BUSINESS INSIGHTS

Brought to you by the insurance professionals at Libertate Insurance Services



6 Benefits to Attract and Retain Small Business Employees

Attracting and retaining employees is a constant struggle for organizations of any size, but it’s particularly so for small businesses. With smaller teams, employers need to hold onto talent whenever possible. And that can be a challenge, especially when resources are scarce as they are currently amid the lingering effects of the COVID-19 pandemic.

That’s why it’s critical for small employers to tailor their benefits offerings in a way that attracts and retains the most employees. One of the best ways to start this process is by surveying existing and potential employees. Employers can ask workers what types of benefits would interest them the most, then use that data to inform benefits decisions.

While each workforce will have unique needs and interests, there are some commonalities seen among small business employees. This article outlines six of the most popular benefits that small businesses are using to attract and retain employees.

1. Health Insurance

2. Leave Benefits

3. Performance Bonuses

4. Retirement Planning

5. Professional Development

6. Wellness Benefits

Health insurance – is consistently one of the most desired benefits among small business employees. That may be because healthcare is so expensive and is unaffordable without employer-sponsored insurance. Amid the COVID-19 pandemic, having good health coverage is more critical than ever. This provides employers with an opportunity. By offering generous health benefits, employers can compete for top talent. In fact, doubling down on health insurance might be a better option for some employers than adding other ancillary benefits that employees don’t need or want.

2. Leave Benefits – The ability to take time away from work is an important consideration for employees. And, in the wake of the COVID-19 pandemic, employees may have more caregiving responsibilities than they had before—making scheduling flexibility all the more important. Leave benefits will vary by workplace, but they typically include paid time off (PTO), vacation days and sick time. These types of leave usually come with specific use requirements. For employers looking to attract and retain employees, expanding these benefits could be a great leverage tool. This may include allowing faster PTO accrual, providing more sick days or allowing for flexible scheduling.

3. Performance Bonuses – Employees want to be recognized for their hard work. Failing to do so can lower morale and affect retention. Introducing performance bonuses as an employee benefit can be a way to combat this. Performance bonuses will vary, but the general idea is to compensate employees in some way for a job well done. How this looks in practice will depend on the employer. For instance, employees might receive incentives such as gift cards, cash, additional PTO or other perks, depending on their achievement. However, before implementing such bonuses, employers should ensure compliance with any applicable workplace laws regarding employee compensation.

4. Retirement Planning – Financial security is very important to employees, and that sentiment grows as employees near retirement age. It’s also top of mind for those struggling financially thanks to the COVID-19 pandemic. Employees invest their time and energy into their work. As a tradeoff, many employees want their employers to invest in their retirements in return for years of service. Offering a 401(k) with contribution matching can be a powerful attraction and retention tool, as it demonstrates an employer’s investment in their workers in the long term. 

5. Professional Development – Employees may leave a workplace simply because they want other opportunities or need more of a challenge, rather than being driven solely by compensation. Additionally, surveys suggest employees have been putting off job changes during the COVID-19 pandemic, meaning a wave of turnover may be coming soon. Employers may want to think proactively about ways to keep employees around.

In other words, when it comes to top performers, employers should be reluctant to let these employees go. That’s where professional development comes in. Generally, this involves cross-training employees on other positions or otherwise preparing them to take on additional responsibilities. This helps provide the employee with more growth opportunities while still keeping them within the business. Offering such development opportunities also signals to prospective employees that a workplace has upward mobility and is willing to help workers along with their career pathing goals—two factors that can weigh heavily in recruiting conversations.

6. Wellness Benefits – Wellness is a hot topic these days, and employees are looking more and more for employers who take wellness seriously. This can be especially true in the wake of the COVID-19 pandemic, where health consequences are interwoven with everyday decisions. In fact, through the lens of the pandemic, ignoring wellness initiatives may be interpreted as ignoring overall health—something employers obviously want to avoid.  

Different workplaces will offer different wellness benefits, but the purpose of any of them is generally to increase employees’ overall well-being. For instance, benefits may include mental health counseling, health breakroom snacks, gym memberships, fitness trackers, yoga sessions or other perks. When it comes down to it, employees want to feel like their employers care about them as individuals. This means prioritizing well-being.

“Everyone talks about building a relationship with your customer. I think you build one with your employees first.”

– Angela Ahrendts (Senior Vice President, Apple)

Conclusion

Knowing which employee benefits to offer as attraction and retention tools isn’t always easy. One of the best places to start is by surveying current and prospective employees, as the offerings are meant for them. Beyond that, the perks listed in this article have been shown to be popular among employees—making them a viable option to try as well.

However, these benefits aren’t employers’ only option to help attract and retain employees. Reach out to Libertate Insurance today to learn more about these perks and other potential incentives.

Paid Leave for Employees if School/Daycare/Summer Camps are Closed

With the new school year fast approaching and some schools electing to delay the start date, we want to make sure employers are plugged into the requirements of FFCRA. Small businesses are required by the Families First Coronavirus Response Act (FFCRA) to give employees paid leave from wok in certain circumstances relating to COVID-19. One requirement is that the child’s school/daycare/summer camp must be unavailable because of COVID-19.

The below article from FUBA helps breakdown the requirements of FFCRA.

Small businesses are required by the Families First Coronavirus Response Act (FFCRA) to give employees paid leave from work in certain circumstances relating to COVID-19. Employees who cannot work due to very specific reasons related to COVID-19 are entitled to two weeks of paid leave, with an additional 10 weeks of paid leave if they have to stay home to care for a son or daughter whose school, daycare, or summer camp is closed due to COVID-19.

If you have an employee who cannot come to work because they have to take care of a child because the child’s summer daycare – a school, camp or other program in which the employee’s child is enrolled – is closed or unavailable for a COVID-19 related reason, the employee may be entitled to paid leave.

Keep in mind that the child’s school/daycare/summer camp must be unavailable because of COVID-19. School being closed for summer vacation does not qualify an employee for paid leave because school is always closed during the summer and that closure is not related to COVID-19. If school does not reopen in the fall due to COVID-19, that may qualify employees for paid leave. However, if schools reopen but the employee’s children are attending online or digitally, the employee may not qualify for paid leave.

If an employee requests paid leave, you should get the following:

  1. The employee’s name and the dates the leave is requested
  2. A statement of the COVID-19 related reason the employee is requesting leave
  3. A statement that the employee is unable to work or telework for this reason
  4. Documentation supporting the reason for leave

The employee also needs to give you the name and age of the child they will be taking care of, the name of the daycare/summer camp that has closed, and they must provide a statement that no one else will be caring for the child while the employee is on paid leave. If the child is older than 14, the employee must show that special circumstances require them to stay home with the child during daylight hours.

Employees taking paid leave because their child’s daycare/summer camp is closed due to COVID-19 must be paid two-thirds their regular rate of pay, up to $200 per day. Learn more about calculating pay here.

You can offset the cost of their leave by keeping a portion of the quarterly federal employment taxes you would otherwise deposit with the IRS. If the cost of the leave is more than your federal employment tax bill, you can request an advance refund from the IRS using form 7200. To claim a payroll tax credit, you must retain the documentation described above and comply with any IRS procedures for claiming the tax credit. For more information about how to claim these payroll tax credits and what documentation is required, click here. For more information about form 7200, click here.

Click here to learn about other reasons that entitle employees to paid leave.

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This article was written by FUBA Workers’ Comp

Group Management Services Acquires Corporate Business Solutions

GMS expands its footprint with addition of Georgia-based HR outsourcing provider.


prnewswire.com/news-releases

RICHFIELD, Ohio, June 19, 2020 /PRNewswire/ — Group Management Services Inc. announced today the acquisition of Corporate Business Solutions, a Georgia-based Human Resources Outsourcing provider.

CBS was founded more than 20 years ago as a third party 401(k) administrator, developing over time into handling a full array of HRO services. This acquisition will add about 70 clients and 3,500 worksite employees to GMS.

As a Professional Employer Organization (PEO), GMS provides a suite of comprehensive HR solutions, allowing clients to focus on core business. These services include Payroll, Human Resources, Risk Management, and Benefits.

Both organizations share an emphasis on giving their clients a competitive edge when it comes to the technology, service levels, and human resources they provide. This is evident in the fact that they share a 90-plus percent client retention rate, well over the industry average.

Find out how PEOs help businesses: https://www.groupmgmt.com/why-gms/education-center/what-is-a-peo/

GMS started in the Cleveland area in 1996, eventually expanding into Columbus and Cincinnati, and now have 10 offices nationwide. The acquisition of CBS will further extend their client base outside of Ohio and increase their presence in the Southeast.

“We’ve been trying to expand our footprint outside of Ohio and have been showing some success in the past five years,” GMS President Mike Kahoe said. “In 2014, we were 99 percent Ohio-based. Today we are 90 percent Ohio-based and this will move us closer to 80 percent, making us a more diverse company.”

CBS President Jim Karle adds, “The acquisition by GMS will enable CBS to further deliver on its promise to provide our clients a wide array of quality insurance products that are affordably priced. Enhancing our clients’ competitive edge has always been core to CBS – this accelerates our ability to do that for our many valued clients.”

GMS plans to continue their expansion and grow organically and through acquisitions moving forward. This is just the beginning of more to come.

About Group Management Services
GMS has partnered with more than 1,500 clients across the country, representing about 26,000 employees from 10 different locations throughout the United States. We enable those clients to outsource all their back-office functions the areas of payroll, human resources, risk management, and workers’ compensation. For more information on GMS, visit: https://www.groupmgmt.com/about-us/.

 

Small businesses turning to PEOs for benefits, HR

An excellent article out of Benefits Pro on PEO that came out the last day of NAPEO… Trying to catch up after Austin!

“…which found that between 14 percent and 16 percent of those small businesses are reaching out to PEOs that provide payroll, benefits, regulatory compliance assistance and other HR services, rather than dealing with HR and benefits issues themselves.”

The statistics cited for the article provided by our friends at NAPEO in their fourth white paper that empirically backs up the value of the PEO model in growing your business, retaining your employees and offering a better employment experience to the American worker.

“…last year’s report figures indicating that PEOs generated between $136 and $156 billion in gross revenues, provided services to between 2.7 and 3.4 million workers, and offered HR, benefits and compliance assistance to between 156,000 and 180,000 small- to mid-size businesses.”

Wow, means ADP who payrolls 1 in 7  American workers now payrolls almost 1 in 5 coemployed workers.

As evidenced by the highly attended annual conference in Austin, with many newcomers in attendance, there is another surge of momentum going into the all-important 1/1 selling season where anywhere from 30-50% of new business for a growth PEO is attained.

The industry becomes more and more compelling as time goes by.  Really nice to see.

It was great to see and meet new faces, but always epic to see old friends of many years. Thanks for your friendship, love and loyalty.

NAPEO is in our fair town of Orlando next year… see you there!

-PRH