Your benefits package is a powerful tool to help your organization and employees achieve their goals, whether they are focusing on fostering wellness, building financial security, or improving work-life balance. Going into 2023, most employers look at benefits packages as a recruiting tool to help them attract and retain top talent in a challenging economy, but did you realize the right offerings can save you money? More than 66% of organizations say they would like to decrease the costs of their benefits packages without sacrificing the benefits. By working with a company like Employco, that can happen. Maximizing your offerings to provide desired benefits while maintaining a budget will be vital to creating the right benefits package for 2023. As organizations start to plan for their 2023 enrollment periods, it’s important to understand how you can decrease costs without sacrificing the benefits you offer.
Most organizations don’t think too much about their overall benefits strategy. They may just recycle the package they offered the previous year and use the same system and benefits to make decisions for the upcoming year, or they may try to craft a plan that fits into the same budget, despite increasing costs. Regardless, balancing the desire for improved benefits with the need to minimize costs can make finding the right benefits package challenging. You need a plan. Here are some best practices when planning your benefits for 2023:
Inflation is rising, and the fear of a recession is growing. A Bloomberg survey predicts a 30% chance of a recession occurring in the next year. Rising interest rates and a recession on the horizon are impacting everyone’s financials, and everyone is looking for ways to cut operating costs.
Recessions often lead to reduced profits. While nobody can entirely avoid an economic downturn’s impact, businesses should review their overhead regularly for ways to reduce costs. While reductions in profits can lead to concessions such as wage reductions and reduced benefits, revamping your benefits package to include more voluntary benefits is an innovative way to help make your business and your benefits recession-proof.
Inflation affects us all in various ways, including higher prices at the gas pump and increased prices on everything from rent to groceries and utilities. One of the critical effects of inflation that significantly impacts businesses is how it affects your employees’ bottom line. Inflation has a direct effect on everyone’s purchasing power, and that has a direct impact on the value of your employees’ compensation packages.
Current wages have less value Inflation has a direct impact on the value of your compensation packages. Inflation lowers the value of a raise or compensation package. With prices up 7.9% to 8.4%, the typical annual raise of 3%-4% is not enough to counteract the effect of inflation on the overall cost of living. It means that your compensation has less value and can leave your employees in the negative financially because their current wage may not be enough to cover their expenses.
Today Uber drivers from around New York will gather together to protest outside Uber’s Manhattan headquarters. Soaring gas prices and lack of benefits have led many ride-share drivers to protest their status as gig workers instead of employees, and Uber drivers in Illinois and California have also staged similar protests.
Rob Wilson, employment trends expert and President of Employco USA, a national employment solutions firm with locations across the country, says that Uber drivers are not the only workers who are decrying astronomical gas prices and its impact on their take-home pay.
“With gas prices this high, the sad reality is that a minimum wage worker can end up spending an entire day’s wages just to fill up their gas tank,” says Wilson. “If employers want to keep their workers satisfied and in the office, they need to get clever about how they can help employees survive inflated prices.”
‘Tis the season to get new health insurance rates! Rates are dramatically on the rise, with some companies seeing increases in premiums from 20 to 40 percent. Due to COVID’s impact, hospitals need to pay their workers more than ever before, just to retain employees and ensure that they stay staffed. And, supply chain issues mean price increases across the board, even in the healthcare industry.
Here is what employers need to know:
“Inflation is higher now than it has been in years,” says Rob Wilson, President of Employco USA and group health insurance expert. “Wages are going up, benefits are going up, taxes are going up. Businesses are already stretched to their utter limit. And health insurance companies are hedging their bets for all the upcoming claims coming up in 2022.”
Employment trends expert Rob Wilson discusses Biden’s Rescue Plan and what it means for companies
President Biden’s ‘American Rescue Plan’ includes several key changes to employment-related categories. It’s crucial for employers to become educated about how these changes will impact their policies moving forward.
“Now is the time that employers should prepare for these upcoming changes,” says Rob Wilson, President of Employco USA and employment trends expert. “There are many modifications to the FFRCA ‘COVID Pay’ categories which will impact the way that you reimburse employees and approach things like sick leave.”
First, says Wilson, is the fact that employers now have the ability to offer employees paid leave through September 30, 2021.
Employment trends expert Rob Wilson discusses new study and how employers can facilitate a healthier work environment
A new study has found that nearly 50% of American workers are currently struggling with substance and alcohol abuse. The numbers illustrate the stark ways in which the pandemic has impacted the mental and physical health of Americans.
“The data shows that the number of workers who are reporting lower work productivity or missed workdays due to alcohol or substance abuse issues has more than doubled since 2019,” says Rob Wilson, President of Employco USA and employee trends expert.
Wilson says that employers can help to protect employees from substance and alcohol abuse by enhancing their wellness programs in 2021 and taking advantage of high-tech sober support initiatives.