A study Conducted by Advantage club from January to June 2023 with 250+ companies and more than 1 lakh employees, found that 70% of companies have implemented flexible wallets to boost employee retention and engagement.
Interestingly, the research addresses a significant issue plaguing most companies – low utilization of rewards benefits. This prevalent challenge of low reward utilization has often been linked to poor employee retention. While many companies struggle with low benefit utilization rates averaging 40% and 50%, flexible wallets stand out as an exception, with a remarkably high utilization rate of over 90%. This significant increase serves as a clear indication of success in fostering enhanced employee engagement, ultimately leading to improved 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 personalized approach has led companies to observe a substantial 45% increase in employee retention rates.
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Furthermore, the study discovered that 75% of companies prioritize 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 utilize flexible wallets specifically for upskilling. The companies have witnessed a significant 60% surge in wallet redemptions for learning and development platforms, emphasizing the employees’ dedication to continual professional growth.
With the growing trend of remote working, 55% of companies are utilizing 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 personalized benefits.
Sourabh Deorah, Co-Founder & CEO, Advantage Club, said while sharing the study’s findings, “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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