Benefits renewal season is right around the corner and with the US unemployment rate boasting a remarkable 3.7%, the war on talent is red hot.
For employers, selecting the right benefits package comes down to a value assessment followed by a value proposition. It’s the company saying to employees, “this is how much I value you.”
So, what is the most enticing proposition? To answer that question employers will need to consider two things: the health of the business and the needs of its employees. Is the business well-staffed with talented, motivated employees? Good, the goal there should be to retain talent with an accommodating benefits package. On the other hand, if the business is inefficient, lacking in talent and numbers, then a renewed, compelling benefits package may be the solution.
Sometimes the right decision can be found by simply looking at the data. For example, let’s say that health-related benefits have historically been important to your workforce, but you noticed that health insurance enrollment is low on the current plan. In this circumstance, consider increasing the employer contribution amount for next year’s plan. The long-term results may outweigh the short-term costs as this will likely increase enrollment, providing a better value proposition to your employees.
Maybe for your company it’s unrealistic or too simplified of a solution to propose additional company cost support. If that’s the case, perhaps a less conventional approach is the best compromise:
- Have a High Deductible Health plan? Consider partially funding employees’ HSAs.
- Need minimal cost additions? Try adding telemedicine or wellness programs to your plan. Income protection coverage such as life insurance and short and long-term disability insurance also have nominal costs.
- Looking for fresh talent? Offer student loan/debt payment or incentivized PTO policies.
- Want to do more than the status-quo? Add dental and vision for a more holistic package.
Thinking outside the box can really pay off. No matter how small, added benefits can be difference makers in how valued employees feel. Gratitude and loyalty are foundational to a thriving company culture.
Alright, so you’ve selected the company’s benefits package and you’re ready to roll it out to your employees. There’s one last thing to remember, and this is crucial to your value proposition: educate.
Educate your employees about the process; let them know how much time and thought went into this decision. Tell them how you took their well-being into consideration while planning the employer contribution. Simply put, let them know how much you care.
Simon Sinek says, “Leadership is not about being in charge; leadership is about taking care of those in your charge.” On behalf of the entire Tilson team, please know that it would be our pleasure to partner with you this renewal season, helping you to care for those under your leadership. Our experienced benefits specialists are here to assist you in designing the best possible benefits package for you and your employees. If you would like to begin discussing benefit options or other related matters, please feel free to contact your Tilson Service Team.
Thank you for allowing me to be a part of your success story. Here’s to a great renewal season!
Steve Johnson, SHRM-SCP, SPHR