Tag Archive for: employee healthcare

Increase Employee Satisfaction with These Affordable Benefits

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Employees today care more about benefits than ever before. A recent study by the Society for Human Resource Management (SHRM) found that 92% of employees believe that benefits are important to overall job satisfaction. Companies that offer benefits like health insurance and retirement accounts are more likely to attract and retain employees. In fact, according to a recent study by Jobvite, a leading recruiting software provider, more than half of recruiters list medical and dental coverage and a 401K plan as the most effective benefits for attracting employees.

While most companies already understand the top benefits of offering health insurance, offering additional benefits could help employers maintain a competitive edge. These additional perks cost employers very little, but provide significant benefits to employee satisfaction.

Wellness Programs

Perhaps one of the most popular and affordable modern benefits, wellness activities and programs improve productivity, reduce the number of sick days, and help employees develop healthy habits that last a lifetime. Adding wellness activities doesn’t have to take a lot of time or effort. Many companies encourage group walks at lunchtime or offer yoga classes in the morning. Even companies that have not returned to the office can promote wellness activities. Groups can meet and track their progress through apps or social media. Some companies even organize fitness challenges, where employees compete against each other for a prize.

Snacks

Many companies now offer employees free meals or snacks throughout the day. This small investment could have a major impact on the way employees view their work and engage with others. Offering free snacks to employees increases job satisfaction and may make employees more productive.

Casual Dress Code

An increasing number of companies are letting go of their professional dress code in favor of more casual styles. This employee perk costs employers nothing. Casual work attire can put employees at ease which can make them more relaxed, creative, and productive. According to a recent study, more than one-third of job seekers expect employers to allow a casual dress code.

Signing Bonus

Although a signing bonus isn’t necessary, recruiters agree it’s an effective benefit. Offering a signing bonus may make it easier for candidates to accept a job offer.

Employee Benefit Specialists

MEBO offers employee benefit packages, custom tailored to the needs of each organization we work with. Our team of benefits specialists works directly with employers to analyze their needs and develop a comprehensive solution. Please contact us to schedule a consultation.

 

 

Should Employers Offer Benefits to Gig Workers?

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COVID-19 has changed the way many of us live and work. Throughout the past year, unemployment rates have skyrocketed. Caused by forced closures and stay-at-home-orders, several businesses around the U.S. have had to reduce staff or permanently close their doors. According to the Department of Labor, over 48 million Americans applied for Unemployment Insurance within the past year. Many unemployed workers turn to gig jobs to make ends meet.

What Are Gig Workers?

Gig workers include independent contractors, freelancers, contract firm workers, temporary workers, and online platform workers. These workers may enter into contracts with companies to provide services on an as-needed basis. It’s estimated that as many as ten percent or more U.S. workers take advantage of some form of alternative work.

Health Benefits Provide Peace of Mind and Financial Protection

As an increasing number of U.S. businesses turn to independent contractors to assist with projects on a temporary basis, many have considered the possibility of offering these workers benefits. For gig workers that perform potentially life-threatening tasks during the pandemic like ride-sharing and other jobs that put them in direct contact with strangers, health benefits can provide peace of mind and may increase worker interest in these types of jobs.

Employers that utilize independent contractors on a regular basis might want to consider offering some form of benefits. Although it’s important to note that employers don’t have to offer the same types of benefits that they offer their full-time employees. For example, many employers do not allow gig workers to participate in a 401K plan, but will provide them access to healthcare coverage. These employers allow gig workers to pay monthly premiums to participate in the company’s group health plan. These types of plans generally cost significantly less than individual health plans.

Employers that decide to offer benefits to gig workers should ensure their workers aren’t receiving benefits from a temp agency or other party. It’s also important that employers avoid working with temp agencies that pass the cost of benefits to the employer. If the temp agency offers benefits, it is their responsibility to pay for these benefits for their workers.

Other Benefits

Although health insurance tops the list of preferred benefits, many companies choose to reward gig workers with bonuses. Offering bonuses for working during difficult hours or putting in extra effort shows workers they’re appreciated. It can also make them more willing to continue working for the company.

While offering benefits to gig workers can provide significant benefits, it’s important that employers weigh the risk as well. Providing gig workers with the same benefits as regular employees may make it difficult for organizations to attract workers to permanent roles within the company.

Employers have many factors to consider when selecting benefits for their workers. MEBO works directly with employers to evaluate their needs and develop a comprehensive solution, tailored to the organization’s budget and objectives.

Please contact us to schedule a consultation.

What’s the Real Cost of Your Benefit Plan?

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Businesses spend a lot of money each year. While business owners have transparency of what they spend on goods and services, this isn’t typically true for healthcare. This is a problem as healthcare represents the second largest expense after payroll for most U.S. businesses. Another issue, most leaders have very little say when it comes to negotiating their employee benefit plan. This can lead to overspending with little understanding as to why.

Understanding the Real Price of Employee Healthcare

Leaders have many factors to consider when it comes to figuring out the true cost of their health plan. Although many insurance carriers would like employers to believe their annual bundled lump sum premiums make up the total cost of their health plan, there’s more that goes into figuring out this total. Employee health plans are made up of several different components. Each component has its own cost.

The components of an employee health plan include:

  • Medical claims
  • Pharmacy claims
  • Administration costs
  • Advisor commissions and fees

For years, insurance carriers have told employers that it’s difficult, if not impossible to control the total cost of their healthcare plan. This benefits no one but the insurance carrier.  Unfortunately, employers get very little information regarding what they pay for each component of their healthcare plan.

In 2018, a survey conducted by the National Alliance of Healthcare Purchaser Coalitions (National Alliance) found that 60% of employers estimate that up to 25% of their employee healthcare spending was wasted. Unfortunately, without transparency into healthcare spending, employers can only guess how much money gets wasted each year.

Employers Need Greater Transparency Into Their Healthcare Spending

At MEBO, we believe employers should have complete transparency of the costs of their healthcare plan. Employers shouldn’t blindly accept increases each year without knowing where they spend their dollars and why. Without this information, employers can’t plan budgets or understand how they spend their healthcare dollars.

In order to increase transparency and control over healthcare spend, employers could benefit from changing their approach to purchasing healthcare. All key components must be unbundled and a total cost provided for each area. This allows leaders to fully analyze what areas drive their healthcare costs. They can then use this information to develop a comprehensive plan based on what their employees actually need.

Using a level-funded approach, employers gain visibility, predictability, and greater financial protection over their healthcare spending. However, this approach may not be the best choice for every company. It’s important that employers speak with an experienced employee benefit specialist before deciding on or switching their health plan.

MEBO works directly with employers to evaluate their needs and develop a comprehensive solution custom-tailored to their requirements. Our process puts employers in the lead. This reduces costs and ensures complete transparency. Please contact us to schedule a consultation.