Expanding Employee Benefits Through No-Cost Solutions to the Employer
Attracting and retaining top talent is essential to any organization striving for success in a dynamic and competitive business environment. As employers strive to build skilled and dedicated teams, employee benefits have emerged as a key differentiator. As a result, employers are often faced with financial concerns due to the rising costs associated with comprehensive benefits.
To address this challenge, progressive companies are exploring innovative strategies to expand employee benefits without breaking the bank. This article delves into a compelling approach: harnessing no-cost solutions to enhance employee benefits.
Unlocking Value: How No-Cost Voluntary Benefits Empower Employers with Cost-Effective Solutions
The opportunity to enrich employees’ compensation packages through voluntary benefits offers employers a cost-effective way to improve their employee retention rate. In order to accommodate the needs and preferences of the employees, these benefits are designed to be as flexible as possible.
As an added convenience, voluntary benefits are often payable via payroll deductions, which make it easy for employees to pay directly from their paychecks, often at lower group rates. Employers are, therefore, able to reduce their administrative burden and streamline their benefits enrollment process.
Employers can enhance their total compensation packages, attract and retain top talent, and foster a happier, more engaged workforce by offering voluntary benefits — all without exceeding limits on their financial resources.
Which Insurance Types Are Ideal for Voluntary Coverage?
In many cases, traditional insurance, also known as core or fundamental insurance, is considered vital for managing common risks and protecting financial security. Some of these insurance types may, however, be made voluntary or optional based on the circumstances and preferences of the individual. There are a number of traditional insurance types that may be offered as voluntary options, including:
- Dental insurance
- Short and long-term disability insurance
- Life insurance
- Critical illness coverage
- Accident insurance
- Hospital indemnity
- Employee discounts
According to a McKinsey report, health care costs in the United States have increased significantly, due to inflation. Compared to projections made prior to the COVID-19 pandemic, inflation is expected to increase healthcare costs by as much as $370 billion by 2027.
Employers should therefore rethink how they administer employee benefits. It would be beneficial for employers to adopt a “health as an investment” mentality, which entails a deeper understanding of the needs and preferences of their employee populations.
Embracing the Emergence of Innovative Health Benefit Plan Options
There is growth in the number of new plan types and other benefits that can be discounted and paid for through payroll withholdings, providing a more comprehensive benefit package to employees. However, expanding voluntary benefits as no-cost solutions to the employer often requires a mindset change:
Firstly, it is important that employers consider health holistically, as opposed to only the care they seek in response to illness or injury. Secondly, employers should view health as an investment with a goal of improving employee productivity and business results, not as a cost to be minimized.
Current studies have shown that employee health plans with lower out-of-pocket costs and premium shares are more attractive. For example, newer employer health plans have been offered alongside more traditional plans, and have generally seen a 20 to 30 percent uptake rate as a result of more attractive employee costs.
Health insurance companies are increasingly exploring voluntary plans in order to meet consumer demands and preferences. These are some examples of innovative plans that health insurance providers can offer on a voluntary basis, as a no-cost or low-cost solution to employers:
- Wellness programs including gym memberships: These programs may include incentives to encourage healthy behaviors, such as gym discounts, smoking cessation programs, or weight loss support.
- Telemedicine benefits: This feature can be offered by health insurers as a voluntary add-on to provide convenient access to healthcare services through video or telephone calls.
- Alternative medicine and complementary therapies: There are some individuals who prefer alternative or complementary therapies, such as acupuncture, chiropractics, and Naturopathy. Insurers may offer coverage for these types of treatments.
- Mental health: The availability of mental health coverage and counseling services can provide policyholders access to a range of psychological and counseling services.
- Pet insurance: Despite the fact that pet insurance is a standalone type of coverage, some health insurers are beginning to offer it as an optional add-on to their policyholders looking for coverage for their pets’ healthcare expenses.
CGN: Your Essential Partner in Delivering No-Cost Employee Benefits Solutions to Employers
With members working as full-service insurance brokers led by Mike Kelly, Jr., Chesapeake Growth Network is well suited to assist employers in a variety of ways. We provide comprehensive support for your benefit needs, from identification of diverse voluntary insurance offerings to their introduction, cost analysis, and enrollment support.
The Chesapeake Growth Network is available to assist you with the complexities of your business journey. If you would like more information and personalized guidance on optimizing your business strategies, please do not hesitate to contact us today.
Stay tuned for our next article, where we’ll unveil a valuable list of steps to prepare for the successful sale of your business.