Voluntary Benefits Increase retention through employee satisfaction

The Benefit of BENEFITS

How restaurant and lodging employers can up their game with workers by STEFAN BURKEY

Aserver and trainer for a Pinellas County restaurant illustrated perfectly to the Washington Post how restaurants can step up their game more effectively to replenish their still-depleted staffs.

It’s not just about base pay, although that helps. It’s about benefits, like group health and life insurance. But it’s also, the server said, about being made to feel valued. When her boss had a local ice cream company truck stop by for the staff to choose their treat of choice, it didn’t cement her loyalty. But it sure made it more solid.

Better pay, better hours and better benefits — everything’s on the table for the hospitality industry in this tight labor market. Some 70% of restaurants, for example, are short staffed, making recruiting and retention one of the year’s top challenges, according to half of those surveyed by the National Restaurant Association. Further, they expect the shortage to extend at least into 2023.

One solution for the industry is to think beyond benefits that are just “better” to benefits and perks that really respond to what matters to people and that meets them individually where they are at. The current employment environment opens the door to fresh thinking about voluntary benefits that augment the more traditional benefits packages.

Why voluntary benefits

There’s a rich and growing assortment of voluntary benefits. Some augment health plans. Others address wellness concerns — emotional and financial. Childcare and eldercare assistance programs have value. Others help with education and professional development.

Many of the most valued voluntary benefits cost the employer little or nothing to provide. When offered under the employer’s umbrella, typically at group rates, they still cost employees half of what they would if purchased directly. Some options to consider:

» Supplemental health: The out-of-pocket costs of unexpected medical events can be catastrophic. Supplemental benefits directly reimburse plan members for treatments related to accidental injury, if they are hospitalized or are diagnosed with a covered critical condition.

» Accident insurance: This covers treatment costs for an off-thejob accidental injury. It also helps employers reduce workers’ compensation claims as employees can use the insurance to pay for treatment (rather than delaying it) if they are hurt at work. » Financial assistance programs: Offering help dealing with financial pressures goes a long way to improving employees’ overall wellness. The most popular provide access to vetted purchasing, low-cost loans and debt refinancing programs.

These also support engagement: 80% of employees today say they would use these programs. » Legal services benefits: Group legal plans can be a boon to every employee demographic, ensuring professional help for needs from traffic tickets, to landlord disputes, to immigration situations.

How to get started

It takes some thought and insight into current and prospective employees to craft an effective voluntary benefits program. Here are some starting points for the strategy: » Remember: One size does not fit all. Employers need to understand their people, where they are at — not just in their life journeys but their work journeys — and their needs. Standard demographics and generational factors can suggest needs and concerns, but a deeper dive into where they are at professionally can suggest other areas to explore and their relationship with benefits generally. » Determine goals, their influence over the strategy, and measure to manage. HR may think a particular roster of voluntary benefits is a good idea. But that determination should factor in its impact on retention and recruitment. Further, the right metrics need to be in place to measure the right mix of benefits and guide its evolution. » Educate, educate, educate. Employees must be educated and informed on a variety of fronts for voluntary benefits to make a difference. It’s not enough to tell them the benefits are available.

They need to know how to access them. It’s also key to help them overcome individual sensitivities in terms of costs or need.

People must know why these benefits meet a need. Education can’t be a one-and-done matter. It must be undertaken consistently and over time.

Hospitality industry employees aren’t so different from others in what they are looking for in return for their hard work. They want an employer that is there for them, will grow with them and take care of them over time. Demonstrate that with honesty and transparency, and engagement and retention will almost be automatic.

About the author: Stefan Burkey is the hospitality practice leader for global insurance brokerage HUB International Florida.