As an employer, the cost to attract, hire, and retain high-quality employees is so much more than just their salary. For many potential employees, the benefits package you offer can make or break their decision to accept your offer. In fact, a strong enough benefits package can cause them to sign on with your organization despite several other competitive offers and maybe even at a lower salary.
Benefits are everything besides the most basic reason for getting a job. They frame the entire recruiting process as well as the employee experience once they’re on board.
Entrepreneur.com explains them as follows:
“Employee benefits are benefits offered to employees from employers, such as health insurance, disability insurance and a retirement plan, to name a few. Benefit plans can add approximately 30 to 40 percent cost to the base pay of most employees. However, offering employee benefits can shape a company’s culture and affect employee retention -- as well as the quality of talent attracted to a business. Some benefits are mandatory by federal law and some aren’t -- but are deeply important to employees.”
In other words, employee benefits are everything other than money that an employer uses to attract, hire, retain, and delight their employees. In addition, those added benefits can shape the organization’s culture and brand.
Not an exhaustive list as you can turn anything you want into a benefit…mid-afternoon ping pong match anyone?
The options are almost limitless but keep in mind that most of these have an expense associated with them and can ultimately affect how your workforce views their place of work, their duties, and their productivity.
Millennials are in and Baby Boomers are on the way out. A 2014 article in the Washington Post reaffirmed a statistic that 10,000 baby boomers retire every day. The turnover in the workforce is dramatically influencing the ‘tastes’ for certain types of benefits. No, all millennials don’t want bean bag chairs and free latte’s. However, certain benefits such as paid community volunteering time and work-from-home options are growing in popularity, rapidly.
Economic contraction and growth cycles have been extreme over the past decade. From the bursting of the sub-prime bubble to the unprecedented bull market for stocks that followed, investment accounts around the world have shrunk and swelled. Factor in new investment opportunities such as crypto currency and it seems like the wild west all over again. Employer-sponsored investment and retirement plans are evolving rapidly and so are the corresponding regulations that speak to the responsibilities of plan administrators.
Governmental regulation continues to be one of the largest influencers of employer benefits packages. States electing to increase minimum wage, equal-pay for equal-work initiatives, and paid sick time for hourly worker mandates are all moving targets that must be watched closely by employers to make certain they are in compliance and anticipated changes in expenses are budgeted for.
Let’s focus briefly on the 800-pound gorilla in the room, ACA-compliant health insurance plans. Regulations such as the Affordable Care Act, medical cost inflation, the aging of the Baby Boomer generation, and increasing rates of chronic illnesses such as cancer, diabetes, and heart disease are all conspiring to raise the overall cost of hiring and squeezing profit margins.
These plans have required a massive amount of attention from employers and HR professionals ever since the ACA was signed into law. In fact, they will continue to because they are typically the single most expensive piece of your employee compensation package outside of wages and salaries.
This holds true even if you choose to not offer coverage because the penalties for not offering minimum coverage are growing. It is the hope of some that relief will come from the Trump administration but much of the regulation remains intact following repeated attempts to repeal it completely and then subsequently adjust some of the internal mandates and penalties.
All of these trends point to one clear conclusion…
Employers will need to work with benefits professionals that provide SOLUTIONS to help bend the cost curve while preserving a comparable level of coverage and benefits for their employees!
Nothing is wrong with identifying a need and addressing it using a readily available and widely distributed product or service. In fact, we use these types of products and services within many of our recommended benefits program structures. However, solely relying on these types of solutions can cause your organization some major issues. They include out-of-control increases in cost every year, blanket reductions in benefits offered, gaps created between one benefit product and another, etc. Especially in this day and age, employers offering benefits programs need to keep an eye on more than just addressing the needs of their workforce in the present. Long-term trends in behavior and expenses can spell disaster just like a small leak can eventually turn into a massive flood.
Our goal is to build a Comprehensive Benefits Program that is tailored to your organization’s needs and achieves your desired goals. Benefits Solutions are specifically designed insurance policies, products, and support services that meet these needs. To take it further, the collection of these policies, products, and services need to work together in concert so there are no ‘holes’ or ‘gaps’. Treadstone takes a holistic approach to this process.
A Benefits Program that meets your organizational needs and goals, keeps a tight rein on expenses, and focuses on long-term sustainability and dependability.
NOT SO FAST! Harkening back to the home example at the beginning, Benefits Solutions and Programs require routine maintenance to make sure that they’re operating properly. Coverage and what is covered needs to be updated, new business practices need to be factored into the overall program, changes in the workforce can require a reassessment of assumptions and industry/economic changes can influence what solutions are available and for what price.
That is why Treadstone Risk Management focuses on building a long-term relationship with its’ clients to help with both the construction and yearly maintenance of the solutions we provide.
We want your business or organization to keep performing at a high level and hopefully growing. In that way, Treadstone is your partner. If you succeed, so do we!