The Best ROI NAVIGATING THE CHANGING EMPLOYEE BENEFITS LANDSCAPE

BY DAVID KUBICEK

Although health insurance continues to be the anchor of a good employee benefits package, employee benefits experts are seeing that additional benefits, like the ability to work remotely, as well as more flexible time off, are becoming sought after benefits.

Mike Mandolfo, president of Strategic Benefits, emphasized the importance of a competitive employee benefits package.

So, what is competitive in 2023?

That question is commonly asked during employer meetings. Most businesses will offer a traditional “core” benefit package that includes a variation of group health insurance, retirement plans, dental, vision, life insurance and disability insurance.

“The lack of some or all core benefits could be a deal breaker during the hiring process,” Mandolfo said.

Tried and True

Aside from traditional core benefits, remote work and flexible work schedules have made headlines as one of the most soughtafter employee benefits during the past three years.

Millions seeking flexible work schedules have turned to contract work during the pandemic, with employee benefits substituted by private marketplace health insurance coverage.

With employers facing more competition than ever to retain and attract employees, a few easy tips can help improve and update an employee benefits package.

As a starter, benefits should create buy-in and alignment for your employees, according to Taylor Royal, wealth management advisor and partner with Royal Wealth Partners.

“It really speaks to the culture that you’re trying to create in the enterprise,” he said. “What I’m seeing for tried and true benefits across all enterprises is really great medical, dental and vision insurance. That is the bread and butter that people really care about and will home in on.

“Employees can cover up to 100% of the cost of those and anything that’s left over the employee can pay for with pretax dollars. That’s a pretty good benefit if an HSA [health saving account] plan or an FSA [flexible savings account] is incorporated into that.”

HSAs are typically used to pay health care expenses while FSAs can be used to pay health care or dependent care or child care expenses.

Most common are medical, life and disability, dental and vision insurance.

“Currently it’s hard to see employers getting an ROI from their health insurance because it’s so expensive,” said Howard Shandell, general partner at Midwest Benefit Advisors. “Ultimately employers have benefits for one reason: to attract and retain quality people.”

Budget is the first consideration when putting together a benefits package.

“People start with health or medical insurance,” Shandell said. “That seems to be the centerpiece of most benefit plans. From there they’re adding what we call ancillary lines of coverage — life insurance, group disability, dental, vision.”

Trending Benefits

“Health care benefits still are trending but that’s just because of inflation, which is on top of everyone’s mind,” Royal said. “I would say that what is new is more fitness perks, such as reimbursement for fitness-related expenses like a gym membership, going out for a round of golf, fitness equipment, smart watches or running shoes.

“Good maternity and paternity leave is rather new. It shows the employer’s focus on the whole family aspect dynamic, which is important.”

COVID-19 showed that employees could work effectively from home. That consideration continues today in a post-pandemic world as benefit packages often contain the option to work remotely—not only from home but from any part of the country.

“We’re seeing a rise in pet insurance,” Shandell said. “That one’s a lot more popular. “Supplemental health plans are also popular because, as deductibles and copays rise, people look to supplement that loss of protection through other means.”

Extended time off is also popular with employees.

“More employees I work with now are taking sabbatical-type leave—a couple months off to travel and see the sights they might not be able to fit into one or two weeks off,” Royal said. “Being able to be more flexible in work arrangements is more of a new trend.”

The Best ROI

The best ROI for every benefits package is to have educated CONTINUED