Many of us have woken up to the world of hurt with COVID restrictions and how it has affected not only our wallets but also our employers. Many companies are scrambling to figure out how they will make their payrolls work, whether they need to stop paying their employees or come up with creative ways to cut hours until the restriction blows over.
The CARES Act implemented by the federal government of the United States has come with two programs to help businesses affected by COVID restrictions. These programs are PPP and ERC or Employee Retention Credit. Employee Retention Credit is put forward by the government to encourage employers to retain their employees on payroll during times of COVID.
Here’s a list of reasons for employers to retain their existing employees.
Employee Retention Credit
As stated before, the Employee Retention Credit is put forward by the federal government to encourage employers to retain their employees during times of COVID. It is an incentive for employers to keep their current employee base intact, during such trying times. Employee Retention Credit offers up to 70% of the payroll to balance out the tightening of budgets that have come from COVID restrictions.
Most companies know that employee retention is important for increased productivity. In an environment where paychecks are getting smaller, the way to keep employees is to provide a reason that they will stay with you. If a company can retain its employees and provide them with regular paychecks, they will be more productive.
Increased employee morale
When employees are treated well and given extra perks like bonuses and even benefits, such as paid time off or health insurance coverage, then it boosts their morale and keeps them at work longer.
Better employee experience
Employers that retain their employees and treat them well will have better employee experiences. Those who are treated well by their employers are likely to stay longer than those who are not.
Employees who are retained also have an impact on increased revenues for companies. Companies with happier employees and more productive employees will have higher sales and more money coming in.
Improved corporate culture
Retaining employees benefits the company on an internal level as well. When employees are happy and well-treated, the employees will form friendships with their colleagues. This leads to improvement on an organizational level and improves the corporate culture.