9 of the TOP EMPLOYEE BENEFITS OF 2020, even during the COVID-19 pandemic
Updated: Jan 7, 2021
Employee Benefits - U.S. Chamber of Commerce and Other Statistics plus a Glossary of Terms of Employee Benefits
The original question we asked Google was “What is the average age of someone who buys employee benefits?” While the results did not exactly match what we were attempting to find out, this article is written directly from the results that were served up, which in fact, is a much better article idea! We always have our readers' best interests in mind and want to make sure that they have great information in order to stay empowered and make better decisions in their businesses or with their individual insurance purchasing needs. We share the information in the remainder of this article, with source links that will provide more details on each topic shared. (Jump to the 9 Employee Benefits using this link)
Variation of Employee Benefit cost, by Age
How much an employer pays for employee benefits (also known as worksite or voluntary benefits) varies widely and depends on the age of the workforce and the structure of the benefits package being offered. In general, costs increase for older workforces.
The method a company chooses to finance benefits generally varies with the company size. This article above focuses primarily on the benefit practices of large, private employers. In the long run, such employers pay the costs associated with the demographics of their workers, whereas small employers can often pool costs with other companies in the community. In addition, small employers often offer fewer benefits, and the costs and financing of those benefits are subject to the insurance markets and state regulations. Most calculations of benefit costs do not disaggregate those costs by age, yet a number of information sources show that variations by age do exist. Medical and pension benefits are by far the costliest parts of any benefits package, regardless of package design or employee cost-sharing.
The question we asked also led us to the following articles:
US CHAMBER OF COMMERCE STUDY of 2008 on Employee Benefits
The cost of providing health insurance & The cost of retirement and savings benefits
a. Legally required payments = payroll taxes, workers' compensation, and unemployment
b. Retirement benefits followed by
c. Medically related benefits
d. Payments for vacation, holidays, and other paid time off
The Hartford Has COVID-19 Forever Changed the Future of Benefits?
Not to be discounted has been the impact of the pandemic, which has highlighted the need for better benefits for women and working parents, as well as low-income individuals. Industry insiders predict that these forces will all drive employers’ benefits strategies in the coming year.
Benefits serving varied employee needs have been on the rise in recent years - personalized benefits for all employees will become the norm.
From mental health support to transgender-inclusive health benefits to single point solutions (fertility/IVF, adoption support, childcare, etc.)
The vastly different working conditions and experiences of employees in 2020 will encourage employers to take a more equitable approach to employee benefits in 2021 – replacing one-size-fits-all benefits packages with customizable marketplaces that allow employees to pick and choose services that best meet their unique needs.
This pandemic has reshaped the world as we know it — transforming the fabric of both work and life and dramatically impacting employee well-being.
Despite these shifts, one thing remains constant: employers who understand their employees’ experience and needs — and take action to help their employees manage the challenges they face inside and outside of work — will have a more engaged, productive, and successful workforce.
Financial wellness is a top concern for employees right now.
Financial concerns are most significant for workers who have felt job-related and financial disruption. Twenty-nine percent of employees say they are earning less due to the pandemic. Employers can also help employees gain financial stability and prepare for retirement, even in the current climate.
We wanted more recent data to consider, given the COVID-19 pandemic, and here’s what we found
US Chamber of Commerce Foundation - AUGUST 2020
Businesses of every size and industry have been impacted by this pandemic, so employers have had to figure out how to operate a business in an entirely new landscape.
In the fall of 2019, the U.S. Chamber of Commerce Foundation conducted a series of surveys, which led to the creation of four reports, referred to as Untapped Potential, to better understand how childcare challenges affect parents’ participation in the workforce, affect employers’ ability to recruit and retain skilled workers, and impact state economies.
Parents are trying to balance their dual roles with limited to no access to formal childcare or family, friends, or neighbors to help, making childcare an important need for every employer and state to prioritize in their return to work plans.
79% of employers have shifted a significant part of the workforce to remote work / 40% of employers have offered additional childcare accommodations, assistance, or benefits due to COVID-19 / 51% of employers are likely to provide additional childcare assistance if the government offers incentives
EBS Publications -Employee Benefits in the United States News Release
September 24, 2020
EMPLOYEE BENEFITS IN THE UNITED STATES – MARCH 2020
Paid sick leave was available to 75 percent of private industry workers in March 2020
Seven percent of private industry workers had access to flexible workplace benefits
Flexible work schedules were available to 13 percent of private industry workers
Medical care benefits were available to 89 percent of state and local government workers. Employers paid 86 percent of medical care premiums for single coverage plans and 71 percent for family coverage plans. The average flat monthly premium paid by employers for state and local government workers was $576.34 for single coverage and $1,235.07 for family coverage.
Student Loan/College Tuition Assistance
Paid vacations were available to 76 percent of civilian workers
Short-term disability benefits were available to 40 percent of civilian workers and 39 percent of workers participated in the benefit, resulting in a 98 percent take-up rate. The take-up rate is the percentage of workers with access to a plan who participate in the plan. Employee contributions were not required for 85 percent of workers with short-term disability.
Long-term disability benefits were available to 35 percent of civilian workers. Ninety-four percent covered by long-term disability plans were not required to make contributions.
The take-up rate for life insurance was 98 percent. Ninety-five percent of employees covered by life insurance were not required to make contributions.
Employee Benefits Survey - Glossary of Employee Benefit Terms
(see website link for more info): <https://www.bls.gov/ncs/ebs/publications.htm> Overview - Estimates on the incidence (access to and participation in) and key provisions of selected employer-sponsored benefits for retirement, healthcare, life insurance, paid leave, disability, and other benefits are published annually, with a March reference period. These estimates are published for private industry workers, state and local government workers, and civilian workers (private industry workers and state and local government workers combined).
Retirement Benefits - Retirement plans are classified as either defined benefit or defined contribution plans.
Healthcare Benefits - Healthcare benefits provide preventive and protective medical, dental, vision, or prescription drug coverage to employees and their families. Most employer-provided plans cover the employee and the employee’s dependents, including spouse and children.
Dental care - Dental care plans provide services or payments for restorative care and related treatment to the teeth and gums.
Vision care - Vision care plans provide coverage for the improvement of eyesight, including eyeglasses and contact lenses. Coverage typically is limited and is subject to applicable copayments or scheduled cash allowances.
Prescription drugs - Prescription drug plans provide coverage for outpatient prescription drugs.
Life Insurance Benefits - Life insurance provides a lump-sum payment to a designated beneficiary or beneficiaries of a deceased employee. Companies may provide a basic amount of life insurance benefits, which may vary with an employee’s age, income, and occupation. Companies also may allow employees to pay for additional amounts of coverage.
Disability Benefits - Disability benefits provide protection against loss of income due to a nonoccupational illness or injury.
Paid Leave Benefits = Paid holidays, Paid vacations, Paid personal leave, Paid sick leave, Paid military leave, Paid funeral leave, Paid jury duty leave, Paid family leave, Unpaid family leave, Consolidated leave plans.
Other Benefits = Quality of life benefits, Financial benefits, Health-related benefits, Non-production bonuses, and Unmarried domestic partner benefits.
If you read through all of the links and material being shared in this article, you will come away probably a little overwhelmed, and left wondering about the benefits your employer may be able to offer, or perhaps, if you are a business owner with employees, you are definitely wondering what you should do with regard to your own voluntary benefits and such.
That is where the Leitz Insurance Agency shines through. We have been providing concierge insurance services and personalized guidance and implementation of voluntary benefits for years and have many options to share with our clients, brokers, and agents. We take great care in our discovery consultations in order to help our clients connect with the exact services and benefits products they need, based on where they are in their business now, and what sort of products or services may assist them in future growth and needs.
If you would like to have us provide you with more information about our services, please reach out to us. We also encourage you to sign up for our email and follow along in your inbox.
In the end, you can do all the research on your own, or you can have us come alongside you as your experienced concierge insurance services & voluntary benefits advisor (or partner with us if you are a broker or agency) and together we will find the tools and services that are perfect for you.
Leitz Insurance Agency’s goals and mission have been:
To offer the best in traditional and non-traditional insurance and employee benefits products, along with
To mentor business owners, agents, and brokers in the area of voluntary employee benefits.
To simplify the administration of benefits, reduce costs, and empower consumers.
Expanding our services to include such items as pre-tax consumer benefits, utilizing simple online enrollment portals, and the use of mobile and other advanced technology.
Bringing voluntary benefits into clear focus at the business and consumer level.
Ariel Leitz, owner and a benefits advisor/coordinator at the executive managerial level since 2016, is filling a big gap in the voluntary benefits industry with a new type of agency. The Leitz approach offers full benefit solutions utilizing a concierge insurance services process for business owners, including other brokers and insurance agents. Ariel breathed life into Leitz Insurance Agency’s online presence in 2019 and is rapidly becoming the top agency in her niche. While healthcare and retirement savings remain a staple of benefit packages, voluntary benefits are growing increasingly more important to both employers and employees.
In 2020 and ongoing into 2021 we will all continue to face incredible challenges due to this Covid-19 pandemic. There is no denying that voluntary benefits selection is a complex process requiring careful consideration. Leitz is on the front line ready to provide guidance and ongoing support with timely education, admin tools, and relevant communication. We hope that you find this information of value.
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