A latest study found that 70% of companies have implemented flexible wallets to boost employee retention and engagement. While many companies struggle with low benefit utilisation rates averaging 40% and 50%, flexible wallets stand out as an exception, with a remarkably high utilisation rate of over 90%. This significant increase serves as a clear indication of success in fostering enhanced employee engagement, ultimately leading to improved retention.
Advantage Club, an employee engagement platform, has released insights from their six-month study focusing on the game-changing rise of flexible wallets in enhancing employee benefits and engagement. Conducted from January to June 2023 with 250+ companies and more than 1 lakh employees, The research addresses a significant issue plaguing most companies – low utilisation of rewards benefits. This prevalent challenge of low reward utilisation has often been linked to poor employee retention.
As per the study, flexible wallets have evolved into a comprehensive solution, allowing employees to tailor benefits based on individual needs and preferences. This personalised approach has led companies to observe a substantial 45% increase in employee retention rates.
Furthermore, the study discovered that 75% of companies prioritise employee health and wellness through flexible wallets. The companies have recorded an astounding 80% increase in health and wellness benefits redemptions, illustrating employees’ proactive approach toward their well-being.
Additionally, 60% of companies utilise flexible wallets specifically for upskilling. The companies have witnessed a significant 60% surge in wallet redemptions for learning and development platforms, emphasising the employees’ dedication to continual professional growth.
With the growing trend of remote working, 55% of companies are utilising flexible wallets to assist employees in setting up efficient home offices. Data reveals a substantial 85% redemption rate for remote work essentials, further underscoring the importance of a conducive work environment.
Moreover, 80% of companies leverage flexible wallets to offer shopping and dining benefits. Companies implementing this strategy have experienced a remarkable 95% redemption rate, signifying employees’ active engagement with these personalised benefits.
Sourabh Deorah, co-founder and CEO, Advantage Club, said, “The escalating interest in flexible wallets as a robust tool for employee retention and engagement is a prominent trend. Companies echo their commitment to employee well-being and individual growth by enabling employees to select benefits. Intriguingly, our study indicates that companies offering flexible wallet options report a 45-55% higher employee retention rate.”
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