Salary, health benefits, and retirement savings plans are still the most important parts of employees’ overall compensation. However, concerns about health care costs not covered by health insurance and anxiety over unexpected expenses have employees looking at the range of voluntary benefits that can provide them with added security to meet these financial uncertainties.
Voluntary benefits are a set of insurance products that can help fill in gaps in coverage. While it’s easy to overlook these gaps, doing so could result in financial hardship.
Health savings accounts (HSAs) are a growing trend in health care. An HSA is a tax-exempt savings account established for the purpose of paying for the qualified medical expenses of an individual and/or his or her spouse and tax dependents. HSAs are designed to provide eligible individuals with the following federal tax benefits:
In addition to tax benefits, individuals covered under an HSA are more likely to seek preventive care, choose generic drugs, not misuse the emergency room, and use online tools to research health care providers.
The year may be winding down, but experts are already making their predictions for the hottest employee benefits in 2018. In a recent Employee Benefits News article, industry leaders expect benefits in the category of financial well-being to be the highest in demand.
The United States is experiencing an ever-tightening labor market, where the number of jobs available exceeds the number of qualified candidates. One way employers can recruit and retain top talent is by offering voluntary benefits and educating employees on how to use the voluntary benefits they offer.
According to Gallup, nearly 50 percent of employees report they would leave their employer for a company that offered benefits beyond medical insurance. Offering these benefits isn’t all employers need to do, though. In order for employers and employees to get the most out of these benefits, employees must be made aware that they exist and be educated on how to use them.
Open enrollment is the perfect time to start talking to employees about the voluntary benefits that are offered at your organization.
While simple in theory, life insurance benefits can quickly become complex when beneficiary designations are incomplete, inaccurate, or out of date. As an employee benefit, group life insurance is intended to help employees protect the financial futures of their family members or individuals or organizations they care about. Without careful beneficiary planning, intended recipients may face long delays in receiving benefits—or miss out completely.
Employees can name any person or entity (except their own employer) as a beneficiary, including family members, friends, trusts or charities. But without proper beneficiary designations, an employee’s death benefit can sometimes be left to chance. If there is no beneficiary on file, death benefits are typically paid according to the group policy provisions. In these cases, the beneficiaries may or may not be who the employee had in mind.
The incentives you offer can impact how candidates view your company and its culture. Different programs and benefits will attract different people. Keep this in mind when choosing which initiatives to promote, especially if you want to attract working parents.
The cost of child care in the United States can be the greatest single expense for a household, with at-home care averaging $28,354 annually. Imagine, then, how enticing child care initiatives might be to working parents or those who want to start families.
Moreover, a company’s child care initiatives can make or break an employee’s decision to stay with his or her employer, according to the Harvard Business Review. Offering child care benefits is one of the best ways to recruit talent. Child care services and the support of an employer are consistently cited as top concerns for parents. The following initiatives are just some of the ways to enhance your workplace for employees and their families.
According to a Gallup poll, 1 out of 6 full- and part-time working Americans are also a caregiver for a loved one. Typically, a caregiver is an unpaid individual who assists an elderly or disabled family member, relative or friend. It is estimated by the National Alliance for Caregiving and AARP that 70 percent of working caregivers suffer work-related difficulties due to their dual roles. Moreover, caregivers are forced to miss an average of 6.6 days of work annually because of their caregiving responsibilities. The annual cost of lost productivity due to caregiver absenteeism amounts to more than $25 billion.
As the baby-boomer generation continues to age, it is likely that younger employees will take on caregiver responsibilities. Of the 129 U.S. benefits managers surveyed by the Northeast Business Group on Health (NEBGH) and AARP, 66 percent agree that caregiving will become an important issue to their workers over the next five years. Forty-five percent of these managers say that caregiving benefits are one of their top 10 priorities for health and benefits issues.
Typically, employers rely on generous compensation package to attract and retain key employees. However, the important role employee benefits play is often underestimated. In fact, employee benefits are a powerful part of any employee’s compensation, including highly compensated employees.
Having a high income does not preclude concern about personal financial risk. MetLife’s Annual Employee Benefit Trends study reveals that 42% of highly compensated employees are very concerned about the financial effects of a loss of income in the event of a disability.
It’s no secret that top talent expects to be paid top dollar. Even with a developed recruiting program, a strong, positive culture and a comprehensive benefits package, it will be difficult for your company to attract and retain the best employees without a competitive pay policy.
What is “competitive pay”?
Most HR professionals suggest that being competitive with compensation means paying an average of 5-10 percent more or less than the market average pay for a job or a group of jobs.
What is the market average rate?
The market average rate for a job is the average pay for a position. By ordering or engaging in pay surveys, you can study what market average pay is nationally, regionally and locally for various positions, and determine whether your pay is competitive.
Click here for more information on wage statistics and pay averages.
It costs nearly 20 percent of an employee’s annual salary to replace a current employee. If you are experiencing high turnover, chances are you are experiencing high losses as well. The costs of reviewing applications, processing candidates, conducting interviews, training and purchasing equipment for new hires aren’t only monetary—they also cost time and lost productivity.
Given the high cost of losing an employee, retention should be a top priority for every organization. If you do not already have a retention strategy, now is the time to make one. The first step in curbing turnover is figuring out why employees are leaving.