agree on a salary increase, then bargaining with personalized health and wellness benefits could provide the answer.
Did you know? A trending solution for employers to offer in 2021 is flexible (flex) benefits. Of course, options will vary but the employee has a greater say on which option to include. This solution can also be applied across the workforce too.
More information on flex benefits can be found at the end of this section, or see Pacific Prime’s complete guide to flexible benefits.
3. Outline Defined Career Paths
If you haven’t set a pre-defined career path with your employee, then now is the time to do so. As mentioned, ambitious or visionary employees are always up for new challenges or even assignments that the business has in mind.
Therefore, if your business has interesting, long-term goals to achieve, it’s probably good to gather these individuals together and have them apply their skills in the most efficient way possible. This way, they will remain focused and engaged on the tasks at hand.
Additionally, assigning these special projects means they will be able to discover more skills and develop their abilities along the way. In turn, they can become good examples for others in the workforce to follow. A win-win for all!
4. Include Employee Mental Health and Wellbeing Programs
Although mental health is often not included as part of the group health insurance policy in the workplace, employers can offer mental health and wellbeing programs to support employees affected.
Employers seeking to retain or reduce turnover should consider adding mental health and wellbeing programs to their employee benefits plans. These can also help employees who are suffering from burnout due to long-term stress at work.
5. Offer Flexible Working Arrangements – Flexitime and Remote Work Options
Did you know? You can reduce employee turnover by allowing greater flexibility when it comes to working arrangements.
What are flexible work arrangements?
Flexible work arrangements let employees shift from the traditional 9 am–5 pm, Monday to Friday schedule. They can start earlier or later, finish early or late, or work remotely or from home to better balance personal and family needs, boosting flexibility and work-life balance.
These arrangements benefit employees by reducing absenteeism and presenteeism while increasing job satisfaction, energy, creativity, and stress management. Employers save on office costs and positively impact the environment. Overall, flexible work helps lower turnover and improve workplace morale.
6. Provide Access to Financial Wellness and Employee Assistance Programs
Generally, there is a strong correlation between employees worrying about their finances and being absent from work or even underperforming at work. Knowing this, you can support employees by offering financial wellness programs that are designed to reduce health problems due to financial stress and prevent absenteeism.
Financial stress could also contribute to employee turnover, which, if addressed early with a financial wellness program, could help retain talent for the long term.
While financial wellness programs are specific to financial stress, Employee Assistance Programs (EAPs) can help resolve other common problems, including:
- Alcohol or substance abuse
- Child care needs
- Relationship problems
Employees seeking help from EAPs will likely appreciate employers for helping them resolve their personal issues. This could make them more loyal to your business, knowing that their issues are being attended to.
7. Offer a Rewards and Recognition Program
To retain employees and attract talent, introduce recognition programs that make staff feel valued and motivated. These programs boost morale and encourage achievement, while employees can share their rewards on professional networks like LinkedIn, enhancing both engagement and employer branding.
8. Introduce Flex Benefits to Your Employee Benefits Plan
“I strongly believe flex is the future of employee benefits.” – Neil Raymond, Founder and CEO of Pacific Prime
If you are looking to reduce employee turnover, check out flex benefits. These types of benefits allow employers to offer a variety of benefit options for employees to create a customized plan.
Note: See Neil Raymond, our founder and CEO’s article on LinkedIn, where he reflected on the future of flex benefits, as well as Pacific Prime’s acquisition of insurtech CXA’s brokerage arms in Hong Kong and Singapore.
Fancy More Articles on Corporate Wellness Programs?
You can find more relevant articles touching on corporate wellness programs and employee benefits via Pacific Prime Dubai’s blog page. We have also picked out a few relevant articles for you to check out below:
- How Can UAE Companies Benefit From Corporate Wellness Programs?
- The 5 most coveted employee benefits and perks
- UAE employees expect more comprehensive employee benefits after COVID-19
- The top 6 reasons to have a wellness program
Do You Need Help Designing a Robust and Comprehensive Employee Benefits Plan?
Watch our video: 5 tips for designing an employee benefits plan
Conclusion
Employee turnover can significantly impact business performance and morale. Addressing the common reasons employees leave with effective health and wellness benefits is key to retaining talent and fostering a motivated workforce.
For businesses seeking tailored employee benefits and group health insurance solutions, Pacific Prime Dubai offers expert guidance and comprehensive programs designed to meet your company’s unique needs and budget.
With over 25 years of experience in delivering customized corporate solutions and employee benefits, we provide impartial advice to help you attract and retain the best talent.
Contact us today to get started, or get a free quote using our advanced online tool!
His expert view and wealth of knowledge on insurance can also be found in his blogs for China, Dubai, Hong Kong, and Singapore.
- How to Impact Turnover by Focusing on Employee Well-being - 26th June 2025
- Top 5 Ways to Cope with Workplace Stress in the UAE - 15th May 2025
- How Data Can Improve Wellbeing Programs And Reduce Costs - 3rd April 2025
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