Better Benefits Can Support Your Company's Growth Strategy
In the competition for talent, salary and benefits consistently remain the top two swaying factors. In fact, a Glassdoor survey showed that 4 out of 5 employees would prefer better benefits over a raise (79%). And the numbers spike (89%) for younger employees in the 18-34 age range.
- Business growth is built on a strong recruitment strategy
- If you’ve got a great healthcare package, you should flaunt it
- If you don’t, don’t panic. There are surprisingly cost-effective strategies for delivering better benefits.
Use Healthcare Benefits as a Recruiting ToolFilling your recruiting pipeline isn’t enough. As an employer, you must demonstrate you care about your employees’ health, well-being, and access to affordable medical care. Regardless of company size, the SHRM 2019 Employee Benefits Survey reported a 20% increase in health-related benefits. So if you’ve got a great healthcare package, you should definitely promote this in your job postings--because healthcare costs aren’t going down, and candidates have become savvy consumers. They comparison shop employers online, checking Glassdoor rankings and reaching out to their network on LinkedIn. Companies with a serious growth strategy are benchmarking their benefits packages against their competitors--and altering their health care benefits to ensure they have a compelling offering.
The Employee Experience AdvantageBetter benefits promote a culture of care. According to research by Jacob Morgan, author of The Employee Experience Advantage, companies that invest in employee experience (EX) outperform those that don’t. Their employee growth rates climb 1.5x and profitability jumps 4x. You’re already making a large investment in benefits. It’s likely your second largest line item after salary. So why not leverage your investment to its fullest with a plan design that personalizes the benefits experience for your employees?
But, I don’t have the budget...Maybe you don’t have the budget right now, but there are things you can do to open up room. If you’re growing fast, the first thing you should ask yourself is have we outgrown our PEO? Because once you qualify as a large group employer, you gain the power to negotiate and reduce your health insurance rates. Even if you’re not on a PEO, you can improve benefits without increasing your budget. Our earlier post, 6 Ways Employers Can Save Money and Improve Employee Benefits, explores the following pointers:
- Get visibility into your group’s health needs.
- Figure out whether you’re overpaying or underinsured based on your needs.
- Understand the employee profiles that qualify for plans with lower premiums.
- Optimize contributions towards lower premium bronze plans with Health Savings Accounts (HSAs).
- Make HSA contributions to offset employee out-of-pocket expenses and incentivize low premium plans.
- Keep an eye on your group throughout the year so you can adjust and optimize your plan at your next open enrollment.
Data Delivers Better, Cost-Effective BenefitsIf you’re like most companies, you’ve been making health plans and benefits decisions blindly. Lumity digs into the data to deliver a win for you--and your employees. If you’re interested in finding savings to level-up and shine on the benefits front, fill out this 2 min form and we can benchmark how your benefits package compares to your competition. It’s time to offer the type of benefits package your candidates will get excited about.
Lumity customers typically realize 15-20% savings on comparable coverage. This is savings you can use to offer free benefits plans, make HSA contributions into a high-deductible health plan, or offer additional employee perks. We encourage you to read our customer success stories. (For example, Greenhouse achieved 41% in savings with an improved plan design).