Government contractors often face an uphill battle when attracting top talent and retaining employees. At a time when employees are resigning in droves and demanding better benefits, the best way to stand out is by offering a comprehensive benefits package that meets the expectations of the modern workforce. Not only do the right benefits keep employees satisfied in the short term, but they also foster long-term loyalty.
A survey conducted by the American Institute of CPAs by the Harris Poll found that Americans prefer a job that offers workplace benefits over an identical one that offers no benefits but 30% additional salary by a margin of 4 to 1. This means that benefits should play a central role in employees’ compensation packages rather than being considered an afterthought.
Here is a look at some of the top employee benefits offered by government contractors.
The Affordable Care Act stipulates that every company with 50 or more employees working full time (or its equivalent) must offer workers health insurance; those who fail to do so could be hit with severe penalties.
While businesses with less than 50 full-time employees are not obligated to offer health insurance, it is an attractive benefit that can help businesses working on government contracts attract high-quality employees.
Some employers that do not meet the ACA requirements for offering health insurance might opt to pay for just a percentage of monthly premiums. In contrast, others may offer full coverage to gain an edge over their competition in recruitment.
Many government contractors are offering their employees tuition reimbursement programs that see the company covering some or all of their education costs. In many cases, the company will set up a policy outlining which types of educational pursuits are eligible for coverage.
These are often undergraduate or graduate degree programs in a field that is related to the industry in which the business operates. Professional development courses and skill-building classes may also be covered. Some government contractors even offer reimbursement for courses that are not directly related to the job.
Another benefit many government contractors are providing those who work for them is a wellness program. These programs help promote optimal health and fitness among employees, which can help to prevent illness and keep healthcare costs and absenteeism down.
Wellness programs can be simple or sophisticated and may include coverage for wellness-related perks such as smoking cessation programs, gym memberships, meditation apps, and other stress management techniques. Some wellness programs also incorporate educational resources that help employees learn more about how they can prevent illnesses and injuries.
One of the most sought-after employee benefits is a retirement plan, and many government contractors are now offering to match their employees’ contributions to a retirement plan.
Others are making qualified contributions to such plans without requiring the employees to make their contribution. Many businesses can take advantage of major tax breaks when they offer retirement benefits, and this can also boost their recruitment efforts.
Dental and Vision Benefits
Many government contractors are offering their employees dental and vision benefits. Vision benefits are particularly attractive to employees who need vision correction, as these expenses can add up quickly.
Moreover, proper vision enables employees to focus on their work and be more productive. Vision coverage might include eye exams, contact lenses, glasses, and prescription sunglasses. Group dental insurance plans that offer coverage for dental checkups, crowns, fillings, and other dental procedures are another attractive benefit that can help a business stand out.
Disability and Life Insurance
Health insurance is often considered an indispensable part of an employee benefits package, but the importance of other types of insurance should not be overlooked. For example, life insurance can be expensive for individuals to purchase on their own, and many employees appreciate a group life insurance plan that their employer offers either for free or at a low cost.
Disability insurance, meanwhile, is an attractive benefit that can help employees cover expenses if they become disabled and cannot return to work. It typically covers partial wage replacement. This should not be confused with workers’ compensation insurance, which is obligatory in most states and offers benefits such as wage replacement to employees who are injured on the job.
Learn More From the Employee Benefits Experts at Business Benefits Group (BBG)
Businesses that do business with the federal government must maintain compliance with a complex web of labor laws and regulations, particularly regarding wages and benefits.
To learn more about developing a well-rounded, effective, and compliant benefits package for government contractors, reach out to the experienced employee benefits consultants at Business Benefits Group (BBG) today to request a consultation.