We Make the World Go Round

By: April Danielson

In todays world market we see growth in many different ways, from financial gains and losses, a single suite to giant sky scraper, a local manufacturing company that goes from the local hardware shelves to global market shelves.? All of them starting with nothing growing into the brands we know today and love. So, what is the one thing that they all have in common? Great Employees! No company can get anywhere with out the right people in the right places, so how do you get them there and how do you keep them there. This has been the age-old question that CEO’s, recruiters, management, HR teams and so many more struggle with. According to Eden Health a” good benefits package can make employees feel reward and appreciated for their work.”?

So what are employee benefits? Employee Benefits can be described as any form of compensation or reward that provides support to an employee’s family, health, and financial future.? These benefits can be tangible or intangible and be mandatory or voluntary.? A definition so broad can leave an employer wondering how does one ensure that they have a diverse work force and still able to offer a benefits package that meets the needs of this diverse workforce.?

The first step is to review the current benefits offered.? Common types of employee’s benefits include the following but are not limited to:

?????? Retirement Plans- This can include defined benefit pensions, defined contribution plans like 401(k)s and profit-sharing plans.? Depending on your work force and risk tolerance different plans offer different benefits (example pensions guarantee a fixed monthly benefit where 401(k) depends on investment returns.

?? Health Insurance – Over 94% of employers with 50 or more employees offer Health benefits in 2023.? 91% of workers employers with 3 or more workers offers health insurance.? If you are in the minority this can put you at a disadvantage, even offering a plan less appealing may be the difference that keeps or loses an employee. From- KFF.org

????? Dental/ Vision Insurance- Both are also extremely popular and mostly partnered with a health plan. Some carriers even offer multi line discounts for offering Health, Dental and vision all in one package. Dental and Vision do not require an employer contribution like a Health plan. This allows employers to offer these additional benefits to there employees at a group discount with out having to pay a large premium.

???? Term Life Insurance - Many employers can offer a group life insurance plan at much lower rates than those for individuals also offering guarantee issued amounts. Employers can offer term life as an employer paid benefit or employee paid.? Most carriers also will allow additional buy options for employees to purchase additional life insurance or for family coverage at discounted rates and no health exams.?

??? Disability Insurance – No matter is it is Short Term or Long-Term Disability is a great benefit offering to help employees protect their pocketbook. This benefit again can be Employer Paid or Employee Paid. According to MarketWatch survey in August of 2024 66.2% of American fell as it they are living paycheck to paycheck. Not offering Disability could mean the loss of 66% of the work force. ?

??? Paid Time Off - This can include paid vacation days, sick days, personal time, Holiday pay, and so on. With paid time off options, you are more likely to keep you work staff balanced and happy allowing more productive work, fewer sick days, and better loyalty.

Also some outside of the norm but become more popular are additional offerings such as Pet Insurance, Tuition Reimbursement, Volunteer Hours, Flex Time, Financial Wellness, Financial Planning, Childcare, Senior Care, Etc.…

With so many options to pick from but how do you know what makes sense for your work force.

The first thing that comes to minds is the COST. ?How much is this going to cost the company?? According to the US Bureau of labor statistics we find that on average benefits make up almost 30% of the average total costs per private industry employee. Keeping that in mind the traditional employee benefits package typically will consist of Essential components. These can include Health insurance, Disability Insurance, Life Insurance, Retirement Savings and Planning, and Paid Time Off.

So now we know where to start. Consider your employee demographics.? If you have a road construction crew who are younger in age, single, and less likely to go to the doctor you may look at health insurance different than that of dental office who staffs 12 Full Time Middle age married individuals with families.? ??Knowing your employees and those future employee groups your company is attempting to recruit can help you define where to place those benefit dollars.?

Looking back at the example of a road construction crew, they may be more interested in a higher deductible health plan. These plans tend to offer lower premiums, and with the risk of higher costs if benefits are utilized. Now lets take a look again at our dental office demographics. A dental office with 5 dentist may be interested in a Long Term Disability plan specific to there industry vs a Short Term Disability plan. One of the dentist enjoys a side hobby of racing. One day while working on he has a hood prop break leading to a Broken hand that could cause permanent nerve damage. Offering Long Term Disability may be more important than short term or even health insurance if other options are available to the employees. Knowing your demographic can be key!

When looking at enhancing your current benefits there are a few additional levers that can be pulled for minimal to no costs. These can include a plethora of options. With todays post pandemic workforce we are seeing an increase in individuals utilizing benefits like activity rewards, wellness challenges, free or discounted gym memberships biometric testing ect.? All of this may be included with employees your health insurance carriers plans or as an optional buy up. Having options with in your health plan can help broaden your employer benefit offering with out having to break the bank. ?Another popular benefit is Mental health coverage, resources, and support. Some ancillary carriers even offer employee assistance programs build into there employee benefits. Either built in or added on there are a number of new and innovative ways to address stress and mental health at work. These can include but are not limited Employee Assistance Programs EAP, Office Visit Copays for Mental Health, Employee Resource Libraries available on employee platforms, in house counseling, or quite/meditation spaces at work..

Maybe some of your employees want to grow and develop in there carrier. A great way to establish and build loyalty is to also encouraging employees to continue to grow. This can be done in house by offering things like College Gants and Scholarships these can even be offered to family members or children. Another tool to bring to the table can be to offer Tuition Reimbursement and Student Loan Repayment.? These have become much more popular in recent years as student loan debt has become more and more apparent. Paid Training and Professional Development Stipends can be a way to employer your employees. As with continuing Education that allows employees to chose how they want to grow in their own professional development empowering the employees in there carrier. Studies show that if employee leave for further education and an employer is supportive most employees will return upon completion.

Another popular tend after the Pandemic was to review the Remote or work from home options. Many employees found benefits in working from home when they may have had costs related to driving, parking etc. If working from home is not an option the commuter benefits allow the employer to off set some of the parking/ public transits costs. These offer employee’s reimbursement for accommodations in parking and public transportation to & from work. ?Another benefit recognized during the pandemic was the ability for employees to flex time. Offing a Flexible work Hours benefit can help off set the limitations posed if you can not offer a work from home option. This can be a great fit for all demographics as everyone's life can get busy. This benefit also can help by eliminating the need to take PTO and be out for appointments leading to an increase in your productivity.

?As you can see there are endless possibilities, we could keep going into Appreciation events performance rewards, incentives, Extended leaves Travel benefits etc.… But what really matters is that employees know that you value them apricate them and could not do it with out them.? We all want to offer the best plan with the richest benefits but unfortunately money does not grow on trees.? So, we need to get more creative, as health insurance, dental, vision etc.… all increase its up to you to be more creative on how you can offer a more comprehensive benefit package with out breaking the bank.? We all know that our greatest asset is our employees so making sure that they feel that way is a priority.? ??To give you clear idea of how important benefits can be are some quick statics from Eden Health:

·???????? 49% of your employees will start looking for a new job within 12 months if they’re dissatisfied with the benefits offered.

·???????? 78% of employees reported being more likely to stay in their current roles if the benefits are attractive.

·???????? 75% of employees stressed not only the importance of employee benefits but expressed a desire for more variety.

·???????? 400% of an employee’s annual salary is what it could cost to replace a high-level employee who leaves their role.

·???????? 40% of employees said a company becomes more attractive if their benefits packages are tailored to them.

As you can see benefits are important for more than just attracting top talent. It also, can be a great tool to increase your employee retention.? No one can make it to the top with out a great team behind them. So make sure your team and you are getting the best of what there is to offer. Reach out today and start auditing you benefits package as we quickly approach a new year we are given a great opportunity on present a new benefits package and retain the top talent in our fields. If you don't have an agent your work with now feel free to reach out and we would be happy to get you in contact with the right people in your area! Lets make this year the year everyone talks about how great your company is to work for!

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