A one-size-fits-all approach to employer-sponsored benefits doesn't work the modern employees.
It’s no secret that traditional employee benefits packages are falling short of meeting the needs of today’s workforce.
Today’s workers know what they want from their employer-sponsored benefits plans, yet many companies continue to offer outdated options to employees instead of catering to modern demands. Employee benefits packages and special perks are great, but adopting a one size fits all approach is not ideal.
Traditional employee benefits packages are under scrutiny as many companies are beginning to discover the limitations of these benefits bundles. Not only can you lose out on good talent by not offering the right benefits package options, but you could also end up with an unhappy, disengaged team that doesn’t care about their company or its customers.
Employees who aren’t satisfied with the benefits and support they receive from their employer may feel walking away is better than staying and waiting for change to happen.
More companies are moving towards offering more flexible packages and putting the power of choice in the hands of their employees. Benefits providers are now offering much more customizable plans that can be tailored to fit the needs of both employers and their employees. This makes it easier for Human Resources (HR) departments to find suitable options and helps save companies money in the long run by tailoring each plan to fit the size of the company and its workforce demographics.
So what are the evolving trends in the employee benefits world? And how can companies transition to offer modern benefits options to their employees while staying on budget?
Let’s dive in further to discuss the problems with traditional employee benefits to find out.
Matching employer-sponsored benefits offerings with employee lifestyles
Employers and employees want the same thing — to save money. On one hand, employers can save money by avoiding paying for unused employee benefits. On the other hand, employees save money when a flexible benefits package helps them pay for their lifestyle needs.
Customizable employee benefits packages are the best way to attract top talent to your company. Personalized benefits, however, go far beyond traditional health care costs. With the demand for talent intensifying, employers are realizing that financial and lifestyle benefits are two ways to stay competitive.
Diversified benefits packages not only help attract top talent, they also boost morale among existing team members and foster a sense of loyalty.
However, too many options can be overwhelming. It’s crucial to understand the types of benefits your employees are looking for and offer options that fall into those categories. A simple office poll can answer those questions for you. Meanwhile, analytics tracking benefits usage tells you what’s being used and what’s not. A better understanding of your workforce and the lives they lead can help forecast benefits spending.
Choice plays a major factor in the modern employee benefits plan, and technology makes those choices even easier. A centralized benefits hub helps HR track and analyze benefits usage. They can see what’s popular among the staff and relay money-saving suggestions up the ladder. While HR appreciates the tech, employees will love it too. They expect an easy-to-use, versatile platform that tracks and explains all the benefits at their disposal. Gone are the days of multiple usernames and passwords. A centralized benefits platform is the highway to benefits heaven.
Gym and wellness club memberships instill a culture of health and wellness among your staff. A healthier staff means fewer medical claims. They work harder, smarter, and faster when their minds and bodies are in shape. Mindfulness coaching and wellness programs are the first dominos in a long row of company success.
The Twic Store provides employees with preferred pricing across hundreds of vendors, making it easy for employees to see what’s available to them. Technology also streamlines the claims process, cutting back on the mountains of paperwork formerly saddled on HR.
Bridging the gap: Modern employee benefits options
Diversified employee benefits options are definitely the way to go. Your marketing team tracks and analyzes trends in an evolving market. Why should your HR department not do the same for employee benefits?
Variety in employee benefits appeals to a diverse workforce, with 80% of employees choosing additional benefits over a pay raise.
So how do companies still operating on the traditional employee benefits model transition to a more flexible one?
A Lifestyle Spending Account (LSA) is one of the most popular ways to diversify your employee benefits package and is the most flexible package you can offer. They act more like a private bank account for each employee, funding pre-approved purchases for their everyday life.
When making the change, an established budget paired with attainable goals is paramount. There is no dollar amount answer to allocating a budget. Consult with your financial advisor to determine how much you’ve been spending on employee benefits, where you can save money, and where you can move money.
The Bureau of Labor Statistics recently released data showing that employers pay, on average, upwards of 30% of their employees’ total compensation and benefits.
Your goals, though, are entirely your own. And these are determined by your unique circumstances. Are you looking to stand out in the labor market and attract new talent to a growing company? Or, are you an already established firm looking to retain your current workforce for years to come?
The integration of a vendor network makes it easier for employees to decide which benefits are best for them and their families. No matter the company size, vendor networks like Twic are highly customizable with several options and preferred-price vendors.
Provide the solution for modern business solutions with Forma.
The modern workforce is a diverse cast with different lifestyle needs. Some are more interested in health while others need tuition, commuter expenses, and child care assistance. Lifestyle Spending Accounts are a trending way to diversify your employee benefits packages, and Forma streamlines the process.
The Forma marketplace offers 10-30% more purchasing power, keeping the company within its budget. Forma makes it easy for everyone to understand, track, and claim their benefits with increased engagement and decreased employee inquiries.