April 11 Tip of the Week

“The Benefits Horizon”

The COVID-19 pandemic changed the world of work in a myriad of ways – from remote working to the great resignation, employers are still trying to make sense of these changes.  There has been much discussion of the increased stress that employees have experienced as a result of COVID.  From the quick move to work from home to avoid contracting the virus to the slower return to work and the fear of exposure, employees and employers have experienced a great deal of transition over the last two years.  While there has been a great deal of focus on remote working and what that means for both employees and employers, an area that has not been in the forefront is employee benefits. 

Employee benefits are important for a number of reasons.  Employee benefits make up approximately 30% of an employer’s overall compensation costs.  Employee benefits also act as a draw for employees: a great benefit package, while expensive, can be a great recruiting tool.  In addition to attracting employees, a strong benefit package can also help to retain those employees.  When we think of employee benefits generally, our minds go to health insurance, dental insurance, paid time off, and disability insurance. 

While traditional benefits are important, the changing demographics in the workforce and the changing attitudes toward work require a new look at the benefits that are being offered.  Wellness benefits, once an afterthought, are now becoming a focus of employees and employers alike.  The increased stress caused by the pandemic and the isolation of working at home has given rise to concerns about “self-care” and “mental health days” more so than ever before. 

Understanding the impact that the pandemic has had on the workforce as a whole, employers need to take the time to review their benefits packages to determine whether they are meeting the needs of their employees.  Additions, such as Employee Assistance Programs and disability insurance, should be considered if not currently offered.  If these benefits are offered, they should be reviewed to ensure that they are accessible to employees and can meet their needs.  Health insurance offerings should be reviewed to ensure that they cover the needs of employees from mental health counseling to wellness benefits such as gym memberships.  Paid time off benefits, such as sick leave and vacation, should be reviewed to ensure that employees are able to use these benefits without judgment. 

In addition to reviewing the benefits provided to ensure that they are cost effective and comprehensive, employers should review the manner in which these benefits are communicated to employees.  Many employees don’t fully understand the benefits available to them and are often making benefit choices based on base costs.  This does not always result in the best benefit choices. For example, premium costs are often only a small portion of the out-of-pocket expenses incurred by employees – copayments, co-insurance, and deductibles are other significant costs inherent in benefits and are not well understood by employees. 

At myHRcounsel, we can assist you in reviewing your benefit offerings and making sure that your benefit plans are in compliance with state and federal laws.  From health insurance plans to paid time off, we can assist you in ensuring that your employees’ needs are met and that your benefit plans benefit you, the employer, as well.