Compensation Power Tool

All Complementary Benefits Executive Health June 2, 2016

Whether you’re looking to reward hardworking employees, recruit new top talent, or retain a leader with a wandering eye, the answer may not lie in throwing money at the problem.  Actually, contrary to popular belief, it’s not all about the money. (Sorry Jessie J.)

Instead of raising salaries or awarding a bonus, consider an alternative that will have more benefit for you, the employer, and more benefit for the employee. This alternative is supplemental healthcare reimbursement. While it may not be direct compensation, it has compensation power. Let’s call it our Compensation Power Tool.

According to employees, the #1 benefit they care about is healthcare insurance. But with rising healthcare costs and increasing ACA regulations, it’s becoming more and more difficult for employers to provide these rich health benefits that employees care so much about.

Instead of giving an employee more money that has a once-a-year impact, provide them with supplemental healthcare reimbursement that will have an impact all year through. It will cost you less than a bonus or pay raise since there won’t be any associated payroll taxes. And the overall value for the employee is dramatically higher with up to $100,000 coverage that can help meet the specific healthcare needs of each family member.

You see, it’s not direct compensation, but the compensation power lies in the money that it reimburses and saves your employee from spending out-of-pocket.

 

Source:
“These Are The Best Employee Benefits and Perks.” Fast Company.

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