If American business is the heart of the economy, then employees are the lifeblood. The American worker is the reason why companies continue to function day to day and as an employer, you understand the value of finding and retaining great talent.
But how do you find and keep these precious assets?
To retain top talent, it is essential to understand what resonates with your employees and what keeps them happy at work. If you don’t know this about your employees then you’re probably missing the mark in terms of communication, incentives and satisfaction levels. A survey on employee job satisfaction, found that 61% of employees stated benefits like “compensation and overall pay” was “very important” to their job satisfaction, but only 26% were satisfied with it.
When it comes to keeping talent at your company, the right benefits are key.
Benefit plan design is also integral to recruiting. Trent Burner, SHRM VP of research, stated, “with unemployment at an 18-year low, employers view benefits as a strategic tool for recruiting and retention.” And data shows that 79% of employees cited “competitive benefits plan as an influencer,” when evaluating job opportunities.
In terms of recruiting new talent, the right benefits can be an important factor for potential employees. The question for employers is how to design a benefits structure, within budgetary constraints and position it appropriately to both recruit and retain top talent.
Many employers, faced with the reality of rising healthcare costs, are turning to consumer directed healthcare plans (CDHP) and health savings accounts (HSA) as a way to continue offering benefits within their budget. In just one year, from 2017 to 2018 these plans have experienced 11.2% growth.
Structuring a benefits plan using a CDHP should include generous HSA employer match. This is a great way to incentivize employees to contribute more to their HSA which ultimately helps them save for future healthcare expenses. HSA contributions deducted from payroll are done so on a pre-tax basis which saves both the employee and the employer FICA taxes (7.65%). Tax benefits aside, a generous HSA match can make huge strides in employees’ perception for management. A recent study found that CDHP enrollees are more "engaged" healthcare consumers.
By offering a CDHP coupled with an HSA, you are empowering your employees to spend their healthcare dollars how and when they want. You’re showing your people you trust them to make good decisions, and you want them to become more informed, cost-conscious, savvy healthcare consumers.
When it comes to recruiting efforts, the benefits plan that best resonates with potential employees and makes them feel valued and properly compensated, can ultimately be the win you are looking for. And for employee morale, benefits that empower are great for retention. For many employers this is found in a well-designed, properly positioned CDHP and HSA plan. Doing it right could increase recruiting efforts and maintain high retention rates within the organization.
Learn more about everything you can do with an HSA.