19 Oct Employee Benefits: Eliminate Coverage Gaps
With new hires, you want to be confident that they will become loyal, productive, and valuable long-time employees. One way to achieve this goal is to have a well-thought-out employee benefit program that serves your needs. To see if your program has coverage gaps you may want to consider what competitors offer and what employees look for.
According to a recent study*, business owners are offering benefits at the highest rates since 2008. What benefits are owners ramping up? The percentage of employers offering comprehensive health insurance, health savings accounts, wellness solutions, and employee assistance programs (EAPs) increased from 2022 to 2023. As for qualified retirement plans, the popularity of 401(k) and Simple IRA plans increased among employers, while other plans were offered at about the same rate as last year. For supplementary key employee benefits, both disability income insurance and deferred compensation dropped in popularity among employers while other benefits remained steady.
Still, affordability remains businesses’ top priority where benefits are concerned, ahead of attracting and retaining qualified employees and staff productivity. Your goal in reviewing your benefits program should be working with your professional advisor to achieve quality benefits at a reasonable cost to your business.
On that note, some of the “benefits” employees are looking for can be provided at little or no cost. Another study** found that most workers judge whether a job is good by the pay, boss, health and retirement benefits, vacation time, friendliness of co-workers, whether they’re helping people or society, remote work options, and opportunities for advancement. Pay was the top consideration at 45% of employees, followed by a good boss at 14%. People ages 27 to 34 are more likely to say promotion opportunities and advancement are important than older employees. And they place less emphasis on health insurance, retirement, and vacation benefits.
* 2023 Report on Employer Firms: Findings from the 2022 Small Business Credit Survey
** Washington Post-Ipso Poll, 2023
Original content by the PSK LLP. This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.