Today’s Tight Talent Market: Make A Smart Business Investment
Forward-thinking companies realize that salaries just aren’t enough in today’s tight talent market. Winning the war for talent requires having the right benefit package, which is also key to driving loyalty, fostering productivity and reducing turnover rates.
What type of benefit can help you accomplish all of this? While the market is full of unique benefits, from pet insurance to gym discounts, one type of benefit in particular is designed to support employees in a multitude of ways. Supplemental expense reimbursed insurance can help save time, promote general wellness, offer financial support and provide tax-efficiency.*
We know what you’re thinking: How can you justify investing more in health benefits after painstakingly trying to control your primary health plans costs year after year? If you look at the whole picture, you’ll see that expense reimbursed insured plans have the potential to pay for themselves.
Offer to Select Employee Classes
First of all, keep in mind that some expense reimbursed insured plans, like ArmadaCare’s suite of products, can be offered to select employee classes so you can be control in terms of who to cover and how much coverage to offer. This enables you to focus on targeting those positions that are difficult to recruit and retain.
Remember that the potential talent management costs can far exceed the costs of investing in a reimbursement plan. For instance, the cost to replace an executive can be 200% to 400% of salary. And when you factor in the costs of retaining important employees or replacing them if they leave (especially considering that we’re currently in a tight talent market that makes recruitment and retention even more challenging), the smarter choice is to invest in a targeted benefit option.
Lower Recruitment Costs
Some companies that were facing recruitment issues report that putting expense reimbursed insurance in place actually helped them lower their recruitment costs since they eliminated sign-on bonuses.
Other companies report using a similar tactic for retaining current employees, shifting over a portion of the employee’s bonus to use toward the premium costs of these insurance plans. Awarding an expense reimbursed insured plan, like one of ArmadaCare’s plans, in lieu of a bonus is certainly more efficient for both parties since 105(h) allows premiums to be tax deductible for the employer and benefits to be non-taxable for employees.*
Offset Costs with Wellness and Health Support
Expense reimbursed insurance plans may also include other services to help offset the investment cost. As an example, let’s take a look at the additional features in ArmadaCare’s products.
All of ArmadaCare’s products include TopDoc Connect, a specialist referral service that helps employees get to the right doctor and treatment the first time. This can lower healthcare claims cost and reduce employees’ time away from work due to sickness.
ArmadaCare’s executive lifestyle product, Ultimate Health, includes an elective Executive Physical Program that can help save time by having all the tests at once and in one location, which means less time your executives are spending away from the business (not to mention the benefit of catching health issues early).
And last but not least, several of ArmadaCare’s insurance plans include emergency travel services to minimize the risk of travel emergency situations. These services also safeguard the well-being of your most valuable employees and your business in terms of legal, financial and reputational consequences.
On top of being a way to offset investment costs, these features also act as important value-ads to the employees you’re looking to recruit and retain. Being able to set your company apart from competitors in the tight talent market is key to winning and keeping the talent you need.
A Differentiator that Pays for Itself
Supplemental expense reimbursed insurance really does offer the best of both worlds. It provides a huge boost when it comes to winning the talent war, helping you stand out from your competitors without landing in a bidding war. And it’s a smart investment that, in time, can fund itself.
Plus, it’s health insurance, which is the benefit that employees value most when deciding whether to leave or join a company. It’s important to consider the areas that are most valuable to employees, especially given the tight talent market. And while primary health insurance costs are rising, the unique abilities of supplemental expense reimbursed insurance make it an investment that still gives you budgetary control.
To find out more about ArmadaCare’s suite of supplemental expense reimbursed insurance, visit us at ArmadaCare.
*This is not local, state or federal tax advice as each person and company is unique. It is recommended that you seek the independent counsel of a professional tax adviser.
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