How do you attract and retain top employee talent? In today’s day and age, there’s more to a position than hourly or salary rates that employees consider when accepting an opportunity. “Companies need to make employee benefits a key component of their compensation package,” says Mario Stuart, Director of Benefits at Seltzer Group Partners. “Health Insurance, wellness programs, and flexible schedules are many offerings that we’re helping employers put together for their employees.”
According to Paycor, organizations with no employee benefits have a turnover rate of 157%. In contrast, those that offer multiple types of benefits saw a 138% reduction in turnover. When businesses invest in their employees and offer a robust benefits package, productivity increases.
So, what type of benefits and programs are best to offer your employees? “There’s no one-size-fits-all when it comes to employee benefits,” says Stuart. “Every company is different, and their employee needs are diverse. Our goal is to help build a package that makes sense and is affordable for the employer and its employees.”
Having affordable health insurance is easier said than done. Healthcare coverage is the 2nd or 3rd highest expenditure for businesses and organizations. Even though employee benefits consultants have been working with businesses to develop creative ways to reduce those costs, insurance carriers and healthcare providers are also coming up with more creative ways.
“We’re seeing a lot more partnerships between health systems and health insurance carriers in which co-branded products are being created to help drive employees to higher quality, lower cost health systems,” says Stuart. That’s not the only way hospitals are working to keep costs down. Consumer reports state that there’s between $700 billion and $900 billion in annual medical waste from ordering unnecessary tests and procedures. Hospital systems are working even closer with clinicians to identify waste and areas where they can cut back through various Value-Based Incentive Programs. Through these programs, hospitals get reimbursed for several various utilization measures and outcomes.
In addition, some hospitals and health systems are providing direct-to-employer coverage in which the employer will receive a hefty discount should their employees utilize that health system’s care. However not every employer would benefit from this strategy, but it is a unique way to lower costs.
Benefits packages aren’t the only thing employers are looking at when it comes to cutting costs. Property and casualty insurances for a business are another large expenditure. One line is the workers’ compensation coverage.
In Pennsylvania, all W2 employees must be covered under a Worker’s Compensation policy. Properly investing in the protection, health, and safety of their employees through safety committees and training helps improve productivity and efficiency and gets employees back to work quicker should they experience an injury in the workplace.
But when a company experiences a significant increase in workers’ compensation costs, it usually triggers internal activities aimed at reducing insurance costs and spending. The key to spending fewer dollars in the workers’ compensation world is more than just preventing a few accidents. It’s having a sound safety program compliant with the Occupational Safety and Health Administration (OSHA). A program like that can provide significant savings for employers by reducing injuries and illnesses.
“We’re seeing a lot of companies and organizations who are streamlining all their insurances under one agency,” says Stuart. “There’s a lot of crossovers between offering a benefits package and having a good workers’ compensation plan and program in place along with the other lines of coverages.”
Figuring out ways to improve workers’ compensation costs along with the other property and casualty lines can lead to savings, which can be put toward an employee benefits package to help attract and retain top-notch talent.
Regardless of the package you put together, it’s essential to research and select benefits that attract employees and make you stand out. Working with an employee benefits consultant can help you achieve the right benefits package for your company that fits within your budget.