Page 19 - BusinessWest June 23, 2021

In putting together a benefits pack- age, an employer decides whether a particular offering will be paid 100% by the employer, or use a cost-sharing approach in which employees contrib- ute as well. A third option, known as a voluntary benefit, is completely paid for by the employee.
LIMRA provides research for the insurance and financial-services indus- try. One significant trend Leary has studied is the expanding demographics of the workplace.
“There are now five generations in the labor force,” he said. “The old- est workers are staying longer, while Gen Z is just beginning to enter the workforce.”
Each generation has different ben- efit needs, and they are all looking
to their employer to address them. Voluntary benefits are one way for
an employer to accommodate differ- ent needs among a diverse employee population.
“A company can offer a broad-based plan where some benefits appeal to younger workers and some to older,” Leary said. “Because they are voluntary benefits, the employer can address the various needs of their employees with- out increasing their costs.”
He emphasized the importance
of employers working with a benefits consultant to find the right mix. “Part of the process involves the employer understanding their current employees and the types of workers they plan to recruit for the future.”
Employers typically add benefits to make their companies more attractive to the specific types of workers they seek. For example, Miller has been dis- cussing benefit packages with a tech company looking to attract engineer- ing graduates from prominent colleges. While traditional benefits are impor- tant, flexible work arrangements and college debt-repayment programs also have a strong appeal to this group.
“It’s important for employers to think outside the box to make them- selves more attractive to the people they’re trying to hire,” he said.
College debt repayment offered as a formal benefit is relatively new, but it’s quickly becoming a popular benefit as more graduates enter the workforce saddled with large debt obligations.
Meredith Wise, president of the Employers Assoc. of the NorthEast, said employers are using different tactics to help new employees man- age their student-loan debt. Some employers offer a hiring bonus so new employees can pay off a chunk of their student loan.
Another approach allows employees to pay down their debt and contribute to their retirement savings at the same time. Based on his conversations with employers, Leary said the 401(k)/stu- dent-loan payment approach strongly resonates with young employees.
“The amount the employee pays
“
between offering a benefits package that is attractive to new hires, while also trying to control costs and keep the business running.
What COVID Wrought
There’s nothing quite like a world- wide pandemic to remind everyone of the importance of having healthcare coverage. After 14 months of operat- ing during the pandemic, the benefits professionals BusinessWest spoke with cited two notable trends: an increase in telehealth offerings and usage, as well as an increased demand for mental- health services.
“There’s definitely been an increase in utilization for traditional medicine and mental health,” Miller said.
Wise agreed. “Employers are look- ing at the mental-health benefits cov- ered under their policies and, in many
They are trying to strike a balance
PETER MILLER
each month toward their debt is matched up to 5% by the employer in a 401(k) plan,” Wise said. “This is help- ful to young workers who would not
”
normally be thinking about their retire- ment savings because they are saddled with debt.”
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