Sthethoscope and medical documents
gettyAs healthcare costs continue to rise, structuring employee benefits packages becomes increasingly challenging. HR leaders must achieve the delicate balance between offering comprehensive healthcare benefits while also managing fiscal constraints. It's especially critical for startups and growing companies, where every resource counts.
To help HR professionals negotiate the "win-win" of serving employees without breaking the bank, the members of Forbes Human Resources Council share their expert advice. From leveraging nontraditional benefits to partnering with a Professional Employer Organization (PEO) service, these strategies can help HR teams develop benefits packages that meet both financial and employee health needs.
1. Get Creative With Nontraditional Offerings
Leadership can get creative with their offerings and target the needs of their company's unique employee composition. Some companies, especially start-ups, may be comprised of a younger workforce that values wellness and education stipends over extensive health plans. Shifting focus from the traditional approach can save money on unused benefits and cultivate a collaborative environment. - Mackenzie Clapperton, Team Epiphany
2. Use Data To Assess Employees' Needs
Data is key to striking a balance in employee benefits. Leaders should look at employee feedback, enrollment and participation data that show where employees might be struggling. Benefits are the No. 2 reason employees stay or leave a company. Having diverse and employee-centric benefits in place, including voluntary benefits, is key to supporting your organization and retaining top talent. - Marcy Klipfel, Businessolver
3. Explore Flexible Benefits Plans
Benefits should align with the needs and interests of a new and diverse employee population. Traditional packages that offer the same benefits to all employees are not very relevant to the new generations. Flexible benefits plans are not new, but truly understanding the employee journey and archetypes in your organization, will help you create benefits that are truly interesting. - Diego Ponce, Rotoplas
4. Understand Employee Requirements And Company Culture
HR leaders play a vital role in crafting mutually beneficial strategies for employee benefits. This begins by having a deep understanding of both the employees' requirements and the organizational culture. By prioritizing these aspects and adopting a comprehensive approach to total rewards, we can negotiate improved benefits while staying within budget constraints. - Michelle Ray, Blackwell HR Solutions
5. Segment Benefits By Employee Sector
Segment employees and offer benefits that are a need to that segment—Gen Zs, employees nearing retirement, maternity needs or employees living with chronic illnesses. That way, the business pays for what the employees need and can cut some costs—as compared to a blanket approach, where some employees never use their benefits. - Modiri Nlanda, Orange Botswana
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6. Research, Negotiate And Offer Options
HR leaders negotiate a win-win benefits package by prioritizing employee needs while considering the company's financial limits. Through research, negotiation and flexible options, they enhance employee satisfaction without overspending. - Tony Butler-Sims, Cultivating New Frontiers in Agriculture (CNFA)
7. Explore Wellness And Tertiary Programs
Leverage data; especially if you're self-insured, spending time to understand usage trends can reveal opportunities to leverage wellness programs and tertiary programs that represent cost-effective opportunities while also actively influencing premium costs. - Jon Lowe, DailyPay
8. Consider A PEO
Consider working with a Professional Employer Organization (PEO) service that can negotiate on your behalf. The negotiating power of small and medium-sized businesses will always be more limited than major corporations, simply because they have fewer people. When organizations band together through a PEO, they can collectively reduce healthcare costs. - Niki Jorgensen, Insperity
9. Ask Employees About Preferred Voluntary Benefits
HR leaders negotiate a win-win benefits package by listening to their employees. Each year, we distribute a questionnaire to ask employees which voluntary benefit they would most like to see us offer and then add that to our benefit choices for the upcoming open enrollment cycle. It has been well received and does not cost the company anything, as the employee pays the cost. - Sherrie Suski, Tricon Residential
10. Provide Benefits Education To Employees
Explore flexible health plans that meet diverse employee needs without excessive costs. Consider high-deductible plans coupled with Health Savings Accounts (HSAs), leveraging telehealth services for lower-cost care and wellness programs that reduce long-term expenses. Negotiate with providers for better rates, offer tiered benefits options and educate employees on cost-effective healthcare. - Britton Bloch, Navy Federal
11. Negotiate HSAs And Other Cost-Effective Options
Negotiate cost-effective healthcare options like high-deductible plans with HSAs. Utilize telemedicine and wellness programs to reduce costs while promoting employee health. Keep communication open with employees to find solutions your team actually wants. The more choices, the better. - William Stonehouse, Crawford Thomas Recruiting
12. Consider Forming A Healthcare Cooperative
Explore the concept of forming a healthcare cooperative with other small and growing companies in your industry or region. Pooling resources can lead to better negotiating power with insurers and healthcare providers, resulting in more cost-effective and tailored benefits packages. This can create a win-win scenario for participating employers and their employees. - Katrina Jones, Acacia Network
13. Stop Paying For Coverage That Is Not Practical
Understand what your people value, need, and use the most; understand your numbers, how your benefits are used and what the needs are—and focus on that. You can be paying lots of money for fantastic coverage, but if the network is small and the deductibles or copays are enormous, nobody will use it. Learn what the needs and characteristics of your people are so it is a win-win for everyone. - Marcela Pizzi, Atlas Renewable Energy
14. Work With Your Broker
Work closely with your broker to find the best benefits for the lowest cost. You may not be able to offer top-tier benefits in the beginning but create a plan to work toward that. Look for inexpensive benefits that can add value, such as pet insurance, legal plans, critical illness and other similar benefits. This can be a lower cost to the employer but will enhance the overall package. - Erin ImHof, CertiK
15. Offer A Variety Of Creative Health Benefits
Negotiating a win-win benefits package by being creative and resourceful is essential to attract quality candidates. And when it comes to healthcare, offer what you can—whether that means providing a Qualified Small Employer Health Reimbursement Arrangement, or reimbursement for gym memberships or online therapy portals, businesses of all sizes should prioritize some variety of health benefits. - Laura Spawn, Virtual Vocations, Inc.
