by jeffp | Apr 25, 2018 | Employee Benefits
Employee benefits can be costly for a small business, often increasing an employee’s base salary by as much as 40%. Despite the costs involved, these benefits are often required in order to keep employees happy and to stop them from working for your competitors.
Many business owners, however, forget about the fees and fines which can be issued when common mistakes occur with their employee benefits. Here we’ve outlined 5 ways of eliminating costly employee benefit mistakes, allowing you to save money and rest assured that you’re doing the right thing.
1. Don’t give them all away for free
If employee benefits are free, the vast majority of people will simply take them. Why? Because they’re free, so they might as well – it’s not coming at any cost to them. However, if you provide benefits which the employee has to pay for or subsidize with their salary, they may think twice about how much they want that benefit. This is a good way of ascertaining how much your employees “actually” want certain benefits.
2.Covering unqualified employees or non-employees
Some (though not many) employees cover relatives or friends by purchasing group health plans. Claim denials, investigations and cancellations can easily come as a result of this. To easily see who is eligible for insurance, check your employee’s working hours via their WR-30.
3. Give them benefits that they actually want
Consider how much your employees are actually benefitting from the benefits you are providing them. For example, if you’ve got a workforce full of Millennials and Gen-Z-ers who are largely 30 and under, they’re probably not too concerned with life insurance coverage or pension plans at this stage in their lives; they’d probably rather have a pay rise!
4. Misinforming your employees about their benefits
Many employees will expect that you, as their employer, are providing them with adequate insurance coverage. If this is not true, however, you need to inform them. You could get yourself in a lot of trouble if you misinform your employees about their benefits, or even if you fail to inform them at all. Consider drafting an annual or quarterly statement for all your employees, informing them of the full scope of their employee benefits.
5. Not filing paperwork correctly
It can be very difficult to file insurance plans for different employees’ specific jobs if you aren’t completely familiar with their duties. Assuming you aren’t micromanaging your employees 24/7, you may find it difficult to detail their duties correctly. You can also run into similar paperwork problems for group health plans, as there is only a small window of time in which to enroll new employees onto the plan. Filing paperwork incorrectly can inevitably lead to costly legal fees should issues arise.
Providing employee benefits allows any businesses to build employee morale and thrive among their competitors. Nonetheless, it can be easy to make mistakes which will cost your business money down the road. Looking for more information and advice on employee benefits and insurance? Get in touch with us now!
by jeffp | Mar 31, 2018 | Employee Benefits
A healthy and happy workforce is key to controlling costs in the workplace. By reducing stress and emphasizing wellness, employees benefit and spend less time on sick leave. The company benefits too with increased morale, productivity, and reduced insurance costs.
Other company’s are leveraging these techniques and you may want to consider them as well…
Run “Biggest Loser” Contests
Create a competition to reward the biggest healthy loss of weight within a definite period of time. Rather than measuring actual pounds lost, concentrate on percentage of body weight. This way, individuals who are sensitive about their weight can safely participate. Give bonus points for employees that achieve a healthy BMI regardless of percentage weight loss.
Zero-Gain Challenge
Offer employees the opportunity to earn zero-gain rewards around their birthdays and holidays. Participants will weigh themselves on November 1 and again on January 31. For birthdays they could weigh a month before and a month afterward. Award a prize to every worker who maintains his or her weight through the contest period.
Race Entry Reimbursement
Support your team’s fitness goals by sponsoring them for entry fees into races. These events will give them a challenge to train towards completing those races, furthering your wellness program efforts. Encourage your employees to race together, and you can realize team-building benefits as well.
Fitbit Challenge
Everyone can benefit from moving. Encourage your employees to walk, jog or run more each day by organizing a Fitbit challenge. Provide participants with tracking devices (you may be able to negotiate a discounted price if you purchase in bulk from a retailer) and set a variety of goals to accommodate workers at different fitness levels. Attach a reward to the achievement of each goal; you can award anything from medals or plaques to gift cards and extra time off.
Need other wellness program ideas? Contact us today for assistance with this or any other employee benefits assistance.
by jeffp | Mar 27, 2018 | Employee Benefits
Workplace bullying is a growing concern in the U.S. 96 percent of American employees report having experienced work related intimidation or bullying occurring at least once in their career. Fully 89 percent reported harassing cases that had persisted for greater than one year.
One of the most common kinds of bullying reported was sabotage of the work or credibility of others. While just 4 percent indicate physical abuse, most report extreme verbal abuse and menacing threats as common elements of workplace bullying.
Such bullying invariably leads to negative productivity and is costly to the bottom line of companies. Bullying creates an uncomfortable work environment. Employees doubt their safety. They also doubt the leadership of the company. This brings about lower productivity and higher turnover. It can also lead to lawsuits if the work environment seems to “look the other way”.
While the development of an office anti-bullying plan is necessary, the process can be challenging due to both practical and legal factors to consider. For instance, how do you identify destructive intimidation from friendly teasing? The National Labor Relations Board has complicated the issue having challenged various company bullying policies, usually due to the fact that they find the language within them to be also broad.
As you examine your anti-bullying stand, watch out for these points…
- Clearly state that your firm is devoted to promoting a considerate, bully-free environment.
- Define work environment bullying as clearly as you can and include a declaration that your firm recognizes the degrees of harassing that may occur (between managers and also employees, between coworkers, between clients as well as workers, and so on).
Include a detailed list of the sorts of habits you will not tolerate under the policy.
- Define the process for reporting bullying incidents. Due to the fact that staff members could be scared of revenge, confidential reporting systems are typically preferred.
- Outline what happens to employees for violating the anti-bullying plan.
- Communicate the plan to staff members at all levels within your organization. Make sure each individual signs off that they have read and understood the policy.
- Take all reported issues of bullying and harassing seriously.
You may want to consult with an attorney specializing in workplace issues to help you form your policy and action plans to be certain they are legal and adequately address the situation.
And once you have established a solid plan, be sure to review your insurance. An EPLI policy can help protect you and your company from claims against your company and its response to reported workplace bullying.
by jeffp | Mar 1, 2018 | Employee Benefits
Employees’ loyalty is greatly enhanced when their employer offers them decent employee benefits. However, offering benefits can be a struggle for small businesses with limited profit margins. Below we offer 5 tips on helping smaller employers to minimize the costs of providing their loyal employees with good benefits.
1. Consider buying cooperatives
Health insurance buying cooperatives can help smaller companies to woo potential insurance providers. Each cooperative has its own unique structure, and may or may not issue superior insurance rates to companies in the regular open market. The value of buying cooperatives is often determined by local insurance underwriting rules and regulations.
A New York City business cooperative, for example, offers members up to 35 health plans to compare and choose from. Though the insurance itself often comes with no discount, members are nonetheless entitled to additional benefits such as free health assessments and discounted dental care.
2. Health Savings Accounts & High-Deductible Health Plans
Employers can use these plans to influence employees into considering their own healthcare costs. People with high-deductible health plans (HDHPs) can use HSAs to harness employee tax funds for non-covered medical expenses. Unused HSA funds can also conveniently be rolled over to the following year. Both employers and employees alike can fund an HSA plan.
Additionally, health reimbursement accounts (HRAs) can also be used in conjunction with HDHPs. Employers use an HRA to set aside funds that can be used to reimburse a fixed amount to employees when it comes to non-covered healthcare expenses and deductibles. The funds are technically owed to the employer, but the employee can nonetheless roll unused funds over to the following year.
3. Look into disease control
Thorough health assessments and preventive healthcare can ease the symptoms and onset of chronic diseases such as asthma or diabetes. Smaller businesses with limited profits and healthcare budgets will often struggle if an employee has a long-term illness that racks up medical bills. In order to avoid this, many smaller companies are now running disease control plans that aim to treat and manage any chronic diseases that their employees may suffer from. Both insurers and third-party organizations provide these disease control plans that can save a smaller business tons of healthcare costs in the long run.
4. Utilize FSAs (Flexible Spending Accounts)
Employees can use FSAs to pay for non-covered medical bills with their pre-tax money. FSAs come in the form of special debit cards that cover co-pays and medications that are uncovered by the employee at hand’s insurance plan. The money is taken away from the pre-tax funds that employees reserve. These FSA cards cost very little to own (often $2 or $3 per month) yet several FSA providers include them as added perks with certain insurance plans.
5. Implement a company wellness plan
Whether it’s a free gym membership, healthy canteen, or free periodic health tests, employers can provide their staff with many health-conscious facilities and resources that often see their insurance costs drop. Employer insurance costs can be greatly reduced by promoting health and wellness knowledge among your staff and providing them with the necessary facilities with which to boost their health.
We’re always looking out for insurance information that affects your finances and your health too. Get in touch with us 24/7 and we will answer any insurance-related questions you may have.
by jeffp | Jan 15, 2018 | Employee Benefits
Benefits are for small businesses too. For many small business owners, benefits seem cost prohibitive. In the interest of short-term gain (or just making the bills each month), a number choose to operate without a benefits structure in place. While limiting monthly expenses can help some aspects of the business, high turnover rates and dissatisfied employees more than outweigh the gain.
Today, more businesses large and small are creating benefits programs to attract and retain talented help. Benefits come in many shapes and sizes, continually growing in numbers firms compete for talent. Topping the list is medical care, yet staff members may also demand disability insurance, retirement plans, and more. The best benefits are better likely to attract the best talent.
Employees satisfied in the workplace, feeling compensated with a benefits structure, are more likely to perform better. That’s according to Aon Consulting Senior Vice President Joe Lineberry agrees, claiming that when employees feel valued attendance and productivity will improve. Great benefits improve retention as well, as employees will want to keep them.
The Simple Benefit Breakdown
Some benefits employers are required to offer. These include:
- Excusing absences for jury and military obligations
- Proper withholding and payment of payroll taxes
- Contributing to state unemployment taxes
- Compliance with the Family and Medical Leave Act (depending on size and location, more below)
Beyond these basics, many businesses are including additional benefits to attract the best employees. Today it is common to see businesses of all sizes offer extra benefits such as:
- Health and dental care
- Life, disability, and other insurance policies
- Paid time-off for holidays, vacations, and more
The types of benefits are limited only to the creativity of the entrepreneurs offering them. Competition dictates some companies may offer a combination of benefits programs to stay ahead of their peers. In addition to the types of benefits offered, ease of access factors as well. Simple processes for submitting vacation requests and accessing other benefits is likely to increase morale.
The Family Leave and Medical Act (FMLA)
Business size and operating state may require compliance with the Family Leave and Medical Act. Under the FMLA, employees are eligible for 12 weeks of leave, unpaid. These include welcoming a baby or adopted child into the family, attending to the care of a family member, and personal health concerns. The leave may be taken at once or non-consecutively. To find more about state-specific requirements, contact your state’s labor division.
Compliance and Oversight
Small business owners are subject to scrutiny from enforcement agencies. Small business owners often have limited experience implementing and managing employee benefits programs, and mistakes can be costly. The IRS and the Department of Labor have the ability to audit, fine, and more as enforcement tools. Before launching a benefits program or adding to an existing, contact a financial professional.
Creating employees should be viewed as an investment rather than an expense. Good employees can help your business grow and develop, and low retention rates can help keep you focused on what matters. Be sure to come back often for more tips on small business ownership, and information on other insurance topics.
