Attract and Retain Employees with Comprehensive Benefit Packages
By: Zane Benefits, June 2016
A 2015 Glassdoor survey noted that 79% of employees favor more benefits/perks to a pay increase. Most small businesses lean toward a one-size-fits-all employee benefits package. However, such benefit packages are not a favorite among employees, or business owners who want to meet the diverse needs of their workforce. This has brought about an increase in the number of employees favoring consumerized employee benefits. With consumerized employee benefits, employees can pick and choose benefits that complement their lifestyle and financial goals. Heading the list of must-have benefits are Health Insurance Reimbursement and Retirement Saving Plans.
Health Insurance Reimbursement Program
A Health Insurance Reimbursement Program (similar to an HRA), is a notional account used by employers to reimburse employees’ healthcare expenses. Here funds do not accumulate in a separate account, but are reimbursed to employees once the expenses are incurred.
Retirement Saving Plan
There are a number of ways a company can contribute to an employee’s retirement. The 401(k) is common and well-known, but there exist other options such as company contributions to employee’s Individual Retirement Account (IRA) or Health Savings Account (HSA).
Why Retirement and Health Benefits Go Together
Although employers typically offer HSA contributions as health benefits, they can be a great tool for employees looking to save for future expenses. Employees should contribute the max amount into their HSA each year before they contribute to any other type of retirement account. IRAs and 401(k)s require you to pay state and federal taxes on all money taken out of the account. HSAs are treated the same as IRAs and 401(k)s except when it comes to distributions for qualified medical expenses – which are tax-free at any time. Since medical costs are consistently one of the largest expenses for an aging population, an HSA becomes a way to save tax-free money for retirement.
Education – A Key to Solution
The biggest mistake a company commits is offering abundant benefit options but no education on how best to use them. Employees must be educated on the type of coverage and benefits that best suits them. That’s where advisers can step in and help navigate through the myriad offerings.
Conclusion
By providing flexibility in employee benefits, employers can attract and retain qualified employees.
Categories
- Benefits Resources
- Bonding
- BOP
- Business Insurance
- Commercial Auto
- Commercial Property
- Company News
- Construction
- Crime Insurance
- Cyber Insurance
- Directors & Officers
- Employee Benefits
- Employment Practice Liability Insurance
- Entertainment
- General Liability
- Health Insurance
- Healthcare
- Healthcare Reform
- Homeowners Insurance
- Hospitality
- Manufacturing
- Medical Malpractice
- Mining & Energy
- Nightclubs
- Personal Auto
- Personal Insurance
- Professional
- Restaurants
- Retail & Wholesale
- Risk Management Resources
- Safety Topics
- SBA Bonds
- Security
- Seminars
- Technology
- Tourism
- Transportation
- Uncategorized
- Workers Compensation
Archives
- May 2021
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- November 2018
- September 2018
- August 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- February 2013
- November 2011
- October 2011
- September 2011
- July 2011
- June 2011
- March 2011
- November 2010
- October 2010
- September 2010
- April 2010
- February 2010
- November 2009
- October 2009
- November 2008
- August 2008