3 Things to Consider When Choosing Group Benefits

The employees you want on your team will need benefits. In a tight job market, with competition for talent higher than ever, the benefits you offer matter. When choosing group benefits, several basic issues must be thoroughly evaluated before deciding on what to offer employees:

Employee Demographics – Generation Alpha, Gen Z, Millennials, Gen X, Gen Y, or Millennials?

Every generation has a different perspective on healthcare. If your company has a majority of older employees, standard, high-quality healthcare benefits may be best. Younger employees are more attracted to plans that offer alternatives with options such as massage, acupuncture, and holistic healthcare, coupled with standard health insurance. Choosing a plan that is most attractive to the generation you want to attract makes sense.

Budget Considerations

No matter how much you want to attract the best of the best, the bottom line is of ultimate concern. The split between what you pay, and what your employees pay is an important consideration. Employers have many attractive options in the current market, some of which are both appealing to employees and more affordable. The current options include:

• PPO (Preferred Provider Organizations): These plans allow for in-network or out-of-network care, without referrals. Considered one of the most comprehensive types of health insurance, many employees appreciate the freedom and quality of these plans, but they cost more.
• HMO (Health Maintenance Organization): Employees must choose a primary care physician and will need a referral to a specialist. Medical treatment is provided by medical professionals who are contracted with the HMO, except for emergency healthcare. These plans are generally cheaper but are considered to be lower quality by many potential employees.
• HSA (Health Savings Account): An HSA is a PPO plan designed to work with a PPO. The HAS is a bank account to which those participating contribute funds, pretax, to pay for medical expenses. The tax savings of these programs makes them appeal both to employers and employees. The funds an employee contributes to an account roll over if not used, with a yearly contribution limit. The employer can contribute the entire amount, or employees could contribute a portion of the yearly limit.

What Benefits Suit Your Industry?

Every operation is different. Higher-risk industries such as construction or operations that involve manual labor have entirely different needs than white collar jobs. Employees working higher risk industries may be interested in the option for Long Term Care insurance in a benefits package. A white-collar job with almost no physical risks has a different set of issues and employees may appreciate options such as massage, gym memberships, or other wellness benefits to relieve stress.

Custom Benefits Packages

Cafeteria plans provide employees who participate to receive benefits, pretax. The benefits can be excluded from the employee’s gross income. Employees can choose from benefits such as accident insurance, adoption assistance, dependent care assistance, group term life insurance, and health savings accounts. These plans are custom designed for a business.

Need Help? Talk to an Experienced Agent

To manage your company’s benefits, call on our experienced local agents, who can evaluate the current marketplace and find the most attractive package for your industry, your business, and your employees.