5 Questions you need to ask before you renew your employee benefits package

1. Does your current employee benefits package offer the best value for money regarding benefits and price?

The health care industry continues to evolve. Employers are challenged with absorbing health insurance increases and other impacts to their bottom lines. In addition, complying with the Affordable Care Act (ACA) brings added uncertainty and financial burden.

To mitigate the budget squeeze resulting from these increases, employers are forced to focus more than ever on health care cost management.

There are several innovative ways to improve the way you mitigate health care costs including different funding mechanisms, adoption of technology, and transparency.

Some things to consider...

What are the other options to fully insured?

Have you evaluated how healthy your employees are?

Is your company big enough for self-insurance or stop-loss insurance?

2. Is the Employee Benefits Package you are offering rich enough to keep your key employees?

It costs nearly 20% of an employee’s annual salary to replace a current employee.

Given the high cost of losing an employee, retention is a top priority for most organizations.

And exit interviews are a great way to analyze why employees are leaving.

If the responses from the exit interviews indicate that a reason for your employees leaving is a non-competitive benefits package, you can incorporate a better offer in your retention strategy.

Some things to consider...

If you are losing employees do you need to contribute more on behalf of your employees and dependents, or evaluate the benefits you offer?

3. Does your employee benefits package offer the 5 benefits that employees value most?

a. Financial well-being

During the past year, many employees had unexpected expenses. Some people lost jobs or were furloughed. Others had medical costs that insurance didn’t cover. Many employees also have student loan debts, which average about $35,000 per person.

So, employees recognize the importance of financial well-being more than ever, and want to safeguard their financial security include student loan repayment assistance and 401(k) retirement savings plans.

?b. Comprehensive health coverage

The Society for Human Resource Management reports that for 56% of American adults, the quality of their employer-sponsored health benefits impacts their decision to stay at their job. About 46% of adults surveyed said that the health insurance package was either the deciding factor or positive influence in accepting their current job.

c. Paid time off

During the pandemic, employees appreciated flexible work schedules and paid time off to help balance family and job responsibilities. Many employees care for children and aging parents and need extra time off to juggle appointments and school activities.

d. Office and computer resources

?Remote work continues as a popular option for employees. During the pandemic, about 70% of employees worked remotely. Gallup research shows that many employees want to continue to work from home, up from 37% in July 2020 to 44% in January 2021.

Employees are asking for an allowance to help them with purchases of equipment and services to improve their work environment to perform their jobs. These items include ergonomic office furniture, updated computer and software, internet service and office supplies. Providing this benefit to cover office expenses shows remote workers they are valued and their dedication to the business is appreciated.

e. Wellness programs

Even though many employees work remotely, they appreciate wellness benefits that help them maintain and improve their health. They want access to virtual programs to help them lose their COVID-19 weight, manage stress, and participate in team-oriented fitness options.

About 60% of American workers are concerned about the condition of their mental health following the pandemic. In addition to paid time office and work-life balance, employees want access to an Employee Assistant Program (EAP).

Some things to consider to learn more about the benefits employees want...

Have you done a survey of your employees to ask what they like, and don't like?

4. Do your employees really know what’s in your benefits package and how to use it?

The benefits package is very important in keeping your employees, but often they are not sure about what is in it or how to claim in the event of a problem.

Would any of your employees benefit from a Concierge broker to help your employees navigate health care costs and confirm care is coordinated?

5. Do you have a trusted advisor who can educate you and provide the information that you seek?

Employee Benefit Packages are complex and a recent survey show that employers are seeking out information from a trusted advisor who has a good relationship with the organization.

I’m happy to help answer any of your questions. Feel free to message me back or schedule a time to talk.