Although the 2024 job market shows signs of a slowdown, Monster reported in their May 2024 “Hiring Snapshot” that, “no major losses were seen in the U.S. Bureau of Labor Statistics monthly jobs report and job gains were uneven across the board.” Monster also reported that, looking ahead, their data suggests that “hiring may pick back up as total active job postings increased 3% and the number of job searches were up 6% in April (2024).”
While the job market shows signs of stabilization, employee priorities are still adapting to the economic climate.
According to G&A Partners’ director of benefits administration, Brett Brown, “Employees are now settling in with the apparent end to the Great Reshuffle and a lower quit rate. Yet the effects of inflation still linger, and many are facing smaller pay raises this year. This combination reinforces the need for business owners to strengthen their benefits package to not only attract the best talent but keep their strongest employees happy.”
In fact, a comprehensive benefits package is one of the top two considerations that job seekers review when evaluating a job offer–second only to salary. However, small- to mid-sized business owners often struggle to afford and offer benefits in line with larger competitors.
The good news? There are affordable—and innovative—solutions you can adopt to help level your company's recruitment playing field, including:
Telehealth Services
Since 2020, there has been a significant increase in the adoption of telehealth services (or virtual healthcare) provided by a professional at a remote location via computer, tablet, or smartphone, including video chat and remote monitoring. Because the public has become more comfortable with virtual healthcare, telehealth services now appeal to employees searching for more efficient and convenient ways to access physical and mental healthcare.
Benefit to Employers
Telehealth appeals to employers because of its health and wellness benefits and cost savings opportunities. According to the Harvard Business Review* employers who offer telehealth services through employee health insurance plans realize long-term savings in the following ways:
- Patients make fewer unnecessary trips to hospital emergency rooms, which often incur medical bills that are several times the cost of a telehealth visit.
- Worker productivity increases because virtual doctor visits are less time-consuming and allow for more-frequent medication adjustments, resulting in faster and better disease control and fewer complications.
- Employees have improved access to specialists and affordable, high-quality physical and mental healthcare. It’s estimated that if 30-40% of in-person specialist appointments were replaced with telehealth consults, patients would miss fewer workdays and receive faster and more effective care.
In addition, employees can often access a healthcare provider immediately when using telehealth services, compared with delays that can stretch for days or weeks with traditional healthcare settings, according to Lin Grensing-Pophal in “Is Telehealth Really Saving Money for Employers?” for the Society for Human Resource Management (SHRM).
*Source: Harvard Business Review: “The Telehealth Era Is Just Beginning: More gains in quality, affordability, and accessibility are on the way”
Health Savings Accounts (HSAs) and Healthcare Flexible Savings Accounts (FSAs)
Health plans offer peace of mind for employees and their families, and health savings plans provide your company and employees a way to manage rising medical costs. Because it can be expensive to fund healthcare coverage, business owners can manage expenses by offering a High Deductible Health Plan (HDHP) in combination with a Health Savings Account (HSA). Many organizations also provide employees access to healthcare flexible spending accounts (FSAs).
Benefit to Employers
Companies that offer employees access to HSAs and FSAs enjoy these benefits:*
- Pre-tax employee contributions help lower payroll taxes.
- Company contributions are tax-deductible.
- The accounts help employees save for necessary medical expenses, resulting in healthier employees with fewer missed days due to illness and injury.
- HSAs offered with HDHPs incentivize employees to choose these plans, resulting in significant savings in company-paid premiums.
*Source: Indeed.com
Employee Assistance Programs (EAPs)
Employees want to know that their employers care about their overall health and well-being. An employee assistance program (EAP) provides employees with confidential access to outside counselors, resources, and referrals—helping them address personal and work-related issues affecting their job performance, mental health, or well-being. And implementing an employee assistance program (EAP) demonstrates your company's commitment to providing workers with additional support resources, particularly when mental health awareness is rising.
The 2023 Work in America Survey from the American Psychological Association reveals that only 29% of employers offer an EAP, creating a recruitment and retention advantage for companies that do offer this important benefit.
"Think about your benefits plan as an extension of your company's overall strategic plan and mission and consider what your plan says about your company to potential recruits."
— Brett Brown, Director of Benefits Administration for G&A Partners
Benefit to Employers
Employers typically include EAPs in benefits packages at no cost to employees, and services are also available to employees' immediate family members and domestic partners. The average price for employers to administer the program in-house or through an external vendor is $35-$50 per employee per year. Payment is typically based on a per-user, per-call, or per-employee basis.
According to Talkspace’s article, 6 Benefits of Employee Assistance Programs (EAPs), offering an EAP option to employees can positively impact your company’s success through:
- Improved employee productivity and performance
- Reduced absenteeism
- Cost savings due to reduced healthcare expenditures over time, fewer workers’ compensation claims, and more.
- Enhanced employee well-being and job satisfaction
- Increased employee retention
- Improved company culture
Long-Term/Short-Term Disability Insurance and Life Insurance
Many employees place a high value on benefits that provide guaranteed financial relief—or insurance—when they encounter unforeseen challenges that could force economic hardship on themselves or their families.
Hartford's 2022 Future of Benefits Report found that more than 60% of workers with access to short- and long-term disability insurance take advantage of those benefits. More than 80% access life insurance coverage offered through their employers. And those numbers are rising year over year.
"Income or job loss due to a short- or long-term disability can be financially devastating to an employee, and providing a benefit to alleviate this potential can be a valuable resource that is relatively low cost to the employer," states SHRM’s "Managing Disability Benefits."
Benefit to Employers
For employers in states that do not require participation in a disability income plan, voluntary short- or long-term disability insurance benefits provide your employees and their families financial protection if a sudden injury or accident prevents them from working and earning an income. According to SHRM's "Managing Disability Benefits," the cost of providing short- and long-term disability insurance is approximately 1% of total compensation costs.
Life insurance provides financial assistance to employees and their families (beneficiaries) in the event of their death. Adding life insurance as a group coverage is relatively inexpensive for both companies and their employees. In addition, the U.S. tax code excludes the first $50,000 of group-term life insurance coverage provided under a policy carried directly or indirectly by an employer. In other words, there are no tax consequences if the total amount of the policy does not exceed $50,000.
Tuition Reimbursement and Student Loan Repayment Programs
A tuition assistance (or tuition reimbursement) program is a benefit that provides financial assistance for an employee’s tuition for a study program, college degree, or other educational programs. Typically, employees must pay the full tuition price before they’re reimbursed or take specific courses to be able to qualify for the program.
According to Chris Horymski, writing for Experian, more than 40 million Americans have student loan debt averaging $38,290 each, with the majority of borrowers owing $20,000 or more. This extra layer of debt creates stress and may prevent employees from participating in other benefits such as a 401(k) program, writes Kathryn Petralia in “Build (And Keep) The Best Teams With Vesting Tuition Reimbursement.”
For this reason and others, many workers are willing to compete for jobs that offer some form of tuition assistance and student loan repayment benefits.
Benefit to Employers
Student loan relief programs provide employees with student loan forgiveness. In other words, an employer pays all – or a portion of – an employee’s student loan debt as an employee benefit. This benefit covers educational expenses incurred before the employee works for the company as well as current educational costs.
In addition to tax relief*, offering tuition reimbursement and student loan relief benefits can help your company:
- Upskill employees and strengthen your company’s professional development program.
- Reduce recruiting costs by improving employee retention rates.
- Attract qualified candidates in a competitive labor market.
*Source: According to The National Law Review’s “Stimulus Bill Extends the Availability of Student Loan Forgiveness (US),” since 1978, the Internal Revenue Code’s Section 127 has allowed employers to make tax-free payments of up to $5,250 per year to eligible employees for qualified educational expenses. Then, Section 2206 of the CARES Act amended Code Section 127 to allow an employer to also pay for all or part of an employee’s “qualified education loan” as a tax-free benefit, meaning employers don’t owe payroll taxes and employees don’t pay taxes on these payments. The 2021 Consolidated Appropriations Act extended the CARES Act provision until December 31, 2025.
Additional Programs
Many job candidates are drawn to companies that offer a diverse array of optional benefits and other perks. That leaves you, as an employer, with a unique opportunity to build a creative and comprehensive employee benefits program that addresses the needs of the whole person, both physically and mentally.
In fact, it’s almost a necessity for companies to consider these additional options. Today’s workers are demanding more from their employers, and they’re willing to seek employment elsewhere if their needs are not met.
There are a wide variety of additional benefits programs you can choose from to offer employees. Below are just a few to help you stand out in the crowded job market:
- Accident Insurance: Accident insurance covers employees—and insured family members—for injuries sustained as a result of an accident (as defined by the policy). This lump sum benefit covers out-of-pocket medical expenses, daily living expenses, or lost income from unpaid time off.
- Legal Assistance: This benefit can give your employees the peace of mind they need if legal problems arise, such as traffic violations, family law issues, bankruptcy, issues with contractors, or buying/selling a home.
- Identity Theft Protection: Identity protection not only safeguards your employees, it also helps to protect your organization. By investing in identity protection, you’re showing that—as a company—you value your employees and have taken steps to safeguard their identities, privacy, and finances.
- Employee Wellness Programs: Wellness programs encourage healthy lifestyle practices through companywide and personal health challenges and initiatives, health risk assessments, wellness educational tools, and much more. Prioritizing the well-being of your team by adding an employee wellness program can also lead to reduced absences, higher productivity, and lower healthcare costs.
- Pet Insurance: Providing pet insurance option is a way of acknowledging the importance that pets play in people’s lives and demonstrates that your company cares about the things that matter to your employees. Pet insurance benefits often help to cover pet wellness exams, shots, chronic conditions, and acute illnesses and injuries.
- Travel Insurance: Business travel insurance ensures employees traveling across the country or overseas have access to doctors and emergency rooms should an emergency arise while traveling. Additionally, travel insurance can help with things such as lost passports, missing luggage, or stolen credit cards.
- Cancer Insurance: Cancer insurance allows your employees who are battling cancer to put all of their focus into getting well—instead of their finances. This benefit covers the gap between their core insurance offerings and the costs that are accrued during treatment so that employees can heal.
- Unemployment Insurance: Unemployment insurance pays money to full-time or part-time individuals on a weekly basis when they lose their job; however, they must meet certain eligibility requirements.
- Childcare and Maternity Care: Working parents represent a large portion of the workforce, and child care programs provide benefits, including child care subsidies, on-site child care, flexible employee schedules, flexible child care spending accounts, and more.
- Hybrid Scheduling and Remote Office: Many employees are advocating for a hybrid workplace that offers a scheduled blend of in-office and remote work. This includes options for flex time, condensed workweeks, shift work, part-time work, job sharing, and also remote work assistance—which helps employees outfit a home office or pay for a shared workspace.
Building a comprehensive and affordable employee benefits program can be a challenging process. The sheer number of benefits options, combined with regulatory, compliance, and legal requirements, and the time-consuming administrative steps involved in the enrollment process can make it all feel pretty overwhelming. That’s why many businesses choose to partner with a professional employer organization (PEO), like G&A, that can provide the human resources expertise, in house, to help you build a customized employee benefits program you and your employees can afford.
How G&A Can Help
Insurance and benefits plans can be cost prohibitive for companies that run smaller operations and/or do not have a large workforce. G&A Partners offers small- and mid-sized companies access to top-quality benefits options by leveraging the buying power of thousands of client companies when negotiating with providers. We also keep your employer insurance premium costs in check so that your company has protection without placing undue stress on your budget. To learn more, schedule a consultation with one of our knowledgeable business advisors
