OFFER YOUR EMPLOYEES MEANINGFUL BENEFITS
Financial stress can be an unwanted distraction for your employees. As an employer, you can offer meaningful benefits to help them protect their loved ones and help secure a plan for the future. That way, you can provide value not only to your employees by helping them stay focused and productive, but also to your business.
What Benefits Do Employees Want Most?
If you’re trying to balance the costs of employee benefits while maintaining the kinds of offerings employees are looking for, you’ve got a lot to consider. The new healthcare system developed under the 2014 Patient Protection and Affordable Care Act and general competition for talent have made the benefit landscape more challenging than ever. Topping the employees' lists are healthcare and retirement planning, but they are interested in other products and benefits, too. So how can you create an attractive benefits package and still control costs?
Challenges with Baseline Benefits
In terms of benefits, employees primarily look to their employers for access to health insurance and ways to save for retirement. Yet the trend in both areas is toward consumer-driven products, meaning employees need to make more of their own decisions about what benefits they choose and what they will spend. Gone are the days when the employer could simply offer a "one-size-fits-all" benefits package.
However, many employees really don't want to be driving this bus. They’re focused on their work and careers, they don’t always have the time to research all the choices they have, and they may not understand how to pick the best benefit coverages for their own life circumstances. Meanwhile, employers may find the situation even more complicated because costs can easily get out of control. That’s why some employers are offering a flat spending credit that employees can use for an array of benefits, or just toward health benefits (medical, dental and vision).
Today, employees have many questions — whether they feel comfortable asking them or not. More than ever, business owners and benefits managers need to understand their employee population’s needs as well as find ways to educate employees about benefit options.
A top concern of employees is health insurance. The marketplace is flooded with plan types and a Financial Professional — an independent agent or broker — can really help employers deconstruct the details.
In general, traditional health plans have higher premiums and fuller coverages, and vary in terms of coverage for in-network versus out-of-network providers.
To trim costs, many employers choose to offer high deductible health plans (HDHPs) because they offer reduced premiums — but, in these instances, employees pay more out of pocket because there are higher deductibles than with traditional health plans. However, these plans also offer employees the chance to reduce their federal taxes by saving for out-of-pocket expenses through a Health Savings Account.
A Financial Professional can help you compare your employee population’s needs with the pros and cons of the various plans. They can also check with multiple carriers to compare prices.
The ability to contribute to a quality retirement plan — 401(k), 403(b) and IRA — is often the second most important benefit employees look for. Offering a corporate match is a great way to attract talent. When selecting a plan administrator, look for employee resources like call centers, online account management and tools that can help employees plan and manage their retirement funding.
A second option to consider is offering a more traditional pension. While it's not very common for smaller businesses, offering one can help ensure employee retention for longer periods of time. A pension that has a defined vesting period, such as five years or more, is a huge financial incentive to stay with a company, especially on top of an employee's 401(k) plan.
Next up are voluntary benefits. These may not cost employers, unless the employer elects to subsidize these benefits as an incentive for employees. Voluntary benefits may give employees the opportunity to take advantage of discounted rates that insurers may offer on certain insurance products provided through the worksite. Also, when buying life insurance or disability income (DI) insurance through the worksite, employees often times don’t need to go through full medical underwriting. Making insurance products available on a voluntary basis can be a win-win for employers and employees. Employers are offering employees a convenient way to purchase life or DI insurance through the workplace, and employees can get the products they want. Millennials in particular tend to evaluate employee benefits packages for these options — they want to see they have a range of choices.
Growth and Development
Career and professional development benefits are another important way you can attract and retain great employees. Some employers have development plans that require annual training or supplement employee education with tuition reimbursement. Providing in some way for growth and development shows leadership.
Employers are on-point to make information available to employees, especially new hires. To help you, benefit providers have employee communication tools, but keep in mind that everyone learns differently and uses different channels to get information. Employees should be able to opt into the channels they prefer. Information should be available in multiple ways, such as email, webinars, onsite meetings, tools and videos.
Bottom line: The best benefits to offer your employees are the ones they want the most. Talk to them. Get to know their needs and concerns. Find out what benefits they’d spend money on and what they wouldn’t.
When you discover what’s really important to them, you may even consider picking up the tab for some of it. When you look at both the cost to the business and potential tax advantages you may receive, additional benefits may cost you less than a salary raise and have the same positive effect on the employee.
Like most people, you may have a range of financial obligations you’re responsible for, such as rent or a mortgage, retirement savings and everyday expenses. If you become disabled, you’ll still need to fulfill your commitments and provide for your loved ones. Even if you have group long term disability income insurance through your employer, it may not be enough. Individual disability income (DI) insurance may help protect more of your income if you become too sick or injured to work for an extended period of time
You've worked hard to save for retirement, so it's critical to protect the nest egg you've built. Since DI insurance can help you meet your current financial obligations if you become too sick or hurt to work, you may be able to avoid tapping into your retirement savings.
Other Features and Benefits of Disability Income Insurance
When you add up your income throughout your career, it may be your single biggest asset. Without it, your ability to support yourself and your loved ones, as well as the future you envision, may be in jeopardy. With so much at stake, it’s important to help protect a portion of your income with DI insurance.
Your life and needs may change over time. Individual disability income insurance policies may be customizable, so you can prepare for the future.