Creative Employee Benefits for Small Employers

Transcription

1 Creative Employee Benefits for Small Employers By Claudia St. John, Affinity HR Group, LLC

2 Today s Objectives Provide an overview of the variety of benefit programs available Identify resources for you to call on when reviewing your benefit plan Present some non-standard benefits for you to consider PLEASE SHARE YOUR BENEFIT IDEAS!!!

3 Disclaimer Content is for informational purposes only for answers to specific benefit questions, consult You insurance carrier Your broker Call Affinity HR Group!

4 Employee Benefits What are they and why have them? Employee Benefits Offered to employees for four main reasons 1. Mandated by Law 2. To attract good talent 3. To retain talent 4. Because it s the right thing to do

5 Employee Benefits What are they and why have them? Employee Benefits Indirect and non-cash compensation paid to an employee. Some benefits are mandated by law Others are optional, voluntary and vary from firm to firm or industry to industry

6 Employee Benefits What are they and why have them? Legally Required Benefits Worker s Compensation Unemployment Insurance Disability Insurance (some states) Family Medial Leave (Employers with 50+ employees)

7 Employee Benefits What are they and why have them? Standard Employee Benefits Health Insurance Life Insurance Long-Term Care Insurance Dental / Vision Retirement Benefits Flex Plans/HSA Leave

8 Employee Benefits What are they and why have them? Non-Standard Employee Benefits Workplace Flexibility Voluntary Insurance Benefits Workplace Perks

9 What Small Businesses are Buying 60% of firms with < 100 employees offer health insurance On average, those that offer health insurance cover 80% of employee premium, 65% of family premium 52% offer retirement plan 44% offer life insurance Typical comprehensive benefit package = 30% to 40% total payroll expenses (including salaries and hourly wages) Non-traditional benefits hard to calculate but have a BIG impact!

10 Health Insurance Large migration into High Deductible Health Plans Significant changes ahead in 2014! New Exchanges should help lower $ Tax credits for small businesses (fewer than 50 employees) A LOT of variability depending on your state Kaiser Family Foundation

11 Other Standard Insurance Benefits Life Insurance Very effective, low-cost benefit. Company provided or voluntary group coverage Disability (Long-Term/Short-Term) Most companies offer short term disability and offer voluntary long term Insurance. Many states have mandatory long term disability coverage (low level) Long Term Care Few offering group coverage due to lack of carriers offering product Section 125 Flex Plan / HSA Pre-tax contribution to cover qualified medical expenses

12 Standard Retirement Benefit Retirement Benefits Most Defined Benefit plans are gone 401(K) popular but require third party administration Profit Sharing combines 401(k) with discretionary bonus SEP/Simple IRA a good option for some Standard Retirement Benefit Employees contribute up to 6% of pay into 401(k) and employers match up to 3%. Employer contribution is vested.

13 Other Standard Insurance Benefits Dental Insurance Sought after for orthodenture Vision A standard benefit although usually limited Of all standard benefits, Health Insurance and Retirement are most valued. The rest are Nice- To-Haves Your Insurance Broker State Department of Insurance State Association of Insurance Agents Affinity HR Group

14 Non-Standard Insurance Benefits Supplemental Health Coverage Cancer/Disease Specific Accident/Critical Care Legal Services Employee Assistance Programs Pet Insurance

15 Innovative Benefit Ideas Workplace Flexibility Time Off Flex-time, Job share, Work from home Volunteer/pro-bono days, Summer schedule, Sabbatical Professional Development Training & education, Job share, Payment of course work at community college

16 Innovative Benefit Ideas Personal Development Dream manager, Coaching Rewards For Achievement (Personal & Professional) Time off, Volunteer time, Team activity/meals, Tis Best Financial Assistance Fun/Healthy No interest loans for appliances, Debit cards, Payment of cell phone charges Onsite massages/haircuts, Chef or healthy lunch option, Meditation, Quarterly spa give-aways, Wii tournaments

17 Remember Why We Have Benefits To Attract & Retain Employees If the investment is unlikely to affect recruiting/retention, don t make it Employees value more highly an innovative/creative benefit offering Insurance Agent/Broker the best source for insured benefits Your employees are a good source for innovative benefits :) Be creative & have fun

18 Questions? Claudia St. John Affinity HR Group LLC