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Employee Retention is More than Just Health Care

Keeping employees engaged and excited about work can be a difficult task for some employers. There are a few things you can do as a leader within your organization to foster employee happiness. One of the main ways is to offer voluntary benefits. Employees are looking for insurance when they are looking for a company that will serve them, but they also require additional benefits, and other creative approaches to benefits. In the article below, you will see the best ways to keep employees engaged and excited about work, and how important it is to offer more than just health insurance. At SBMA, we have insurance options that include vision, dental, and other voluntary benefits. Check out our plan options here!

The Best Ways to Keep Employees Engaged and Excited About Work

Attract ENGAGE Retain. 

An engaged workforce is a productive workforce. 

But you can’t force someone to be engaged. 

Once you’ve got a candidate through the hiring, onboarding and training process, you really want to retain them.  But what about two years in, five years in.  What do you do as a company to re-engage and thereby retain your staff?

People are engaged when they feel they make a difference.  People are engaged when they feel appreciated.  People are engaged when they feel a sense of purpose.  People are engaged when they feel aligned with the company’s values.

So, here are 6 ways to align yourself as a company for the best possible chance of engaging, inspiring, and thereby retaining your workers. 

  1. Benefits aren’t just a 401K: While health insurance is the #1 benefit employees look for, there are many other ways to keep employees feeling valued that are outside the traditional, raise, increase in benefits routes. Flexibility around work-life balance rates more highly among millennials than even health insurance in a study conducted in 2017 by Forbes magazine.  Bringing yoga into the workplace is another way to engage your teams in physical and emotional self-care right there on the job.  Don’t think of it as losing an hour of productivity, you’re not!  You’re donating an unproductive hour to the cause of engagement. Stress is the #1 reason people leave jobs.  So OHHHMMMMMM.
  2. Share your passion: If you’re passionate about running, donate 5% of your profits to a charity that uses running programs to get homeless people back on their feet.  If your passion is the environment, commit to a 100% plastic waste-free catering service… Whatever drives you will inspire others.  Sharing your passion with the team makes everyone clear that the CEO and owner cares deeply just like them.
  3. Get goofy: Not the dog that owns a dog… Get silly, be willing to be wrong.  Allow the company to see your human side. If that means outtakes and blooper reels go out on social media, do that.  If it means sharing that your dog died and you’re feeling really low… that’s vulnerability and as goofy as it may sound.  There’s tremendous strength in vulnerability (Brene Brown)
  4. Raise the bar: Raise up the mid-level managers in your company by bringing in training for them.  There are grants companies can apply for that pay for training effectively making that training free on the front end and so very profitable when your managers become leaders.
  5. Bang a gong: Employee of the month? Employee Spotlight, an actual gong for sales that close? There are so many ways to praise publicly (and reprimand in private).  These principles set out years ago by the likes of Ken Blanchard hold true to this day.  People want to be recognized for what they do well.  So give ‘em a hand.
  6. Ensure role alignment: Identify your company culture.  Hone in on it like a laser and protect it like it’s a crystal figurine your granny asked you to hold.  When you’re certain about your culture you can hire to align with it.  When you hire people who are aligned with the culture and get them in the right role, you’ll retain those people throughout their job lifecycle.

Intentional culture takes time and effort to build and only a small amount of neglect to destroy.  On that happy note, we’ll say, Happy retaining!

Encouraging and engaging employees can make a huge impact on your company’s culture. If you feel your company could use some adjustments to your current company culture, Culture Works can help!

Vision and Dental Add Value for Employees

How Can Vision and Dental Add Value for Your Employees?

Voluntary benefit plans are an important part of employee insurance opportunities. Among these voluntary benefits, vision and dental insurance are an important part of employees voluntary benefit plans. How can vision and dental plans add value to your employees’ wellbeing? Here are a few ways:

Vision:

  • Vision exams identify future problems: They can detect things like eyestrain, diabetes, and even high blood pressure. They can also identify common eye issues and diseases.
  • Cost savings: According to the National Alliance for Eye and Vision Research eye disease, vision loss, and eye disorders cost the U.S Economy $68 billion per year.
  • Increase productivity: The vision council reported that eye care delivers $7,800 in more productivity per employee.

Dental:

  • Dentists can identify disease: Dentists have the ability to identify over 120 diseases. This can help your employee long-term health with potential early detection
  • Young employees likely don’t have dental coverage: The American Dental Association states that millennials have untreated tooth decay. The main reasons for this issue are cost convenience and confusion surrounding dental care.
  • Those with dental coverage are more likely to use it: As more people offer dental insurance the number of adults who miss work for oral health-related issues dropped 7%.

At SBMA, we provide voluntary benefits that employees love. To learn more about our voluntary benefit programs, contact us today!

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How Does the FFCRA Affect My Employee’s Coverage?

The Families First Coronavirus Response Act is an Act of Congress meant to respond to the economic impacts of the ongoing 2019–20 coronavirus pandemic. The act will provide funding for free coronavirus testing, 14-day paid leave for American workers affected by the pandemic, and increased funding for food stamps. So, how does the FFCRA affect my employee’s coverage?

As the effects of Coronavirus continue to unfold, we have seen many changes to how companies have to adjust their benefits. Here are some strategies that employers can utilize to prepare for the changes:

Employer-provided health coverage: The Families First Coronavirus Response Act ensures that group health plans cover COVID-19 screenings without cost-sharing. The law, however,  does not require coverage for treatment without cost-sharing; treatment costs will be based on the terms of the benefits plan.

The IRS states that employees who have coverage with a high-deductible health plan are able to get COVID-19 testing and treatment without additional expenses. 

Paid leave and short-term/ long-term disability coverage: Employees with less than 500 employees must provide up to 12 weeks of leave related to child care with the expansion of the Family and Medical Leave Act, and up to 80 hours of emergency paid sick leave to employees who are full-time. 

Families first does not address employees who were on disability or leave before the outbreak. 

Employer tax credits for paid leave: The FFRCA has provided multiple tax credits to aid employers as they attempt to meet the new requirements. These tax credits are equivalent to 100% of the qualifying leave wages against the employer’s portion of Social Security tax. 

Continuing health coverage during furloughs and mandated leaves of absence. During unpaid leaves of absences that are extended, like a temporary layoff of furlough, health benefits are typically halted. 

Review your insurance contracts and stop-loss policies to determine how to regard employees who lose eligibility due to an extended leave of absence.Group health brokers can help you navigate extended leave coverage for W-2 employees. 

(COBRA), where furloughed employees can choose to remain on the group health coverage the employer must collect the amount of the employees premium. If an employee is receiving payments from accrued time-off, it is possible to collect premiums from those payments. 

Employer inquiries, screenings, and disclosures for infected employees: Asking employees about their health condition is  not a HIPAA violation. Other laws, like the ADA, don’t allow confidential information to be disclosed that concerns employees. If employers screen employees onsite, test results are not associated with a health plan.

Telemedicine programs: The use of virtual medicine gives employees the ability to remain home while being cared for medically, which helps halt the spread of COVID-19.  

Employer expenses with a quarantine employee: Some expenses incurred while an employee is quarantined can be considered deductible. 

As we continue to navigate through COVID-19 we will likely see more changes to benefits that are being offered to employees. Check back for updates

Worksite Benefits Benefit Everyone

The high cost of health care and the evolution of insurance plans with high deductibles has created a market for voluntary benefits. 

Employees can choose from a number of insurance products to complement their coverage and to help achieve a greater degree of stability. Worksite Benefits (voluntary coverage) plans may be 100% paid for by employees or cost-shared with the employer. Here’s why worksite benefits benefit everyone.

Creating a more comprehensive and competitive benefits package is good for the employer as they attract better talent, good for the employee as they get improved coverage and good for the broker who is providing cost-effective solutions. In 2017 nearly half of large employers offered at least one of the three major voluntary benefits: accident, critical illness, and hospital indemnity.

Enrollment in voluntary benefits can be streamlined by offering these benefits at the time of enrollment in a MEC or other benefits plan, by ensuring ease of use in a portal or enrollment documents and by informing employees of the benefits of Worksite Benefits. .

Voluntary benefits generate commissions that can be used to fund overall benefits administration costs and project work done by TPAs that would otherwise be paid by the employer. 

SUPPORT FOR PHYSICAL AND MENTAL HEALTH AND WELLNESS

On the employer side, there has been a national push for physical and financial wellness initiatives. Employers are recognizing the increased stress their employees deal with on a day-to-day basis and are offering solutions. Stress costs American businesses more than $300 billion a year. 

PERSONAL PREFERENCE DRIVES DEMAND

Employees want to have more control when it comes to deciding which options are useful for them.

When employers offer a wide range of benefits that address physical and mental health and wellness issues, employees can adapt the package to fit their lifestyle needs. 

Employees want a benefits package that feels personalized to them, so that they feel like they An Aflac survey found that employees who were offered voluntary benefits were 19 percent more likely to be satisfied with their job – and 14 percent less likely to be job searching.

THE IMPORTANCE OF TECHNOLOGY

The wide array of technology providers offering more streamlined technology also makes voluntary benefits easier to implement for employers and brokers. Online enrollment, automated processing of administrative tasks and the ability for employees to “self-serve” all make the voluntary benefits enrollment process more attractive to employees and employers.

Voluntary benefits are only going to increase in popularity for employers and brokers of all sizes as they become more essential in the lives of employees. Isn’t it time to take a look at your benefits offerings and make sure they are competitive? Call SBMA today.

What is the Families First Coronavirus Response Act?

In March 2020, President Trump signed into law the Families First Coronavirus Response Act, the initial coronavirus relief bill aimed at assisting families living in the United States. The new law requires small employers—those with fewer than 500 employees—to provide limited paid-leave benefits to employees who are affected by the coronavirus emergency. Small employers receive new tax credits and federal payroll-tax relief to pay for the new mandatory benefits.

Mandatory employee paid leave.

The Act requires emergency paid sick leave. It is limited to $511 per day for up to 10 days (up to $5,110 in total) for an eligible employee in coronavirus quarantine or seeking a coronavirus diagnosis. An employee can also receive emergency paid sick leave of up to $200 per day for up to 10 days (up to $2,000 in total) to care for a quarantined family member or a child whose school or child-care location has been closed due to the pandemic.

The Act also requires that small-business employees obtain the right to take up to 12 weeks of job-protected family leave if the employee or a family member is in coronavirus quarantine or if the school or child-care location of the employee’s child is closed due to the coronavirus. The employer must pay at least two-thirds of the employee’s usual pay, up to a maximum of $200 per day, subject to an overall per-employee maximum of $10,000 in total family-leave payments.

Small-employer tax credits

The Act grants a new tax credit to small employers to cover the now-required payments to employees who take time off under the new law’s emergency sick-leave and family-leave provisions.

Specifically, a small employer can collect a tax credit equal to 100% of qualified emergency sick-leave and family-leave payments made by the employer according to the Act. However, the credit only covers leave payments made during the period beginning on a date specified by the Secretary of the Treasury and ending December 31, 2020. The beginning date will be within 15 days of March 18, 2020, when the Act became law.

The credit increases to cover a portion of an employer’s qualified health-plan expenses that are allocable to emergency sick-leave and family-leave wages.

The new credit offsets the Social Security tax component of the employer’s federal payroll-tax bill. Any excess credit is refundable, meaning the government will issue a payment to the employer for the excess.

Warning: The credit is not available to employers that are already receiving the pre-existing credit for paid family and medical leave under Internal Revenue Code Section 45S.

Small-employer FICA tax relief

Sick-leave and family-leave payments mandated by the Act are exempt from the 6.2% Social Security tax component of the employer’s federal payroll tax that generally applies to wages. Employers must pay the 1.45% Medicare tax component of the federal payroll tax, but they can claim a credit for that outlay.

The Families First Coronavirus Act is just the first step of many that are sure to be taken by the U.S. government as they continue to face the COVID-19 outbreak. You can read answers to common questions, apply for aid, and more on the Department of Labor’s Q&A page here.

For a list of COVID-19 resources, click here.

How Employee Benefits Improve Retention

The Affordable Care Act, enacted in 2010, ensured that everyone was able to receive health insurance regardless of if they have pre-existing health conditions or for any other discriminatory reasons. This Act gave employees the ability to leave their employers if the only reason they were staying was insurance reasons. Employees who were stuck in their jobs to receive benefits now had the opportunity to look for opportunities elsewhere.

employee benefits improve retention

When employees leave a company, that company incurs many costs to their business, in addition to the added inconvenience. A study done in 2016 by the Society for Human Resource Management discovered that the average cost for companies to find replacement employees is $4,129, including turnover costs, and the average 42 days of lost productivity to find a new employee.

 If that employee holds a job that requires higher skills, that number increases, according to the Center for American Progress. The economic cost for finding a replacement goes from 5.8% of a year’s compensation to up to 213% for a highly skilled employee.

So how does a company prevent employees from leaving their company?

In short, the answer is simple: offer better benefits. While the ACA ensured benefits for all, you can differentiate your company by providing great options for their benefits. 

Around 75% of employees said that being able to customize their benefits package based on their specific needs is an important consideration they take when accepting a new job. Not only will it attract new people to your company, but 88% of employees say that the ability to customize their benefits package leads to higher overall job satisfaction. 

With these statistics in mind, if you offer voluntary benefits like vision, dental, accident, critical illness, hospital indemnity, and life insurance options for your employees, you will be able to retain and attract great employees.

At SBMA, we want to help you attract and retain those employees. Contact us to get started on your employee benefits packages. 

The Difference Between Group and Voluntary Benefits

There are many options to consider when choosing what coverage you would like to include in your group benefits plan. When considering the purchase of voluntary benefits versus buying group benefits options, you need to understand the advantages and disadvantages of both. Here are a few significant differences that will allow you to make a more informed decision.

  • Keeping your coverage: With voluntary benefits, you own the policy, meaning it can move transferred and taken with you whether or not you choose to leave your employer. There is no limitation on age or time of the policy. With group benefits, your policy owner is the employer, and they are responsible for renewing the policy. You could lose coverage if the plan gets canceled or if you choose to leave your employer. With some group policies, there are age limitations, which could include the possibility of losing your benefits at a certain age. The ability to move the plan is limited, and there is a possibility to keep coverage at a reduced benefit, or with a higher premium that may only last 12-36 months.
  • Premiums/Pricing: The premium for voluntary benefits takes into account your age at the time of purchase, and it does not increase over time. There is no annual renewal process, so you do not have to sign up for these benefits every year. With group benefits, the premiums are step-rated. There are predetermined points in the policy that inform you of when the premiums increase. The rate you receive when you purchase your coverage could only last 2-3 years, and rates are subject to change.
  • Renewability: Voluntary benefit policies are guaranteed to be renewable, and the carrier can not terminate. As stated above, there is no annual renewal process. With group benefit policies, the employer, who owns the benefits, is required to renew the group benefits policy. The employer also can cancel the policy at any time with a 60-day notice to employees.
  • Enrollment: Enrolling in voluntary benefits typically involve a one-on-one session with the enroller. You are the primary contact person, and anything to do with the policy goes directly to you. With group benefits information, there are group sessions to inform you about enrollment, but typically you enroll on your own. The employer is the point of contact between the policyholders and you, so those policyholders are usually less engaged with fewer customization options.

These are some considerations to take when looking for policy options. You may not be able to decide whether or not your employer offers group or voluntary benefits; this should help you navigate your policy. Inform yourself about what your policy provides, and you will be better suited to get the coverage necessary for you. Contact us for more information.

What Employers Need to Know About FFRCA and Benefits

The Coronavirus pandemic has had a massive impact on the financial health of thousands of companies in the United States. These employers have seen the enormous reduction in business and the effect it has on their employee benefit programs, and adjust them to meet the needs of both their employees and their business. These adjustments still carry certain obligations the employer must meet under federal legislation. So what do employers need to know about FFRCA and benefits?

Employers have had to reduce or terminate a portion of their workforce, put furloughs in place, and reduce hours and compensation for their employees in response to the crisis. All of these changes impact the employee’s benefit plans and policies, so an employer must review said plans and policies and make adjustments accordingly. Here’s what to consider while doing so:

Service provider contracts for employee benefit plans

Review the terms for existing contracts with multiple service providers, as the fees related to administrative contracts can be determined by the number of participants on your plan. Any reduction in workforce or hours for your employees would affect the total number of eligible employees, which could result in additional fees within the contract. The stay-at-home order may affect a service providers ability to meet their obligations within the contract, as well. Many of these contracts will contain a “Force Majeure” clause that excuses a party for nonperformance due to extraordinary events. Each of these provisions is contract-specific — be sure to review yours. A service provider’s nonperformance in regard to ERISA plans could pose a problem for employers. Employers should seek legal advice in terms of navigating their service providers contracts during this unprecedented time.

Emergency Paid Sick Leave and FMLA Expansion

On March 18, 2020, The Families First Coronavirus Relief Act was enacted. It requires employers with fewer than 500 employees to provide paid sick leave and additional FMLA benefits to their employees. Because of the added cost to employers, the FFRCA provides a quarterly payroll tax credit which is equivalent to 100% of qualified sick and leave wages paid to employees as emergency paid sick leave and emergency family and medical leave.

Health and Welfare Plans

  • COVID-19 Specific Coverage: The FFCRA requires group health plans to cover COVID-19 diagnostic testing related costs, healthcare provider services, and facility costs without the participant’s deductibles, copay, or coinsurance. The FFCRA also ensures that prior authorization and other medical management requirements be waived regarding COVID-19 services. In addition to the FFCRA, the CARES Act requires group health plans to cover preventive services and vaccines related to COVID-19.
  • Reduction in hours (or furloughing): Specific plan or policy terms determine whether furloughed employees or employees with a reduction of hours can keep their health coverage. Many plans require employees to uphold a minimum amount of hours to maintain coverage. Employers might be able to amend their plan or alter the policy to expand coverage or modify procedures for employee premium payments, but must seek approval from their insurance provider before any changes take place. 
  • COBRA Continuation Coverage: COBRA continuation coverage is offered to employees who have been terminated or have reduced hours. Employers can provide a subsidy to help their employees cover the COBRA continuation costs. Be sure to consider any discrimination issues that may arise if the subsidy is not offered throughout your company. 
  • ACA Employer Mandate: ACA requires employers with 50 or more full-time employees (who average 30 hours a week or more) provide minimum essential coverage to their employees.
  • HIPAA: employers who are covered under HIPAA and their associates must remember that HIPAA applies during the COVID-19 pandemic. With changing work conditions, ensure that you review and update HIPAA privacy practices to ensure your safeguards are in place.
  • Cafeteria Plan Elections: There cannot be any change in mid-year election choices based on employment status change. 
  • Premium adjustments: The potential reduction or change in your workforce could affect the employee eligibility for health insurance policies, which could bring about premium adjustments. 
  • Value of welfare benefits: Welfare benefits and their value is tied to employee compensation, reducing their compensation can reduce the value of these benefits for those employees. 

Retirement Plans

  • There are fiduciary responsibilities under ERISA in a market similar to the one COVID-19 has caused. ERISA plans should pay specific attention to fiduciary duties, like acting prudently, diversifying plan assets, and complying with plan provisions. 
  • Participant Access to Retirement Plan Accounts: 
    • The CARES Act permits multiple situations for employees. Employers can expand participant access to specific retirement accounts for “coronavirus-related distribution,” without subjection to 10% early withdrawal penalties and must be repaid over a 3-year period. 
    • The CARES Act also allows employers to increase the maximum loan amount for qualifying individuals if their 401k plan allows participant loans. 
    • Hardship Withdrawals: Most plans allow for hardship withdrawals in areas that are federally declared disaster areas. These withdrawals are still subject to the 10% withdrawal penalty who have not reached the age of 59 ½ and are taxable in the year they are withdrawn. 
    • In-Service Distributions: If the employee has reached the age of 59 ½, many plans allow their participants to receive in-service distributions without a withdrawal penalty. In light of the crisis, employers should consider a plan amendment to expand or add in-service distribution to defined contribution plans or benefit plans.
  • Reducing or Freezing Benefits and Contributions: Employers may be looking to reduce operating costs by reducing or freezing benefits or suspend employer matching or nonelective contributions. This requires at least a 45-day notice before the reduction is put into effect. Discretionary employer matching and nonelective contributions may be suspended or reduced prospectively and may or may not require a plan amendment. Consider the IRS rules that prevent cutbacks in benefits.
  • Funding Relief for Single-Employer Defined Benefit Plans: The CARES Act gives single-employer benefit plans more time to meet funding obligations by delaying the due date until January 1, 2021, with interest on the delayed payment. CARES Act also allows a single-employer defined benefit plan sponsor can elect to treat the plan’s different funding target attainment percentage to the last plan ending before January 1, 2020.
  • Voluntary Termination of Qualified Retirement Plans: Due to the change in economic circumstances some employers may feel they need to terminate their qualified plans. All participants must be fully vested in their accounts under the plan during termination. However, there is a rule that employers who terminate a 401k plan may not establish a new plan within 12 months of the termination. Participants and beneficiaries must receive a special notice at least 45 days prior to the effective date of termination.
  • Partial Termination of Qualified Retirement Plans: Reducing your workforce by 20% or more of qualified retirement plan participants in a plan year that is not considered routine turnover could end up in partial termination of the plan. All participants who have been affected must be fully vested in their accounts. 
  • Deadlines for 403(b) Plans and Pre-Approved Defined Benefit Plans Extended: The IRS is extending the last day of the initial remedial amendment period for 403(b) plans from March 31, 2020, to June 30, 2020. They also are extending both the April 30, 2020 deadlines for an employer to adopt a pre-approved defined benefit plan and submit a determination letter application under the second 6-year remedial amendment cycle and the April 30, 2020 end of the second 6-year remedial amendment cycle for pre-approved defined benefit plans deadline until July 31, 2020.

Incentive Compensation/ Non-Qualified Deferred Compensation Plans

There are strict rules that Code Section 409A adheres to regarding the time and type of payment incentive compensation and other non-qualified deferred compensation a company puts in place. This could include penalties for both the employer and the employees. As you work to navigate potential liquidity issues through the COVID-19, ensure that you navigate Code Section 409 A properly by addressing these issues:

  • Paying Annual Bonuses by March 15th: If you missed the March 15th deadline due to COVID-19 related issues with administrative duties or if the payment jeopardized the employer’s ability to continue, the payment may be made as soon as possible after the unforeseen circumstances are alleviated.
  • Cancellation of Deferrals/ Unscheduled Distributions: In the event of an unforeseeable event, an employee’s deferral election may be canceled, if the plan allows. Employers can also allow a participant to receive distributions if their plan contains these distributions. The employee still must show that emergency expenses cannot be covered by insurance, liquidation of assets, or ceasing deferrals under their plan. The distribution will also be limited to the amount needed to satisfy the participant’s financial needs. 
  • Scheduled Distributions/Distributions Payable Upon Separation From Service: Most non-qualified deferred compensation plans provide payment upon an employee’s separation from service. Separation of service includes termination or a reduction in hours, and the employee would be entitled to a distribution from their plan.
  • Equity Award Considerations: Employers should consider if they should update their stock option valuation that considers the COVID-19 pandemic. This could affect the issuance of equity compensation.
  • Termination of Non-qualified Deferred Compensation Plans: Section 409A does allow a voluntary plan termination and distribution of benefits under specific circumstances, but these rules do not allow termination in connection with a downturn of employers’ financial status. This would require similar non-qualified deferred compensation arrangements to be terminated, and payments would be delayed 12 months after the plan is terminated. Once this is done, the employer cannot adopt a new non-qualified deferred compensation arrangement of the same type for 3 years.

As an employer, there are many things to consider with the changing economic times. For more information visit our site.

Voluntary Benefits Attract the Best Employees

Voluntary Benefits Aid in Attracting the Best Employees

Including options for voluntary benefits and supplemental benefits is quickly becoming the norm for most employers who offer health insurance to their employees. As an employer, attracting the best talent and keeping them is of the utmost importance to maintaining a successful business. Over the last few years, there has been an increase in demand for voluntary benefits. While major medical coverage is the foundation of a good employee benefits program, it’s important to ask the question: how can I use these voluntary benefits to make my company more attractive to new prospects?

Most employers view voluntary benefits as a way to provide a choice to their employees, to offer options for their diverse workforce, and to ensure that their employees are happier and healthier. Employees need solutions that they can cater to their specific lifestyle. 

Some voluntary benefit options include hospital confinement, accident, critical illness, disability, cancer, legal services, identity theft protection, and commuter benefits. Some employees will enroll in every type of coverage available. 

This shift in regard to voluntary benefits could be attributed to employers wanting to offer holistic coverage that supports their benefits strategy. Employers can align their benefits with their overall company offerings and values. 

With multiple generations involved in their workforce today, an employer must offer benefits that would cater to each of their needs. Those who are older might consider traditional benefits packages to be sufficient, but younger generations might prefer voluntary options. 

Enrollment portals allow employers to offer both core benefits and voluntary benefits in one place. This gives employees the flexibility of changing their plans whenever they need to and educate employees on how to choose the benefits that align with their needs. 

Not only do these benefits allow your company to attract and retain talent that will benefit your company in the long run. For more information on how you can offer the best, affordable benefits to your employees, contact us.

What Benefits Improve Employee Retention?

Offering employees the benefits they want and need is one of the best ways to retain talent and improve your employees’ satisfaction. There is a large portion of employees who view benefits as an essential factor in their satisfaction with their job and company. So, what employee benefits can you implement that will differentiate you from your competitors? Here are a few options:

Retirement benefits: 401(k) and defined-benefit plans are becoming more important in retaining talent. The incoming workforce of younger employees views retirement benefits as an important factor in deciding whether or not to take their job. Glassdoor found that as companies increase their retirement benefit programs by 1 star, the employees experience a .08 star increase in satisfaction.

Wage increases: Increases in wages can increase employee satisfaction. Some companies choose to forego traditional group benefits and raise employee wages instead. While this seems like an excellent solution to improving employee satisfaction, if you decide to forego any benefits program, it might cause employees to look elsewhere. Employers expect the additional wages to be spent on benefits, but employees may not spend that money to account for a benefits program. Employees typically do not see wage increases as a replacement for benefits. 

Transportation benefits: Commuting can be a hassle for many employees across the U.S. Employees may dislike it so much that they decide to look elsewhere for a job closer to their home. Transportation benefits may mitigate this hassle and help employees justify a commute. Companies that offer a supplement for transportation cost are viewed as better places to work. Not many employees provide these benefits so that it could differentiate you from the rest.

Bring your device programs: These programs employees can use their own devices for work-related purposes. Companies can also offer to reimburse employees for any costs that incur with their devices. While this is seen as a benefit to its employees, it also can reduce the costs of buying devices for your workforce. The satisfaction increases when companies offer to reimburse employees for their expenses, like their phone bill.

Traditional Group Health Insurance: This is the most valued benefit program for employees. Employees increasingly desire healthcare benefits that are customized to their needs. Offering different options depending on the lifestyle each employee lives can increase employee satisfaction significantly. 

Education Benefits: Educational assistance from companies gives employees a greater feeling of importance. More and more employees desire additional education benefits. These benefits could be in the form of tuition reimbursement or paid job training. With these types of benefits, employers must ensure that they are offering robust education options to ensure their employee’s happiness.

Employee benefits can allow employees to feel cared for and important within their company, which leads to higher company satisfaction. For more information on how to offer the best, most affordable options for your employees, contact us