When you think of innovativestartups and millennials in theworkforce, does your mind drift toping-pong tables, free snacks and open seating?For years, these benefits have been highlytouted by employers. But while fun, these perksultimately have little impact on employees’overall lives. And with unemployment at recordlow levels, the competition for attracting topemployees is continuing to heat up.
By MATTHEW OWENBY, Senior Vice President, Chief Human Resources Officer,Aflac
When employers are flexible,receptive and communicativeabout the workplace benefitsthey offer, everyone profits
When you think of innovativestartups and millennials in theworkforce, does your mind drift toping-pong tables, free snacks and open seating?For years, these benefits have been highlytouted by employers. But while fun, these perksultimately have little impact on employees’overall lives. And with unemployment at recordlow levels, the competition for attracting topemployees is continuing to heat up.
So, how can you continue to attract qualityemployees? Workers no longer look at theiremployers the same way they did 10 – or evenfive – years ago. Businesses know their benefitsofferings need a certain spice to do more thanmerely satisfy their workers’ basic benefits needs.
The 2018 Aflac WorkForces Report revealedthat benefits are a key differentiator when newemployees decide whether to join a company –and when existing ones decide to leave. Nearly70% of employees said their benefits packagesare extremely or very important to their wellbeing,financial health, and job satisfaction.Additionally, 34% say improving their benefitspackages would help keep them in their jobs,second only to increasing their salaries.1
While additional medical benefits andvalue-added services are important, it’s just asimportant to consider the long-term successof your employees. Aflac has always operatedunder the belief that as employees grow withcompanies, their talents should grow as well.Many Aflac employees stay with the company for30 years or more. To ensure that employees feelthey always have a next step to strive for, Aflacimplemented the Career Success Center five yearsago. Designed to allow employees to discuss withmanagers and executives the next step in theircareer, these candid conversations help revealwhy the employee might not have been chosenfor previous promotion opportunities, as wellas determine what the ideal next step would bein their career. The Center also includes helpfulprograms that enhance employees’ skills in areas such as resumé writing and interviewing.
While some companies might be nervous thatthese conversations could lead employees awayfrom the company, Aflac feels that providingemployees options to move to a departmentthat is a better fit will ultimately lead to longeremployment and increased engagement withthe company. The ultimate goal is to ensure eachemployee is on the proper track for the positionfor which they are best suited.
So far, the program is paying off. To date, morethan 2,000 Aflac employees have participated,with 1,300 obtaining promotions or changingtheir career direction to something moresuited to their talents. While Aflac’s employeeengagement/satisfaction is an industry-leading83%, the company recognizes that employmentis a choice. The company’s commitment to takingcare of its employees attracts new employees aswell as ensures that current employees stay andgrow within the business. Aflac’s total employeeturnover rate – below 9% – remains low relativeto the financial services industry.
When it comes to employee benefits,companies must ask themselves, “Are wedoing enough?” Simply offering the samebenefits options from 15 years ago risks havingtop candidates head straight for the door. Butwhen companies offer the right benefits, it canopen the door to increased overall employeesatisfaction, fewer missed workdays and a highercommitment to meeting the company’s goals.
THE MUST-HAVE BENEFITS
Additional Options for Employers
While almost all benefits packagesinclude at least some kind of medicalinsurance, many job applicants arelooking for benefits that go beyond thetypical coverage. Some options include:
Flexible Spending Account (FSA)
An FSA is an optional savings accountused to help pay off various medicalexpenses and is beneficial to bothemployers and employees. Accountsprovide employers that offer thesebenefits a reduction in employer andFederal Insurance Contributions Act(FICA) taxes, while also reducingthe taxable wage of employees whoparticipate in the plan. And becauseFSAs allow tax-free reimbursem*nt fora wide variety of qualifying health careand dependent care expenses, they canbe chosen by employees who know theyand their families will have their healthcare needs met throughout the year.2
Health Savings Account (HSA)
An HSA is similar to an FSA in that itprovides an optional savings accountfor employees to use for their medicalexpenses and have similar tax benefits.But employees must have a high-deductiblehealth plan (HDHP) toqualify for an HSA. The good news isthat HSAs are not bound to a particularemployer and accompany an individualshould they change jobs or enterretirement. Another perk of an HSA isthat it does not fall victim to the “use it orlose it” rule. Unlike an FSA, where moneymay disappear if it is not used after ayear, the funds in an HSA never expire.
Value-added services
Many businesses feel the need to gobeyond benefit basics. Employers areincreasingly offering supplementalinsurance, which gives policyholderscash to help with expenses their healthinsurance doesn’t over, like deductiblesand copayments. Value-added servicescomplement supplemental coverage toprovide immediate value for employees.
Education assistance
With U.S. total student loan debt at$1.56 trillion spread among 44.7 millionAmericans, it’s evident that payingfor college is one of the greateststressors for Americans.3In fact, 86% ofemployees between the ages of22 and 33 said they would commit toan employer for five years if theemployer helped pay off their studentloans.4Fortunately, student loanassistance is a value-added service thatallows companies to contribute directlyto an employee’s student loan, much likethey would to a 401(k).
Financial welfare support
Employees spend an average of 10hours per week worrying about theirfinances during working hours, yet onlyone-quarter of companies offer policiesand practices that address employees’financial health.5Retirement planningand writing a will are two key areaswhere value-added services can helpemployees. Additionally, services existto provide employees with a healthadvocate who can help answer workers’questions about medical bills, and more.
Health and wellness opportunities
Many workers turn to fitness as anoutlet for stress relief, but the costs cansometimes outweigh the benefits.That’s where two value-added servicescan help employees: online wellnessplatforms provide resources that helpemployees maintain healthy lifestyles,while telemedicine lets employeesconnect online with a doctor whereverthey go. Along with being convenient,such services can be pertinent to thebusiness. One study found that 95% ofemployers view their financial wellnessprograms as being effective in reachingcompany goals.6
ENDNOTES
1. 2018 Aflac WorkForces Report – 12 TrendsInfluencing the Future of Workplace Benefits –Employee Survey Overview. For more information, visit AflacWorkForcesReport.com.
2. Zenefits, “FSA vs HSA: Which is Best For YourEmployees?” Accessed Jan. 7, 2019. https://www.zenefits.com/blog/fsa-vs-hsa.
3. Forbes, “Student Loan Debt Statistics In 2019:A $1.5 Trillion Crisis.” https://www.forbes.com/sites/zackfriedman/2019/02/25/student-loan-debt-statistics-2019/#2fb1451d133f.
4. American Student Assistance, “American StudentAssistance Young Workers and Student Debt Survey ReportMethodology.”https://file.asa.org/wp-content/uploads/2018/08/14141823/asa_young_worker_and_student_debt_survey_report-1.pdf
5. Mercer, “2018 Global Talent Trends Study.”http://www.mmc.com/insights/publications/2018/jan/mercer-global-talent-trends-2018.html
6. Bank of America, Merrill Lynch, “WorkplaceBenefits Report.”https://www.benefitplans.baml.com/publish/content/application/pdf/GWMOL/2019WorkplaceBenefitsReport.pdf
Note: This article is for informational purposes only. It is notintended to be a solicitation. “Aflac” herein refers to AmericanFamily Life Assurance Company of Columbus and/orAmerican Family Life Assurance Company of New York.
