The holiday season is upon us and for many, this can be stressful. Experian data indicates that Americans experience more financial stress during the holiday season. Financial stress is the No. 1 source. Worry about how to pay a large or medical bill is a major factor.
For employers, workforce stress directly impacts the bottom line. In fact, studies indicate that 70% of workers experience stress related to their health, jobs and finances, and they spend an estimated five hours a week thinking about theses stressors during work hours. The U.S Bureau of Labor Statistics reveals that based on 128.5 million full-time workers who earn an average of $21 an hour, employers lose billions in lost work productivity because of stress on the job.
Small businesses may not always be able to afford to offer major medical coverage for their employees. In some cases, major medical is offered but in order to keep premiums affordable, large deductibles – typically $5,000 – are part of the policy. This leaves employees with significant gaps in their coverage.
Voluntary benefits serve a critical role in filling such gaps and can offer financial security in cases where offering major medical is not feasible. When employers provide options that can help reduce their employees’ financial stress and improve financial literacy, productivity could increase, and they may even attract better quality candidates because of their benefits program and retain the current ones they have. “Voluntary” is an increasingly important benefits option that can offer employees affordable financial solutions that they elect and pay for themselves through payroll deduction. In many cases, employers can provide these benefits at little or no cost to the company. Especially for smaller employers, voluntary benefit packages are a way to compete with larger businesses that can offer more diverse benefits.
Evidence reveals that even when benefits packages are offered, employees have a limited understanding of how their benefits work. Education is an essential part of any benefits program and ensures employees understand the value and importance of benefits options that their employer makes available. Look for an agent or broker as your partner who is skilled and committed to providing education to your staff. Your employees need clear and understandable information on how voluntary benefits can help in their specific situation and how to consider costs so that they elect benefits that provide the best coverage for their needs at a cost they can afford.
You want your employees to feel protected and confident in having a benefits package that can reduce stress related to unexpected accidents or illness. A typical voluntary benefits package will offer life, short-term disability, accident, vision and dental. Short-term disability is often underappreciated in terms of importance and is one benefit that every employee should have. Studies indicate that one in four of all 20-year-old employees in the workforce will experience a disability before retirement age.
If you are planning to offer a voluntary benefits package, consider doing an anonymous employee survey. Anonymity is important because employees may not be comfortable sharing their financial concerns with their employer. Once you have collected this information, it’s important to work with a benefits consultant who understands the full scope of employee needs and can source the best solutions to address them. You may want to consider having the benefits consultant collect the survey data for you. Armed with survey data, developing a long-range plan for providing financial security and protection for your employees becomes part of a long-term strategy that can increase productivity, employee retention and a competitive advantage for top talent.
This is an ideal time to reach out to a voluntary benefits consultant as part of your efforts to reduce employee stress during the holidays. At little or no cost to you, voluntary benefits offer them protection from unexpected expenses related to accidents or illness as part of your long-term business strategy.
Wishing you a joyous holiday season! QCBN
By Linda Mast
Linda J. Mast, MBA, Ph.D., is a licensed independent agent and benefits consultant with Aflac. She has more than 20 years of experience in healthcare administration, health policy, insurance benefits, and education. Linda dedicates her professional practice to providing individualized service to business owners in order to recommend strategic approaches to using voluntary benefits. She is a Fellow in the American College of Medical Practice Executives, a professor in Healthcare Administration, and is a frequently invited speaker on healthcare industry trends and business strategy. To reach Linda, call (928) 582-1074 or email Linda_Mast@us.aflac.com.