In today’s competitive labor market, your clients undoubtedly appreciate any advantage they can get when it comes to attracting top talent and improving retention. At the same time, there’s probably not a lot of latitude in the budget to add incentives. The good news is, we’ve discovered a way to help employee turnover without breaking the bank.
Paycor analyzed the data from more than 30,000 clients nationwide and found organizations offering six employee benefit plans (medical, dental, retirement, etc.) saw a 138% improvement in turnover compared to those with no benefit plans. The key is finding the right mix of benefits, focusing on options that appeal to each generation of the workforce. We’ve outlined four cost containment strategies your clients can implement in order to offer the right mix of benefits without busting the budget or alienating employees.
Share the Cost of Benefits
Medium and small businesses spend more than big business on comparable employee health plans because they don’t have the buying power. It’s important to find a way to share the costs with those opting into the plans. A good place to start is finding the right balance between PPO and HDHP. High-deductible plans cost smaller businesses 13% less on average, as employers don’t incur costs until the deductible is met. Another option is to consider adding a surcharge to plans that carry a spouse or for tobacco usage.
Manage Chronic Conditions
To promote healthy lifestyles and contain costs, nearly half of organizations with more than 500 employees sponsor programs and/or offer technology to help employees manage chronic conditions. A targeted program for people with diabetes, for example, might offer coaching and an interactive glucose monitor that can transmit data to a provider. Encouraging employees to participate in their own wellness efforts has the ultimate goal of improving quality of life and lowering long-term healthcare costs.
- Offer “Free” Benefits Some highly valued benefits don’t incur hard costs. Paid time off, flexible work arrangements and community volunteering while “on the clock” are good examples of no- or low-cost perks. They’re also excellent ways to decrease anxiety and burnout while infusing your benefits offerings into the company culture.Be sure to tailor the free benefits to for specific industries, focusing on what makes the workforce unique. Those in manufacturing often seek job security (cultivate a happy workplace and encourage honest communication) while those working in nonprofits often crave a mission they can support (reinforce the “why” behind the “what”). Workers in the tech, creative and service industries look for flexible work environments alongside learning and mentoring opportunities.
- Invest in Technology A robust benefits admin tool can be one of the biggest drivers of long-term benefits cost savings. Savings from overpayment of premiums alone amount to nearly $28,000 per year for a mid-sized business according to a recent report, Forester Total Economic Impact™ of the bswift Benefits Administration platform. The right benefits platform eliminates errors by matching lists of eligible employees and dependents with error-free insurance payment invoices.
The Right Benefits Solution Can Make All the Difference
Paycor’s Benefits Advisor makes it easy to navigate benefit offerings for both employer and employee. The self-service functionality and mobile app allow employees to manage their profiles and access their benefits anytime, anywhere. Automated alerts and reminders keep administrators on track and remove tedious, manual tasks. The dashboards and benchmarking tools give you actionable insights into key metrics, including turnover.
If you would like to learn more about Benefits Advisor, Paycor’s modern, scalable rules-based benefits tool, contact us.