Category Archives: Employee Benefits

4 Attraction and Retention Trends to Monitor in 2023

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Last year’s labor market was a roller coaster and we believe 2023 will be no different. A lot is uncertain but one thing is clear: employers will struggle to compete for top talent.  Labor metrics indicate that though the market has slightly improved over last year, it’s still a tight labor market, numbers remain historically high. While most employers project an increase in salaries in 2023, many will look beyond pay alone to help attract and retain current and prospective employees.

While some companies have been offering higher compensation and better benefits packages, many organizations also are looking for other ways to optimize their offerings and enhance employee experience. As they compete for talent, many may take a total rewards approach to fulfill employees’ workplace desires. Today, we’re talking about four attraction and retention trends to watch in 2023.

1. Redesigned Flexibility

Remote work exploded at the height of the pandemic and many organizations shifted to a flexible work model out of necessity. Nearly three years later, having flexible and remote work models has shifted from a perk to a given. Employees want the flexibility to work when and where they want.

For employers, it’s essential to balance organizational goals with employee desires. It’s important to adapt to employee expectations around flexible work models while also keeping an eye on business priorities that might call for having employees back in the office. While workplace flexibility is not always feasible, employers can evaluate their own situations and consider ways to develop flexible arrangements. The goal is to focus on output and productivity rather than time spent online or in the workplace.

2. Mental Health Support

Between the pandemic, inflation and job duties, more employees feel burnt out or are battling mental health challenges. More employers will be considering how to take a proactive approach towards employee mental well-being and resilience. A survey from the employee wellness platform, Gympass, revealed that nearly half of employees (48%) say their well-being declined in 2022. In addition, 28% say they are miserable at work. Health experts predict that employees’ mental health will continue to decline amid economic uncertainty, which means the demand for mental health care will increase in 2023.

Employers can offer benefits, perks, and wellness programs designed to support mental well-being. To address burnout, many employers will offer or expand their employee assistance programs, behavioral health anti-stigma campaigns, and training for recognizing employee and peer behavioral health issues. Employers are poised to offer the education and support that today’s workers need and are looking for.

3. Learning and Development Opportunities

Learning and developing efforts have been on the rise in recent years. Not only are workers looking for professional growth opportunities at an employer, but many organizations are upskilling or reskilling workers, as it’s often less expensive to reskill a current employee than hire a new one. On the flip side, employees who receive learning and development opportunities are more likely to stay with the company and grow into different roles. Therefore, learning and development initiatives prove to be a win-win situation for employers and employees.

As employers go head-to-head in the competitive race for talent in 2023, upskilling their current workforces could be a solution to finding workers for their in-demand roles. Furthermore, organizations are prioritizing internal mobility to address skills gaps and strengthen employee retention.

4. Increased Focus on Belonging

Nurturing a sense of belonging is a critical component of company culture. At work, belonging is the experience of employees feeling accepted and included by those around them. While belonging doesn’t necessarily come with a price tag, employers can invest efforts and resources into ensuring their workplaces are inclusive, collaborative, and connected. Employees are looking for a work environment that’s authentic and accepting. A focus on belonging can play a crucial role in improving workplace culture.

Many workplace factors can impact employees’ sense of belonging, including company culture, benefits offerings, communication methods, learning and development resources and mental health support. Any day-to-day interactions among co-workers and managers or companywide initiatives may impact workplace culture and the overall employee experience. When an organization develops reputation for being an inclusive and supportive workplace, new talent is eager to join. Employers can elevate employee experiences by creating workplaces where employees feel they belong and can be their authentic selves.

Summary

Employers can get ahead of the game in 2023 by monitoring the trends shaping the ever-evolving labor market and driving current and prospective employees’ needs and wants. While attraction and retention challenges are likely to continue this year, these trends demonstrate ways employers can elevate and strengthen their talent strategies to win and keep more workers.

Reach out to CorpStrat for more guidance on these topics and other employee attraction and retention trends.

Employee Benefit Plan Limit for 2023

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Many employee benefits are subject to annual dollar limits that are adjusted for inflation by the IRS each year. The following commonly offered Employee Benefits are subject to these limits:

  • High deductible health plans (HDHPs) and health savings accounts (HSAs)
  • Health flexible spending accounts (FSAs)
  • 401(k) plans
  • Transportation fringe benefit plans.

DOWNLOAD OUR FREE PDF DETAILING 2023 LIMIT INCREASES:

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The IRS typically announces the dollar limits that will apply for the next calendar year well before the beginning of that year. This gives employers time to update their plan designs and make sure their plan administration is consistent with the new limits.

This Compliance Overview includes a chart of the inflation-adjusted limits for 2023. Due to high rates of inflation, all of these limits will substantially increase for 2023. Note that there are some benefit limits that are not indexed for inflation, such as the dependent care FSA limit and the catch-up contribution limit for HSAs.

Increased Limits

  • HSA contributions
  • HDHP limits for minimum deductibles and out-of-pocket maximums
  • Health FSA pre-tax contribution limit
  • Health FSA carryover limit
  • Monthly limits for transportation fringe benefit plans
  • Employees’ elective deferrals to 401(k) plans, pre-tax and Roth
  • Tax exclusion for adoption assistance benefits

Unchanged Limits

The following limits stay the same from year to year because they are not indexed for inflation:

  • Tax exclusion for dependent care FSA benefits
  • Catch-up contributions to an HSA

LINKS AND RESOURCES

DOWNLOAD OUR FREE PDF DETAILING 2023 LIMIT INCREASES

In connection with the increased limits for 2023, employers should review and revise participant communications and election forms, amend plan documents and summary plan descriptions, and update all payroll and/or human resources systems with the new dollar amount limitations.

6 Common Mistakes to Avoid When Choosing a Health Plan

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Health insurance may be one of the most critical annual purchases since it impacts your physical, mental, and financial wellness. Unfortunately, selecting a health insurance plan can feel overwhelming. With so many options, it can also be easy to make a mistake when selecting coverage.

This article explores six common missteps related to selecting a health insurance plan. Once armed with this information, it’ll be easier to avoid these mistakes and choose the best plan coverage for your situation.

Mistake #1: Rushing Through Enrollment Options

Many people rush when buying their health insurance or only rely on recommendations from friends, family and co-workers. Others may simply re-enroll with last year’s choices. But health insurance provides personal coverage, so it’s important to research and find what will work best for your health needs and budget. Read our full blog post to learn what to look out for before you finalize your decisions.

When it comes time to enroll in a plan, compare different policies and understand their coverages and associated costs (e.g., premiums). One of the best ways to ensure the policy is right for your health needs is to consider your medical requirements and spending in the next year. Don’t forget to confirm in-network coverage to ensure that your preferred doctor, clinic, and pharmacy is connected in the new plan. Then, you can find the most suitable plan and coverage in an effort to simplify your health care and make it more affordable.

Mistake #2: Overlooking Policy Documents

A lot of people skip through or don’t thoroughly read the policy’s terms and conditions. But often this is the best way to know what to expect from your health plan and what the plan expects of you. Don’t forget to read the fine print on each plan you consider to avoid surprise bills later on. Reviewing the policy’s inclusions and exclusions will help you make an informed decision that’s right for you.

Mistake #3: Misunderstanding Costs

Plans typically have a deductible, copays and coinsurance. Here’s what those terms mean:

The deductible is the amount you pay out of pocket before your health insurance starts to cover costs. A copay is a flat fee you pay upfront for doctor visits, prescriptions and other health care services. Coinsurance is the percentage you pay for covered health services after you’ve met your deductible.

When shopping for a plan, keep in mind that the deductible is tied to the premium. A low deductible plan may seem attractive until you understand that it generally comes with a higher premium—and vice versa. When shopping for a plan, look closely to see when you’ll have a copay and how much it will cost for various services.

Mistake #4: Concealing Your Medical History

It may be tempting to avoid sharing your medical history if you’re worried about being rejected or receiving higher premiums. However, it could hurt you in the long run when insurance claims are denied for existing conditions or undisclosed medical information.

Mistake #5: Ignoring Add-ons

Health insurance add-ons are often included separately and require an additional premium, which means many people don’t look at them. A standard health insurance plan may not cover certain situations, so reviewing all available options is essential. An insurance add-on could help bolster your overall health insurance coverage by offering extra protection.

Review the add-on covers offered with your health insurance policy and see if any would be helpful for you, your family or plans in the next year. Some common add-ons include critical illness insurance, maternity and newborn baby insurance, hospital daily expenses and emergency ambulance services.

Mistake #6: Selecting Insufficient Coverage

People may hold back on purchasing certain coverage to pay a lower premium. While that may seem advantageous in the short term, you’ll be on the hook for out-of-pocket costs when facing a medical emergency. This mistake may be accompanied by physical, mental and financial health consequences.

When selecting a plan, check that the policy provides adequate coverage for your medical needs and other essentials. The right health insurance can take care of yourself and ensure financial security.

Summary

Health insurance is an essential investment for you and your family. By avoiding common mistakes while buying health insurance, you’ll be better informed to enroll in a plan and other coverages.

As health care costs continue to rise, it’s more important than ever to carefully review available policies, consider your options and health needs, and, ultimately, select the best plan to protect your health and finances.

If you have more questions about health plans, contact your manager or HR.

How to Encourage Employee Healthcare Comparison Shopping

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It’s a tough time for a lot of people out there: inflation is driving up the cost of everything from food to gas and your employees are feeling the sting. But even if this is the case, most Americans don’t realize they can comparison shop to make sure they’re getting the best price for their healthcare services. A survey from AKASA, a healthcare artificial intelligence company, revealed that nearly two-thirds (64%) of Americans have never tried to find the price of a specific healthcare service.

Paying more for healthcare doesn’t necessarily mean higher quality service or better outcomes. This is why shopping around for healthcare is so important, it can result in cost savings for both employees and employers. Today we’re going to talk about strategies employers can use to encourage employees to shop for high-value healthcare, which can help lower your organization’s health care costs.

1. Educate Employees

One of the first steps in helping encourage employees to shop around for healthcare is education. Employers have a unique opportunity to provide data and information to help employees understand the savings potential of healthcare comparison shopping.

Specifically, employers can help employees understand price variation and explain how to best shop around. According to Healthcare Bluebook data, U.S. healthcare prices vary an average of 650% for the same procedure. That’s a huge variance. 

Additionally, the federal government has started increasing price transparency for health care services, which can help with comparison shopping. For example, new rules require hospitals to post pricing online for various services and procedures. Starting next year, health insurers must share their negotiated prices with the public. So, as health care pricing gets more transparent, employers can really help employees better understand these price lists. 

2. Provide Transparency Tools

Employers can direct employees to user-friendly tools that break down pricing. Employers should connect with their benefits partners to understand what resources and transparency tools are already available for their employees. Some of these you’re already paying for but aren’t utilizing. There are also state-sponsored resources that offer tools to help consumers compare hospitals, health care facilities, and other providers in their state.

It’s essential to explain that if high healthcare costs are left unchecked, employees may experience reduced benefits or increased employee cost sharing. Of course, savings can help the organization, but it’s important to highlight how employees individually benefit.

3. Incentivize Behaviors

Another way to help make healthcare shopping top of mind for employees is to create rewards for certain consumer behaviors. Employers can create incentives for employees that use employer-provided price transparency tools to comparison shop for services and procedures.

Some employers may offer cash incentives, while others offer wellness program points. For example, wellness points could be redeemed for health savings account contributions or reduced cost sharing. As with any organizational initiative, employers should consider making it fun. Gamification (e.g., point scoring and social connection) can help facilitate friendly competition and increase employee engagement and motivation.

Conclusion

Healthcare costs are undeniably going to continue rising. Employers will need to take proactive approaches to reduce these costs. They have an opportunity to make employees feel empowered to take charge of their health and actively comparison shop for quality healthcare at the best price. A mix of education, provision of tools and incentivization may be the magic combination to help change employees’ health care shopping behaviors.

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If you’re interested in learning more about this, give us a call. We’re here to help.  

2023 is Around the Corner: What’s your Benefits Strategy?

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Post pandemic, we know that employers are struggling to attract and retain talent. According to Zywave’s 2022 Attraction and Retention Survey, more than 75% of employers consider attraction and retention to be among their top five business challenges. This change in the labor market means the old ways of delivering Employee Benefits are no longer enough to increase retention. Employees now expect fresh healthcare plans that provide value and offer perks. Things that used to be considered “buy-ups” now must be included as core offerings.

So, what is your Benefits strategy? Here are our top tips for building a strong Benefits strategy going into 2023:

1. Be proactive.

Make sure your insurance broker is helping you dissect all your options and choices. Be open to options like changing carriers, it can present a significant cost-saving opportunity. Also, many employees will be happy to adjust if it means they receive better benefits at lower costs.

2. Build an attractive, well-rounded Benefits package.

It’s no longer enough to build a plan that only includes various medical plans. Employees are now expecting Dental, Vision, AFLAC, pre-tax plans, virtual care, as well as Cafeteria Plans for payment of medical expenses and dependent care. The good news is these are nominal expense Benefits, which can round out and add great value to any package. They can be implemented, no matter how big or small your company is. Of course, retirement plans are important as are strategies around adding PTO and flex time.

3. Communicate! Educate! Communicate!

Employees that don’t feel they’re getting the best possible benefits might seek out other job opportunities. You can have the best possible Benefit offerings, but if your employees don’t understand the value of the plans available, the most attractive plan could be rendered useless. Speak up and take the time to educate your employees.  Employers have a unique opportunity to provide data and information to help employees better understand the value of your company’s offerings. Use an internal newsletter to communicate and call out the amazing benefits that are available to them. 

4. Don’t leave out well-being perks.

As many workers reconsider their jobs and lives, they may also look to take better care of themselves physically and mentally. Although many organizations have expanded their employee assistance programs, mental wellness goes beyond access to care. Employers should consider how employees are treated in the workplace and ways to help reduce burnout. Some employers are offering mental health days and flexible working options to help employees take control of their workday and be most productive when they’re able.

5. Include work flexibility.

Hybrid work isn’t going anywhere any time soon. After 2 years in a COVID work environment, 50% of US employees say not including hybrid work is a dealbreaker when it comes to staying with a firm or joining a new company. Most employers recognize this because 78% already provide the option to work from home and 66% offer flexible work schedules, which include options like four-day work weeks.

6. Listen to feedback.

Ask your employees what they want and what they’d like to see. You might surprised to hear what their needs are and how simple those requests can be to fulfill.

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These benefits all must be considered as you compete for talent in a environment where there are fewer choices, and most great employees are wrapped up. Be sure you package your programs and communicate them throughout the course of 2023