Business leaders often seek new ways to enhance their employee benefits packages to attract new talent and retain existing staff. However, nonprofit organizations are often under tighter monetary restrictions, making it difficult to prioritize employee benefits. The most prevalent benefits offered by nonprofits include group medical, group dental and life insurance. According to a Nonprofit Employee Benefits Report, approximately 96.4 percent of nonprofit organizations offer group medical, 87.4 percent offer group dental and 81.4 percent offer employer-paid life insurance.
Employees are the heart of any nonprofit organization so it makes sense to create a benefits package that aligns with their needs. There are many ways that nonprofits can enhance their employee benefits package without exhausting their budget. Partnering with an experienced benefits broker can help nonprofit organizations reach a plan of action based on a strategic design that aligns with their vision and key business goals.
Choose A Group Health Insurance Plan
One of the biggest decisions that a nonprofit will have to make when choosing a group health insurance plan is the type of plan. Some of the most common types of group health insurance plans include:
- Preferred Provider Organization – A PPO features a large network of participating hospitals and healthcare providers that members can choose from to receive services. Under a PPO insurance plan, members can visit providers both inside and outside of their network. However, visiting an out-of-network provider will result in high copays and service fees. PPO members do not have to select a primary care physician (PCP).
- Health Maintenance Organization – Under an HMO, members are limited to the providers within the HMO network. In addition, members are required to choose a PCP. The benefit of choosing an HMO is that these plans do not usually come with deductibles and have low out-of-pocket expenses.
- Exclusive Provider Network – EPO members must choose providers in their network as out-of-network providers are not generally covered. In return for a more limited network, EPO members can enjoy low monthly premiums.
- Point of Service – A POS health insurance plan is a hybrid of an HMO and PPO. Members have access to providers both in and out of their network. However, members must stay within their network if they want higher coverage and lower service costs.
Keep Sick Days And Paid Time Off Separate
Employers often struggle when deciding how to handle employee time off policies. Many businesses choose to have a separate personal and paid sick leave policy, while others opt for an all-inclusive paid time off (PTO) policy. While there is no right or wrong option, it can be more beneficial to keep sick days and paid time off separate.
Having separate sick days and paid time off can be an attractive feature for job seekers and can encourage existing employees to maintain their positions. Without designated sick days, employees may become discouraged if they become ill and use up all of their paid time off, leaving no time for vacations or other personal needs. Separating these policies provides the best of both worlds.
Consider Offering Incentives
Employees are often happier and more productive when they are provided with incentives to do a good job. Standard benefits like health insurance and retirement programs can be highly advantageous, but there are other options too. Nonprofits may consider adding unique incentives to their employee benefits package to foster a positive company culture.
Education and development opportunities can be excellent incentives in the workplace. Employees can learn new things that enhance their skills and put them in a better place to advance their careers. Sending employees back to school through education assistance programs is tax-exempt which is a selling point for employers.
Performance bonuses are another great incentive. According to a study conducted by the American Psychological Association, employees who feel appreciated and valued by management perform at a higher level. Performance bonuses do not necessarily have to be monetary in nature; employers may reward employees with extra vacation time or other perks.
Offer Disability And Long-Term Care Options
Offering disability and long-term care options can provide employees and their families with reassurance in the event of a tragic injury or illness. Disability insurance is designed to replace lost income if the uninsured are unable to work.
Disability insurance may be offered on a short- or long-term basis. Short-term disability is intended to cover employees immediately following a serious injury or illness, and long-term disability serves as an income replacement if an employee’s condition prevents him or her from returning to work for an extended period of time.
Nonprofit organizations may also consider adding long-term care insurance to their employee benefits package.
Long-term care insurance aims to protect employee retirement plans against the rising costs of custodial care due to health conditions such as strokes, Alzheimer’s disease or other chronic illnesses that are not generally covered by employer-sponsored health plans.
Select The Right Benefits Provider
Employers have several options when choosing a benefits package provider. Some nonprofits may choose to hire a professional employer organization (PEO) to enjoy an all-in-one solution. PEOs are able to manage benefits, payroll, compliance assistance and many other functions involved in running a business. BBG can assist in evaluating several PEO’s at once.
Working with an experienced benefits broker is also an effective way to enhance and manage employee benefits. Going through a broker does not have the same strict requirements as programs including the SHOP marketplace. Brokers also serve as consultants, addressing questions and concerns that an employer may have during the process.
Speak With A Nonprofit Employee Benefits Consultant
Employee benefits consultants fill a critical role for nonprofit organizations by expressing the value of a comprehensive employee benefits plan. These professionals are aware of industry-leading trends and can help nonprofits gain a competitive edge and attract a pool of new talent. Benefits consultants will customize benefits packages based on the client’s size and goals.
The Business Benefits Group (BBG) is a team of experienced benefits consultants that help organizations of all sizes grow and thrive. To learn more about how nonprofits can enhance benefits or to speak with a reputable benefits consultant, reach out to BBG online today.