Attract and retain talent with increased benefits engagement
Over the past year, many businesses have faced widespread labor shortages. This, combined with a historically low unemployment rate, means employers need to take action now to attract and retain employees.
One area to consider changes is in benefit offerings. While the workforce shifts across the United States currently dubbed “The Great Resignation” are being driven by a wide range of factors, according to a recent survey by Bench Research Centerabout half of respondents cited benefits as a “major” or “minor” reason they left a job in 2021.
A well-designed health insurance plan can help companies achieve their goals by improving a company’s bottom line as well as attracting and retaining top talent. We have seen that when an employer improves employee engagement with their benefits, it ultimately improves the financial well-being of not only an employee but also the company itself. This focus on delivering results for employees is an encouraging trend. The right plan design with the right benefit accounts and the right employee communication plan increases retirement preparedness and job satisfaction for employees as well as tax savings for employers.
To be better positioned in an aggressive job market, employers need to consider three key elements when evaluating their benefits packages:
1. Reposition health savings accounts as a retirement savings tool
One way to rethink benefit offerings is to reposition the Health Savings Account (CHS) as a retirement savings tool. According to Becoming 2021 Year-End HSA Research Report, approximately one in five (21%) HSA accounts were unfunded in 2021. Encouraging employees to save using their HSA promotes employee health and financial well-being, and helps employers realize short-term savings. and long term. Employers should consider bringing the investment opportunity with HSAs to the forefront of the conversation through proactive employee education to highlight its potential to shape and secure the health and financial well-being of the organization. employer and employee.
2. Maximize Health Savings Accounts Through Incentives or Matches
Another way employers can encourage enrollment in a high-deductible health plan (HDHP) with an HSA is to modify their plan design, such as offering incentives or matching contributions. An HSA incentive structure, such as matching or seed contribution, encourages an “active” employee role similar to 401(k) matching programs. This type of structure can significantly increase HSA account balances, save employees and employers money, and improve the perceived value of benefits and retirement readiness. Offering HSAs with automatic or earned money is an added incentive for employees to enroll in HDHPs and contribute their own money to their HSAs.
3. Prioritize parenting and work-life balance through FHTs for dependent care
The pandemic has been particularly difficult for working parents Pew Research Center citing that nearly 50% of those who quit in 2021 did so at least in part due to childcare issues. One possible solution is to offer employees the option of opting into a Dependent Care Flexible Spending Account (DC-FSA). A DC-FSA covers eligible child care expenses for children under 13 and adult dependents who are unable to care for themselves, making it a great tool for budgeting child care expenses. With the job market tight, DC-FSAs are a great attraction and retention tool for employers to explore. Increasing employee benefits with a DC-FSA option sends a strong message to employees that their employer cares about their work-life balance.
With the current job market showing no signs of slowing down, employers should take the opportunity to reconsider the types of benefits they offer their employees, considering matching or an HSA incentive program. to increase employee engagement, and redefining how the benefits they offer can impact employees’ savings for retirement.
With a few simple changes and proactive communication with employees, employers can take advantage of this period of heightened consumer interest and commitment to benefits to re-energize their employees and attract new talent.
Kevin Robertson is Chief Revenue Officer at HSA Bank.