To succeed in the highly competitive government contracting sector, federal contractors need to offer their employees benefits that are not only compliant but also attractive to their workforce and potential employees.
A good employee benefits plan will have a positive impact on employee satisfaction and engagement, which will ultimately boost employee retention. It can also help a company to stand out from the competition and develop a reputation as an excellent workplace.
However, it is important to recognize that trends in federal contractor benefits are constantly evolving, and staying on top of these changes and adjusting offerings is essential to remain competitive.
Outlined below are the latest trends in federal contractor benefits.
Health insurance is widely considered one of the most coveted employee benefits, and federal contractors are no exception. A survey by SHRM revealed that 90% of employees consider this benefit to be “very” or “extremely” important to their job satisfaction.
Moreover, health insurance is a legal requirement for federal contractors as part of the Affordable Care Act, which specifies that employers with at least 50 full-time employees must offer health coverage. One trend that is being seen in health insurance right now is a growing demand for long-term care insurance.
As many working-age individuals witness the high costs of long-term care for their aging parents, employees are seeking benefits that can cover their nursing home care or assistance with activities of daily living so their families will not suffer financially when they become too old to take care of themselves.
Long-term disability insurance is another benefit that is increasing in popularity as employees seek the reassurance of knowing their families will have some financial protection if they are unable to work for an extended period.
Attitudes toward parenthood have been evolving in recent years, and society is now more aware of the importance of having both parents spend time with their children, especially when they are young. Many federal contractors offer employees generous paid parental leave benefits for mothers and fathers.
Although some employees do have protection under the Family and Medical Leave Act, employers that want to stand out from the competition are offering additional time and flexible working hours once employees return to work.
Although the Paid Family Leave Act offers employees paid sick days, paid medical leave, and paid caregiving leave, some businesses are going above and beyond the bare minimum and offering their staff extended leave to attend to immediate family members with serious illnesses or other personal issues.
Another current trend in federal contractor benefits is wellness programs, which may be offered in addition to or instead of an employer-sponsored health insurance plan. These programs demonstrate that an employer places a high value on a positive work-life balance among their employees.
These programs are geared toward preventing illness and promoting better health among their workforce. They may include perks such as fitness classes, nutritional counseling, health screenings, and support for smoking cessation.
Many companies offer gym memberships so employees can enhance their health and fitness while enjoying a positive outlet for stress.
Others are offering stress management workshops and subscriptions to meditation applications to help them manage the stress of their job and their everyday lives. Wellness programs have a significant benefit on employees.
They can also benefit employers by reducing claims and premiums, keeping healthcare costs down. More direct mental health benefits are also gaining in popularity following the pandemic.
A survey by Mental Health America revealed that 83% of employees suffered from emotional exhaustion related to their jobs in 2020, and many employees are not just exhausted but also depressed and anxious. In response, many federal contractors are offering their employees mental health benefits such as access to counseling, coaching, or therapy.
As more employers appreciate the value of having a highly educated workforce, many government contractors provide tuition reimbursement as part of their federal contractor benefits package. This may entail covering all or a set amount of an employee’s educational expenses or tuition as they pursue a specific degree or program of study that can enhance their career.
In most cases, the degree programs must meet specific company requirements to be eligible for this benefit; those that are not related to the type of work conducted by the business are not typically covered.
Many federal contractors are extending their tuition reimbursement offerings to cover skills development, allowing employees to cultivate job-specific or soft skills needed to succeed.
Request a Consultation with Business Benefits Group (BBG)
Developing an attractive compensation and benefits package that can attract and retain outstanding employees in federal contracting can be challenging.
The employee benefits consultants at Business Benefits Group (BBG) are well-versed on the latest trends in this competitive field. Contact Business Benefits Group today to learn more about creating an effective federal contractor benefits plan.