Are You Offering the Right Employee Benefits?
Mar 19, 2018
By Michelle Branigan
Recently I sat down to look at the benefits package for my own team.
Interestingly, things that I appreciated the most were not necessarily valued by some of the team. In today’s organizations, where most of us have Baby Boomers, Gen Xers, Millennials (and younger) among the mix, it can be challenging to ensure that your employees are deriving real value from what is considered by most as a key part of their compensation package.
Benefits programs are not inexpensive. Indeed, for many employers they represent a significant cost against their bottom line. So, taking the time to get this right is an important step.
Here are a few useful tips:
• survey your employees
• ask them what they actually want
• ensure that you review your policy on an annual basis to see how it is being used
In a Glassdoor study*, 89% of employees aged 18-34 prefer benefits or perks to pay raises. These perks range from optional time off, dental and medical plans, a company car, or an occasional free lunch. At the same time, other generations assign more importance to their actual salary.
The Benefits of benefits…
Having a quality benefits package will help you attract and retain the best talent for your company. It can support employee engagement and productivity, providing your workers with a sense of security for themselves and their families.
As well as the basics usually covered in the most standard plans — medical, dental, vision — companies are looking at other benefits such as vacation time, flexible hours, free parking spaces, gym memberships or personal development sponsorship.
If you are a small company that wants to offer a competitive benefits package but can’t afford something too expensive, both flexible hours and work-from-home arrangements typically cost the employer nothing and often save money by lowering overhead costs. They’re also highly rated by workers today, who often battle long commutes and managing families or elder care. Compressed workweeks are also something that is increasingly popular.
An EAP, or employee assistance program, is an increasingly important component for many firms and their employees, providing a confidential, short-term counselling service for employees with personal problems or workplace stressors that affect their performance. Investing in EAPs can reduce absenteeism, presenteeism, lower turnover and fewer medical costs. Many EAPs are also available to family members. With mental health increasingly at the forefront of public discussion, the supports available through the program provides a confidential and safe space for employees to access support, resources and care.
Types of plans
While some organizations still choose the more traditional benefit plans that include medical and dental, long term disability and life insurance, flexible plans have become quite popular in recent years. Instead of a “one size fits all” plan that covers all employees, flexible (or flex) plans provide employees, or members, with a list of benefit options that they can choose from. They can then give credits that allow them to choose the options that are right for them and their family. If they choose benefits over and above their credit limit, they pay extra.
HCSAs or Health Care Spending Accounts are also gaining notice among employers and can replace or augment a conventional medical and dental plan.
Each year, a predetermined amount of money is provided to employees for coverage of benefits. Eligible expenses are paid at 100% up to the total dollar amount in the HCSA. This gives the employee more choice as to how to use the dollars in their account, based on their individual needs. Don’t need $200 to spend on glasses but need to visit the chiropractor on a frequent basis? This plan allows the employee to use those funds where they need them.
Most importantly, understand what will work for your company instead of jumping on the latest fad. Just because something works at Google or Netflix doesn’t mean it would for you, no matter how much money you have to spend.
* Sources: https://www.glassdoor.com/press/surveys/
Michelle Branigan is CEO, Electricity Human Resources Canada.
