Category: Employee Benefits

Jeff knows that flextime can be a valuable benefit for his employees, but he isn’t sure how to implement a flextime program.

Trying to balance work and life demands can be hard for employees. A traditional workweek schedule doesn’t offer the flexibility that all employees need. Allowing employees to work flexible schedules is an inexpensive way to help them find their work/life balance.

Flextime is any schedule that doesn’t follow the standard workweek model. A flextime workweek could consist of four 10-hour days or of hours set by the employee that include the business’s defined peak work hours. Schedules can essentially be whatever both Jeff and his employees agree upon.

For the flextime program to work successfully, Jeff will have to watch schedules carefully to ensure that key people will be available during critical work hours. He also should ensure that there is sufficient supervision and coordination between departments within his business. And safety and security issues will need to be reexamined and policies changed as necessary before flextime can be implemented.

_{Client Profile is based on a hypothetical situation. The solutions discussed may or may not be appropriate for you.}

Consider tightening up the following three communication areas to make sure your open enrollment is a success.

First, make sure to get the word out about the value of your benefit offerings regularly. Benefits can comprise 20% to 40% of an employee’s total compensation, so sharing this information is important to help your company attract and retain the best and brightest.

Second, communicate through channels most likely to reach your employees throughout open enrollment. This means via smartphones and apps for younger workers and print and in-person presentations for an older workforce.

Third, make sure you communicate simply in a language your employees understand. Eliminate jargon to increase understanding. As important, give employees easy-to-reach resources should they have questions.

As summer turns to fall, employers across the country are getting ready to present their annual open enrollment options for employee benefits. As an employee, whether you’re a newbie or an experienced hand at choosing employee benefits, it is crucial to do your homework before making your selections.

WEIGH YOUR CHOICES

Health and other benefit options can change from one year to the next, even when providers haven’t. Health insurance plans regularly change their premiums, deductibles and other out-of-pocket costs, and employers could pass increases on to employees. Plans add and subtract network health providers, and may do the same with peripheral benefits such as chiropractic care and acupuncture.

You’ll also want to examine any health savings plans offered, including the Health Savings Account (HSA) if you have a high-deductible health plan. HSA contributions are deducted pretax, and potential earnings and qualified withdrawals are tax-free. In 2025, contribution limits will increase to $4,300 for self-only coverage and $8,550 for family coverage.

AND THERE’S MORE

Disability income (DI) insurance may also be an important coverage for younger employees, who are much more likely to become disabled than to die at their age. This insurance protects what is many employees’ largest asset — their ability to earn a living.

While health insurance is the primary “want” of most employees, other benefits may play an important role in your financial and risk planning. Employer-sponsored life insurance — typically of the term variety — can provide a good foundation of insurance to help protect loved ones. Because it is group life insurance, it typically won’t need underwriting — an important consideration for employees with preexisting conditions.

Life insurance, DI and other benefits may also be tax-advantaged, reducing taxable income and, ultimately, taxes. These are a few of what can be many benefit offerings.

Discuss your choices with your financial and tax professionals.

The Baby Boomers, Generation X, millennials, and Generation Z, who make up most employers’ workforce, have different situations and benefit needs. That’s why increasing numbers of employers are looking beyond a one-size-fits-all plan to multi-generational benefit plans.

KNOW YOUR DEMOGRAPHICS

The first step in moving your company’s benefit package toward a multi-generational offering is to know your workforce demographics and identify
what the different generations have in common and what their differences are.

The University of North Carolina Kenan-Flagner Business School Guide to Leading the Multi-Generational Workforce identified these age-arcing values: success for the companies; a culture that encourages leaders to lead by example, be accessible, serve as a coach or mentor, challenge employees, and hold them accountable; to enable success in their careers; recognition of different life stages; and expectation of new and unanticipated challenges ahead. Specific to benefits, a Forbes Advisor survey found that Gen Z, Gen X, and baby boomers all prioritize flexible work options, paid time off, and parental leave.

COMMUNICATION AND FEEDBACK

Tailor communications. Baby boomers, for example, value job security and loyalty to their employers. Gen Xers prioritize work-life balance and flexibility. Make all communication clear and easy to understand, and send through multiple channels. Gen X, millennials, and Gen Z have grown up in a digital age of instant information. They prefer short, straightforward messages. Solicit feedback throughout the year and act on it. And measure benefits use over time and adjust your program accordingly.

RECOGNITION AND TEAMWORK

Motivate employees with incentives that matter to them. To create effective reward programs, consider what inspires (or turns off) certain generations or individuals. Create programs that encourage generations to work together and to share knowledge. Let them know that sharing their knowledge is vital to the success of your organization. For more direction, review your benefits program regularly with your financial professional.

With new hires, you want to be confident that they will become loyal, productive, and valuable long-time employees. One way to achieve this goal is to have a well-thought-out employee benefit program that serves your needs. To see if your program has gaps you may want to consider what competitors offer and what employees look for.

According to a recent study*, business owners are offering benefits at the highest rates since 2008. What benefits are owners ramping up? The percentage of employers offering comprehensive health insurance, health savings accounts, wellness solutions, and employee assistance programs (EAPs) increased from 2022 to 2023. As for qualified retirement plans, the popularity of 401(k) and Simple IRA plans increased among employers, while other plans were offered at about the same rate as last year. For supplementary key employee benefits, both disability income insurance and deferred compensation dropped in popularity among employers while other benefits remained steady.

Still, affordability remains businesses’ top priority where benefits are concerned, ahead of attracting and retaining qualified employees and staff productivity. Your goal in reviewing your benefits program should be working with your professional advisor to achieve quality benefits at a reasonable cost to your business.

On that note, some of the “benefits” employees are looking for can be provided at little or no cost. Another study** found that most workers judge whether a job is good by the pay, boss, health and retirement benefits, vacation time, friendliness of co-workers, whether they’re helping people or society, remote work options, and opportunities for advancement. Pay was the top consideration at 45% of employees, followed by a good boss at 14%. People ages 27 to 34 are more likely to say promotion opportunities and advancement are important than older employees. And they place less emphasis on health insurance, retirement, and vacation benefits.

_{* 2023 Report on Employer Firms: Findings from the 2022 Small Business Credit Survey
** Washington Post-Ipso Poll, 2023}