These days, it seems we’re constantly hearing reports about the shortage of workers and the unprecedented difficulty business owners are having in retaining their current hires.
If this hits home for you, you’re likely brainstorming creative ways to make your employee benefits package look extra appealing, so you can bring in new employees and keep them long-term.
But what are your options for employee benefits packages? And how do you maximize employee benefits in a way that is a win-win for both you and your employees?
Great questions!
This article covers the different forms of employee compensation and lets you know how to maximize employee benefits and use them to attract and retain talent, both now and in the future.
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The Importance of Maximizing Benefits Offerings for Your Employees
What’s the big deal about employee benefits anyway? Why not just add the cost of employee benefits back into salaries and let your employees pay for these offerings themselves?
Upping your employee benefits offerings is advantageous to both you and your employees in a variety of ways, since benefits:
Help you attract the cream-of-the-crop talent.
Give your employees peace of mind knowing they can care for themselves.
Can help minimize employee turnover.
Help you maintain a healthy workforce by giving your employees the resources they need to receive medical, dental, vision, or mental health care.
6 Benefits To Offer Your Employees To Help Aid Recruitment and Retention
As an employer, you’re free to offer a wide variety of health benefits, including:
Health savings accounts
Preventative health benefits
Life insurance
Rollover benefits
Continuing education and upskill payouts
Here, we will unpack each type of benefit to give your HR department the tools it needs to provide your employees with all the best options of benefits to boost employee wellness.
#1: Health Savings Accounts (HSA)
A healthcare savings account, or HSA, is similar to a personal savings account. It allows your employees to put money aside to cover qualified medical expenses — tax-free.
This is great if you have a high-deductible health insurance plan (HDHP) since an HSA will help your employees cover their out-of-pocket costs on a pre-tax basis.
By strategically using their HSAs your employees can lower their overall medical expenses for things such as prescription drugs, deductibles, and copays. The amount they can deposit each year is limited, but they’ll be able to roll over any remaining balance to be used the following year.
HSAs are attractive to employees because they allow them to plan for future major expenses, and interest or other earnings on the account are tax-free.
#2: Preventative Health Benefits
Preventative health benefits act as a reward for your employees who are striving to lead healthy, active lifestyles.
Benefits may include incentives for things such as:
Joining a gym
Participating in a weight loss challenge
Blood pressure, diabetes, and cholesterol tests
Cancer screenings
Mammograms
Colonoscopies
Well-baby and well-child visits
Routine vaccinations such as measles, polio, or meningitis
Flu shots
Counseling for issues such as quitting smoking, losing weight, healthy eating, dealing with depression or anxiety, and reducing alcohol use
#3: Life Insurance
Life insurance is a must-have for any employee.
If you offer your employees permanent insurance, they can generally save money that can either be put towards retirement or passed on to their children after they pass away. Life insurance policies are usually more beneficial the sooner the employee enrolls, and in many cases, the income will be tax-free. Additionally, some life insurance policies allow individuals to borrow from life insurance, providing an added financial benefit during their lifetime.
Employees appreciate getting life insurance benefits through their companies because they provide needed coverage and may also save them a good deal of money in premiums long term.
#4: Rollover Benefits
Depending upon the profession, it’s not unusual for employees to change companies at several points in their careers. This is part of why many of them choose not to enroll in company benefits packages.
And it makes sense — If they’re only planning on working for a company for a few years, why should they spend money on benefits that they may or may not be able to use?
Herein lies the perk of rollover benefits. Rolling benefits from one company to another ensures that all your employees’ contributions remain intact.
#5: Continuing Education and Upskill Payouts
Employers want their employees to continually be learning and growing. A great way to encourage Improvement and foster positive mental health in the workplace is by offering payouts for continuing education and upskill training.
Consider offering tuition reimbursement for those employees who are motivated to further their education, or professional development stipends that cover the cost of:
Training
Books
Conferences; and
Certifications
Not only does this allow you to have more competent, up-to-date employees, but it also allows them to enhance their skills and job marketability.
#6: Thinking of Adding a PTO Cash-Out Option? Get Sorbet
Did you know that research shows that almost 70% of employees wish their employers offered them the option to advance their unused PTO?
But get this — only around 14% of employers actually do. They typically think a cash-out option is too much of a headache to set up, or they have no clue where to even begin.
If your company is thinking of adding a PTO cash-out option for your employees but is hoping to avoid the hassle of completely overhauling your PTO policy, look no further than Sorbet. We enable you to allow your employees to advance the unused portion of their paid time off without having to build a whole new PTO infrastructure.
Sorbet’s PTO cash advance option comes with zero need for integration and zero cost to employers.
All you have to do is simply add it to your voluntary benefits portal and tell your employees that you now offer Sorbet. Those who wish to take advantage of the perks will apply as usual and will be responsible for paying Sorbet back when the time comes.
Sorbet even helps you boost your company’s image and reputation by setting you apart as an ultra-progressive company that offers cool PTO perks to its employees.
FAQs About Maximizing Employee Benefits
Do you still have questions about the best type of benefits to offer your employees? Here are our most frequently asked questions about how to maximize employee benefits
What Are the 5 Most Important Employee Benefits?
According to Forbes Advisor, the top five most requested employee benefits include:
Employer-covered healthcare
Life insurance
Pension and retirement plans
Mandatory paid time-off
Mental health assistance
How Do You Optimize Employee Benefits?
There are five things your HR team should consider as they strive to serve up the best possible buffet of employee benefits. They include:
Be sensitive to the employee’s share of benefit costs. With many Americans experiencing higher rent, soaring food prices, and sticker shock across the board, the last thing your employees need is to see huge deductions slipping from their paychecks.
Consider offering financial wellness benefits. Your employees have a lot on their minds, from saving enough for college and retirement to worrying about making ends meet from month to month. Offering financial wellness benefits and education can help your employees set realistic savings goals while giving them added peace of mind.
Use voluntary benefits to deliver additional value. This includes things like protection against identity theft, pet insurance, and accident and illness insurance. These additions can provide value to your employees without increasing your employer costs.
Communicate frequently about financial benefits. Communication is key. If you’re offering specific benefits, don't forget to let your employees know. Make it a point to communicate regularly about all benefits to ensure everyone is aware of all their options.
Survey employees to stay on top of evolving priorities. Are you curious about what benefits your employees want? Ask them! Conduct regular employee surveys to ensure that your company's benefits package is still reflecting its ever-changing needs.
What Is an Example of a Generous Employer-Sponsored Retirement Plan?
What are some examples of companies that go out of their way to offer their employees the biggest and best when it comes to employer-sponsored retirement plans?
Check out these high-profile companies with generous employer 401(k) matches:
Boeing
Citigroup
Microsoft
Qualcomm
Southwest
Honeywell International
How Sorbet’s Sundae Solution Can Help You Maximize Employee Benefits
To give your employees the full razzle-dazzle of everything Sorbet has to offer, you’ll want to dive into our “Sorbet Sundae Solution.”
Our Sundae Solution fully integrates Sorbet with your existing HR/payroll system. It allows approval for your employees who may otherwise not be able to get approval due to lower credit scores, etc.
And Sorbet’s Sundae Solution doesn't cost employers, since instead of paying the employees their PTO payout at termination, you are now simply paying Sorbet.
Sorbet’s integrated solution allows you to help more of your employees access their money in a way that’s a true benefit, as opposed to just a PTO option.
Of course, if you aren’t quite ready to offer your employees the whole Sorbet Sundae, our voluntary PTO benefits cash advance option is a great way to provide just a taste — with no integration or cost to you.
Offer your employees the best in PTO benefits. And let Sorbet help you get there.