Retaining Top Talent Just Got Easier: Leveraging Supplemental Benefits to Recruit and Retain
Retaining Top Talent Just Got Easier
Leveraging Supplemental Benefits to Recruit and Retain
By ArmadaCare, a Seventh Annual Native American Human Resources Conference Sponsor.
Benefits have always played a big role in recruiting and retaining key employees who have an important impact on company performance. But with today’s healthcare benefits, primary plan coverage is shrinking and becoming one-size-fits-all, making it more difficult to create benefits packages that stand out from the competition. And “ideal” primary plans are often financially out of reach since you have to provide the same coverage to all employees.
50% of employees say that an improved benefits package would make them stay at their job.(1) It’s clear, simply providing a cookie-cutter benefits package is no longer an option if you want to secure talent.
This is where supplemental benefits come in. The supplemental market takes a holistic approach by identifying gaps and designing options to fill them. With supplemental solutions, you can once again address the needs of different levels of employees within your company. And since we find ourselves in a job seekers’ market, it’s crucial to surpass what the competition is offering while avoiding a bidding war. With supplemental benefits, you can offer something innovative that key employees won’t easily find elsewhere.
The percentage of employers that expect supplemental benefits to be vital to their total rewards strategy is expected to rise to 48% in 2018, a percentage that has more than doubled from the 21% in 2013.(2)
Why are employers turning to supplemental benefits? Two main reasons: Supplemental plans offer the ability to enrich their total rewards packages (74%) and provide personalized benefits that fit employees’ needs and lifestyles (83%).(2) Think about it. Each employee has different needs. Your benefits package should account for that.
There are several types of supplemental solutions to explore: health accounts, voluntary insured benefits and expense reimbursed insured benefits. Typically employer-paid, expense reimbursed insured benefits can be carved out by employee class and offered to those usually not eligible for other types of health accounts with tax savings, like shareholders and partners. This ability makes expense reimbursed insured plans especially advantageous for recruiting and retaining key talent.
These plans offer different levels of healthcare reimbursement for qualified medical expenses and can be added onto a variety of primary plans. Unlike supplemental voluntary plans, expense reimbursed insured plans may reimburse for all types of healthcare expenses based on 213(d) qualifications* and do not require a certain event to trigger coverage. These plans offer a broad range of coverage to fill primary plan gaps such as co-pays, deductibles and even for some plans, balance bills. Some solutions go even further to offer coverage for non-formulary Rx and private hospital rooms, as well as vision and dental.
Supplemental benefits can give you a superior advantage when it comes to recruiting and retaining, namely because they allow for a flexibility that primary plans don’t have. They let you customize your benefits structure to set you apart from the competition. They make your offerings more difficult to match. And they allow for the expanded coverage that desirable talent wants.
Learn more about supplemental benefits at the panel presentation “Leveraging Supplemental Benefits to Recruit and Retain,” which is part of the Seventh Annual Native American Human Resources Conference in January. Learn more about this event here.
*The IRS determines what is eligible for reimbursement in section 213(d) of the tax code. These qualified expenses go beyond what primary plans typically deem medically necessary, thus allowing for a wider range of eligible expenses.
1“How to Keep Employees Happy Without Breaking the Bank.” EBN.
2“Importance of Employer-Sponsored Voluntary Benefits and Services Expected to Surge, Towers Watson Survey Finds.” Willis Towers Watson.