Adding value to your compensation with supplemental benefit plans

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Management of employee benefit programs has taken on new meaning since the inception of the Affordable Healthcare Act. This is particularly true when it comes to engaging and retaining the workforce through fair compensation, which includes the perceived value of company health benefits. Organizational benefit administrators who are already struggling to provide adequate wellness coverage for employees may feel as if they are losing the battle one employee at a time.

The Challenges of Benefits and Compensation for Administrators

Benefits administrators may be concerned about:

  • Not offering the right amount of health care benefits to meet government requirements
  • Not giving all employees the opportunity to choose the benefits that they need to stay healthy
  • Failing to offer a generous enough compensation and benefit plan to attract and retain employees

Giving Compensation Something More, with Less

The good news is that there is a way to give company benefit programs a major boost in value, without breaking the bank in the process. Supplemental benefits offer a low cost, easy-to-manage solution. Many supplemental plans are employee-paid, but with a group rate you can offer them for pennies on their value to your workforce. As you read on, you can learn more about the various supplemental benefit options and how they can value to your compensation strategy this year. 

Dental and Vision Benefits – When times are tough, employers often cut back on benefits such as dental, orthodontic, and vision plans. However, employees who take care of their health are more apt to be happy and productive. Giving employees the additional option to buy dental and vision plans, which are very affordable, is a way to ensure they take better care of their health. Proper dental and vision care have also been shown to reduce the risk of heart attacks and Diabetes.

Life Insurance and Death Benefits – Having the financial means cover final expenses is something that many employees worry about. Therefore, adding life insurance benefits for employees and their dependents to your benefit program is a great low cost way to add more to your benefit programs. Accidental death and dismemberment policies can also give workers in high risk assignments peace of mind.

Short and Long Term Disability Plans – There will be times when employees may become disabled or need additional time to recuperate from illness or other medical conditions. Low cost short term and long term disability plans can provide financial sustenance when they need it and can be very attractive in a compensation and benefit program. Look for policies that kick in at 7 days past the event and provide coverage for up to 13 months. These plans are not to be confused with workers’ compensation insurance, which you are legally required to carry for all employees.

Hospital Indemnity Programs – Even one hospitalization can quickly max out an insured employee’s annual deductible, leaving the employee responsible for thousands of dollars in medical fees. Give your employees something more with hospital indemnity and cash benefit plans as part of your supplemental insurance program. You can offer this for pennies on the dollar, but help your employees who anticipate a hospitalization due to surgery or pregnancy.

Corporate-sponsored Wellness – Perhaps one of the best gifts you can give your employees is the ability to experience more work-life balance through a corporate wellness program. Not only do employees appreciate having access to on-site wellness services, but they respond well to support for their fitness, weight loss, habit breaking, and other activities that promote health and well-being. It’s inexpensive to start a wellness program at work, and this can offset the costs of health insurance by reducing employee stress, illness and injuries.

Catastrophic Illness Benefits – Each year, millions of American workers are diagnosed with life threatening illnesses such as cancer, heart disease, and diabetes. Offering access to catastrophic illness benefits can help those who are predisposed to these conditions due to hereditary and lifestyle issues can be seen as a perk of employment. Cash benefit plans are low cost and easy to obtain, generally with little to no prequalifications through a supplemental benefits carrier.

Offering low cost but valuable supplemental benefits can be a good way to bolster your current compensation and benefits programs, and lead to better health and wellness for your employees.

Want to learn how to match compensation to perfomance?

Read the PayScale guide: Strengthen the Link Between Pay and Performance.

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