Benefits Articles

A good enrollment communications strategy is difficult to formulate when price hikes keep hitting year after year. Employees dread sitting down at each medical benefits meeting. They know their payroll deductions are going up - they are just waiting to find out how much. Sure, you can explain that the company is paying more too. However, this doesn’t really make anyone feel better.

Flexible spending accounts (FSAs) are designed to offer employees a way to pay for qualified medical expenses with pre-tax dollars. This begs the question - what are qualified expenses? The IRS publication 502 gives a complete list. However, employers can choose to limit the options available to employees when it comes to reimbursement from an FSA.

Paid time off (PTO) has advantages and disadvantages from the perspective of both employers and employees. However, it is often simpler to administer than traditional vacation/sick day/personal day programs. Calculating the amount of time accrued can be done using a single formula since there is just one type of time off being offered. It can also be easily adjusted so that long term employees accumulate PTO at a faster rate per year (or to incorporate other criteria).

Employers who are battling rising healthcare costs have the option of developing a health reimbursement account (HRA) program. Unlike a health savings account (HSA) which is funded by the employee, this type of plan is entirely employer funded. This lifts the limits on contribution amounts and gives companies more flexibility than a cafeteria plan. These contributions are tax deductible to the employer and are often used in conjunction with a high deductible plan.

Although 401(k) plans have taken a beating over the past few years, they are still one of the most popular options for company retirement programs. Of course, you may be one of the approximately 40% of small business owners who don’t yet provide this type of benefit. If so, you can use the implementation of such a savings and investment plan to show your employees that you value their current hard work and that you care about their future well being. If you do offer currently a 401(k), it is time to help your employees understand how to use it to their advantage.

Health savings accounts are a fairly new type of health and welfare benefit (the option was first created as part of the 2003 Medicare bill). This type of employee-owned benefit is becoming more and more common as consumer-driven health plans continue to rise in popularity. Like flexible spending accounts, HSAs offer a tax break to workers who make contributions to a private medical expense account.

When HR is planning its compensation and benefits communication strategy, transparency should be a key priority. This means that information should be made as accessible as possible. Many employees feel intimidated by stacks of benefits brochures and lengthy plan “summaries” filled with fine print. While it is important from a legal standpoint to provide these details, it is not the only way to communicate. Many companies are now choosing to supplement their handbooks and other paper documents with web content.

The health and well being of your workforce is a major factor in overall morale. People who are stressed out, in poor physical shape, and nutritionally deprived are not going to be able to do their best at any job. Employers may think that lifestyle is about personal choices that have nothing to do with the workplace. However, full time employees often spend about half of their waking hours on the clock. This means that what they do at work is their lifestyle to a large extent. Wellness initiatives that boost physical and mental health aren’t a waste of resources.

The U.S. Department of Health and Human Services is wrapping up its Healthy People 2010 initiative and getting ready to launch the 2020 version. One of its current goals is to expand participation to 75% of all employers and employees. Now, companies are more concerned than ever with healthcare costs. Such circumstances provide an important incentive for moving toward this target. If your workplace wellness program is currently stalled, this is a good time to jumpstart it.

If your company is small to mid-sized, you probably aren’t offering your top employees “gold parachutes” as part of their executive benefits package. Chances are your corporate officers and company directors are working hard to earn their salaries. These people have years of experience that cannot be easily or cost effectively replaced. They appreciate having access to decent medical insurance and a reasonable amount of vacation time. Bonuses are an added incentive, but they don’t necessarily make or break a deal.