The Hidden Benefits of Benefits
Many businesses are learning that in order to hire and retain talented employees, they need to offer benefits. Studies have found that the more robust the benefits package, the happier the employees end up being. This goes as far as employees preferring more benefits over an increase in pay. Fifty-five percent of employees are satisfied with their employer when offered voluntary plans, compared to 32 percent when not offered voluntary plans. Health Insurance is a great start, but many of the best benefit packages also include Life Insurance, Long Term Disability (LTD), Short Term Disability (STD), Dental, and Vision. This does not have to be a huge burden on the employer and can go a long way.
On average, employers are offering three medical plan options to their employees. Included in these medical plans is usually at least one High Deductible Health Plan (HDHP) which will be offered alongside a Health Savings Account (HSA). On average, employers contribute $971 per year to their employees’ HSAs, which calculates to about $40 per pay period. This can go a long way in easing the stress of rising medical costs for your employees and their families.
Minnesota requires that the employer cover at least 50 percent of the cost of Health Insurance, but other benefits do not require the employer to contribute a certain amount. While employer-paid LTD and STD are common, voluntary benefits such as Vision and Dental are often inexpensive benefits that can be split with the employee. Basic Life Insurance, on the other hand, can be offered at a base rate with the ability to purchase more if the employee deems it necessary. This is called Voluntary Life. This is because a family of four will most likely need more life insurance than a single individual. All in all, these benefits boost morale without having to largely affect your bottom line.
In addition to the benefits that are paid for by either the employer or employee, there are additional benefits that are provided for free alongside paid benefits. Wellness Checks are important for employees and employers, as the best way to keep health insurance costs down is by having a healthy staff. Wellness Checks can encourage fitness initiatives, motivate employees, and gauge where your staff’s health is overall. Another benefit that is often included is an Employee Assistance Program which provides financial planning advice, free counselor sessions, will preparation, etc. This is a benefit that is often included but not taken advantage of.
Educating your employees on the benefits that are being provided and how to use them will increase the likelihood of the employees using them and benefiting from them. This can boost morale, help retain employees, and even make hiring easier. Better Benefits, Happier Employees!