by admin | Jan 23, 2023 | Employee Benefits
A hot labor market that has seen scores of employees leave their jobs for new and better opportunities has HR and benefits leaders planning to up the ante when it comes to benefits that sway workers to stay. But at the same time, employers also are aware of soaring costs and inflation concerns and are looking to make sure any benefits investments are worthwhile.
For 2023, employers are uniquely positioned to offer more than just a health care plan, including perks and resources that today’s workers are seeking.
Voluntary Benefits
You can please some of the people some of the time, but you can’t please all the people all the time – unless you embrace voluntary benefits, that is. Voluntary benefits are optional perks that are offered to employees at a discounted group rate which their employer has negotiated with providers. While employees still need to pay to use these benefits, the amount is usually far less than it would be without company subsidies.
These types of benefits give employees the chance to customize their benefits packages to best suit their particular needs. Whether it’s affordable veterinary insurance for pet owners, subsidized pre-K childcare for parents, or student loan repayment programs, offering these types of policies can directly improve the quality of life for employees who choose to take advantage of them.
Financial Wellness Benefits
Employees worry and stress about their finances especially today due to record-high inflation and are searching for financial wellness education and guidance. Nearly 80% of employees say a financial wellness benefit is an important part of a comprehensive benefits package. Some of the popular financial wellness benefits are:
- Retirement Plan Options with Matching Contributions
- Health Savings Accounts
- Flexible Spending Accounts
- Financial Planning Assistance
- Flexible Paydays
- Employee Discount Program
- Financial Reimbursements (Ie. student loan repayment plans, child-care support funds and professional development stipends)
Family-Friendly Benefits
Employers are increasingly looking to expand their family-friendly benefits for employees in 2023.
- Paid family leave is not guaranteed by law in the U.S. but it is a highly sought-after perk. A parental leave policy – one that considers both parents and accounts for adoption and fostering in addition to childbirth – can show your employees you care about supporting their home lives.
- Childcare assistance supports working parents facing rising costs of living. While some larger employers may offer on-site childcare, smaller business can show their commitment to working parents by helping to subsidize the cost of childcare through employer contributions or pre-tax deductions.
- Fertility assistance supports employees who are going through costly infertility treatments, surrogacy, and IVF.
Inclusive and Flexible Care
The diverse workforce of 2023 is prioritizing a better work-life balance. It’s important to develop a benefits package that recognizes a healthy environment for your employees.
- Mental health benefits are in demand since mental health is a crucial part of overall health. Offering an employee assistance program (EAP) is a great way to support workers in tough situations.
- Work flexibility includes not only remote or hybrid work options, but you can also consider flexible start and stop times, a four-day work week or unlimited PTO to attract top talent and increase retention.
Overall, your benefits offerings for 2023 should reflect your organization’s values. Remember, your company depends on being able to keep your employees happy, healthy, and productive. Benefits that show respect for employees and promote a strong, vibrant culture are worth the investment.
by admin | Oct 11, 2022 | Employee Benefits, Open Enrollment
Choosing the right benefits during open-enrollment season is so important and can help save money. It can also give individuals and families broader support with their health. Benefits like medical coverage are particularly important with high inflation having such a big impact on people’s budgets.
A survey by UnitedHealthcare found that nearly 40% of employees devote less than one hour to the open enrollment process. It is crucial to carefully analyze your benefits during open enrollment as any decisions you make will likely be locked for the year until the next open enrollment period. Don’t rush into open enrollment without carefully considering your options!
Here are some tips to ensure you make the most of your open enrollment:
Be Prepared
Open enrollment typically lasts for a short period (2-4 weeks) so knowing what you need to do ahead of time can be a big stress reliever. A good starting point is to consider how your needs have changed since last year. For example, maybe you got married or received a raise. These changes may require a change in coverage, whether it be for life, health or disability insurance, and it is important to consider how these or any other expected life changes will impact your insurance needs.
Review Any Changes Made by Your Employer
It is common for employers make changes to plans and premiums to keep up with the times. When you receive your open enrollment packet to review plan options, it is important to consider all aspects of coverage and the total cost of coverage. The total cost is impacted by the deductibles, premiums, co-insurance and maximum out-of-pocket expenses.
Take note of whether your employer made any changes in providers. If this happens, your current physician or dentist may be out-of-network which will result in out-of-network costs or denied claims.
Review Your Insurance Options
The largest portion of employer benefits is health insurance so it is important to choose the plan that is best for you and your family. Important questions to ask are: how often do you have medical expenses? Are lower premiums or lower out-of-pocket costs more important to you? Do you take expensive prescription drugs? Can you afford hefty out-of-pocket costs if there is an emergency?
There are 3 main plan types:
- Preferred Provider Organization (PPO)
PPO’s are a popular choice since they allow you to see any doctor or specialist and don’t require a referral from your primary care physician (PCP) to see a specialist. However, PPO premiums are usually much more than other plans. To help reduce costs, remember that using in-network providers and specialists who are part of your PPO network will save you money.
- Health Maintenance Organization (HMO)
HMOs have lower premiums than PPOs but they require you to stay in-network. You will also need a referral from your PCP to see a specialist. The idea is that the PCP coordinates your care.
- High Deductible Health Plan (HDHP)
Another low-cost option is a high-deductible health plan. What sets HDHPs apart from other plans is their low premiums and high deductibles. That means you won’t have to pay as much each month for premiums but you will need to pay more of the healthcare costs when you need services. To help you pay for the bigger deductible, employers usually pair an HDHP with a health savings account (HSA), which allows you to save for medical expenses, including deductibles and copays.
Learn How FSAs, HRAs, and HSAs Differ
Many employers offer accounts that help you save for medical expenses:
- Flexible Spending Account (FSA)
You decide how much pre-tax money to put into the employer owned account through payroll deductions and then you can use that money to pay for out-of-pocket medical expenses. You lose that money if you change jobs or don’t use it by the end of the year.
- Health Savings Account (HSA)
Connected to a HDHP, an HSA lets you set aside money on a pre-tax basis to pay for qualified medical expenses. The account is yours, so you keep it if you change jobs. The money rolls over each year so you don’t have to worry about “using it or losing it.”
- Health Reimbursement Arrangement (HRA)
An HRA is similar to an HSA except that the employer owns the account so you can’t take it with you when you change jobs. You’re able to contribute money for medical expenses just like an HSA or FSA. Money can also be carried over to the next year like an HSA.
Open enrollment is an important time of year and is worth investing some time and energy to decide what is best for you and your family. Health insurance is one of the most important purchases you make. By doing your homework and taking the time to carefully consider your options, you’ll find the plan that is right for you!
by admin | Aug 30, 2022 | Employee Benefits
Inflation is a silent budget killer- it causes everything to go up, from your groceries to your gas, as the purchasing power of money decreases. Americans are feeling the pinch as the U.S. experiences the highest inflation level in 40 years.
Inflation has been particularly frustrating for Americans who are struggling to pay for items such as housing, food, energy, and vehicles. However, consumer goods aren’t the only thing that have increased – employee benefit costs are also on the rise. With rising inflation rates, many employers are struggling with rising healthcare costs. A survey of large employers from the Kaiser Family Foundation found that 96% of respondents agree that the high costs of offering healthcare to their employees are excessive.
With inflation increasing, you may be tempted to cut benefits packages, but now more than ever, a generous benefits and perks package is crucial to retaining employees. In fact, 63% of companies say that retaining is harder than hiring them. Amidst the Great Resignation, HR is having to figure out how to alleviate the increasing benefit costs without passing those costs on to their employees and facing even greater turnover. Fortunately, there are some strategies that employers can use to remain competitive in today’s market while still providing quality benefits for their employees:
- Foster a Healthy Workforce – The healthier your employees are, the less likely they are to have extensive healthcare costs. Wellness programs are a great way to promote a healthy lifestyle. A cost-effective way to provide wellness benefits while helping employees through periods of high inflation is through a wellness stipend. With a wellness stipend, you reimburse your employees for their wellness costs such as gym memberships, home exercise equipment and wellness apps.
- Encourage the Use of Virtual Medical Services – With telemedicine, employees can schedule an appointment with your health care provider or specialist. They don’t have to drive to the doctor’s office, park or sit in a waiting room. They can see their doctor from the comfort of their bed or sofa which makes it easier to fit into a busy schedule. Telemedicine appointments are usually short visits, so employees can get back to work more quickly.
- Supplement Your Group Plan With a Group Coverage HRA – One strategy employers can implement to lower costs while extending coverage is to add a high deductible health plan(HDHP) to their group plan offerings and supplement it with a group coverage HRA (GCHRA), also known as an integrated HRA.
- Eliminate Benefits that Employees Don’t Use – Take a microscopic look at all the benefits you provide. Do you see any that aren’t being utilized enough to justify the cost of providing them? A great way to learn which of your benefits your employees are and aren’t using is by sending out an employee benefits survey. Your company can then invest the money from underused benefits to something that your employees value more.
While it may be tempting to simply reduce your benefits offerings during periods of inflation, it doesn’t have to be that way. Comprehensive benefits attract better employees and retain them for the long haul—meaning employers benefit from a more productive and satisfied workforce.
by admin | Jun 7, 2022 | Employee Benefits, Human Resources
Companies spend a large amount of time and money creating valuable benefits plans for employees. But after all that work, they often get low participation. Good benefit choices require an effort from employers to ensure that employees have help in understanding their benefits options. To make things even more complex, employers are having to consider options for a span of 4 generations in the workplace which can look very different. Providing benefits for a multigenerational workplace can be challenging but it is important for employers to simplify the process by delivering education through the right channels while avoiding a one-size-fits-all approach.
Understanding your audience and how to effectively communicate with them is the first step in creating your benefits messaging. For example, what are the demographics of your workplace? Do you need to provide multiple messages across various channels? Does your workplace speak English, or will you need bilingual messaging?
A recent survey indicates that 83% of employers believe that communication, employee education and engagement are key for employee participation.
Here are 5 tips on educating your employees about their benefits to encourage benefits participation:
- Break Down Health Insurance Options
- Distribute a simple guide that explains the key things employees should know about their health insurance and basic terminology
- Explain in simple terms about provider network, covered prescriptions, monthly premiums, deductibles, and additional plan benefits, if applicable
- Have an efficient way for employees to manage benefits and ask questions
- Automate the Process
- Make Plans Customizable
- Provide plenty of benefits options including medical, dental and vision from leading carriers
- Offer a lifestyle benefits program that allows employees to personalize their plan according to their needs
- Consider offering perks like commuter benefits or health club memberships to reduce financial burdens and encourage a healthy lifestyle
- Provide Multiple Communication Strategies
- Offer educational tools and channels preferred by employees so they can stay informed year-round to make better purchasing decisions
- Utilize effective benefits education tools that include in-person and virtual meetings, digital communication or print media
- You can utilize a short video to explain key concepts; use graphs and images or create short quizzes for employees to ensure they have read and understand the material
- Make it Easy to Sign-Up
- Invest in updated HR and Benefits technology that includes easy message capabilities such as email, text message alerts, video support, and live chat integration
- Provide a Benefits mobile app
- Offer a benefits website which houses benefit information, HR information, and enrollment material such as “BenefitsEasy“
Although you may use one or more of the tips above, it is vital to keep the information flowing throughout the year. A fun way to do this is to pose a monthly trivia question to your staff related to the benefits and wellness programs you offer and award a prize to the person who submits the correct answer. Highlighting different features of your benefits or wellness programs each month will keep your employees engaged and informed!
by admin | Mar 8, 2022 | Employee Benefits, Human Resources, Workplace
If only everyone valued the same things, benefits planning would be a lot easier. If. Only.
However, most employers have five generations of employees active in the workplace who want different things. With generation gaps spanning more than 75 years, finding a one-size-fits-all benefits package can be challenging. However, there are certain things to consider to tailor employee benefits for each generation.
The Five Generations in the Workforce:
- Generation Z: 1997-2012, (5% of workforce)
- Millennials: 1981-1996, (35% of workforce)
- Generation X: 1965-1980, (33% of workforce)
- Baby Boomers: 1946-1964, (25% of workforce)
- Traditionalists or The Silent Generation: 1928-1945, (2% of workforce)
Regardless of their generation, every employee wants traditional benefits like time off, healthcare insurance, and retirement planning. To create a benefits program with multigenerational appeal, employers should first think about their employees’ shared concerns and varying needs.
One strategy for managing multiple generation is customizing benefits offerings to core demographics. For example, would your staff value on-site child-care? Would a retirement plan that highlights the need for saving early or tuition assistance be relevant for your employees? Think about who your employees are and which benefits are most likely going to support their success.
Many employees are concerned about their financial wellness. Seven out of 10 new college graduates each owe $37,000 or more. These unprecedented levels of student debt make financial concerns a primary concern for Millennials and Gen Z. Gen Xers share financial concerns as they look to pay for their children’s education. While fear of not saving enough for retirement is a concern for all age groups, it is most concerning to Baby Boomers and Traditionalists for whom retirement is around the corner.
Gen X values benefits that support better work-life balance, such as caretaker support, flex time, well-being and support and financial protection. Meanwhile, Gen Zers favor benefits that support career growth, mental health and diversity, equity, and inclusion programs and perks that relate to job security, a key concern for this generation.
While every generation faces uncertainty at different stages of life, Millennials are more likely to purchase legal insurance compared to other generations. Many Millennials started working during a recession which has greatly affected how they view their long-term careers. Millennials have adopted an “anything can happen” mentality and are willing to pay for peace of mind to be financially stable.
To handle the unexpected, health, dental, vision and life insurance are all valued traditional benefits and are especially important to Baby Boomers and Traditionalists. Some Traditionalists and Boomers may not be full-time employees. Companies employing more of this generation of workers should offer some sort of wellness benefits like gym memberships or health services.
Beyond the core offerings like health care and retirement savings plans, employers can offer a menu of non-medical voluntary benefits that employees can select based on their individual needs. Those might include legal insurance, caregiver leave, student debt assistance or tuition reimbursement, on-site child-care, pet insurance, financial counseling, accident insurance and more.
Whether a Boomer or a Gen Xer, all employees want to feel confident and informed about their healthcare decisions. Quality healthcare that is accessible and affordable is a priority for all generations. Creating a customizable benefits experience that recognizes the diversity across the multigenerational workforce will likely result in employee retention and increased job satisfaction as well as making recruiting top talent easier. By focusing on communication, the benefits mix, and understanding what is important to each generation, your company may well be on its way to a successful benefits strategy.
by admin | Dec 26, 2021 | Employee Benefits
Employee benefits are a major bargaining chip for companies looking to attract talent. The problem is healthcare costs are skyrocketing, and it’s difficult for employers to offer the same level of coverage. Higher costs are either resulting in less coverage or smaller wages for employees.
Find out what’s happening with healthcare and recruitment, and get tips on what companies can do to stay competitive:
The Rising Costs of Healthcare
It’s no secret that healthcare costs have been increasing for years. According to the research, it will continue to increase. One study from the Peterson Center on Healthcare and the Kaiser Family Foundation (KFF) found that $3.8 trillion—or $11,582 per person— was spent on healthcare in 2019. By 2028, individual Americans will be spending around $18,000 on healthcare.
While the issue is complex, experts agree that the major factors in this spike include an aging population, a rise in chronic disease, and higher prices for medical services and drugs. Costs are rising so rapidly that insurers are increasing deductibles, not covering certain services, or applying caps. As a result, healthcare packages are playing a larger role when chosen candidates are deciding whether to accept a new job.
How Important Are Competitive Healthcare Packages?
As healthcare costs continue to rise, a new debate has emerged. Should employers or employees take more responsibility for covering healthcare?
One of two things are happening with workplace healthcare. Either employees are leaving their current position for a job with better healthcare coverage or their annual salary increases are being eaten up by higher healthcare premiums being passed on to employees.
A recent survey found that 42% of employees are thinking about leaving their current position because of inadequate benefits.
“The rising price of health care costs families thousands of dollars a year in foregone wages, out-of-pocket costs, and increased taxes,” said Josh Bivens, research director at the Economic Policy Institute, in an interview with MarketWatch.
He said the effect may not be apparent, but it’s one of the main reasons wages have remained stagnant. If you spot a number of paradoxes here, then you aren’t alone. Lower salaries won’t attract top talent, and passing on the costs of healthcare to current employees won’t retain them. This quandary for employers is compounded by the current labor shortage, which is often referred to as the Great Resignation.
What Can Companies Do?
It’s clear that healthcare is important to job candidates. To attract new talent, companies should revolutionize the way they treat wellness in the workplace.
Promoting health and wellness initiatives not only improves employee morale and decreases absenteeism, but a healthier workforce is less likely to use their insurance. This may eventually equate to lower premiums.
Another easy way to curb costs is by communicating with employees about what plans are available. Health insurance is often a complex topic, and some employees may accidentally choose the wrong plan because they don’t understand the difference.
Proactively highlighting available services can assist employees before a medical issue spins out of control. Mental health services are an example of this. Letting employees know about Employee Assistance Programs or low-cost telehealth options could offer help before a more serious intervention is needed.
There are many options available for companies to make their benefit packages more competitive to attract top talent. Some companies are considering Health Savings Accounts or HSAs that help employees pay medical bills while enrolled in cheaper, high deductible plans.
Direct Primary Care is another technique being used by companies to control costs. DPC allows employees to pay fixed monthly, quarterly, or annual fees to cover primary care, consultations, care coordination, and comprehensive care management. Not only does DPC result in cost-savings, but it fosters a better relationship between patient and doctor.
Leveraging Your Benefits
Even though healthcare costs continue to rise, it’s possible for companies to control costs by promoting wellness initiatives and helping employees select the best benefit package for their needs.
Being proactive with healthcare and making smart financial decisions can keep healthcare prices reasonable, and ensure that companies will be able to attract talent.
By Mckenzie Cassidy
Orginally posted on HR Exchange Network
