The cost of providing employee insurance benefits is often one of the top three highest costs employers face.
Employers should view employee insurance benefits as a way to make their company more appealing to potential employees. Health insurance benefits also increase job satisfaction for current employees. Satisfied employees are more productive and less likely to leave the company for other employment.
There are several different benefits options employers should consider. To get the most bang for their buck, employers should do some research into what options their staff desires most. An insurance agent can help an employer find specific policies that are the best fit for their company and workforce.
Below we look at some insurance options that go beyond a simple group health, dental, or vision plan. These benefits will be important for some employees and less important for other. Research, such as surveys, will give an employer insight into the specific needs and wants of their employees.
Flexible Spending Accounts
FSAs will appeal to employees who find it difficult to afford sudden out-of-pocket deductibles and co-payments. FSAs are savings accounts specifically for health expenses. These plans allow employees to set aside money directly from their paycheck each month to make sure they are able to deal with medical and dental expenses. The money is not taxable, so the employee gains more money using the FSA then paying for deductibles or copays in the a regular insurance plan. The employer can also elect to contribute to the employees account on a percent basis similar to a 401(K) plan.
These types of plans will appeal most to employees who are having trouble saving for medical expenses. The money being non-taxable and the option for employer contributions are the main selling points of FSA plans.
Employee Assistance Plans
Employee assistance plans / programs help employees deal with personal or work-related issues. There are a large number of plans available for employers to utilize that can help make employees happier and thus more productive. These plans are voluntary and free to employees. They can address issues ranging from depression to alcohol abuse. Offering access to assistance programs can go a long way in showing your employees that you are willing to spend time, money, and effort to see them succeed in both their personal and professional lives.
Having happy and healthy employees can help your business be more productive and create a culture that employees will be proud to be a part of. Most employees will not need the assistance offered. However, these programs are a clear sign that you are committed to the well-being of your workforce.
401(K) plans help you employees financially prepare for their retirement. These plans allow employees to automatically set aside a percentage of their paycheck specifically for retirement. It is best to save 70% to 90% of your pre-retirement annual income per year of retirement to retire comfortable. While social security can help an individual meet that amount, many individuals will need more than social security to retire comfortably. The maximum amount a person can receive through social security in 2021 is $3,895 monthly if they retire at age 70. That comes out to a $46,740 annually. Having a little extra in savings for each year of retirement can mean the difference between living comfortably and having to work part-time (or full-time) through retirement.
Giving your employees the opportunity to save for retirement shows them that you are committed to their overall life success. Matching a small percentage of your employee’s contribution to their 401(K) plan can create long term loyalty between the company and the employee. 401(K) plans also attract potential employees to your business giving you a competitive edge in the labor market. Employees who are innately attracted to this type of benefit will more than likely be geared toward long term goals and planning and can be great assets to your business. Many employees do not take advantage of their companies 401(K) plan. The main reason is lack of education on the importance of the plan and how it can be utilized.
Independent Insurance Agents
At Konen Insurance we recommend that employers consider these extra-ordinary benefits options. While we know that not every employer can afford those or even any benefits for their employees, insurance benefits plans can go a long way in enticing new talent and growing employee satisfaction. Employers can implement a variety of potential benefits plans. Contact us and we can help you decide what is right for your business and workforce.