Continuing on in our four part series for amplifying your HR functions with ICHRA savings, Part 2 shares another option for reinvesting in your workforce and culture. As an HR leader in the tech space, I'm tasked with empowering the business and our employees. This is another great example of how ICHRA is a tool to level up your influence at the leadership table.
HR Retention Strategies to Consider
You've successfully implemented (or are considering) an ICHRA, captured significant savings, and are now looking for the next strategic move to reinvest in your people. While expanding the HR department lays a solid foundation, the next step is to directly incentivize your employees to become your most effective recruiters and loyal team members.
Employee recruitment incentive program
Increasing referral and retention bonuses is a direct, powerful way to leverage your ICHRA savings, reinforcing your commitment to your employees while simultaneously improving your talent acquisition and retention strategies.
Financial incentives are the most straightforward and effective tools in the HR toolbox for driving desired behaviors. When it comes to recruiting, a generous referral bonus program is a game-changer. Employees who are happy and engaged are your best brand ambassadors.
They understand the company culture, know the skills required for the role, and are uniquely positioned to recommend high-quality candidates from their own professional networks.
A larger referral bonus—perhaps increasing it by 50% or even doubling it—transforms a simple suggestion into a highly motivated, personal recruitment effort.
Benefits of recruitment incentive for employees
This method is often more reliable and cost-effective than traditional recruitment channels like job boards or external headhunters. Referral hires also tend to have a higher retention rate and a faster time-to-productivity because they already have an internal support system and a clearer understanding of the company's expectations and values.
By channeling your ICHRA savings into this program, you're not just saving money on external recruiting fees; you're building a stronger, more cohesive workforce from the inside out.
HR Strategies for Employee Retention
Beyond recruitment, using financial incentives for retention sends a clear message to your current employees that their loyalty and contributions are genuinely valued. In a market where job-hopping is common, a well-structured retention bonus program can be the deciding factor that keeps top talent from exploring other opportunities.
This can be as simple as a tiered loyalty bonus, where employees receive a payout after reaching certain tenure milestones, or a performance-based bonus tied to a team or individual's long-term success. These financial rewards, funded by your ICHRA savings, serve as a tangible thank you for their hard work and dedication.
Knowing that their loyalty will be generously rewarded fosters a sense of security and encourages a long-term perspective. It shifts the relationship from a transactional one to a partnership, where the employee's commitment is met with the company's commitment to their well-being and financial growth.
A strategic increase in both referral and retention bonuses also allows you to compete with larger, more established companies that may have more robust benefits packages.
While an ICHRA is a fantastic way to offer flexible and personalized health coverage, these direct financial incentives provide an additional layer of appeal. For small to mid-sized businesses, this can be the difference maker in attracting candidates who might otherwise be drawn to bigger names.
The transparency of a referral bonus program also empowers employees to take an active role in the company's growth, fostering a sense of shared ownership. In an era where employees are looking for more than just a paycheck, these bonuses communicate that their contributions are seen, appreciated, and directly tied to the company’s success. It’s an investment that pays for itself, driving a virtuous cycle of attracting great talent and holding on to them for the long haul.
Let's talk through your HRA questions
Andy Lange, MBA, PMP®, SHRM-SCP, is the Senior Vice President of People at Take Command, bringing over 15 years of combined HR, executive leadership, and operational experience. Prior to his current role, Andy served as CEO for seven years and as a partner and general manager, where he led business operations, talent strategy, and organizational growth. His career blends hands-on HR leadership with executive-level insight, enabling him to build scalable people programs that align with business objectives. This e-book reflects Andy’s practical, real-world approach to helping HR leaders elevate their strategic impact through modern benefits strategies.
