Kim Solis | Dec 20, 2023
As we approach the end of 2023 and set our sights ...
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The competition for quality talent is fierce, and robust company employee benefits programs attract the cream of the crop.
The pandemic resulted in the Great Resignation where millions of employees quit their jobs and sought employment offering them a better work-life balance. This created a new phenomenon putting employees in the driver’s seat in the job market.
Today, an attractive benefits package is just as important to existing and potential employees as how much companies are offering to pay them.
Specifically, employees are looking for four types of employee benefits including medical insurance, life insurance, disability insurance, retirement contributions and pension plans.
The rising cost of health care has been hard to ignore, regardless of employees’ income bracket or social status. Employees in every industry are looking for cost-effective ways to address their health needs and prevent illnesses.
Medical insurance is a common employee benefit employees have come to expect as a matter of course. Healthcare, prescription coverage, vision care, and dental care plans fall under the umbrella of medical insurance.
Employees will be looking for assurance where they can continue getting their regular prescriptions through their employer-sponsored health plan and receive them for free or at a reduced cost.
Vision and dental insurance are not included in all health plans, but employers can offer such benefits as part of their benefits package, as separate plans, or as voluntary benefits.
Finally, employees are interested in healthcare options that offer them convenience, such as virtual doctor appointments.
COVID raised awareness on many levels. One of the important things it taught us was how precious and fleeting life can be. After learning of the millions of people who died due to COVID, people who never gave life insurance a second thought suddenly became interested.
Employer-sponsored group life insurance plans are more affordable for many employees rather than purchasing a life insurance policy on their own. Employees may be interested in employer-sponsored life insurance policies for the following reasons:
Employers will need to decide what types of life insurance to offer (term, whole life, etc.) and whether employees will receive it automatically or if they must opt in. Employees may be given the option to purchase additional coverage or increase the death benefit at their own expense.
Furthermore, employers will need to establish a policy stating which employees qualify for life insurance, what happens to the policy if the employee terminates employment, and how much the employer will pay for the coverage.
Employers may choose to offer disability benefits to employees who are out of work because of an accident or illness. Illnesses or accidents do not necessarily have to be work-related to be covered.
A short or long-term disability plan replaces a portion of an employee’s income if they cannot work for some period due to an injury or illness. The industry average for short-term disability is 26 weeks.
Employees should be aware of the criteria for disability coverage before payments begin. This includes the definition of how to define a short or long-term disability, which can refer to not being able to do their regular jobs or not being able to work at all.
Some disability plans may require the covered employee to have worked for at least a year and qualify as a full-time employee to qualify for this benefit.
Employees should also be informed that receiving payments through an employer-sponsored disability plan could reduce their Social Security payments during the disability period.
The Social Security Administration advises that Social Security benefits are not intended to be the sole source of income during retirement. Most retirees fund their retirement with some combination of savings, investments, pensions, and retirement accounts.
While retirement may seem a long way off for some employees, the money they save or invest in currently will give them a healthy nest egg at the retirement stage.
Employers may choose to offer their employees various types of retirement plans including:
Each type of plan has its own benefits, features, levels of complexity, tax advantages, and administrative costs.
The type of plan a company offers its employees can help them calculate how much risk they are comfortable with and how much income they can safely withdraw from their portfolios at any given time.
Group pensions provide a guaranteed monthly income for the life of the employee, and they are types of employee benefits that offer employees great value.
Overall, all types of employee benefits help employers attract top talent and aid in employee retention. The agents at Leap Carpenter Kemps are happy to review your options for employee benefits so you can offer the best possible benefits package to your employees. Give us a call today at 209-384-0727 to learn more.
In our latest eBook, we’ll walk you through the benefits your candidates and employees genuinely want, and how to create a cost-effective employee benefits program that increases employee loyalty, focus, productivity, and attendance.
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