KBI Blog

6 Reasons to Secure D&O Liability Insurance for Nonprofits

Fri, 27 Jun 2025 20:30:02 GMT

When most people think about insurance for a nonprofit, they think about general liability or property coverage. But the biggest risks aren’t always physical. They’re personal. Directors and Officers (D&O) Liability Insurance protects your nonprofit’s leadership—board members, executives, and officers—from personal legal exposure if someone challenges a decision they made while acting on behalf of the organization. That might sound like a worst-case scenario, but in today’s regulatory and donor-driven environment, it’s a lot more common than most nonprofits realize.

At KBI Benefits, we help nonprofit organizations proactively manage the risks they face every day. And when it comes to D&O insurance, the question isn’t whether you need it—it’s whether you can afford not to have it. Here are six key reasons every nonprofit should carry D&O coverage—and how the right policy can protect your leadership, your finances, and your future.

1. Board Members Can Be Personally Liable

Nonprofit board members take on legal and fiduciary responsibilities the moment they step into leadership. That includes duties around financial oversight, regulatory compliance, conflict-of-interest management, and the strategic direction of the organization.

If someone believes those responsibilities were violated—through perceived negligence, mismanagement, or misuse of funds—they can sue individual board members. Even if the claims are baseless, they still require time, resources, and money to fight. D&O coverage provides a layer of personal protection for decision-makers, helping to ensure that one legal issue doesn’t jeopardize their personal assets or their professional reputations.

2. Legal Costs Are Rising—Even If You Win

Defending against a lawsuit, even a frivolous one, can cost tens of thousands of dollars. Attorney fees, court filings, internal investigations, expert witnesses, and depositions add up fast. If your organization ends up settling—even just to avoid protracted litigation—those costs can be devastating to a nonprofit’s budget. D&O insurance helps cover these expenses so your organization can focus on delivering value to your community, not funneling donor dollars into a legal battle. In fact, 63% of nonprofit organizations reported a D&O claim in the last 10 years , according to Towers Watson . It’s much more prevalent than many people realize.

3. Employment-Related Claims Are Among the Most Common

Nonprofits often rely on a mix of employees, contractors, and volunteers. While that flexibility is valuable, it can also make you more vulnerable to employment-related claims—especially if your HR processes aren’t airtight. Wrongful termination, harassment, retaliation, discrimination, and even wage-and-hour complaints are all common issues facing nonprofit employers. Many D&O policies include Employment Practices Liability Insurance (EPLI) , which helps cover the cost of defending against these types of claims. That includes legal fees, settlement costs, and court judgments. Not to mention, volunteers can file harassment or wrongful treatment claims too. Coverage matters.

4. Donors, Grantors, and Government Contracts Require Accountability

Today’s funders expect transparency, professionalism, and good governance. In many cases, large grants—especially those from government agencies or foundations—come with clear stipulations about liability coverage and leadership protections. Having D&O insurance demonstrates that your organization is responsibly managed and legally prepared. It can also give funders peace of mind that their investment is protected, especially if a legal dispute arises during or after the life of a grant. Good governance isn’t just best practice—it’s part of your brand and reputation.

5. Regulatory Scrutiny Is Only Increasing

From the IRS to your state’s attorney general, regulatory agencies have broad authority to investigate and penalize nonprofits. These investigations can be triggered by a missed 990 filing, a whistleblower complaint, or an allegation of misconduct—even if it’s completely unfounded. Without insurance, your board may be forced to pay out-of-pocket for legal counsel to navigate the investigation process.

6. Smaller Nonprofits and All-Volunteer Boards Are Not Immune

Some leaders assume D&O coverage is only necessary for larger, more complex nonprofits. But smaller organizations—especially those run by volunteers or part-time staff—can be even more vulnerable. Without internal legal teams, HR departments, or policy advisors, small nonprofits may make decisions informally, opening them up to risk.

If a dispute arises over how donations were used, how an employee was terminated, or whether bylaws were followed, your team could be left scrambling—and paying for it. D&O coverage levels the playing field and makes sure your size doesn’t put your mission at risk. If you want to learn more about D & O insurance, check out our blog here for a comprehensive overview.

Not Sure Where to Start?

We help nonprofit leaders simplify coverage decisions and build smarter risk management strategies. If you’re unsure whether your current insurance is enough—or need help creating a better plan— let’s talk .

Book a free consultation today and get:

A review of your current insurance policies
A gap analysis for D&O and EPLI coverage
A step-by-step plan for better board protection

Ready to Protect Your People and Your Purpose?

If you're ready to explore the Directors and Officers (D&O) insurance plans we offer, our team is here to help. We’ll walk you through your options, assess your current coverage, and build a plan that gives your board the confidence to lead—without fear of personal risk. Contact us today to schedule your free strategy call. Just submit our online form! We look forward to partnering with you and helping your nonprofit stay protected, proactive, and mission-focused.

Your HR Compliance Checklist: 8 Essential Steps

Fri, 20 Jun 2025 18:40:45 GMT

Your HR Compliance Checklist: 8 Essential Steps

HR compliance isn’t just about rules—it’s about protecting your business, your people, and your future. As regulations evolve and employee expectations rise, businesses of all sizes are realizing that compliance is not a once-a-year task—it’s an ongoing commitment.

The stakes aren’t small. According to a 2025 report by OEM America , small businesses lose an average of $10,000 per year due to HR non‑compliance—and penalties for more serious violations can reach into the millions

At KBI Benefits, we help employers take a smarter, more proactive approach to compliance. With better planning, the right tools, and access to certified HR professionals, businesses can avoid mistakes—and build a workplace that works better for everyone.

Here are eight things every business should include on its HR compliance checklist.

1. A Current and Customized Employee Handbook

Your employee handbook is one of the most important documents in your organization. It outlines policies, sets expectations, and helps protect your business legally. But it must be more than a static PDF saved somewhere in a shared drive.

To stay compliant, your handbook should be reviewed at least once a year and updated whenever workplace laws change or internal policies shift. It should clearly explain things like time-off rules, workplace conduct, safety procedures, anti-discrimination policies, and remote work guidelines. At KBI, we help employers build and maintain custom handbooks that reflect both state and federal law—without unnecessary delays or legal confusion.

2. Policy Acknowledgements and Signed Documentation

Having the right policies is only half the equation. The other half is proving that employees received and understood them. Every important policy—from harassment prevention to paid leave—should include a signed acknowledgment form.

These acknowledgments create a layer of protection if a compliance issue arises. Whether you’re responding to a complaint, audit, or legal claim, being able to show that an employee agreed to the policies in question can make all the difference. These documents should be securely stored in an HR platform and easily accessible when needed.

3. Federal and State Labor Law Postings

Labor law posters are a legal requirement—and an often overlooked one. Employers must post current federal and state labor laws in a visible location, covering topics like minimum wage, employee rights, safety standards, and paid family leave.

Failing to update these postings can result in fines. Because these laws frequently change at the state level, it’s important to review your postings quarterly and work with a partner who can help monitor legal updates in your jurisdiction.

4. Proper Onboarding and Offboarding Procedures

Employee transitions are compliance hot spots. During onboarding, your team must collect the right documentation (like I-9s), distribute legally required notices, and make sure benefit enrollment is completed on time. Missing just one step can open your company to risk.

Offboarding requires just as much attention. You’ll need to process final pay in accordance with state law, provide COBRA notices, remove access to internal systems, and document the reason for separation. These aren’t just HR best practices—they’re critical compliance steps that protect your business and ensure former employees are treated fairly.

5. Workplace Training Requirements

Many states require harassment prevention training—and even when it’s not mandated, regular training is still a smart investment. Training helps reinforce your policies, builds a more respectful workplace culture, and demonstrates that your business takes compliance seriously.

At a minimum, your company should provide annual training on sexual harassment, workplace conduct, and basic employment rights. All training should be documented, with attendance records saved in your HR system.

New hires should complete training within their first 30 days.
Supervisors may be required to complete additional or specialized training.
Training materials should be reviewed annually to reflect current laws and company policy updates.

6. Consistent Documentation and Recordkeeping

When compliance issues arise, your documentation is often your first and best defense. Every employee file should include job descriptions, performance reviews, policy acknowledgements, corrective action records, and any notes related to complaints, accommodations, or investigations.

Documentation should be consistent, objective, and timely. If your records are incomplete—or worse, missing—your ability to respond to complaints or audits is weakened. At KBI, we recommend using a secure, cloud-based HR platform to ensure your documentation is organized, protected, and audit-ready.

7. Accurate Job Classifications and Pay Practices

Misclassifying employees is one of the most common—and costly—compliance mistakes businesses make. Whether it’s labeling a worker as an independent contractor or misidentifying an employee as exempt from overtime, classification errors can lead to back pay, penalties, and legal action.

To stay compliant, review all job roles for proper classification, ensure wage practices align with state and federal law, and maintain accurate records of hours worked, breaks taken, and PTO balances. Conducting periodic compensation and classification audits can help you catch mistakes early and avoid potential liabilities.

8. Annual HR Compliance Reviews

Compliance isn’t a one-time task. It requires regular attention. That’s why every organization should build annual HR compliance reviews into their business calendar.

These reviews should include updates to your employee handbook, labor law postings, training logs, benefits policies, and internal HR processes. They’re also a chance to evaluate your current HR technology and ensure your systems support long-term compliance, not just day-to-day operations.

Staying ahead of compliance risks gives your business a major advantage. It builds trust with employees, prevents disruptions, and allows leadership to focus on growth—not damage control.

Bonus tips:

Assess recent legal changes and update all policies and documents accordingly.
Audit your HR software to confirm it tracks training, benefits, and documentation properly.
Identify and close any compliance gaps before they lead to penalties or employee issues.

It could be beneficial for your business to find a company that will uplift your HR by augmenting your workloads and keeping your business at the top of its game. Click here to find out what HR Consulting can do for your business.

A Smarter Way to Stay Compliant

At KBI, we make HR compliance simple, proactive, and effective. We help our clients create custom handbooks, train managers and employees, implement cloud-based HR platforms, and stay current with legal changes.

If you're not sure where your organization stands with compliance, we're here to help. Book a free consultant strategy call with our team. We’ll assess your current gaps, walk you through what to fix, and help you build a stronger foundation for your people and your business.

Because when it comes to compliance, waiting is costly—and proactivity always wins.

8 Reasons to Invest in HR Risk Management

Fri, 13 Jun 2025 21:12:31 GMT

8 Reasons to Invest in HR Risk Management

HR risk management used to be something companies thought about only when something went wrong—an employee dispute, a compliance fine, a lawsuit. But that reactive approach no longer works in today’s business environment. With workplace laws evolving rapidly and employee expectations rising just as fast, the smartest companies are thinking about HR risk as a core part of their business strategy.

They have good reason. According to the Society for Human Resource Management (SHRM), more than 50% of organizations have faced an HR-related compliance violation in the past two years . That number doesn’t even account for other forms of risk—like turnover caused by poor culture, burnout due to lack of support, or costly mistakes made because HR systems aren’t up to date.

The bottom line? HR risk management is no longer just a back-office function. It’s a front-line defense for your business—and a smart way to build trust, save money, and stay ahead.

Here’s what HR risk management really requires, and how your business can put a stronger strategy in place.

1. Compliance: The Foundation of HR Risk Management

At the heart of any HR risk management plan is compliance. This includes staying on top of local, state, and federal labor laws related to hiring, wages, leave policies, benefits, employee classifications, workplace safety, and more. It might sound simple on paper. But in reality, compliance is one of the most complex and time-sensitive parts of HR.

From the Affordable Care Act (ACA) to the Family and Medical Leave Act (FMLA), and from anti-discrimination laws to state-specific paid leave mandates, the rulebook is long—and it’s constantly being updated.

What’s at risk if you get it wrong?

Fines and penalties
Lawsuits from current or former employees
Damaged reputation and loss of employee trust
Disruption from audits or investigations

A strong compliance strategy should include:

An annual review of your HR policies and employee handbook
Regular training for managers on relevant laws and procedures
Clear documentation for hiring, onboarding, performance, and terminations
Support from a knowledgeable HR consultant or legal expert when needed

If you’re a growing company without a full legal team, the key is to stay proactive —not reactive. Don’t wait until a complaint or audit happens to realize your handbook is out of date.

2. Onboarding and Offboarding: Where Risk Begins and Ends

The start and end of an employee’s time with your company are critical moments—not just for the employee, but for your HR risk profile. When onboarding isn’t handled properly, you risk missing key documentation like I-9 forms, wage notices, or benefits enrollment disclosures. When offboarding is rushed or incomplete, you could forget to issue final pay correctly, revoke access to systems, or provide required COBRA notices. These aren’t just clerical mistakes—they’re legal exposures.

Risk-managed onboarding includes:

A documented checklist for every new hire
Standardized offer letters and classification reviews
Digital systems that automate enrollment and form collection
A clear welcome packet outlining workplace policies and reporting procedures

Safe offboarding includes:

Final pay and PTO calculations in line with state laws
An exit checklist for IT, access, and asset recovery
A termination letter with clear information on benefits and COBRA
Optional exit interviews to capture feedback and mitigate future risk

When these transitions are smooth and well-documented, your business looks more professional—and avoids the most common employee complaints that lead to disputes.

3. Documentation and Recordkeeping: Your Best Defense

When a dispute arises—whether it’s a harassment claim, a wrongful termination suit, or a wage complaint—the side with the strongest documentation usually wins. Unfortunately, many businesses don’t realize how important consistent documentation is until it’s too late.

Strong documentation includes:

Signed employee handbooks and policy acknowledgments
Written records of performance reviews, warnings, and disciplinary action
Time-off requests, accommodation discussions, and investigation findings
Emails and memos summarizing key decisions or employee concerns

You don’t need a mountain of paperwork. You just need a consistent, organized system —ideally digital—that allows you to pull up any record quickly if needed.

Bonus tip: If you’re still relying on spreadsheets or physical files, it’s time to upgrade to a secure HR platform with cloud-based storage and audit trails.

4. Workplace Culture: A Hidden Source of HR Risk

Culture may not show up in your compliance checklist, but it’s one of the most powerful—and underestimated—drivers of HR risk.

If employees feel like HR won’t protect them, or if leaders tolerate toxic behavior, you’re at high risk for claims of harassment, retaliation, or discrimination. You may also face higher turnover, burnout, and absenteeism—each of which carries its own cost.

A culture that reduces risk includes:

A clear code of conduct and zero-tolerance harassment policy
Anonymous reporting channels that employees trust
Manager training in communication, bias awareness, and documentation
Regular pulse surveys to spot issues before they escalate

Building this kind of culture takes time, but it’s one of the most effective ways to reduce legal claims and build loyalty. When employees believe they’re being treated fairly, they’re more likely to raise concerns internally instead of turning to outside legal help.

5. Mental Health and Wellbeing: The New Frontier of HR Risk

Today’s workforce is under more pressure than ever. Burnout, anxiety, and stress are no longer fringe topics—they’re workplace realities. When mental health isn’t supported, the risks show up fast: more time off, more turnover, more mistakes, and even more workplace conflict. That’s why more employers are viewing mental health support as a risk management tool , not just a nice-to-have perk.

Steps to reduce risk through wellbeing support:

Offering access to an Employee Assistance Program (EAP)
Training managers on how to support stressed or overwhelmed employees
Ensuring benefit plans include mental health coverage
Promoting a culture that normalizes breaks, time off, and work-life balance

When employees feel supported, they’re more likely to communicate challenges early—before they result in disengagement, absenteeism, or serious issues that affect your entire team.

6. Manager Training: Your First Line of Defense

Many HR problems don’t start in HR—they start with frontline managers. If your managers aren’t trained in basic employment law, conflict resolution, and documentation, they may accidentally create risk for your company.

The most common issues?

Mishandling accommodation requests
Making inappropriate comments
Misclassifying exempt vs. non-exempt roles
Failing to escalate employee concerns

Manager training should cover:

How to handle employee complaints or concerns
What documentation is required during performance reviews
How to navigate leave requests or workplace accommodations
How to model the company’s code of conduct

Even a simple quarterly training session can go a long way in protecting your business and strengthening your leadership team.

7. HR Technology: Risk Reduction Built Into Your Systems

Manual HR processes are a major source of error—and risk. From missing deadlines to misfiled documents, it’s nearly impossible to manage compliance with paper forms and email reminders. That’s why smart HR risk management includes upgraded digital systems .

These platforms can:

Automate timekeeping and classification compliance
Send alerts for expiring I-9s or missed ACA filings
Keep a digital paper trail for audits and investigations
Provide dashboards to monitor engagement, turnover, and policy usage

You don’t need to buy the most expensive software on the market. You just need a platform that simplifies the things you do most—safely and securely.

8. Proactive Reviews: The Secret to Staying Ahead

Most HR teams know what they’re supposed to do—but the real challenge is making time to do it consistently. That’s why the most risk-ready companies build in quarterly and annual HR reviews as part of their business calendar.

A quarterly HR risk review might include:

Policy updates based on new regulations
Benefits usage and compliance check
Open cases or unresolved employee issues
Feedback from employee surveys or exit interviews

These reviews don’t need to be long or formal. They just need to be regular. Making space to assess your HR health ensures you’re never blindsided—and always ready for what’s next.

HR Risk Management supports a healthier workplace by reducing legal exposure and improving employee trust.

What HR Risk Really Costs Your Business

Still not sure how much HR risk management matters? Check out this piece on even more benefits of leveraging a HR Consulting expert like KBI Benefits.

It’s important to consider the costs of doing nothing:

One discrimination lawsuit can cost over $100,000 to settle
A single DOL audit can result in six-figure fines
Losing a great employee to burnout or a toxic culture could cost double their salary to replace
Poor documentation could leave you defenseless in any legal dispute

When you manage HR risk well, you don’t just avoid problems—you strengthen every part of your organization.

How KBI Benefits Helps You Manage HR Risk

Let our human resources consulting team help you minimize risk and build a stronger, more compliant workplace—without adding extra burden to your day.

With KBI Benefits, you’ll have access to:

A custom employee handbook you can build in minutes
Sexual harassment and workplace conduct training
One-on-one support from certified HR professionals
Practical tools and templates to streamline everyday HR tasks
We don’t just offer advice—we become an extension of your team. Whether you need help staying compliant, managing employee relations, or building a people-first culture, we’re here to support your growth.

Contact us today to get started. Let’s simplify your HR—and protect what matters most.

7 Innovations in Life Insurance Plans for Small Business

Fri, 06 Jun 2025 19:50:03 GMT

Top Innovations in Life Insurance Plans for Small Biz

Life Insurance Is No Longer Just a Safety Net

Life insurance used to be simple: if something happened to an employee, their family would receive a payout. It was seen as a posthumous benefit—important, but far off in the future. That model no longer meets the needs of today’s workforce. Not to mention, 100 million Americans are already insured or have life insurance that can be considered “uninsured”, according to Choice Mutual .

Employees want more than just basic security. They want coverage that reflects their lifestyle, offers real-world value, and supports them through life’s unpredictable moments. And as a business owner, you want a benefits package that stands out without adding complexity or cost.

Today’s life insurance plans have been reimagined with these goals in mind. From living benefits and portability to tech-driven tools and custom coverage, let’s explore the key innovations helping businesses like yours offer stronger, more flexible employee protection.

1. Living Benefits Offer Support When It Matters Most

One of the most significant changes in life insurance is the rise of living benefits . These allow employees to access a portion of their death benefit while still alive if they’re diagnosed with a critical illness or chronic condition, or if they suffer a disabling injury.

In practice, this could mean receiving money to cover:

A sudden cancer diagnosis
Heart surgery and recovery
Loss of mobility requiring in-home care
Treatment for a terminal illness

Rather than waiting for a policy to be used after death, employees can use life insurance to reduce financial stress during some of life’s most difficult health crises. This transformation makes the benefit more usable, more appreciated, and more aligned with the realities people face today.

For employers, offering living benefits adds strong emotional and practical value to your benefits package. It also improves employee morale and shows your commitment to their long-term well-being.

2. Portability Ensures Long-Term Value for Employees

In a world where job-hopping is the norm, insurance benefits that disappear the moment someone leaves a company are losing their appeal. Portable life insurance solves that issue by allowing employees to keep their policy even after they change jobs.

Some policies convert to an individual plan automatically. Others maintain group pricing if the employee continues to pay premiums independently. Either way, it gives workers the reassurance that their coverage won't end if their career path shifts.

For business owners, portable policies reduce administrative effort during turnover and help position your company as forward-thinking. You’re no longer offering short-term perks—you’re offering lasting peace of mind.

3. Simplified Underwriting Makes Enrollment Frictionless

Traditional underwriting is often what discourages employees from signing up. It can involve bloodwork, medical exams, waiting periods, and sometimes, anxiety about being denied.

Simplified underwriting bypasses those pain points. Instead of scheduling appointments and collecting lab results, employees usually just fill out a quick questionnaire. In some cases, decisions are made instantly using predictive modeling and public health data.

This innovation has massive benefits:

Faster onboarding
Less pressure on HR teams
More inclusive eligibility
Higher participation during open enrollment

Small businesses, especially those without a full HR department, benefit greatly from reduced complexity and quicker rollout.

4. Tech Tools Empower Employees and Save Time

One of the most exciting developments is how technology has modernized the life insurance experience. No more stacks of papers, long phone calls, or confusing terminology that leaves people unsure about their choices.

Digital platforms now allow employees to:

Review plan options with side-by-side comparisons
Use interactive calculators to choose the right amount of coverage
Update their beneficiaries online
Access documents anytime through mobile apps
Watch short explainer videos about how coverage works

This level of transparency improves confidence in the enrollment process. It also lightens the load for business owners who don’t have time to explain the ins and outs of each benefit.

5. Flexible Coverage Options Fit a Wider Range of Lifestyles

Today’s life insurance is no longer one-size-fits-all. With so many diverse lifestyles and financial goals in the workplace, employees want options that meet them where they are. Insurers are responding with tiered plans, optional riders, and family add-ons.

You can now offer:

Basic employer-paid life insurance
Voluntary buy-up coverage for employees who want more
Spouse and child policies
Accidental death and dismemberment riders
Chronic illness and long-term care riders

These flexible features allow your employees to choose what works best for them—without forcing your business to overspend.

Employees appreciate benefits that feel tailored rather than standardized. You want to create an environment of employee advocates who will go out of their way to vouch for your brand, and offering advanced life insurance plans and other benefits is a great way of accomplishing that. This customization creates a sense of personal investment and boosts employee satisfaction.

6. Life Insurance Can Also Protect the Business Itself

While most employers focus on life insurance for their staff, there are business-focused uses for these policies as well—especially for leadership teams or founder-led organizations.

Key person insurance , for example, is a policy the company takes out on a top executive, team leader, or founder. If that person dies or becomes disabled, the business receives a payout to cover lost revenue or hiring costs.

Similarly, buy-sell agreements funded by life insurance can make ownership transitions smoother in the event of a partner’s passing.

These types of policies help stabilize operations, protect stakeholder value, and ensure business continuity during uncertain times.

7. A Competitive Edge Without Breaking the Bank

Offering modern life insurance benefits might sound like a luxury—but it doesn’t have to be expensive. Many of these innovations are included in group policies or available as low-cost add-ons.

Better yet, employees are often willing to contribute through payroll deductions for voluntary coverage. That means you can offer a core benefit while giving them the option to expand their protection, all without increasing your costs dramatically.

This balance of cost and value makes it easier to offer a high-quality benefits package even if your business is small or growing.

How Does Your Life Insurance Plan Compare?

Not sure if your benefits are keeping up? Use our free Employee Benefits Benchmarking Tool to see how your life insurance offering stacks up against others in your industry.

You’ll get a personalized score, simple tips to improve, and real insights based on current market data—no guesswork, no jargon.

�� Try it now and see where you stand.

How KBI Benefits Helps You Navigate Your Options

At KBI Benefits, we specialize in helping small and mid-sized businesses make sense of complex benefit options. Our team stays on top of the latest innovations in life insurance so we can bring the most relevant, cost-effective strategies to our clients.

We help you:

Compare carriers and select plans tailored to your team
Educate employees with simple, modern communication tools
Set up seamless enrollment processes (digital or in-person)
Ensure legal compliance with ERISA and other regulations
Adjust and scale your plan as your company evolves

Whether you’re looking to enhance your current life insurance offering or start fresh, we’ll help you build a program that works—for your business and your employees.

Final Thoughts: Time to Modernize Your Life Insurance Strategy

Employee expectations have changed, and so have the tools available to meet them. Life insurance is no longer just a checkbox on your benefits form—it’s a powerful, personal tool that supports your team through life’s biggest moments.

As a small business, staying competitive in today’s job market means offering more than just a paycheck. It means offering benefits that work hard, adapt quickly, and reflect the real lives of your people.

Innovative life insurance plans do just that.

Want to bring smarter life insurance to your business?

Schedule your free strategy call with a KBI Benefits advisor and discover how simple it can be to build a plan that protects what matters most.

5 Reasons You Need Employee Benefits Liability Coverage

Fri, 30 May 2025 20:56:35 GMT

What is Employee Benefits Liability Coverage?

As a small business owner, offering health insurance, retirement plans, or life insurance is a great way to take care of your team. But these benefits also come with a lot of responsibility. You’re expected to get everything right—from enrollment forms to deadlines to coverage details.

What happens if you make a mistake?

Employee Benefits Liability (EBL) coverage is a special type of insurance that protects your business if there’s an error in how benefits are handled. These mistakes could include:

Forgetting to enroll an employee in health insurance
Giving incorrect details about a retirement plan
Missing a deadline that causes a gap in coverage
Failing to update a dependent or beneficiary

Understanding EBL helps you avoid surprise costs—and gives you peace of mind. You can give your business assurance in case anything goes wrong without breaking the bank either. Click here to learn how to save money on other employee benefits.

5 Reasons You Shouldn’t Skip EBL Coverage

1. Mistakes Happen—And They Can Cost You

Even with good systems and smart people, mistakes still happen. If an employee loses coverage or can’t use their insurance because of an error, they may take legal action. That could mean paying out of pocket for their medical bills—or facing a lawsuit. Defending and settling employment-related lawsuits costs businesses an average of $160,000 —an amount that can be devastating for small companies.

EBL coverage helps protect you from these costs when the mistake was unintentional.

2. You Offer More Than Just Health Insurance

If you offer multiple types of benefits—like dental, vision, 401(k), or life insurance—you have more things to manage. Every benefit comes with paperwork, deadlines, and legal requirements. The more benefits you offer, the more chances there are for errors.

EBL coverage acts as a safety net.

3. Rules Like ERISA and COBRA Are Easy to Misunderstand

Benefits laws can be confusing. You’re expected to follow rules like ERISA, COBRA, HIPAA, and the Affordable Care Act. But most small business owners don’t have time to learn every detail.

If you make a mistake related to compliance, employee benefits liability coverage helps protect your business from the financial impact.

4. Your Regular Business Insurance Doesn’t Cover This

Many business owners think their general liability policy protects them. It doesn’t. EBL is a separate coverage that fills the gap when something goes wrong with benefits administration. Not sure where your benefits stand?

Use our free Employee Benefits Benchmarking Tool to get a personalized score and tips on how to improve.

5. It’s Simple to Add and Won’t Break the Bank

EBL coverage is affordable and easy to include in your existing policy. It’s often part of an Employment Practices Liability Insurance (EPLI) plan—or can be added as a rider. The cost is usually small compared to the financial damage a mistake could cause.

It’s a small investment with big protection.

How KBI Benefits Helps You Stay Covered

At KBI Benefits, we don’t just help you build great employee benefits—we help you protect them.

Here’s how we support small businesses like yours:

Design benefits plans that work for your team and your budget.
Handle compliance paperwork and deadlines.
Offer employee education so your team knows what they’re getting.
Keep you informed on law changes and coverage risks.
Help you avoid costly mistakes in the first place.

Schedule a free strategy call and talk with a KBI agent about adding EBL coverage to your protection plan.

5 Reasons Your Small Business Needs a Benefit Consultants Group

Fri, 23 May 2025 21:51:14 GMT

5 Reasons Your Small Business Needs a Benefit Consultants Group

You’re Doing Everything—But Who’s Watching Your Benefits?

As a small business owner, you juggle sales, customer service, hiring, and growth. But one area too many SMBs overlook until it's too late? Employee benefits. Poor benefits design can quietly drain your business—leading to turnover, burnout, and missed opportunities.

That’s where a benefit consultants group like KBI Benefits becomes essential. Instead of trying to guess your way through plan options, compliance rules, or renewal headaches, you get real-time strategy, support, and savings designed around your business goals.

Let’s break down what a benefit consultants group does—and why your SMB needs one.

What is a Benefit Consultants Group?

A benefit consultants group is a team of licensed professionals who specialize in helping businesses choose, manage, and optimize their employee benefits. These aren’t insurance salespeople. They’re strategic partners who design affordable, competitive plans aligned with your hiring goals, team size, and compliance requirements.

At KBI Benefits, we act as an extension of your leadership team—bringing clarity, creativity, and control back to your benefits process.

Why Your Small Business Needs One

1. Smarter Strategy—Not Just Another Quote

Your business isn’t cookie-cutter. Neither are your employees. A good benefit consultant digs into your goals, turnover challenges, and budget to build a benefits plan that supports your whole team—not just the execs. Research shows that companies that work with a benefits consultant are 43% more likely to report high employee satisfaction with their benefits package.

2. Compliance Without the Chaos

HIPAA, COBRA, ACA, ERISA—one misstep in benefits compliance can mean hefty penalties. A benefit consultants group ensures you’re not flying blind. They monitor laws, track deadlines, and handle filings so you can stay focused on growth. You could even risk lawsuits. Click here to learn how to avoid these situations with right compliance strategy.

3. Benchmarking That Keeps You Competitive

When was the last time you compared your benefits to others in your industry? Most SMBs fall behind—not because they don’t care, but because they don’t know what “competitive” even looks like. Use our free Employee Benefits Benchmarking Tool to get personalized insights and instantly see how your plan stacks up.

4. Cost Control Through Creative Plan Design

Offering great benefits doesn’t have to mean blowing your budget. Groups like KBI help you explore level-funded plans, hybrid funding models, or voluntary benefits—giving your employees more, while helping you spend less.

5. Support That Goes Beyond Open Enrollment

You’re not buying a plan. You’re gaining a partner. From employee education sessions to vendor negotiations, a benefit consultants group stays with you year-round—not just when it’s time to renew.

Why Work with KBI Benefits?

We’re not just advisors—we’re your benefits think tank . Our team helps small business owners:

Reduce benefit costs without reducing coverage
Improve employee satisfaction and retention
Stay ahead of changing regulations
Gain visibility into what others in your industry are offering
Access one-on-one guidance year-round

The Bottom Line

If you’re still managing your employee benefits on your own—or letting a general insurance agent “handle it”—you’re likely overspending, underdelivering, and falling behind. A benefit consultants group like KBI Benefits is your shortcut to competitive, compliant, and cost-effective plans that keep your team (and your business) thriving.

Don’t settle for a benefits plan you barely understand.

Book a free strategy call with KBI and build a benefits strategy that works for your bottom line—and your team.

Why You Need a Strategic Benefits Package for Your Small Business

Fri, 16 May 2025 21:37:43 GMT

You wear all the hats—sales, service, hiring, operations. But what about retention? The truth is, small business owners often lose top talent simply because they don’t offer the right benefits—until it’s too late.

If you want to keep good employees and bring in new ones, you need more than just a paycheck. You need a good benefits package for small business . This means giving your workers extra things that make their lives better, like health insurance, vacation time, and retirement plans.

In this article, we’ll explain why small businesses need good benefits, what you should offer, how you can afford it, and how KBI Benefits can help you make it all happen.

What is a Benefits Package for Small Business?

A benefits package for small business is a group of extra things you give your employees, besides their salary. Research indicates that 78% of employees reported they’re more likely to stay with an employer because of their benefits program.

These things help your team stay healthy, happy, and worry-free.

Common benefits include:

Health insurance (doctor visits, dentist, glasses)
Paid time off (vacation days, sick days, parental leave)
Retirement savings plans (401(k))
Life and disability insurance
Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA)
Wellness programs (exercise, mental health support)
Flexible work hours or work-from-home options
Extra optional benefits like accident or pet insurance

These benefits show your team that you care about them—not just as workers, but as people.

Why a Benefits Package is Important for Small Businesses

1. Helps You Hire the Right People

When people are looking for jobs, they want more than just money. They want health insurance, time off, and other helpful benefits. A good benefits package for small business helps you stand out and attract great workers, even when competing with bigger companies.

2. Helps You Keep Good Employees

When employees feel taken care of, they stay longer. If they don’t get benefits, they might leave for a better job. Hiring new people all the time costs you money and time. Keeping your team happy saves you from doing that.

3. Helps Your Team Work Better

Healthy and happy workers do a better job. If they’re stressed about money or health problems, they won’t do their best work. Benefits like wellness programs and flexible work hours help employees stay focused and productive.

4. Makes Your Company a Better Place to Work

When you offer good benefits, your team feels appreciated. This builds a positive work culture where people enjoy working. A good reputation also helps you hire more great people in the future.

What Should Be in a Small Business Benefits Package?

Every business is different, but most small business benefits packages should include:

Health Insurance

This is usually the most important benefit. Health insurance helps your team pay for doctor visits, prescriptions, dental care, and glasses. It keeps your employees and their families healthy.

Retirement Plans

A 401(k) plan helps employees save money for their future. If you can match some of their contributions, that’s even better. It shows you care about their long-term success.

Paid Time Off (PTO)

Employees need time to rest and take care of personal things. PTO includes vacation, sick leave, and sometimes parental leave. Time off helps prevent burnout and keeps your team refreshed.

Life and Disability Insurance

These benefits protect your employees and their families if something serious happens, like an accident or illness.

Wellness Programs

Simple programs that help employees stay healthy, like gym discounts or mental health support, go a long way. Healthy workers are happier and more productive.

Flexible Work Options

Letting employees work from home sometimes or have flexible schedules is very popular. It helps them balance work and family life.

Voluntary Benefits

These are extra benefits that employees can choose to buy, like critical illness insurance or pet insurance. They’re optional, but nice to offer.

Can Small Businesses Afford to Offer Benefits?

Many small business owners worry about the cost of benefits. But the truth is, not offering benefits could cost you more in the long run. One KBI client was shocked to learn how much their outdated benefits plan was costing them in turnover . In today’s job market, offering the same benefits you did years ago just won’t cut it. Employee expectations, healthcare costs, and compliance requirements have all changed. Learn what businesses need to know to adapt to benefit changes in 2025.

There are also smart ways to make benefits affordable:

Level-Funded Health Plans

This is a way to pay for health insurance that gives you more control over costs. It can save you money compared to traditional plans.

Voluntary Benefits

With voluntary benefits, your employees can choose extra coverage and pay for it themselves. It’s a low-cost way to offer more options.

Wellness Programs Save Money

Helping employees stay healthy means fewer sick days and lower health costs in the future. Simple wellness programs are a smart investment.

Benchmarking and Smart Plan Design

At KBI Benefits, we help you compare your benefits to what other businesses offer. This way, you can stay competitive without overspending.

Use our free Employee Benefits Benchmarking Tool to get a personalized score, industry comparison, and actionable tips.

Staying Legal: Why Compliance Matters

Offering benefits means following certain rules. There are laws like the Affordable Care Act (ACA), ERISA, COBRA, and HIPAA that you have to follow. If you don’t, you could get fined.

Most small business owners don’t have time to keep track of all these rules. That’s why working with a company like KBI Benefits helps. We handle the paperwork, deadlines, and make sure you stay compliant.

Why KBI Benefits is the Right Choice for Small Businesses

At KBI Benefits, we know small businesses. We understand that you want to take care of your team but have to be smart with your money.

Here’s how we help you build a great benefits package for small business :

We design a plan that fits your needs and budget.
We find creative ways to save you money.
We handle the complicated compliance stuff.
We offer support to you and your employees when they have questions.
We show you how your benefits compare to others in your industry.

We’re not here to just sell you insurance. We’re here to be your partner in building a better, stronger business.

A Benefits Package for Small Business is Worth It

Ready to stop guessing and start offering benefits your employees actually care about?
Schedule a free strategy call and let KBI show you how to build a high-impact, budget-friendly benefits plan for your small business.

5 Key Insights into What Open Access HMO Plans Require

Fri, 09 May 2025 16:42:44 GMT

Healthcare costs are rising fast, and companies are always looking for smarter ways to offer good health benefits without spending too much. One plan that's getting more popular is the Open Access HMO. It keeps healthcare affordable like a regular HMO but removes some of the hassles that frustrate employees.

Before you add this type of plan to your company’s benefits package, it’s important to really understand what Open Access HMOs require. They are more flexible than the old-style HMOs but still come with a few important rules you need to know. Here are five key things employers and employees should understand:

1. In-Network Care is Still Required

Just like regular HMOs, Open Access HMOs require employees to use doctors, hospitals, and other healthcare providers that are in the plan’s network. The only time you can go outside of the network is for a true emergency, like a serious injury or sudden illness that needs immediate care.

The upside? Costs stay much lower. Insurance companies work out deals with network providers to get better prices on care. This helps employers spend less on premiums and keeps out-of-pocket costs lower for employees too.

According to the Kaiser Family Foundation , the average yearly premium for HMO plans was about $8,203 for a single person, while PPO plans averaged around $8,906. That’s a big difference that can save companies thousands of dollars a year when you add up all your employees.

It’s very important for employees to double-check that their doctor is in the network before making an appointment. Going outside the network could mean big surprise bills that the insurance won’t cover. Teaching employees how to search for in-network doctors online or through the insurance app can help avoid confusion.

2. No Referrals Needed to See a Specialist

One of the biggest complaints about old-fashioned HMO plans is that you have to go see your Primary Care Doctor (PCP) first before you can even schedule a visit with a specialist. This extra step wastes time and can make employees frustrated when they’re trying to get the care they need. Open Access HMOs fix that problem. Employees can go straight to an in-network specialist without having to get a referral from a PCP first.

This makes it faster and easier to get care. It also cuts down on the amount of paperwork and extra work HR teams have to handle, like answering questions about referrals or solving problems when a referral didn’t get processed on time. Employees feel more in control of their healthcare decisions, which boosts satisfaction with the benefits you offer.

3. Some Services Still Need Pre-Approval

Even though employees don’t need referrals for specialists, they do still need pre-authorization for certain expensive services. This means getting permission from the insurance company before getting certain types of care.

Examples of services that usually need pre-authorization include things like:

MRIs or CT scans
Outpatient surgeries
Specialty medicines like injections or infusions

Employers should make sure employees know about this rule early on. If someone forgets to get pre-authorization, they could end up with a large medical bill that the insurance company won’t pay. Clear training materials and reminders can go a long way in making sure employees follow the rules and stay protected.

4. Preventive Care is a Big Deal

One of the best parts of an Open Access HMO plan is the big focus on preventive care . This includes services like:

Yearly physical exams
Vaccines like flu shots
Screenings like mammograms and cholesterol checks

Most preventive services are offered at no extra cost to employees, as long as they use in-network providers.

When employees get regular check-ups and screenings, they catch health problems early. Early treatment often means smaller medical bills and better health outcomes. This keeps employees healthier overall and helps companies avoid expensive claims for serious illnesses later on.

Encouraging preventive care can also lead to fewer sick days, higher employee morale, and better long-term cost control for the company.

5. Picking a Primary Care Doctor is Optional (But Really Smart)

Most Open Access HMOs don’t require employees to pick a Primary Care Doctor (PCP)—but it’s still a smart idea. A PCP acts like a coach for an employee’s health. They help manage chronic problems like asthma or diabetes, answer questions about symptoms, and help organize any care you might need from specialists.

Having one doctor who knows your full health story means better care overall. It reduces medical mistakes, prevents double-testing, and helps make sure treatments from different doctors fit together the right way.

From an employer’s point of view, better care coordination usually leads to healthier employees, fewer costly medical events, and stronger workplace performance.

Conclusion: Open Access HMOs Are a Smart Choice for Today’s Workforce

Open Access HMO plans are a great middle ground between saving money and giving employees more freedom in how they use their health benefits.

Yes, employees must stay in-network and still need pre-approval for some services. But they no longer have to waste time getting referrals just to see a specialist, which is a major win.

For companies looking to save money without cutting corners on healthcare quality, Open Access HMOs are an excellent option. With premiums that are usually lower than PPO plans and a focus on preventive care, these plans help businesses offer stronger, more affordable benefits that employees actually appreciate.

At KBI Benefits, we specialize in helping businesses find the right health plans for their team. Whether you’re interested in an Open Access HMO or thinking about a bigger benefits refresh, we’re here to make the process simple and successful.

Contact a KBI Benefits agent today to schedule a free consultation. Let’s build a benefits strategy that’s smarter, stronger, and ready for the future!

Self-Funded Health Insurance Plans: A Primer

Fri, 02 May 2025 19:07:08 GMT

When it comes to providing healthcare benefits, businesses today have more choices than ever before. One option that's gaining traction, especially among companies looking for greater flexibility and cost savings, is the self-funded health insurance plan. But is it the right move for your organization? Let’s dive into the pros and cons so you can make a more informed decision — and learn how partnering with benefits experts can make the process much smoother.

What Is a Self-Funded Health Plan?

In a traditional insurance model, employers pay premiums to a carrier that, in turn, pays out claims. With self-funding, employers flip the script: they directly cover their employees’ healthcare claims. Instead of handing money over to an insurance company each month, you’re holding onto those funds and paying claims as they arise. You can either manage the plan yourself or team up with a third-party administrator (TPA) who handles claims processing, regulatory compliance, and reporting.

It’s a model that offers companies a lot more flexibility — but also demands a lot more attention.

The Financial Upside

One of the biggest attractions of self-funding is the potential for real, tangible savings. If your workforce is relatively healthy and claim activity is lower than expected, your business keeps the surplus. That’s a major contrast to traditional insurance, where unused premiums just go to the insurer’s bottom line.

Self-funded plans also skirt around many state-level insurance taxes and regulations, reducing administrative costs. And because you aren’t paying a flat monthly premium, your business gains better cash flow management. Every dollar that stays in your operating budget longer is a dollar you can invest elsewhere.

More Customization, More Control

Self-funding also unlocks the ability to tailor your healthcare offering to match the needs of your specific workforce. You can choose the benefits you want to offer, decide which provider networks to partner with, and design cost-sharing structures that work for your company and employees.

On top of that, you gain access to rich, detailed claims data. This information is a goldmine — it helps you spot trends, identify high-cost areas, and make strategic decisions to improve plan performance. Plus, because self-funded plans are primarily regulated by federal law (namely ERISA), multi-state employers can avoid the patchwork of different state insurance rules.

Managing the Risk

Of course, taking control means taking on more risk. If you have a few high-cost claims — think major surgeries or chronic conditions — your company could face significant expenses. That’s where stop-loss insurance comes into play. This coverage protects you by reimbursing claims costs that exceed a certain amount, either on a per-employee basis or in total across your group.

Still, managing a self-funded plan requires careful oversight. You'll need to keep a close eye on claims, costs, and compliance to avoid any surprises.

Reporting, Analytics, and Smarter Planning

When you partner with the right TPA, you don’t just get help paying claims — you get actionable data. Regular reporting gives you insights into how employees are using their benefits, what’s driving costs, and where wellness initiatives could have the biggest impact.

Using advanced tools like Claros Analytics, you can forecast future claim trends and adjust your benefits strategy proactively, rather than just reacting to problems after they arise.

Important Considerations

Self-funded plans offer many advantages, but they aren’t for everyone. Smaller businesses, or those without the financial cushion to absorb unexpected large claims (even with stop-loss insurance), might find the model too risky.

It’s also important to carefully review the fine print on stop-loss policies. Some exclusions can leave employers unexpectedly exposed if a large claim doesn't qualify for reimbursement.

Lastly, self-funding demands a level of engagement that fully-insured plans do not. Employers need to be willing and able to actively manage their plan, either through an in-house team or by working with experienced partners.

Why More Businesses Are Making the Switch

Despite the risks, more and more businesses — from large enterprises to growing midsize companies — are moving toward self-funding. They’re attracted by the potential savings, the ability to customize plans to match workforce needs, and the opportunity for better data-driven decision-making.

If you’re weighing your options, it’s important to have the right expertise on your side.

At KBI Benefits, we specialize in helping businesses build high-ROI employee benefits strategies, including custom self-funded solutions. Our experienced team can walk you through plan design, risk management, stop-loss options, and ongoing plan oversight, ensuring you get the most out of every dollar you invest in your people.

Ready to explore whether a self-funded health plan is right for your business? Speak with a benefits expert today — and let’s start building a smarter, stronger benefits strategy together.

The Role of HR Information Systems in Modern Benefits Administration

Tue, 22 Apr 2025 14:53:24 GMT

Managing employee benefits today isn’t just about selecting the right plans—it’s about how efficiently those benefits are delivered, communicated, and tracked. That’s where HR Information Systems (HRIS) come in.

If you’re still juggling spreadsheets, manual forms, or disconnected software, chances are you’re wasting valuable time, increasing your risk of compliance issues, and frustrating your employees in the process. But a modern HRIS can transform how your company handles benefits administration—boosting efficiency, improving employee satisfaction, and ultimately making HR work smarter, not harder.

Let’s walk through what an HRIS actually does, why it matters for benefits administration, and how your business can get started with a system that scales with you.

What Is an HRIS and Why Should You Care?

An HR Information System is a digital solution that helps businesses manage everything from payroll to performance reviews. But when it comes to benefits administration, it’s a game changer.

Instead of scattered records and one-too-many email chains, an HRIS centralizes all your employee benefits data in one place. That means no more guesswork about who’s enrolled, what their coverage includes, or whether you’re on track with open enrollment. And because everything’s automated, HR teams are free to focus on strategy—not data entry.

Key Ways an HRIS Streamlines Benefits Administration

1. Automates the Repetitive Stuff
Manual tasks like enrolling employees in benefit plans, updating deductions, and generating reports can eat up hours of time. An HRIS automates these processes, making sure nothing slips through the cracks. You’ll have fewer errors and a whole lot less stress.

2. Gives Employees More Control
Your employees don’t want to call HR every time they move, need to add a dependent, or check their benefits summary. A self-service HRIS portal lets them handle it on their own—anytime, from anywhere. That’s a win for them and a huge time-saver for your team.

3. Centralizes All Benefit-Related Data
An HRIS keeps everything in one place—plan details, enrollment history, eligibility tracking, and more. This means better accuracy, real-time updates, and easier access when you need to audit or make plan changes.

4. Keeps You Compliant
Compliance can be a minefield, especially when regulations are always changing. With an HRIS, you can build automated workflows that flag missing documentation, track COBRA requirements, and generate reports for ACA and other mandates—helping you stay compliant with minimal manual oversight.

5. Supports Better Decision-Making
Modern HRIS platforms offer powerful reporting and analytics. You’ll get real-time insights into benefit utilization, enrollment trends, and participation rates, helping you make smarter choices about plan offerings and provider negotiations.

Beyond Benefits: More Perks of Using an HRIS

While the focus here is on benefits, HRIS tools touch almost every part of the employee experience. From streamlining onboarding to simplifying PTO tracking, performance reviews, and compensation planning—it’s a full-scale HR transformation.

Here are a few more things an HRIS can help with:

Smoother onboarding with automated forms and workflows
Less paperwork (and fewer manual errors)
Better talent management, including appraisals and training tracking
Scalability as your company grows
Cost savings from operational efficiency

Ready to Modernize Your Benefits Administration?

Here’s the bottom line: if you’re still managing benefits the old-fashioned way, it’s costing you time, money, and goodwill with your employees. A well-implemented HRIS brings everything into one place, gives your team back their time, and gives your employees the access and transparency they expect.

At KBI Benefits , we help businesses like yours choose and implement the right HRIS solution—customized to fit your needs, goals, and growth plans. Whether you're just starting to explore your options or ready to make the switch, our experts are here to guide you every step of the way.

Ready to streamline your benefits admin and boost employee satisfaction? Contact KBI Benefits today to get started with an HRIS platform that actually works for your business.

HMO vs. PPO – Which Plan Should My Business Offer

Mon, 21 Apr 2025 16:59:40 GMT

When it comes to choosing the right health insurance plan for your employees, the decision often boils down to two primary options: HMO (Health Maintenance Organization) and PPO (Preferred Provider Organization). Each plan type offers distinct advantages and potential drawbacks—both for your team’s health and your company’s bottom line. Understanding these differences is critical to designing a benefits package that promotes well-being while managing costs effectively.

What is an HMO Plan?

HMO plans are a form of managed care designed to offer affordable coverage through a streamlined network. They typically require employees to select a primary care physician (PCP) who coordinates all aspects of care, including specialist referrals and pre-approvals for certain procedures.

Key features of HMO plans include:

Lower premiums and out-of-pocket costs compared to other plan types.
A specialized network of participating providers.
A greater emphasis on coordinated care through a PCP.

This structure can be highly beneficial for businesses looking to control costs while still providing access to quality care. For employees who don’t mind having a designated doctor and following referral protocols, HMOs offer a cost-effective option.

HMO Networks and Costs

HMO networks are often more limited, but they come with reduced medical costs. Providers in the network agree to offer services at lower rates, helping keep insurance premiums low. Some HMO plans come with no deductible, which can be attractive to employees managing routine healthcare needs.

However, it’s important to note that if employees seek care outside of the network (except in emergencies), they’ll bear 100% of the cost.

Role of the Primary Care Physician (PCP)

A central aspect of HMO plans is the role of the PCP. This physician becomes the employee’s primary point of contact for healthcare needs, from routine checkups to coordinating specialist visits. Requiring referrals and pre-approvals helps prevent unnecessary procedures and controls spending—both key benefits for employers managing group plan expenses.

Pros and Cons of HMO Plans

Advantages:

Lower premiums and minimal out-of-pocket costs.
Efficient, centralized care management.
Preventive care emphasis reduces long-term costs.

Disadvantages:

Limited choice of providers.
Referrals required for most specialist visits.
No coverage for out-of-network non-emergency care.

What is a PPO Plan?

PPO plans offer a more flexible structure, appealing to employees who want broader access to healthcare providers without needing referrals. While more expensive than HMOs, PPOs grant the freedom to see specialists or out-of-network doctors without jumping through administrative hoops.

Core elements of PPO plans:

Larger provider network with fewer restrictions.
Partial coverage for out-of-network services.
No need for a designated PCP or referrals.

This model works well for companies seeking to attract a geographically diverse workforce who need provider flexibility.

PPO Plan Features and Costs

While PPOs offer generous access to care, they come with higher premiums and deductibles—especially for services received outside the network. Employees typically must submit claims themselves for out-of-network visits, and separate deductibles apply.

That said, emergency care is always covered, regardless of network status, which provides a safety net for unexpected situations.

Making the Right Choice for Your Business

Choosing between an HMO and PPO plan depends on your company’s goals, employee preferences, and budget. If your workforce prefers structure and you want to keep premiums low, an HMO may be the better fit. On the other hand, if your team values provider choice and flexibility—even at a higher cost—a PPO could offer the competitive edge you need to retain top talent.

For many businesses, a combination of both plan types might be the best solution, giving employees the ability to select the coverage that best suits their individual needs.

Partner with Experts Who Understand Employee Benefits

Navigating the complexities of group health insurance plans doesn’t have to be overwhelming. At KBI Benefits , our team brings decades of experience helping companies across industries build cost-effective, employee-focused benefits strategies. From compliance guidance to innovative financing models, we specialize in helping businesses save up to 40% on benefits expenses—without sacrificing quality or coverage.

Contact KBI Benefits today to schedule a consultation and discover how the right insurance strategy can support both your workforce and your bottom line.

401(k) Survey Questions to Gauge Employee Satisfaction

Tue, 08 Apr 2025 16:34:34 GMT

Offering a 401(k) plan is a major component of an employer’s benefits package, but simply providing one isn’t enough. To truly support employees’ long-term financial wellness and encourage meaningful participation, employers must understand how satisfied employees are with the plan — and more importantly, why.

One of the most effective ways to do that is through an employee satisfaction survey. By tailoring your survey questions to reflect employees’ concerns, confusion, and priorities, you can gather actionable insights to refine your plan offerings and communication strategy.

Here’s how to design thoughtful survey questions based on the most common concerns employees have about their 401(k) plans — and how to interpret their feedback.

1. Do Employees Know What They’re Enrolling In?

Employee concern: What is a 401(k), and how does it work?

Survey questions:

How confident do you feel in your understanding of how the 401(k) plan works?
Do you feel the company has provided adequate resources to help you understand the 401(k) plan?

Why ask: If many employees report low understanding, it may signal the need for improved onboarding materials, workshops, or one-on-one sessions with financial advisors.

2. The Employer’s Role: Are Contributions and Match Clear?

Employee concern: What is my company’s role in my 401(k), and how does the match work?

Survey questions:

How satisfied are you with the employer match offered in your 401(k) plan?
Do you fully understand how the employer match is calculated and applied?

Why ask: Confusion about matching contributions can lead to under-utilization of the benefit. If clarity is lacking, enhance your benefits communication or provide real-life match scenarios.

3. How Does the Plan Stack Up?

Employee concern: Are all 401(k) plans the same?

Survey questions:

How would you rate the overall competitiveness of our 401(k) plan compared to your previous job’s offering or the offering of other jobs you’ve previously been offered?
Which features of the plan are most valuable to you? (Select all that apply: generous match, low fees, automatic enrollment, immediate vesting, etc.)

Why ask: This feedback helps identify which plan features resonate most with your workforce and where your benefits may fall short against competitors.

4. Is It Easy to Get Started?

Employee concern: When can I start contributing?

Survey questions:

How satisfied were you with the timeline for enrolling in the 401(k) plan after joining the company?
Was the enrollment process clear and easy to complete?

Why ask: A lengthy or confusing enrollment process may deter participation. If dissatisfaction is high, it may be worth reviewing your onboarding or eligibility waiting periods.

5. Are Employees Saving Enough — and Do They Know It?

Employee concern: How much should I contribute, and how often?

Survey questions:

How confident are you that you're contributing enough to meet your retirement goals?
Would you find it helpful if we offered personalized guidance on how much to contribute?

Why ask: Employees often feel unsure about their savings rate. Offering financial tools or advisory services could bridge this gap and boost satisfaction.

6. Are Employees Informed About Opportunities?

Employee concern: What’s the maximum I can contribute?

Survey questions:

Are you aware of the annual IRS contribution limits for 401(k) plans?
Would you like more communication around maximizing your contributions?

Why ask: High-income or older employees may want to contribute more than the default. Ensuring they’re informed helps them plan more effectively.

7. Withdrawal Rules: Are Employees Aware of the Rules and Penalties?

Employee concern: When can I access my money without penalties?

Survey questions:

Do you understand the rules around withdrawing money from your 401(k)?
Would you benefit from educational materials or sessions about retirement withdrawal strategies?

Why ask: A lack of awareness around withdrawal penalties and timelines can lead to poor decision-making or dissatisfaction. Education can help set clear expectations.

8. Plan Consolidation: Are Employees Managing Multiple Accounts?

Employee concern: Can I have multiple 401(k) plans? Should I consolidate?

Survey questions:

Do you have retirement savings in more than one account (e.g., old 401(k)s or IRAs)?
Would you be interested in services to help consolidate or manage multiple retirement accounts?

Why ask: Many employees struggle with scattered savings. Supporting rollover or consolidation can improve their financial clarity — and your retention rates.

Final Thoughts

Designing a 401(k) survey that reflects real employee concerns allows HR and benefits teams to move from assumption to action. The questions above are crafted to uncover blind spots, highlight strengths, and identify specific areas for improvement — whether it’s boosting clarity, enhancing match policies, or simplifying plan features.

Remember, the goal is not just to offer a 401(k) plan, but to make it a valued and effective part of your employees’ financial future. Ask the right questions, and you’ll get the answers you need to build a stronger, smarter retirement benefits offering.

The “Actively at Work” Clause in Insurance Policies: What It Means for Employers

Wed, 26 Mar 2025 16:19:19 GMT

When it comes to offering group disability or life insurance benefits to your employees, understanding the fine print is just as important as choosing the right coverage. One key detail that often flies under the radar is the “Actively at Work” clause. It might sound straightforward, but it has real implications for both employers and employees when it comes to coverage eligibility—especially when a disability claim is filed.

What does “actively at work” mean?

In the simplest terms, the clause means that an employee must be engaged in a full-time working position on the day a disability or life insurance claim is made. Now, that doesn’t always translate to the traditional 30- to 40-hour workweek. What matters is the nature of the job and whether it qualifies as full-time under your business’s policies. If the employee holds a full-time role and is actively fulfilling that role’s requirements, they’ll generally meet the “actively at work” standard.

Importantly, this clause doesn’t penalize employees for taking standard time off. Paid vacations, holidays, or even brief personal leaves typically don’t count against coverage—as long as the employee is still formally in their full-time position. For example, if an employee files a disability claim while on vacation, their coverage should still stand, provided they were actively working right up to the time off.

But here’s where things can get tricky.

Insurance companies often use the “actively at work” clause to evaluate whether a claim is valid. Let’s say someone has left your company but is still somehow listed on your group insurance policy. If they submit a claim after their departure, the insurer can deny it under this clause, arguing that the person wasn’t actively working when the claim was made.

Another scenario might involve a newly hired employee who never actually begins working due to a sudden illness. Even if their paperwork was processed and they were technically “on the books,” they may not qualify for coverage unless they physically began working in the role.

On the other hand, if an employee does start working in a full-time role—even if it’s just for a few days—and becomes disabled shortly after, the clause is usually satisfied. That’s why it’s so important for HR teams and managers to understand this provision clearly and document work start dates accurately.

Why Employers Should Share This Info with Employees

Misunderstandings about the “actively at work” clause can lead to confusion and frustration—especially when someone is dealing with a new medical condition or crisis. As an employer, sharing clear, accessible resources with your staff helps set expectations and builds trust. A blog like this one can be a valuable reference tool for employees who want to better understand how their insurance coverage works, especially when facing a life-altering situation.

Legal Guidance from KBI Benefits

Navigating employee insurance policies isn’t always straightforward, especially when legal nuances like the “actively at work” clause come into play. That’s where the ERISA attorneys at KBI Benefits step in. We help businesses like yours understand the legal implications of providing insurance through employee benefits and ensure your policies are both compliant and clearly communicated.

Need help interpreting your group insurance policy or setting up coverage for your team? Call KBI Benefits today to learn how we can support your business with experienced legal guidance tailored to your employee benefits program.

OCIP vs. Builder's Risk Insurance - Which is Right for Your Construction Project?

Tue, 18 Mar 2025 17:14:44 GMT

Choosing the right insurance for your construction project isn’t just another box to check—it’s a crucial decision that impacts risk management, compliance, and overall costs. Two of the most common types of construction coverage are Owner-Controlled Insurance Programs (OCIP) and Builder’s Risk Insurance. While they both offer essential protection, they serve different purposes. Understanding these differences can help you make the best choice for your project.

What is Builder’s Risk Insurance?

Builder’s Risk Insurance, sometimes called course of construction insurance, is a property insurance policy designed to protect buildings while they’re being built. It covers losses from physical damage at the construction site and related property.

What Does It Cover?

Damage from fire, lightning, hail, explosions, theft, vandalism, and natural disasters like hurricanes.
The building or structure under construction.
Materials, supplies, and equipment (whether on-site, in transit, or in storage).
Soft costs like lost sales, rental income, extra loan interest, and real estate taxes if delays occur.
Additional coverage for scaffolding, temporary structures, debris removal, and pollutant cleanup (if added).

What’s Not Covered?

Earthquakes, floods, high-wind zones, and beach areas (unless specifically added).
Normal wear and tear, employee theft, terrorism, faulty design, or poor workmanship.

Who Needs It?

Property owners, general contractors, subcontractors, lenders, and architects.

What Affects the Cost?

The type of construction materials used.
The size and complexity of the project.
Coverage limits, which should generally match the total expected cost of the project.

What is an OCIP?

An Owner-Controlled Insurance Program (OCIP) is a comprehensive insurance policy purchased by the project owner. It covers the entire construction project, including liability and workers’ compensation.

What’s Included?

Commercial General Liability (CGL): Covers personal injury, property damage, and contractual liability.
Workers’ Compensation: Medical and wage coverage for injured workers.
Builder’s Risk Insurance: Protects the site from damage.
Excess Liability (Umbrella Coverage): Extends coverage limits.
Professional Liability (Errors & Omissions): Protects architects and engineers against design-related claims.
Subcontractor Default Insurance: Covers losses if a subcontractor doesn’t fulfill their obligations.
Completed Operations Coverage: Extends liability protection even after the project is finished.
Optional Add-Ons: Pollution liability, earthquake and flood protection, and industry-specific coverage.

What’s Not Covered?

Commercial auto insurance (must be purchased separately).
Surety bonds (contractors must buy these independently).
Off-site contractors and vendors.
Small subcontractors with minimal involvement.

OCIP vs. Builder’s Risk: Key Differences

Primary Purpose: Builder’s Risk covers property damage; OCIP covers liability, workers’ compensation, and subcontractor risks.
Who Pays? Builder’s Risk is typically purchased by the owner, contractor, or lender. OCIP is bought by the project owner.
Who’s Covered? Builder’s Risk covers property owners, contractors, subcontractors, lenders, and architects. OCIP covers the owner, general contractor, subcontractors, and other stakeholders.
Coverage: Builder’s Risk covers damage from fire, theft, vandalism, and natural disasters. OCIP includes liability, workers’ compensation, and property damage.
Exclusions: Builder’s Risk doesn’t cover faulty design, terrorism, or normal wear and tear. OCIP excludes commercial auto insurance, off-site contractors, and surety bonds.
Cost Considerations: Builder’s Risk varies based on project size and materials. OCIP has a higher upfront cost but can offer long-term savings.

Which Insurance is Right for Your Project?

If your main concern is protecting the physical structure and materials, Builder’s Risk Insurance is the way to go.
If you need a comprehensive policy that includes liability, workers’ compensation, and subcontractor coverage, OCIP is a better fit.
Large projects (typically $50M–$100M+) benefit more from OCIP, while smaller or less complex projects are better suited for Builder’s Risk Insurance.

Final Thoughts

Choosing the right insurance policy is essential for protecting your project from financial risks and staying compliant with regulations. Whether you need Builder’s Risk Insurance or an OCIP, getting the right coverage ensures peace of mind.

At KBI Benefits, we help businesses navigate the complexities of construction insurance. Our experts can guide you in selecting the best policy, managing risks, and ensuring compliance. Contact a KBI Benefits specialist today to make sure your project is fully protected.

What to Expect From Your Employee Benefits Broker

Thu, 06 Mar 2025 17:59:16 GMT

When it comes to running a successful business, employee productivity and cost efficiency go hand in hand. After all, a happy, engaged workforce means better performance, while smart financial planning keeps everything running smoothly. But how do you improve employee benefits while keeping costs under control? That’s where KBI Benefits comes in.

Let’s break down what to expect from your employee benefits broker to make the most out of your benefits budget.

Enhancing Employee Productivity Through Better Benefits

Happy employees are productive employees. When people feel valued and supported, they naturally perform better. KBI Benefits helps businesses improve employee well-being in several key ways:

1. Comprehensive Employee Wellness Programs

A well-rounded benefits package goes beyond just healthcare. It should support every aspect of an employee’s well-being:

Physical Wellness – Quality healthcare plans give employees access to preventive care, reducing sick days and boosting long-term health. When employees aren’t stressed about medical bills, they can focus on work.
Mental & Emotional Wellness – Stress and burnout are major productivity killers. Offering mental health resources—like counseling services or employee assistance programs—creates a healthier, more engaged workforce.
Financial Wellness – Money worries can be a huge distraction. Benefits like Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), and retirement plans help employees feel financially secure. When they aren’t worried about making ends meet, they perform better.
Social Wellness – Encouraging workplace connections, team-building activities, and even flexible work arrangements helps employees feel part of a community, leading to better collaboration and morale.

2. Professional Growth & Development

No one likes feeling stuck in a dead-end job. That’s why providing learning and development opportunities is a game-changer. Offering training programs, mentorship, and career growth resources helps employees feel motivated, engaged, and more committed to their roles. And when employees are growing, the company grows too.

3. Recognizing & Rewarding Employees

Appreciation goes a long way. Studies show that employees who feel valued are more productive. KBI Benefits helps businesses design recognition programs that ensure employees get the praise they deserve—whether it’s through bonuses, extra time off, or public acknowledgment.

4. Giving Employees the Right Tools

Outdated technology and inefficient processes can slow employees down. By ensuring employees have access to modern tools and software , businesses can eliminate frustration and boost efficiency.

Reducing Costs with Creative Financing

Providing top-notch benefits doesn’t have to mean sky-high costs. KBI Benefits specializes in cost-saving strategies that allow companies to maximize employee support without overspending.

1. Smarter Health Plan Options

Healthcare costs are one of the biggest expenses for businesses, but there are alternative options that help control spending while still offering quality benefits:

Self-Funded Insurance Plans – Instead of paying fixed premiums to an insurance company, businesses can cover claims directly, which can significantly cut costs.
Level-Funded Plans – A hybrid between traditional insurance and self-funded plans, this option gives businesses predictable expenses while potentially saving money.
Captive & Consortium Health Plans – Small to mid-sized businesses can join together to manage healthcare costs , reducing risk and gaining greater negotiating power.

2. Reducing Administrative Costs with Digital Solutions

Manually handling benefits enrollment and claims processing is time-consuming and costly. KBI Benefits leverages digital solutions to streamline these tasks, reducing administrative burdens and improving efficiency.

3. Benefits Benchmarking

Are your benefits actually competitive? KBI Benefits offers a benchmarking tool to compare your current offerings against industry standards. This helps businesses make informed decisions about what to improve—whether it’s healthcare coverage, retirement plans, or paid time off (PTO).

4. Free Benefits Plan Audit

Sometimes, businesses are paying for benefits they don’t need or missing out on better options. KBI Benefits provides a free benefits audit , helping companies pinpoint areas where they can save money without sacrificing employee satisfaction.

The Bottom Line: Better Benefits, Smarter Spending

KBI Benefits makes it possible for businesses to enhance employee well-being while reducing costs —a win-win for both employers and employees. By offering creative financing solutions, wellness programs, and benefits benchmarking , businesses can build a healthier, happier, and more productive workforce without straining their budget.

Want to see how your company can optimize benefits while cutting costs? Schedule a free benefits audit with KBI Benefits today!

Captive Insurance for Small Businesses

Mon, 24 Feb 2025 16:22:34 GMT

Small businesses have it tough when it comes to managing insurance costs. Traditional insurance policies can be pricey and inflexible, leaving little room to customize coverage or control premiums. But there’s another option that’s gaining traction: captive insurance . Once reserved for big corporations, this approach is now helping smaller companies get more bang for their buck. So, what’s captive insurance all about, and why should you care? Let’s break it down.

What Is Captive Insurance?

Think of captive insurance as DIY employee benefits. Instead of paying premiums to a commercial insurer, you and other businesses pool your resources to create your own insurance company, known as a captive . This lets you customize coverage, control premiums, and keep a closer eye on risk management. It’s like building an insurance plan that actually fits your workforce’s needs.

Types of Captive Insurance

There are a few ways to set up a captive, depending on how much control and risk you want to take on:

1. Pure Captives
These are fully controlled by the members and come in two main types:

Single Parent Captive: One company owns and controls the captive, covering only its own risks.
Group Captive: Multiple companies in the same industry team up, sharing risks and rewards. This setup is great for smaller businesses looking to spread out the cost and risk.

2. Sponsored Captives
With sponsored captives, outside investors provide capital, making it easier for smaller companies to get in the game without putting up all the money themselves.

Captive Insurance vs. Traditional Insurance

Here’s the big difference:

Traditional Insurance: You pay premiums to an outside insurer who then assumes your risk. But these policies are often rigid, with strict exclusions that might leave gaps in your coverage.
Captive Insurance: You invest your own resources into your captive, giving you more control over premiums, policies, and claims. Plus, you keep any unused premiums as profit.

What’s in It for You? Key Benefits of Captive Insurance

Custom Coverage: Tailor your policies to fit your unique needs, avoiding unnecessary extras.
Control Over Decisions: In a group captive, you get a say in everything from premiums to claims processes.
Invest Premiums: Unlike traditional insurance, you can invest your premiums, earning revenue even if no claims are made.
Rewards for Safety: If your business maintains a low claims history, you get better payouts and can reinvest those savings back into your company.

Is Captive Insurance Right for Your Business?

You might think captive insurance is only for the big companies, but that’s not the case anymore. Thanks to group captives and sponsored captives, small businesses can also get in on the action. It’s a great option if you:

Want more control over your insurance policies.
Like the idea of investing premiums for potential returns.
Prioritize safety and good risk management.

Whether you run a small manufacturing company, a professional services firm, or a retail business, captive insurance offers a flexible, cost-effective way to protect your business.

Captive insurance can be a game-changer, but there are a lot of factors that can determine if it works for your business. That’s where KBI Benefits comes in. Our brokers specialize in helping small businesses navigate this complex landscape, offering personalized advice to find the best solution for you.

We offer a free audit of your current employee benefits plan to help you find cost savings and make sure you’re getting the most value from your existing benefits offerings. If captive insurance is the right fit, we’ll help you make a smooth transition.

Want to learn more? Contact KBI Benefits today and see how captive insurance could work for your small business.

Should My Business Offer Limited Health Plans?

Tue, 18 Feb 2025 15:00:32 GMT

Employers looking to attract and retain top talent are considering different types of medical benefits to meet employee expectations. While major medical insurance remains the gold standard, some businesses are exploring limited health plans as a supplemental option. But are these plans right for your business?

Understanding the role of limited health plans and how they fit into an employee benefits package can help you determine if they align with your company’s needs.

What Are Limited Health Plans?

Limited health plans are medical insurance policies that offer lower benefits and coverage restrictions compared to major medical insurance. These plans come with significantly lower premiums but do not provide the comprehensive coverage mandated under the Affordable Care Act (ACA).

Types of limited health plans include:

Fixed Indemnity Plans – Pays a set amount per medical service, regardless of the actual cost.
Critical Illness Plans – Provides a lump-sum payment for serious diagnoses like heart attacks or strokes.
Hospital Cash Plans – Pays a fixed amount per day of hospitalization.
Accident-Only Plans – Covers medical costs associated with accidents.
Accidental Death and Dismemberment (AD&D) – Pays out if an employee loses a limb, eyesight, or life due to an accident.
Short-Term Health Plans – Temporary coverage for those in transition between major medical policies.

Unlike traditional health insurance, these plans are designed to supplement coverage rather than replace major medical insurance.

The Benefits of Offering Limited Health Plans

While limited plans cannot serve as primary health insurance, they can offer advantages when included as part of an employee benefits package.

1. Helps Offset High Deductibles

Many employees enroll in high-deductible health plans (HDHPs) due to their lower premiums, but these plans require employees to pay substantial out-of-pocket expenses before coverage kicks in. A limited plan, such as a fixed indemnity or critical illness policy, can help reduce these financial burdens.

2. Affordable Option for Employers and Employees

Limited health plans are significantly cheaper than major medical insurance, making them a budget-friendly option for businesses looking to enhance their benefits package without a significant increase in costs.

3. Attracts and Retains Employees

According to SHRM’s 2021 Annual Employee Benefit Survey, many employers have expanded their supplemental health insurance options. Offering additional coverage options, even in the form of limited health plans, can make your business more attractive to potential hires.

4. Useful for Employees in Transition

Limited plans can be an ideal option for employees:

Between jobs or recently laid off
Aging out of parental insurance
Missed ACA open enrollment
Self-employed or working as freelancers
Frequently traveling for work and needing out-of-network coverage

Should Your Business Offer Limited Health Plans?

Whether limited health plans are right for your business depends on several factors:

Do your employees have high-deductible health plans? If so, offering a supplemental limited health plan can provide additional financial protection.
Are employees looking for more affordable options? Limited plans can be an appealing choice for those who need lower-cost insurance alternatives.
Do you want to enhance your benefits package without increasing costs significantly? Limited plans can provide added value to employees without the high expense of major medical insurance.
Is employee retention a priority? Competitive benefits can help attract and retain talent in today’s workforce.

Final Thoughts

While limited health plans are not a replacement for major medical insurance, they can serve as a valuable supplement to existing coverage. If your business wants to provide additional financial protection for employees without significantly increasing costs, these plans might be worth considering.

Before making a decision, consult with KBI Benefits to ensure you are offering the most optimized benefits for your workforce. This can mean the difference between a positive and negative ROI on your employee benefits. Contact a benefits expert today to explore the best options for your business.

Employee Benefits Education for Younger Employees

Thu, 23 Jan 2025 17:00:16 GMT

For younger employees stepping into the workforce, navigating employee benefits can feel like deciphering a foreign language. This lack of understanding often results in missed opportunities to maximize benefits and unnecessary expenses for both employees and employers.

The solution? Comprehensive education. By helping younger employees understand their benefits early and effectively, employers can empower them to make informed decisions, leading to improved satisfaction, cost savings, and overall well-being. Here’s how employers can take actionable steps to educate their younger workforce on employee benefits.

1. Start with the Basics

Young employees, particularly those new to the workforce, often lack foundational knowledge about insurance and benefits. Start with a "Benefits 101" approach, covering essential topics such as common insurance terminology, how group health coverage works, and the importance of enrollment deadlines. Breaking down these concepts into digestible pieces will give employees the confidence to engage with their benefits plans.

Providing user-friendly resources like glossaries of key terms, FAQs, and introductory guides can make this foundational education accessible and engaging.

2. Highlight the Value

Younger employees are more likely to engage with benefits education when they see personal value. Explain how understanding their benefits can lead to smarter healthcare decisions, financial savings, and even long-term investment opportunities. For instance, show how researching provider networks can significantly reduce out-of-pocket costs or how contributing to a 401(k) early can yield substantial retirement savings.

Focusing on tangible benefits helps employees connect the dots between learning about benefits and improving their overall quality of life.

3. Use Varied, Engaging Formats

Gone are the days when lengthy handouts and dense white papers were the only options for benefits education. Younger employees respond better to diverse and interactive formats. Consider using:

Videos to explain complex topics in a simple, visual manner.
Infographics to break down key points.
Email series to provide regular, bite-sized education.
Interactive webinars for live Q&A sessions.
Posters and flyers for quick reminders in shared spaces.

By diversifying your approach, you can keep employees engaged while reinforcing important messages.

4. Make It a Continuous Process

Benefits education shouldn’t be limited to onboarding or open enrollment periods. Make it an ongoing effort throughout the year. Create a communication calendar to share relevant topics each month, such as how to use telemedicine, when to visit urgent care versus the ER, or how life events affect benefits.

Regular education keeps benefits top of mind and helps employees feel supported as their needs evolve over time.

5. Encourage Questions and Provide Support

Even with robust educational efforts, employees will still have questions. Ensure your HR team is equipped to answer these inquiries promptly. Designate a dedicated benefits specialist who can respond to emails, attend meetings, and offer personalized guidance.

Additionally, consider scheduling one-on-one meetings before open enrollment. These private sessions provide a safe space for employees to ask questions they might hesitate to bring up in larger group settings.

Why Benefits Education Matters

Educating younger employees about their benefits isn't just about helping them understand health insurance jargon; it's about equipping them to make informed decisions that positively impact their lives and your organization. Employees who understand and value their benefits are more likely to utilize them effectively, reducing unnecessary costs and increasing overall satisfaction.

Build a Better Benefits Plan with KBI Benefits

At KBI Benefits, we understand the importance of a well-designed benefits plan paired with effective education. Our team can help you craft an attractive benefits package that meets your employees’ needs while providing the resources and support to ensure they know how to make the most of it.

Investing in benefits education not only improves employee satisfaction but also boosts productivity and loyalty. Speak with a KBI Benefits agent today to take your team’s performance and well-being to the next level!

Employee Benefits Changes in 2025 - What Businesses Should Know

Thu, 09 Jan 2025 17:51:53 GMT

As 2025 begins, significant shifts in employee benefits are set to redefine how businesses support their workforce. From rising health care costs to evolving workplace expectations, staying informed is essential for maintaining competitiveness and compliance. Here’s a closer look at the key changes and trends businesses should prepare for in 2025.

1. Rising Health Care Costs

Health care costs are expected to surge by 7-8% in 2025 , driven by several factors, including medical inflation, an aging population, and increased demand for specialized medications like GLP-1 drugs. These drugs, popular for weight loss and obesity management, have garnered significant employee interest but come with steep price. Chronic health conditions such as diabetes, heart disease, and mental health issues also continue to dominate spending.

To address these challenges, businesses are exploring mitigation strategies such as cost-sharing, preventive care education, and leveraging prescription drug savings programs. Employers are also reevaluating their formularies and wellness initiatives to balance rising costs with the need to offer competitive health plans. Now more than ever, businesses must take proactive steps to manage costs without compromising the quality of care their employees receive.

2. Health Plan Transparency: Compliance and Employee Trust

In 2025, businesses must adhere to stringent health plan transparency requirements. These include self-service price comparison tools that provide real-time cost estimates for covered services and machine-readable files that disclose detailed pricing information. Additionally, employers must ensure compliance with rules against surprise medical billing and submit annual reports on prescription drug spending.

Failure to meet these requirements could expose businesses to legal and financial risks. Partnering with knowledgeable third-party administrators or benefits providers can help businesses navigate these complex regulations. Beyond compliance, investing in transparency builds employee trust by empowering them to make informed health care decisions.

3. Telemedicine

The popularity of telemedicine remains strong post-pandemic, offering employees convenient and cost-effective access to care. However, changes in high-deductible health plans (HDHPs) compatible with health savings accounts (HSAs) may create new challenges. Unless further legislation is enacted, providing telemedicine benefits without deductibles could jeopardize HSA eligibility in 2025.

Employers must carefully assess their telemedicine offerings to ensure compliance while continuing to meet employee needs. Enhancing cybersecurity measures is also critical as telemedicine platforms handle sensitive health data. By aligning telemedicine benefits with business goals and employee expectations, companies can improve accessibility and manage costs effectively.

4. Labor Market Trends: Retention and Recruitment in Focus

Although the labor market is stabilizing, businesses still face challenges in attracting and retaining talent. Competitive compensation remains a top priority for job seekers, with younger generations placing a premium on pay transparency and robust benefits packages. Meanwhile, workforce demographics are shifting, with millennials and Gen Z dominating the labor pool.

Employers are responding by offering personalized learning opportunities and leveraging technology to streamline workflows. Flexible work arrangements and hybrid models also remain crucial, though many organizations are beginning to redefine the role of the office to foster collaboration and innovation. Companies that adapt to these evolving expectations will be better positioned to build a loyal and productive workforce.

Moving Forward with Confidence

Navigating the complexities of employee benefits in 2025 requires both strategic planning and adaptability. Rising health care costs, transparency regulations, and evolving workforce needs demand innovative solutions that balance employee satisfaction with cost efficiency. By addressing these trends head-on, businesses can create a supportive and competitive workplace environment.

At KBI Benefits, we’re here to help you lower your employee benefit costs while ensuring compliance and maintaining your competitive edge. From managing health care expenses to designing holistic wellness programs, our team offers personalized solutions tailored to your needs, where you could save as much as 40% on similar employee benefits. Reach out to us today to learn how we can support your business in 2025 and beyond.

Employee Wellness Programs: What Works?

Tue, 07 Jan 2025 15:38:26 GMT

Employee wellness programs are a vital tool for creating happier, healthier, and more productive workplaces. Contrary to popular belief, these initiatives don’t have to be costly to be effective. By focusing on the physical, emotional, and financial wellness of their employees, employers can give their employees the tools they need to be happy, healthy, and productive. Below, we’ll explore 15 practical tips to improve employee well-being across these three crucial dimensions.

Physical Wellness

Walking Meetings : Transform sedentary discussions into walking meetings. This simple shift promotes physical activity and stimulates creative thinking.
Group Fitness Classes : Organize in-office or virtual classes like yoga, Zumba, or strength training. These sessions boost morale and provide a fun way to stay active together.
Fitness Challenges : Encourage friendly competition by tracking steps, hosting fitness contests, or training for events like 5Ks. Offer small prizes to keep employees motivated.
Healthy Snacks : Stock the office with nutritious options like fresh fruits, nuts, and granola bars. This supports healthier eating habits and sustains energy levels throughout the day.
Employee Benefits Packages: Nothing demonstrates your commitment to your employees’ health than a comprehensive employee benefits package. Employee benefits historically have improved employee retention, reduced tardiness, and ultimately provided a positive ROI on the amount of additional productivity they inspire. Speak with a KBI Benefits agent to see what employee benefits package is best for your business.

Emotional Wellness

Flexible Work Hours : Provide employees with the option to adjust their schedules. Flexibility fosters work-life balance and reduces stress.
Mental Health Resources : Subsidize subscriptions to meditation apps like Calm or Headspace. Alternatively, offer workshops or access to counseling services.
Nap Rooms : Create quiet spaces where employees can relax or take short naps during the day. A well-rested team is a productive team.
Keep it Fun : Organize non-work-related activities such as game nights, scavenger hunts, or outings to a comedy show. This is a great way to improve the bonds between your team while also alleviating tension and stress.

Financial Wellness

Bicycle Racks and Stipends : Encourage biking to work by providing secure parking and subsidies for public transportation. This reduces commuting costs and promotes sustainability.
Financial Literacy Workshops : Invite experts to discuss budgeting, saving, and investing. Equip employees with tools to manage their personal finances confidently.
Relaxed Dress Codes : Shift to a casual dress policy. Employees save money on professional wardrobes, and the relaxed atmosphere can boost morale.
In-Office Library : Build a collection of financial books and resources. Employees can access valuable knowledge without incurring personal costs.
Paid Parental Leave : Support new parents by offering paid time off to bond with their child. This alleviates financial strain and fosters loyalty.

Why Low-Cost Employee Wellness Programs Work

Effective employee wellness programs don’t have to strain your budget. These initiatives focus on enhancing the quality of life for your team while fostering a positive and productive work environment. By incorporating wellness into your organizational culture, you address critical needs without breaking the bank.

At KBI Benefits, we understand the importance of balancing employee satisfaction with cost efficiency. Our tailored strategies save businesses up to 40% on their employee benefits while improving the quality of offerings. Let us help you make your employees and your bottom line happy at the same time.

Ready to revamp your approach to wellness? Contact KBI Benefits today to learn how we can optimize your employee benefits and create a healthier, happier workplace.

Employee Benefits Survey Questions to Improve Your Offerings

Mon, 23 Dec 2024 17:22:50 GMT

One of the most important aspects of renewing your employee benefits plan is to do so with employee input in mind. If you want to make the most out of your employee benefits plan, employees are often ready and willing to tell you what would make them happiest to see from their benefits for the current year.

Feel free to use the following list of employee benefits questions as you prepare your employee benefits package for next year.

20 Employee Benefits Survey Questions

Retirement Plan Participation and Awareness

What motivated you to enroll in your current retirement plan?
If you are not enrolled in the retirement plan, what is the main reason for your decision?
How satisfied are you with the range of investment options available in your retirement plan?
Do you feel you fully understand the employer-matching contribution policy?
How often do you review or adjust your retirement plan investments?

Financial Education and Support

How helpful do you find the financial education resources provided by the company?
What type of financial topics would you like more guidance on (e.g., budgeting, investing, retirement income planning)?
How comfortable are you with accessing financial wellness tools offered by the company?
Would you attend in-person or virtual financial workshops if they were available? Why or why not?
Do you feel the company’s resources help you balance short-term needs with long-term financial goals?

Emergency Savings and Debt Management

Do you feel your employer provides adequate support for building emergency savings?
Would you benefit from additional tools to manage personal debt, such as credit card or student loan assistance?
How important is access to a dedicated financial advisor for your financial wellness?
Are you aware of any options provided by the company to assist with emergency financial situations?

Retirement Readiness and Confidence

How confident are you that your current retirement plan will meet your future financial needs?
What additional features or services would make you feel more secure about your retirement planning?
Do you feel the retirement plan aligns with your long-term financial goals?
How knowledgeable are you about withdrawal options and their tax implications?

Communication and Personalization

Do you feel the company communicates effectively about the benefits available to you?
How could the company improve its approach to helping employees better understand and utilize their benefits?

Get Expert Employee Benefits Assistance

If you’re ready to improve satisfaction with your employee benefits while reducing costs by as much as 40% YoY, speak with a KBI Benefits agent today for personalized assistance .

How to Effectively Communicate Employee Benefits to a Millennial Workforce

Mon, 16 Dec 2024 18:40:59 GMT

Engaging with millennials in the workplace can be challenging due to their diverse interests and unique communication needs. Born between 1981 and 1996, this generation has distinct preferences for communication methods and employee benefits compared to other generations. This article explores how to tailor communication strategies for millennials, identifies the benefits they value most, and discusses the best health insurance options to create a sustainable benefits plan.

For more personalized assistance, please speak with a KBI Benefits agent today .

Understand Millennial Benefit Preferences

Millennials have specific expectations when it comes to employee benefits. To appeal to this demographic, emphasize aspects like work-life balance, flexibility, and overall well-being. While health insurance remains a fundamental benefit, many millennials are drawn to opportunities for financial growth, such as programs that support wealth-building.

Popular benefits also include student loan repayment assistance, flexible work arrangements, and career development opportunities. When communicating your benefits, highlight these elements to demonstrate alignment with their personal and professional goals.

Leverage Technology for Benefits Communication

Millennials expect seamless, digital-first communication when it comes to accessing benefits information. Without leveraging technology, benefits communication risks being ineffective and unengaging.

Use mobile-friendly tools and platforms to make benefits information easily accessible. Interactive online guides, videos, and webinars can simplify complex topics, such as specific insurance plans. Social media platforms, company intranets, and dedicated apps are excellent channels for promoting benefits, searching for skills, and building brand awareness. Adding interactive elements like quizzes or challenges can make learning about benefits more enjoyable.

Personalize Benefits Communication

A one-size-fits-all approach does not resonate with millennials. Instead, they value personalized experiences that cater to their unique needs. Segment your workforce and design tailored communication strategies for different groups within the millennial demographic.

For example, new parents may prioritize family-friendly benefits, while others might prefer financial wellness programs. Utilize analytics to understand employee preferences and behaviors, enabling you to craft communication that demonstrates genuine care for their individual circumstances.

Emphasize Transparency and Education

Transparency is essential for millennials, who value clear and honest communication. Provide them with complete information about available options, avoiding complicated legal jargon and unnecessary technicalities.

When discussing complex topics, use simple, straightforward language to ensure clarity. Beyond annual enrollment periods, create ongoing opportunities for education, such as "lunch-and-learn" sessions, FAQ documents, or meetings with benefits experts. This proactive approach equips millennials to make well-informed decisions about their benefits.

Showcase the Value of Benefits

Millennials often seek tangible, impactful changes in their workplaces. A clear presentation of the monetary and practical value of benefits can be a strong motivator. For example, show how a benefit might help them save for a car, pay off student loans, or invest in their future.

Provide total compensation statements that outline the comprehensive value of all offered benefits. Highlighting savings opportunities, such as health savings accounts (HSAs) or wellness programs, can help millennials appreciate the full scope of their compensation package.

FAQs

What are the best health insurance options for millennials?

Millennials tend to prefer high-deductible health plans (HDHPs) paired with health savings accounts (HSAs), as these plans often feature lower premiums and offer tax-advantaged savings for future medical expenses. Additionally, incorporating telemedicine and mental health coverage into health plans is increasingly important to this demographic.

How often should benefits communication occur?

Benefits communication should be an ongoing process rather than limited to annual enrollment periods. Regular notifications, reminders, and educational sessions throughout the year ensure employees remain informed. Aim for at least monthly communication using various channels.

What role does social media play in benefits communication?

Social media is effective for short, engaging announcements, reminders, and educational posts. It aligns well with millennials' communication preferences. However, use private or secure channels for sensitive information.

How can we measure the effectiveness of benefits communication?

Monitor engagement with digital materials, attendance at educational sessions, and participation rates in different benefits programs. Short surveys can also provide insights into employee understanding of benefits and their overall attitudes.

Conclusion

This guide highlights the importance of adapting benefits communication strategies to meet the preferences of millennials. By understanding their unique needs, leveraging technology, personalizing messages, emphasizing transparency, and showcasing value, organizations can improve both engagement and satisfaction. Effective communication is a dynamic process that requires continuous refinement. Implementing these strategies will not only enhance millennials' understanding and use of benefits but also foster loyalty and retention in your organization.

Are you ready to optimize your employee benefits offerings for your team? Reach out to KBI Benefits today to schedule an audit of your program by an employee benefits expert .

Impediments to Team Productivity and How to Address Them

Mon, 02 Dec 2024 19:06:32 GMT

Employee productivity is a cornerstone of business success, yet many organizations struggle with roadblocks that hinder their teams’ potential. Let’s discuss how you can address impediments to your team’s productivity.

Health and Wellness Benefits: A Foundation for Productivity

Employee wellness is directly linked to productivity. Without adequate health and wellness support, employees are more prone to illness, stress, and burnout—all of which reduce efficiency and increase absenteeism. Offering benefits such as comprehensive health insurance, gym memberships, and employee assistance programs (EAPs) is essential.

Health Insurance : Providing robust medical, dental, and vision coverage ensures employees can access the care they need, reducing absenteeism and improving focus at work.
Wellness Programs : Programs promoting physical fitness, stress management, and nutrition encourage employees to prioritize their well-being, leading to enhanced mental clarity and job performance.
Mental Health Support : EAPs offer confidential counseling for stress, anxiety, and other challenges, fostering a supportive workplace culture.

Investing in health and wellness benefits creates a healthier, more engaged workforce. KBI Benefits is ready to help you craft cost-effective wellness solutions tailored to your team .

Flexible Work Arrangements: Empowering Teams to Thrive

Flexibility in work arrangements is more than a trend—it’s a productivity booster. Employees who can balance their personal and professional lives are less stressed and more engaged. Flexible work options include remote work, adjustable hours, and compressed workweeks.

Remote work has been shown to improve productivity by 13%, according to a Stanford study .
Flexible scheduling reduces burnout, fosters loyalty, and accommodates diverse employee needs.

By implementing flexible work policies, businesses can reduce turnover and increase satisfaction.

Paid Time Off (PTO) and Work-Life Balance

Time off isn’t a luxury; it’s a necessity for sustainable productivity. Offering paid vacation, parental leave, and flexible PTO policies ensures employees can recharge and return to work with renewed focus.

Employees who take regular vacations report higher creativity and performance, according to Project: Time Off.
Parental leave demonstrates a company’s commitment to family values, enhancing loyalty and retention.

Encouraging work-life balance reduces burnout and builds a positive workplace culture.

Professional Development: Investing in Growth

Providing professional development opportunities shows employees that their growth matters, which in turn enhances engagement and productivity. Training, workshops, and tuition reimbursement empower employees to acquire new skills while strengthening their commitment to the organization. LinkedIn Learning found that 94% of employees would stay longer at a company that invests in their development. By prioritizing professional growth, businesses build a culture of innovation and improvement.

The KBI Benefits Advantage

Every benefit offered contributes to a more engaged and productive workforce. From health insurance to PTO and professional development, the right benefits package improves employee well-being and loyalty while reducing turnover costs.

KBI Benefits specializes in designing tailored employee benefits packages that deliver measurable ROI. With our expertise, your business can reduce benefits expenses by up to 40% annually while maximizing the impact of your offerings.

Speak with a KBI Benefits agent today to transform your benefits strategy and unlock your team’s full potential.

How to Avoid Employment Lawsuits with an Employee Benefits Compliance Strategy

Tue, 26 Nov 2024 15:31:07 GMT

A well-designed employee benefits compliance system ensures employees receive their rightful benefits while reducing legal risks to your business. Let’s discuss how to develop an effective employee benefits compliance strategy.

For more personalized insights and assistance, reach out to KBI Benefits today .

Set Clear Documentation and Communication Protocols

A comprehensive employee benefits compliance strategy starts with comprehensive documentation and clear communication. Employers should maintain detailed Summary Plan Descriptions (SPDs) and other key documents outlining benefit procedures and employee rights.

Regular communication about benefits and obligations is crucial. Providing required notices to employees—such as COBRA notifications, HIPAA privacy policies, and Summary of Benefits & Coverage (SBC)—via email and mail ensures that your business is performing its due diligence in keeping employees informed.

Implement Robust Fiduciary Management

Fiduciary responsibilities are the foundation of any benefits compliance strategy. Plan administrators must act prudently, putting participants' best interests first. This involves ensuring promised benefits are delivered, conflicts of interest are avoided, and fair procedures are in place.

Regular audits and transparent processes build trust and ensure financial stability. Effective fiduciary management not only minimizes financial loss and litigation risks but also safeguards organizational and employee interests.

Maintain Comprehensive HIPAA Compliance

Protecting employees' personal health information is critical. Adhering to HIPAA standards involves implementing privacy policies, securing Protected Health Information (PHI) with measures like encryption, and regularly updating practices to counter new threats.

HIPAA compliance should include regular employee training and documentation of security protocols. This demonstrates organizational commitment to safeguarding sensitive information and ensures readiness for audits or investigations.

Monitor ACA Requirements and Reporting

Applicable Large Employers (ALEs) must comply with the Affordable Care Act (ACA) by tracking employee eligibility and health coverage offerings. This includes managing accurate records for ACA notices, like the Employee Notice of Exchange, and ensuring ongoing eligibility checks for full-time employees.

Precise 1095-C reporting not only helps avoid penalties but also provides robust evidence of compliance during audits. Proactive monitoring of ACA requirements saves costs and protects the organization from legal challenges.

FAQs

How often should employers revise their benefits compliance program?

Annual reviews are critical, with quarterly updates for areas like ACA reporting or HIPAA compliance. Major legal or policy changes may require immediate adjustments.

What records should employers retain for benefits compliance?

Employers should securely store COBRA notifications, HIPAA privacy documentation, ACA-related reports, and plan-related materials. This ensures transparency and supports legal defense if needed.

How can employers effectively communicate benefits to employees?

Providing clear, accessible information in writing, electronically, and during scheduled meetings is key. KBI Benefits makes employee benefits communication simple by providing user-friendly online benefit portals for employees to use.

How does employee feedback fit into the compliance strategy?

Employee input identifies potential compliance gaps and enhances benefit communication. Surveys and open complaint channels ensure the organization stays aligned with employee needs.

Conclusion

A well-structured employee benefits compliance strategy not only minimizes legal risks but also fosters trust and satisfaction among employees. By proactively managing fiduciary responsibilities, distributing essential notices, and maintaining compliance with HIPAA and ACA regulations, organizations can enhance workplace morale and create a culture of transparency and respect.

Compliance is an ongoing process. Investing in regular audits, updates, and clear communication pays dividends in reducing litigation risks, improving employee relations, and promoting organizational success. Speak with a KBI Benefits compliance expert today to learn more .

Cost-Effective Benefit Packages for Small Businesses: How to Improve Your Benefit Plan Design

Wed, 20 Nov 2024 19:54:48 GMT

Small businesses face unique challenges in competing with larger companies that often offer more extensive employee benefits. To stay competitive, it’s crucial to design a benefits package that strikes a balance between attracting and retaining employees while preparing for future growth. A well-planned benefits strategy helps businesses manage costs effectively and create sustainable, practical solutions. Let’s explore ways to design an affordable and effective benefits plan for your organization.

Essential Health and Wellness Employee Benefits

The foundation of any benefits plan should include essential health and wellness offerings, such as health insurance, dental, and vision coverage. For small businesses looking to control costs without compromising quality, consider implementing:

Health Savings Accounts (HSAs) or Health Reimbursement Arrangements (HRAs) for tax-advantaged savings.
Cost-effective programs like virtual health services or online therapy, which provide high-quality care at lower costs.
Strategic cost-management initiatives, such as reducing long-term employee insurance expenses through preventive care programs.

Prioritizing affordable, high-impact benefits ensures your employees are well cared for while maintaining manageable costs for your business.

Cost Management Through Digital Solutions

Technology is a game-changer in benefits administration, enabling businesses to reduce costs and improve efficiency. By adopting digital tools:

Automate processes like enrollment and claims management to save time and reduce administrative expenses.
Use data analytics to make informed decisions and identify areas for cost-saving adjustments.
Negotiate better provider rates with insights gained from tracking benefit usage.

Digital solutions not only simplify benefit management but also enhance employee satisfaction with streamlined processes.

Employee Communication and Engagement

Effective communication is essential to maximize the value of your benefits package. To ensure employees fully understand and utilize their benefits:

Use a multichannel communication strategy (email, newsletters, and other digital platforms).
Conduct surveys and gather feedback to identify which benefits employees value most, ensuring resources are allocated effectively.
Provide clear explanations of benefits during open enrollment to enhance the employee experience.

Better communication fosters engagement and helps employees appreciate the full value of their benefits.

Strategic Benefits Implementation

Roll out benefits strategically to align with your budget and employee needs. Begin with essential benefits, then expand offerings as your business grows. Consider:

Offering customizable benefit options, allowing employees to choose the level of coverage that best suits their needs.
Partnering with qualified benefit consultants to negotiate better rates and implement cost-effective solutions.
Regularly evaluating and updating benefit plans to stay competitive and meet changing workforce demands.

A phased approach ensures scalability and maintains cost-effectiveness as your organization evolves.

Measuring ROI and Adjusting Plans

Regular evaluation of your benefits package is critical for maintaining efficiency and cost-effectiveness. Monitor:

Employee satisfaction and retention rates , which reflect the program’s success.
Healthcare costs and benefit usage trends , using data analytics to identify areas for improvement.
Industry benchmarks to ensure your benefits remain competitive while controlling expenses.

FAQs

How can small businesses offer competitive benefits on a limited budget?
Small businesses can start with group health plans, leverage digital tools, negotiate with providers, and offer basic benefits initially. Gradually expand offerings as resources grow.

What are the most essential benefits to offer?
Core benefits include health, dental, and vision insurance, as well as retirement plans and paid leave. Supplemental benefits, like life insurance or wellness programs, can be added based on budget and employee needs.

What role do digital solutions play in benefits management?
Digital tools simplify benefits administration, reduce costs, improve communication, and provide actionable insights. They enhance both employee experience and management efficiency.

Conclusion

Designing affordable and effective benefits packages for small businesses is an ongoing process that requires careful planning, consistent evaluation, and strategic adjustments. Start with essential offerings, incorporate digital tools, prioritize communication, and measure outcomes to refine your strategy. By focusing on your employees’ needs and aligning them with your business goals, you can create a competitive, sustainable benefits plan that supports both growth and employee satisfaction.

Improving Employee Retention Without Raising Costs

Mon, 11 Nov 2024 21:01:26 GMT

Employees seek a sense of fulfillment, but achieving this doesn’t have to come at a high cost. By creating a supportive work culture, recognizing achievements, and offering growth opportunities, companies can significantly improve employee retention. These methods foster a sense of value and importance, encouraging loyalty and boosting productivity. This guide explores practical, low-cost strategies to help keep your team happy and engaged. Let’s dive into these essential retention practices, one by one.

1. Implement Regular Feedback and Open Communication Channels

Consistent feedback and open communication can enhance relationships between managers and employees. Encourage managers to hold regular one-on-one meetings to discuss performance and gather feedback. Provide opportunities for employees to share ideas and concerns without hesitation, using tools like surveys, suggestion boxes, or anonymous polls. When employees feel they have a voice within the organization, their job satisfaction and commitment increase.

2. Recognize and Reward Employee Achievements

Recognition and rewards strengthen motivation and dedication. Show appreciation for employees’ hard work in various ways, from formal awards to informal thank-you notes. Acknowledge project milestones, celebrate work anniversaries, and consider programs like “Employee of the Month.” Even small gestures of appreciation reinforce the value of each person’s contribution, building a sense of pride and belonging.

3. Provide Opportunities for Professional Growth and Development

Offering professional development opportunities is an effective way to retain employees. Allow team members to attend job-related workshops, seminars, and training. Share links to online courses or establish mentorship programs where experienced employees guide newer ones. Supporting your employees’ growth makes them more likely to stay with the organization rather than seeking opportunities elsewhere.

4. Encourage Work-Life Balance with Flexible Scheduling Options

Promoting work-life balance through flexible scheduling can boost employee retention. Where possible, let employees set their own start and end times or work remotely a few days a week. Encourage regular breaks throughout the day and remind them to take full advantage of vacation days. Creating a workplace that respects personal time reduces burnout and enhances job satisfaction, leading to happier, more productive employees.

5. Establish Clear Career Paths with Promotion Opportunities

A well-defined career path boosts motivation and retention. Outline the steps needed to advance within the organization, including qualifications and roles available at each career stage. Collaborate with employees to create development plans with clear timelines. Promoting from within when possible shows employees that loyalty and hard work are valued, making them see the organization as a long-term home rather than just a workplace.

6. Offer Competitive and Meaningful Benefits Packages

Offering meaningful benefits is essential for attracting and retaining talent. Standard benefits like health insurance, retirement plans, and paid leave are fundamental. Consider additional options such as wellness programs, childcare support, and educational assistance. A comprehensive benefits package demonstrates a company’s commitment to employee welfare, fostering loyalty and job satisfaction.

FAQs

How is success in employee retention measured?
Employee retention can be assessed through annual turnover rates, satisfaction scores, and overall engagement levels across teams.

What role does leadership play in retention?
Leaders shape workplace culture, foster collaboration, recognize contributions, and support growth, which are crucial for retaining skilled talent.

Are there low-cost ways to improve employee retention?
Yes, cost-effective strategies like promoting inclusivity, encouraging learning, and offering remote work can increase employee satisfaction and commitment.

Conclusion

This guide outlines ways to enhance employee retention by focusing on communication, recognition, growth, balance, career progression, and benefits. Companies can retain talent and foster a constructive workplace by implementing these practices, ultimately cultivating satisfaction, commitment, and growth for both employees and the organization.

Individual Coverage Health Reimbursement Arrangements (HRAs) for Small Businesses

Wed, 30 Oct 2024 16:55:45 GMT

Employers can support their employees in obtaining health insurance through Individual Coverage Health Reimbursement Arrangements (ICHRAs). This approach allows employees to choose a plan that best suits their personal and family needs, making it a customized and practical way to promote employee health. Let’s explore the details of this arrangement.

Differences Between ICHRAs and Traditional Health Plans for Small Businesses

One key difference between ICHRAs and traditional health plans is that ICHRAs are not bundled plans selected by the employer. Traditional plans are typically chosen by employers and offered as a standardized package to all employees.

With an ICHRA, however, employees receive a set dollar amount to purchase their own health insurance, granting them more flexibility. This allows employees to select a plan that covers specific doctors, treatments, or medications that matter to them and their families.

Benefits of Choosing ICHRAs for Small Businesses

One of the distinct advantages of ICHRAs for small businesses is that they rely on the individual insurance market, which has shown a steady annual cost increase of only 5-6%, about half that of the group insurance market. This cost stability can be a crucial benefit for employers, particularly small businesses, seeking predictable budgeting for employee benefits.

Additionally, the individual market provides eligible employees with more healthcare choices compared to traditional group plans. Rather than being limited to a one-size-fits-all employer-selected plan, employees can choose health insurance that best suits their unique needs, allowing for customized coverage of preferred doctors, specific treatments, or medications. This increased autonomy not only enhances satisfaction but also ensures that employees are enrolled in plans that align more closely with their personal and family health priorities.

Tax Implications for Employees and Employers

ICHRAs offer tax benefits for businesses. Employers can deduct ICHRA contributions as a business expense, reducing their taxable income. For employees, these contributions are generally non-taxable, so they don’t count as income or incur payroll taxes.

However, employees must select an ICHRA-eligible health plan to retain the tax-advantaged status. This tax efficiency makes ICHRAs a cost-effective healthcare option for both employers and employees.

Eligibility Criteria for ICHRAs

Eligibility for Individual Coverage HRAs depends on several factors. To qualify, employees must have a qualified health plan. Employers may set additional eligibility conditions, often based on employment type, such as full-time, part-time, or seasonal status. Employers and employees can coordinate efforts to determine if employees meet specific eligibility requirements and to ensure they can participate in the ICHRA program.

Conclusion

This guide highlights the advantages of ICHRAs for employees and explains how the arrangement works. By offering a customized health coverage solution, ICHRAs provide employees with greater control over their healthcare choices, allowing for more tailored plans instead of a one-size-fits-all approach. Along with tax benefits, HRAs empower individuals to address their unique medical needs. As the healthcare landscape evolves, understanding these options enables employees to make informed decisions for themselves and their families.

To determine if an ICHRA would be beneficial for your small business, speak with a KBI Benefits agent today .

How Designing a Time Off Program Improves Your Employee Benefits Offerings

Wed, 16 Oct 2024 13:42:26 GMT

Effective management plays a critical role in ensuring smooth workplace operations. One key component of this is creating a time off program that meets employees' needs while aligning with the company’s goals. Employee benefits consultants can be invaluable in this process, helping you integrate additional benefits into your plan and making your company more attractive to potential hires. Studies show that managing time off effectively, ensuring employees take sufficient breaks, improves retention rates and job satisfaction . Let’s explore how enhancing your benefits offerings can positively impact your workforce.

Understanding the Importance of Employee Time Off Programs

Time off programs are essential for combating burnout, improving productivity, and boosting morale. Giving employees the opportunity to rest helps reduce stress levels and recharge their energy. A well-designed time off program also signals that the organization cares about its employees' well-being, which fosters loyalty and strengthens company culture. Expanding these programs is not only beneficial for employees but also reinforces a positive and supportive work environment.

Key Elements of a Successful Time Off Program

A successful time off program is built on clear policies, flexibility, and accessibility. Clear policies outline what employees are entitled to, while flexibility accommodates different personal and professional needs. Additionally, the program should be easy for all employees to access without unnecessary hurdles. These core elements create a fair and efficient system that meets both business objectives and employee expectations.

Enhancing Job Satisfaction Through Thoughtful Benefits Design

A thoughtfully designed benefits system can significantly boost job satisfaction by addressing key employee pain points. Offering a variety of time-off options—such as vacation leave, sick leave, and personal days—helps employees navigate different life circumstances. This approach demonstrates that the employer values their lives beyond the workplace, increasing employee loyalty and their desire to stay with the organization long term.

Steps to Implement a Custom Time Off Program

Implementing a custom time off program involves several key steps:

Evaluate employee needs : Understand current employee preferences and identify areas for improvement.
Establish clear policies : Develop policies that are fair, attract attention, and meet ethical standards.
Create a feedback mechanism : Ensure the program can adapt and evolve based on feedback for long-term effectiveness.

FAQs

What is the purpose of a time off program?

A time off program allows employees to take necessary breaks, preventing burnout and boosting productivity in the long run.

How can an employee benefits consultant help my business?

Employee benefits consultants assist in developing suitable and compliant benefits plans that address both employees' needs and legal requirements.

What are fringe employee benefits?

Fringe benefits go beyond standard offerings and vary by organization. Examples include gym memberships or wellness allowances, all designed to support employees' health and well-being.

Conclusion

By implementing clear policies, seeking professional advice, and offering a range of benefits, you can create a positive workplace culture that promotes work-life balance, enhances morale, and improves employee retention.

For more personalized information on how to implement an effective time off program into your employee benefits, reach out to a KBI Benefits agent today . Our collective decades of employee benefits experience can save your company up to 40% on your employee benefits costs without compromising on the quality of your benefits.

Effective Employee Benefits Communication Strategies

Mon, 14 Oct 2024 13:36:58 GMT

When it comes to employee benefits, communication is key. Many companies invest significant resources in crafting competitive benefits packages, yet these efforts can fall short if employees don’t fully understand or appreciate the value of what’s offered. A well-structured employee benefits communication strategy ensures that employees see the true worth of their benefits, leading to better engagement, satisfaction, and ultimately, a higher return on investment (ROI) for the company. KBI Benefits provides the tools to bridge this gap, helping companies deliver clear, impactful communication to their teams.

Why Employee Benefits Communication Matters

The value of employee benefits goes beyond just health insurance or retirement plans—it’s about fostering a sense of security, well-being, and appreciation among employees. However, without effective communication, employees often miss out on understanding the full scope of their benefits. This can result in underutilization and undervaluing of the benefits provided, which diminishes the perceived value of the company's investment.

KBI Benefits understands this challenge and offers a range of solutions tailored to simplify and enhance the communication of benefits. From digitized platforms to personalized messaging, their approach ensures employees are informed and empowered to make the best use of their benefits.

Employee Benefits Communication Tools for Success

KBI Benefits offers a suite of services designed to streamline employee benefits communication and help companies maximize their ROI:

1. Online HR Portals: A Centralized Resource

An online HR portal serves as the cornerstone of KBI’s approach. This digital platform consolidates all benefits-related information in one place, making it easy for employees to access and understand their options. By digitizing the entire benefits enrollment process, the online HR portal saves time for HR teams and allows employees to review and select benefits at their convenience.

2. Benefits Decision Tools: Empowering Employee Choices

One of the critical aspects of effective employee benefits communication is providing tools that help employees make informed decisions. KBI Benefits offers benefits decision tools that present complex benefits options in a simplified way. These tools guide employees through various choices, helping them understand which benefits align best with their personal needs and circumstances. This ensures that employees appreciate the value of each benefit and make educated selections.

3. Digital Postcards and Educational Resources: Clear and Engaging Communication

To keep employees engaged and informed, KBI uses digital postcards and an educational video library. These tools provide concise, easy-to-digest information about the benefits plan, ensuring that all employees, regardless of their familiarity with the details, receive the information they need. These resources are particularly valuable for introducing new benefits, explaining changes, or highlighting underused programs.

4. Total Compensation Statements: Transparency and Value

KBI Benefits also provides total compensation statements to show employees the full value of their benefits package. These statements go beyond salary, detailing the complete scope of their benefits, from health insurance contributions to retirement matches. This transparency helps employees see the bigger picture of their compensation, increasing satisfaction and loyalty.

Learn More with KBI Benefits

Ready to enhance your employee benefits communication strategy? KBI Benefits has the solutions to help you communicate more effectively with your team and ensure that every employee understands the value of their benefits. From a cutting-edge online HR portal to personalized employee education tools, KBI offers everything you need to streamline your approach.

Reach out to a KBI Benefits representative today to set up a meeting and learn how we can help you maximize the value of your employee benefits program.

Benefit Options for Small Businesses – Experts Weigh In

Mon, 30 Sep 2024 14:20:46 GMT

When it comes to employee health benefits, some employees and clients may not want to sift through numerous options. However, ensuring that your company is actively revising its strategies and investing in employee benefits is crucial. Let's explore the approaches that can boost employee satisfaction and performance while fostering company growth in an ever-evolving market.

For personalized assistance, speak with a KBI Benefits agent today .

The Importance of Employee Benefits for Small Businesses

Offering employee benefits is particularly valuable for small businesses. Selecting and implementing the right measures is critical to achieving the company’s objectives and attracting more talent.

A comprehensive benefits package typically includes health insurance, retirement plans, and life insurance. Small businesses can determine which employee benefits may be most effective for their organization by polling their employees on the benefits they would most appreciate. By understanding the demographics of their workforce, small businesses can implement benefits that foster employee loyalty while promoting a healthy and diverse workplace.

Integrating Digital Health and Wellness Programs

Employers who incorporate digital health and wellness programs into their benefits packages will see numerous advantages. These programs often include virtual clinics, mental health support, and fitness apps, making it easier for employees to access essential resources.

By offering these programs, companies can support a healthy work-life balance, improve overall employee well-being, and, in turn, enhance productivity.

Retaining Employees Through Tailored Benefit Solutions

Retaining top talent is a challenge for small businesses. Offering benefits that meet the evolving needs of employees plays a significant role in retention. Tailored benefit solutions, such as Employee Stock Ownership Plans (ESOPs) or flexible working arrangements, help employees feel valued and appreciated.

When small businesses consider not only their employees' physical and emotional health but also their career growth, turnover rates decrease, and loyalty increases.

Cost-Effective Strategies for Offering Benefits

Small businesses don’t need to break the bank to offer meaningful benefits. By leveraging technology and negotiating effectively with service providers, they can manage costs while still delivering a strong employee value proposition. Affordable benefit offerings allow companies to remain competitive in their industry without overspending.

KBI Benefits will negotiate on your behalf with your service providers to ensure you’re getting the best possible price before signing on the dotted line. Speak with a KBI Benefits agent today to learn more.

Enhancing Productivity Through Employee Satisfaction

There’s a well-established connection between employee satisfaction and productivity . Offering comprehensive benefits, such as health insurance, wellness programs, and financial support, can help create a positive, productive workplace. When employees’ needs are met, they are more motivated to go above and beyond in reaching organizational goals.

FAQs

How can digital health and wellness programs improve employee well-being?

Digital healthcare programs offer timely access to medical services, including online consultations with doctors and mental health professionals. These services help prevent illness and contribute to a well-balanced work environment.

Why is first-dollar coverage important for small businesses to offer?

First-dollar coverage ensures that employees’ medical expenses are partially covered from the outset, without deductibles. This demonstrates that the company values its employees and is committed to meeting their basic healthcare needs.

How can small businesses offer competitive benefit packages cost-effectively?

Small businesses can offer competitive benefits by providing Group Health Plans (GHPs), incorporating digital solutions, forming strategic partnerships, and negotiating effectively with service providers.

Conclusion

This guide aims to help small businesses navigate the complex world of creating competitive and inclusive employee benefit plans. By maximizing limited resources, businesses can engage employees through personalized offerings, digital health services, and cost-effective solutions. When companies prioritize employee satisfaction, performance and workplace morale significantly improve.

KBI Benefits agents are standing by, ready to leverage our collective decades of employee benefits experience to save your business money while retaining the quality of your benefits. Reach out today to get started .

Is Your Employee Benefit Plan Outdated? How to Modernize Your Offerings

Wed, 18 Sep 2024 13:47:10 GMT

Many companies are realizing that their employee benefit plans are outdated and no longer meet the evolving needs of today’s workforce, particularly millennials. Even companies with smaller teams must stay competitive by adapting their employee benefits. To ensure your plan is effective, KBI Benefits is here to help create a strategy that motivates and retains your best employees. Let’s discuss how to modernize your employee benefits plan for a millennial workforce.

Integrating Flexible Working Hours for Work-Life Balance

Flexible working hours are increasingly important, especially for millennials. Providing options for remote work helps employees balance their professional and personal lives, which in turn boosts productivity and job satisfaction. Employees no longer have to endure stressful office environments and can work from various locations, leading to higher retention and work output. For small businesses, offering flexible schedules can attract quality talent from a much wider geography, leveling the playing field with larger companies in the competition for skilled workers.

Leveraging Technology for Wellness Programs

In today’s tech-driven world, integrating technology into employee wellness programs is vital. Younger employees, in particular, are tech-savvy and expect health and wellness apps as part of their benefits package. Apps that offer fitness tracking, psychological support, and virtual consultations with doctors can save employees time and improve their overall health. For small businesses, leveraging technology allows them to provide effective and affordable wellness programs that rival those of larger firms.

Tailoring Benefits to Millennial Preferences

When designing employee benefits for millennials, it’s important to recognize their unique preferences. Millennials now make up a significant portion of the workforce and value benefits such as travel opportunities, self-improvement classes, and work-life balance morethan traditional perks. Companies can also gain a competitive edge by offering benefits like student loan repayment, career development programs, and mental health counseling, which hit on particularly modern concerns that can help attract and retain a milennial workforce.

Utilizing Employee Feedback for Better Benefit Plans

The best way to ensure your employee benefit plan is effective is to gather feedback from your employees. They know which benefits matter most to them. Regular surveys, suggestion boxes, and open forums can help you understand their needs and preferences. For example, small businesses may find a high demand for childcare support, while larger organizations might see more interest in career advancement opportunities.

FAQs

Why should small businesses invest in employee benefit plans?

Employee benefit plans help small businesses attract and retain top talent, boost employee satisfaction, and remain competitive in the job market. Well-designed benefits can also improve productivity and overall well-being.

How can flexible working hours improve employee advocacy?

Flexible working hours allow employees to manage their personal and professional responsibilities more effectively, reducing stress and burnout. This leads to higher job satisfaction, increased loyalty, and better employee advocacy.

What role does technology play in modern wellness programs?

Technology enhances wellness programs by offering tools like fitness apps and virtual health consultations. Employees can access these resources from anywhere, making it easier to maintain their health both in and out of the office.

Conclusion

Modernizing your employee benefit plan is crucial to creating a positive, productive workplace. By integrating technology, offering benefits that cater to different age groups, and actively seeking employee feedback, companies can boost satisfaction and foster loyalty. Small businesses, in particular, can benefit greatly from professional advisory services when crafting wellness programs that attract top talent. Ultimately, a well-rounded employee benefit plan helps your company stand out as an employer of choice in a competitive labor market.

Speak with a KBI Benefits agent today for personalized assistance with building your modernized employee benefits plan.

Is Level-Funded Health Insurance Right for Your Business?

Tue, 03 Sep 2024 20:08:10 GMT

Level-funded health insurance is becoming more popular among small organizations, allowing them to maintain reasonable health and cover better benefits. This method of benefits funding allows employers to stay within their budget for healthcare costs while offering comprehensive insurance to their workers. So, is level-funded health insurance appropriate for your business? Let’s discuss the potential benefits and setbacks of this funding strategy.

Don’t hesitate to contact a KBI Benefits representative for personalized employee benefits assistance .

Understanding Level-Funded Health Insurance

Level-funded health insurance is a practical choice for small businesses when addressing healthcare costs without neglecting the health needs of the employees. With this approach, the employer pays a fixed monthly amount, which is used for claims, administration, and stop-loss. When there are lower-than-anticipated claims, the extra claim dollars are divided between the employer and the medical carrier, enabling businesses to recover some funds.

This arrangement not only assists in tightening up your small business’s budget, but it also ensures that employees have access to the benefits they’re looking for without fearing rising insurance costs. As an increasing number of smaller employers seek better health insurance coverage to attract better talent, it is important to understand how you can improve your benefits without ballooning your budget.

Cost Benefits of Level-Funded Plans for Employers

One of the significant benefits posed by the level-funded health plans is the quick reduction in operating expenses for an employer. KBI Benefits has helped small to medium-sized businesses save 15-25% on their employee benefits expenses, which makes these plans a prudent option for budget-conscious organizations.

As the employment sector gets more competitive, level-funded plans are likely to be used by more companies to maximize the company’s ROI on their employee benefits. With the right combination of quality benefits and affordable rates, businesses see lower employee turnover and more qualified applicants looking to work for them, which helps them grow more sustainably.

How Stop-Loss Insurance Supplements Your Level-Funded Health Insurance

Stop-loss insurance is a valuable asset to employers who have adopted level-funded health plans. With stop-loss insurance, the company can narrow its risk of incurring prohibitively expensive healthcare costs in the case of an employee requiring a significant amount of coverage, as all expenses incurred by the company will be covered above this limit. Based on the above, it means that businesses can know their health costs’ upper bounds while still providing competitive employee benefits.

In addition, stop-loss coverage may help restore business expenses so that utilization of large expenses wouldn’t interfere with the overall health of the company. It has also become crucial that stop-loss insurance be part of your level-funded plan, not just financially but also to promote the future health of the business as healthcare costs keep rising.

Comparing Level-Funded vs Traditional Health Insurance Funding

Unlike traditional plans, which have fluctuating premium increases every year that make it difficult for employers to manage healthcare costs effectively, level-funded plans offer a set monthly amount that makes budgeting more predictable. This is advantageous for companies who need to provide high-quality medical care while simultaneously being able to forecast the potential cost. Compared to traditional health insurance funding options, employers can stand to save up to 15-25% when using level-funding without compromising the quality of their benefits.

By understanding the unique features that level-funded health plans bring to the table, small establishments can manage their healthcare expenditures and improve employees’ satisfaction all at once. Speak with a KBI Benefits broker today and discover how your business can start saving on better employee benefits.

Should My Business Offer Benefits to Temporary Employees?

Thu, 22 Aug 2024 18:36:56 GMT

Businesses are rethinking traditional approaches to employee benefits, including whether to extend those benefits to temporary employees. While it's common practice to reserve comprehensive employee benefits packages for full-time, permanent staff, offering benefits to temporary employees can yield significant advantages, particularly when it comes to attracting talent, boosting productivity, and promoting a positive company culture.

Why Offer Benefits to Temporary Employees?

Offering benefits to temporary employees may initially seem unnecessary, especially if they're only with your company for a short period. However, there are several compelling reasons to consider extending benefits to this segment of your workforce:

Encouraging Hard Work and Loyalty: Temporary employees who receive benefits are more likely to feel valued and motivated. This can lead to increased productivity, better quality of work, and a more engaged workforce overall. When employees feel secure in their role, even on a temporary basis, they are more likely to go the extra mile, reducing productivity issues that can arise from disengagement.
Potential for Long-Term Employment: Many temporary employees can transition into permanent roles. By offering benefits early on, businesses can encourage these workers to consider long-term employment with the company. This can reduce turnover and the costs associated with hiring and training new staff. Temporary employees who become permanent are already familiar with your company culture and processes, making the transition smoother and more cost-effective.
Creating Company Ambassadors: Even if temporary employees don't stay with your company, offering benefits can leave a lasting positive impression. These employees may become brand ambassadors, spreading the word about your company’s positive work environment to other potential hires. Word-of-mouth recommendations can be incredibly valuable, especially in competitive industries where attracting talent is challenging.

Who Is Eligible for Benefits?

When deciding whether to offer benefits to temporary employees, it's important to understand the legal requirements surrounding benefits eligibility. According to the IRS, a temporary full-time employee is someone who works at least 30 hours per week or 130 hours per month and is hired for a position lasting less than 12 months. If these employees meet the 30-hour-per-week threshold, they are typically eligible for the same benefits as regular full-time employees.

However, eligibility isn’t just about hours worked. Factors like the size of your organization, whether the employee is paid or unpaid, and whether they are classified as variable-hour or seasonal workers also impact whether you're required to offer benefits. For example, under the Affordable Care Act (ACA), applicable large employers (ALEs)—those with 50 or more full-time employees—are required to offer benefits to all classes of full-time employees, including temporary ones. Failing to do so can result in significant penalties. If you don’t offer minimum essential coverage to 95% of your full-time employees, the penalty is $2,500 annually for every employee. If you meet the 95% threshold but still fail to cover certain eligible employees, the penalty increases to $3,750 per employee.

Employers with fewer than 50 full-time employees may not be subject to these federal penalties but could still face state and local regulations that require offering benefits to temporary employees. It's essential to remain in compliance with all applicable laws, which can vary based on location and employee classification. Speak with one of KBI’s compliance experts today for personalized assistance .

Navigating the Complexities of Employee Classification

The process of determining benefits eligibility is complex, particularly when dealing with temporary, variable-hour, and seasonal employees. The IRS generally prevents exemptions for penalties unless specific criteria are met, which means employers must be diligent in tracking hours and understanding the various classifications of their workforce.

One common approach for businesses is to use a look-back measurement period—such as six or 12 months—to calculate the average weekly hours worked by temporary employees. This allows employers to assign a status to these employees based on actual work patterns, rather than projected hours. Once a status is assigned, it can be locked in for a subsequent stability period, during which the employee's benefits eligibility remains unchanged, even if their hours fluctuate.

Given these complexities, many business leaders choose to work with benefits brokers, legal counsel, and benefits administrators. These experts can help navigate the intricacies of employee classification and ensure compliance with federal, state, and local regulations. By partnering with professionals, businesses can avoid costly penalties and ensure that all employees, including temporary ones, are categorized correctly for benefits eligibility.

Benefits Brokers Can Help Define Employee Categories and Eligibility

Determining which temporary employees should receive benefits requires careful consideration of legal requirements and your company’s goals. A well-structured employee benefits package, even for temporary staff, can improve productivity, foster loyalty, and create positive word-of-mouth about your organization. But categorizing employees can be a complex process, particularly when dealing with regulations that vary by jurisdiction and employee classification.

Working with an experienced benefits broker can simplify this process. They can help ensure that your company remains in compliance with all applicable laws while crafting benefits packages that meet the needs of both your temporary and permanent employees. If you’re unsure about how to proceed or need assistance in defining your employee categories and benefits eligibility, contacting a broker can be the first step toward ensuring your business is on the right track. Speak with a KBI Benefits agent today to get started.

The Top Benefits of Paid Parental Leave for Employers

Wed, 14 Aug 2024 14:51:52 GMT

Paid parental leave has emerged as a highly valued employee benefit, and many employees prioritize this benefit when looking for new jobs. Let’s explore the advantages of paid parental leave for both employers and employees.

Enhancing Employee Retention through Paid Parental Leave

Not only is paid parental leave a valuable bonus for new parents, but it’s also a strategic tool for businesses focused on minimizing turnover and its associated costs.

Businesses can avoid high turnover by providing parents with the parental leave necessary to accommodate the demands of their new family. The cost savings from reduced turnover are considerable, given that replacing an employee can average 21% of their annual salary. Moreover, a supportive leave policy fosters a culture of loyalty and commitment, encouraging employees to remain with the company over the long term.

The effect is not only financial but also cultural, solidifying a workforce that is engaged, motivated, and less likely to seek opportunities elsewhere. By embracing paid parental leave, businesses invest in their most valuable asset—their employees—ensuring a stable, experienced, and dedicated team.

Attracting Top Talent with Competitive Benefits

Research highlights that for a notable portion of the workforce, especially among well-educated working fathers, the availability of paid parental leave is a critical factor in job selection. This preference underscores the changing expectations of modern employees, who seek not only competitive salaries but also benefits that acknowledge and support their life outside the office.

By integrating paid parental leave into their offering, companies position themselves as forward-thinking and employee-centric. This not only elevates their appeal in the eyes of potential candidates but also sets a benchmark in the industry, compelling other organizations to follow suit. The result is a positive cycle of attracting and retaining exceptional talent who are likely to be more loyal and committed, knowing their employer values their family needs.

Improving Mental Health and Family Well-Being

The intersection of professional commitments and parenting roles presents a unique set of challenges for employees, underscoring the necessity for supportive workplace policies like paid parental leave. This benefit acts as a critical buffer, granting parents the invaluable opportunity to bond with their newborn or newly adopted children without the looming stress of imminent work duties or financial precarity. The significance of such policies extends beyond the immediate relief it offers, paving the way for profound positive effects on mental health and familial relationships.

Furthermore, the ripple effects of such policies contribute to a healthier and more engaged workforce that can return to work ready to show up for the company. This holistic approach to employee welfare underscores a company's commitment to not just the professional, but also the personal well-being of its team, fostering a culture of empathy and mutual respect within the workplace.

Speak with an Employee Benefits Consultant Today

Parental Leave is one of many potential offerings that you can use to motivate your workforce, but developing the most optimal employee benefits package for your workforce requires a deep understanding of both employee preferences and associated costs with the benefits you’re providing. Our expert brokers at KBI Benefits are ready to simplify the process for you while saving your company up to 40% on employee benefit costs.

Speak with a KBI Benefits broker today to start a conversation about your optimal employee benefits offerings.

Mastering the Art of Designing a Work Benefits Package for Your Employees

Thu, 08 Aug 2024 19:39:54 GMT

Creating a robust work benefits package is not just a nice-to-have; it's a necessity in today’s competitive job market. A well-rounded benefits package can account for up to 30% or more of an employee’s total compensation, according to a recent study from the Bureau of Labor Statistics.

Whether you’re an HR professional at a budding startup or a seasoned company, understanding how to design a compelling benefits package can make all the difference in attracting and retaining top talent. This blog post will guide you through the essential steps and considerations to create a benefits package that aligns with both your budget and your employees' needs.

Mastering the Art of Designing a Work Benefits Package for Your Employees

Before you can create a tailored benefits plan, you need to assess what benefits your employees would respond to most positively to ensure you’re getting the best ROI.

Review Employee Demographics: Understand the different needs based on the age, gender, and other demographic factors of your workforce.
Research Market Trends: Keep an eye on industry trends to see what other companies are offering.
Poll Your Current Employees : Send out a formal questionnaire asking what benefits your employees would like to have. This offers you a personalized insight into what benefits your workforce would use and appreciate the most.

Determine the Level of Benefits

Once you have a clear understanding of your employees’ needs, it’s time to determine the level of benefits you will offer.

Prioritize Benefits: Decide which benefits are must-haves and which can be scaled back or eliminated based on employee usage and cost.
Minimal vs. Comprehensive Plans: Choose between offering minimal plans for cost savings or comprehensive plans to attract and retain top talent. Finding a balance between these choices is key to the best possible ROI.
Employee Contributions: Depending on the funding option you’re utilizing, employees may contribute some amount to the cost of your benefits. This can help ease the financial burden on your budget while not reducing the quality of the benefits.

Share Your Benefits Plan with Employees

Effective benefits communication is key to ensuring your employees understand and utilize the benefits you’re offering, which greatly improves their appreciation of your investment. This also demonstrates your company’s commitment to upholding your team’s wellbeing.

In the digital age, there are many convenient means of educating your employees on the value of their employee benefits. At KBI Benefits, we provide you with an all-in-one online portal in which your employees can learn more about the scope of their benefits, receive communication about the status of their benefits, and speak with customer support when they need help. We take the work of benefits administration off your plate completely so you can focus on running your business.

Perform Periodic Evaluations

Employee needs and market conditions are constantly changing, so it’s essential to regularly evaluate the effectiveness of your benefits plan versus the cost. Thorough audits allow you to notice patterns and trends that could result in significant savings or potential pitfalls in your employee benefits plan, and it’s important to keep your information up to date to ensure you’re headed for the desired results.

These evaluations give you the opportunity to adapt to changing market trends proactively, rather than reacting to skyrocketing costs. KBI Benefits continually performs these evaluations on your behalf and provides benchmarking statistics so you’re always on top of potential market changes.

Work with Third Parties for Optimal Results

Sometimes, it’s beneficial to bring in external experts to help manage or design your benefits plan. Experienced benefits brokers take the guesswork out of designing and optimizing your plan so you can be sure that every change you make is an effective one. External brokers also have an all-encompassing view of your company and its benefits, which can help ensure that no information goes overlooked.

It’s with KBI Benefits’ strong strategic guidance that clients are able to achieve up to 40% savings yearly on their benefits. Speak with a KBI Benefits agent today to learn more .

Conclusion

Designing a work benefits package is a complex but rewarding task. By following these steps and tips, you can create a plan that meets the needs of your employees and aligns with your company's goals. Remember, a well-thought-out benefits package not only enhances employee satisfaction but also drives retention and attracts top talent.

For more personalized advice and to start designing your employee benefits package today, speak with a KBI Benefits agent . We can help you optimize your budget and ensure you’re getting the most out of your investment in employee benefits.

Basic Employee Benefits That Every Business Should Have

Tue, 30 Jul 2024 20:06:50 GMT

Employee benefits play a crucial role in attracting top talent, maintaining employee satisfaction, and reducing turnover. But what exactly should you include in your benefits package, and how affordable is it? Let's dive into the basic employee benefits that every business should have.

Basic Employee Benefits That Every Business Should Have

To be clear, we aren’t talking about legally necessary employee benefits like Social Security and worker’s comp. We’re discussing the employee benefits that are most sought after by employees according to a variety of polls. These employee benefits give you an essential edge in the hiring market to ensure that highly trained and valuable potential employees won’t pass you by. And with that, let’s get started.

Health Benefits

Health coverage is at the top of the list for a reason. It protects employees from unexpected medical expenses and ensures they receive quality care. This can range from traditional group health insurance to more flexible Health Reimbursement Arrangements (HRAs), which are cost-effective alternatives that allow businesses to reimburse employees for medical expenses, including premiums.

By offering health benefits, you're not just taking care of your employees; you're also fostering a culture of health and well-being. Employees who have access to comprehensive health benefits are likely to be more satisfied with their job and less likely to take unexpected sick days, leading to increased productivity.

Dental Insurance

Dental care can be surprisingly expensive, and many employees value dental insurance highly. This coverage helps maintain employees' dental health, reducing the likelihood of costly dental issues down the line. HRAs can also be extended to cover dental expenses, offering another layer of flexibility and cost savings.

Providing dental insurance shows your employees that you care about their overall well-being, not just their immediate health. Healthy employees are happy employees, and happy employees are productive employees.

Paid Time Off (PTO)

Paid Time Off (PTO) is a critical component of a comprehensive benefits package. It includes vacation days, sick leave, and personal days, allowing employees the flexibility to balance work and life. This flexibility is crucial for maintaining morale and preventing burnout, which can lead to high turnover rates.

Offering ample PTO demonstrates that you trust your employees to manage their time and responsibilities. It shows that you understand the importance of work-life balance and are willing to support it. This can lead to a more motivated and engaged workforce, ready to tackle their responsibilities with renewed energy.

Retirement Benefits

Retirement plans like 401(k)s or pensions are another basic employee benefit that can set your business apart. These plans provide employees with a sense of stability and security, knowing that their future is being taken care of. This is particularly important for attracting and retaining high-quality employees who are planning for the long term.

When employees feel secure about their future, they're more likely to stay with your company for the long haul. This means you'll retain highly trained and experienced staff, reducing the costs and disruptions associated with high turnover.

Mental Health and Wellness Benefits

Mental health and wellness benefits have never been more sought after. Keeping your employees healthy is not only valuable for them but also ensures they remain productive and engaged. These benefits can reimburse expenses for mental health counseling and wellness services, adding an extra layer of support for your team.

Additionally, offering discounted memberships to gyms can promote a healthier lifestyle and reduce absenteeism. Employees who take care of their physical health are often less stressed and more focused, contributing to a positive work environment.

Conclusion

Comprehensive benefits packages are key to enhancing employee satisfaction, productivity, and retention. Understanding and offering these key benefits can significantly motivate your employees and attract top talent to your business.

At KBI Benefits, we specialize in employee benefits consulting, helping you determine the optimal employee benefits strategy for your business. Our expertise can help you navigate the myriad benefit options for small businesses, ensuring you provide the best possible employee benefit services. Our clients save up to 40% on their yearly benefits costs after we've optimized their plans.

Leverage KBI Benefits' expertise today to build a benefits package that supports your employees and strengthens your business.

Insurance Broker Compensation: What You Need to Know

Tue, 16 Jul 2024 13:44:02 GMT

At KBI Benefits, we believe in transparency regarding our stake in our client relationships. We aim to build a solid foundation of trust with our clients by providing clear and honest information about our compensation structure and motivating factors as employee benefit insurance brokers.

The Role of an Insurance Broker

An insurance broker acts as an intermediary between consumers and insurance companies. Unlike insurance agents who represent insurance companies, brokers represent the interests of consumers. Our primary goal at KBI Benefits, as an insurance broker, is to help our clients find the best employee benefits policy tailored to their specific needs.

Importantly, brokers cannot bind coverage; this is a role reserved for insurance agents and insurance companies. Our job is to provide expert advice and guidance to help you find the right coverage, ensuring that you can make informed decisions about your employee benefits policies. Speak with a KBI Benefits agent today to schedule an audit of your employee benefits spending.

The Role of an Insurance Agent

In contrast to insurance brokers, insurance agents work directly for insurance companies. They have the authority to complete insurance sales and bind coverage.

While agents play a crucial role in the insurance process, their primary allegiance is to the insurance company they represent. This distinction is vital as it influences the kind of advice and service clients receive.

How Do Insurance Brokers Get Paid?

To build trust through transparency, here are the methods that our insurance brokers get paid:

Commissions

The most common way insurance brokers earn money is through commissions from selling insurance policies. These commissions are typically a percentage of the policy’s total annual premium, ranging from 2% to 8%, depending on state regulations and the specific insurance product. At KBI Benefits, we are committed to ensuring that our clients understand this compensation structure clearly right out of the gate so you know where your money is being allocated.

Consultative and Advisory Services

In addition to commissions, brokers can earn income by providing consultative and advisory services. These services might include personalized advice on choosing the right insurance plan, assistance with claims, and other related tasks. In some cases, brokers may charge transactional fees for specific services, such as initiating changes to a policy or helping to file claims.

Residual Income

Many brokers also earn residual income. This is a smaller, ongoing payment received over the life of the policy. This structure incentivizes brokers to maintain strong, long-term relationships with their clients, ensuring that they continue to provide excellent service and support.

State Regulations and Fees

State regulations govern how and when brokers can charge fees. These fees must be reasonable and agreed upon by both the client and the broker. At KBI Benefits, we adhere strictly to these regulations, ensuring that all our charges are transparent and justified.

The Bottom Line

There are many types of employee benefits insurance and numerous insurance companies to choose from, making the process of selecting the right policy quite challenging. An insurance broker like KBI Benefits takes on the responsibility of researching and guiding clients through this complex landscape.

At KBI Benefits, we are proud to be an insurance broker that puts our clients' needs first. Our transparent approach to compensation, combined with our dedication to providing expert, unbiased advice, sets us apart in the industry. Speak with a KBI Benefits agent today to discover how your business could save up to 40% on your annual employee benefits coverage.

How to Proactively Prevent Labor Lawsuits

Mon, 15 Jul 2024 17:25:17 GMT

Owning a company certainly provides the freedom to operate on your own terms, but it also carries significant responsibilities, particularly when it comes to compliance with labor laws. Non-compliance can expose your business to legal actions, which can be costly and damaging to your legacy. Understanding the vulnerabilities and implementing proactive measures is crucial to safeguard your business. Let's explore how you can proactively prevent labor lawsuits and how KBI Benefits can assist in this crucial endeavor.

Potential Risks of Labor Lawsuits

Employee lawsuits can pose several risks to a business. Firstly, there is the financial burden. If an employer is found liable, they might have to pay substantial monetary damages. Even if vindicated, the legal fees incurred in defending against the lawsuit can be hefty and slow down the momentum of your business. Secondly, such lawsuits can tarnish a company’s reputation, leading to negative publicity that can affect its goodwill and profit margins. Additionally, companies may face increased insurance premiums in the aftermath of a legal battle, further straining financial resources.

Types of Labor Lawsuits

Several types of lawsuits are commonly filed by employees. These include:

Wage and Hour Violations: Employees may claim that they were not paid the minimum wage, overtime, or for all hours worked, as mandated by law.
Discrimination : Employees are protected against workplace discrimination and harassment based on race, ethnicity, nationality, religion, sex, age, or disability.
Wrongful Termination: Employees may allege they were terminated for illegal reasons, such as discrimination or retaliation for legally protected actions.

How to Proactively Prevent Labor Lawsuits

Though easier said than done, there are a number of important steps to take to ensure your company doesn’t run into labor lawsuits:

Follow the Law: Ensuring compliance with all relevant laws and regulations is the first step in protecting against employee lawsuits. Employers must familiarize themselves with the rules regarding employee pay, documentation, and workplace safety. Consulting with a legal expert can help ensure that your company’s practices are compliant with all relevant laws and regulations. Legal professionals can offer valuable guidance on how to mitigate risks and handle potential legal issues proactively.
Maintain Documentation: Proper documentation is critical. Employers should keep detailed records, including job descriptions, employee records, performance reviews, safety audits, employee manuals, and training records. This documentation can serve as evidence of compliance and help defend against false allegations.
Conduct Investigations: When misconduct is reported, employers should conduct prompt and unbiased investigations. Documenting these investigations and any subsequent actions can demonstrate that the company takes such reports seriously and is committed to addressing issues transparently and effectively.
Classify Employees Properly: Misclassifying employees as exempt from overtime pay or as independent contractors can lead to significant legal issues. Employers must ensure that their classifications comply with legal standards to avoid wage and hour claims.
Purchase Insurance: Employment practices liability insurance can provide protection against claims related to discrimination, sexual harassment, wrongful termination, and other employment-related issues. The cost of such insurance is often outweighed by the potential expenses of defending against a lawsuit.

Prevent Labor Lawsuits with KBI Benefits

Taking proactive steps to prevent labor lawsuits is essential for any business. KBI Benefits provides the expertise needed to navigate the complex landscape of labor laws. Our on-staff ERISA attorney offers specialized knowledge in legal compliance, helping your business stay within legal bounds and reducing the risk of potential lawsuits.

By partnering with KBI Benefits, you gain access to comprehensive compliance leadership. Our experts can evaluate your current practices, recommend necessary adjustments, and assist in creating robust policies and documentation. This proactive approach not only helps in preventing legal issues but also fosters a safer and more compliant workplace environment. Speak with a KBI Benefits agent today to learn more.

Employee Health Compliance: What Businesses Need to Know

Wed, 03 Jul 2024 14:13:31 GMT

As businesses strive to create safer and healthier work environments, the importance of compliance with employee health screening and testing has grown significantly. This trend underscores the need for comprehensive employee health measures to be integrated into business operations. Let’s discuss the aspects of employee health compliance to determine how your business can improve the health and safety of its workplace.

What are Employee Health Screenings?

Employee health screenings are evaluations aimed at assessing an individual's health condition with the goal of identifying any health risks that could impact an employee’s ability to work safely and effectively. It’s important to distinguish between screenings, which are periodic evaluations, and surveillance, which involves continuous monitoring. These assessments can include physical exams, blood tests, and psychological evaluations. These screenings vary based on the role that any given employee is performing.

The Importance of Compliance

Adhering to health screening regulations can be challenging, yet the advantages for your business are significant. Health screenings improve workplace safety, decrease absenteeism, and build trust between employers and employees. Despite the complexity of adhering to health screening regulations successfully, it’s vital to understand and follow legal requirements, such as ensuring confidentiality and obtaining informed consent. That’s where KBI Benefits comes in. Our team of regulation experts keep a finger on the pulse of changing federal regulations and adjust your company’s strategy rapidly, ensuring you’re never caught aware in changing times. Speak with a KBI Benefits agent today to update your compliance strategy.

Types of Employee Health Screenings

There are various screening models and components tailored to different industries, depending on the workload that employees regularly undertake. Some common types of screenings include:

Physical Exams: These assess an employee's general health and physical fitness.
Blood Tests: These can detect a range of conditions from diabetes to high cholesterol.
Psychological Assessments: These evaluate an employee's mental health and stress levels.

Legal Guidelines and Regulations

Compliance with health screening regulations involves understanding a variety of legal aspects. These include:

Discrimination Laws: Ensuring that screenings do not unfairly target specific groups.
Confidentiality: Keeping employee health information private.
Consent: Obtaining informed consent from employees before conducting screenings.
Recordkeeping: Properly documenting and storing health screening results.

One critical regulation is the OSHA fit-for-duty exam, which determines if employees can safely perform specific physical tasks.

Implementing an Effective Health Screening Program

Implementing a health screening program involves several key steps. First, it's essential to define the goals and objectives to determine what the program aims to achieve. Then you must consult healthcare professionals to work with medical experts in developing the program. Following this, develop a comprehensive program that includes various types of screenings relevant to the job roles. Communicate the program's details and benefits clearly to employees. Finally, conduct regular evaluations to continuously assess and refine the program, addressing any issues or changes in regulations.

KBI Benefits specializes in streamlining this process so you can focus on running your business. Speak with an agent today to learn more.

Conclusion

Employee health screening and testing demonstrate a company's commitment to its employees' health. By staying updated on guidelines and best practices, businesses can create a healthy, efficient, and reliable work environment. However, the process of staying compliant can be daunting and costly.

This is where KBI Benefits steps in. KBI Benefits makes it easier and more affordable than ever to stay compliant with employee health regulations. Their comprehensive solutions not only help in adhering to the latest health guidelines but also significantly improve productivity and reduce expenditures by as much as 40% year over year. Investing in such solutions ensures that your business remains compliant while fostering a healthy and productive workplace. Reach out today to start improving your employee health compliance strategy with the experience and support of KBI Benefits.

What Do Employee Benefit Consultants Do?

Mon, 24 Jun 2024 16:26:34 GMT

Companies both small and large often face the daunting task of managing and optimizing their own employee benefits packages. This is where employee benefit consultants come in. These professionals, also known as employee benefits brokers or advisors, are pivotal in helping businesses design, implement, and manage their benefits strategies to maximize value and efficiency. Reach out today for a one-on-one audit with an employee benefit consultant from KBI Benefits.

Designing Customized Employee Benefit Packages

One of the primary roles of an employee benefit consultant is designing customized employee benefit packages that cater to the unique needs of your business. This involves a thorough assessment of your company’s requirements and budget, also known as an audit. Consultants specialize in selecting the optimal combination of health, dental, and vision insurance, along with ancillary benefits such as financial wellness programs and mental health support. An optimal employee benefits plan should speak directly to the needs and desires of your workforce to maximize the ROI on your spend.

A top-tier consultant takes the time to understand the specific needs, values, and goals of a business. With this information, they craft a bespoke benefits strategy that aligns perfectly with your company's objectives. Once a strategy is in place, employee benefit consultants reach out to benefit carriers and vendors to make the necessary connections to make the strategy a reality, ensuring that the company receives the best possible terms and coverage.

Year-Round Support and Collaboration with HR Teams

A hallmark of a successful partnership between a company and its employee benefit consultant is continuous, year-round support. Employee benefit consultants at KBI Benefits work closely with your HR team, effectively becoming an extension of the HR department. They assist in managing benefits throughout the year, relieving HR personnel of many benefits-related tasks and streamlining administrative processes.

This collaboration is crucial for maintaining the smooth operation of benefits programs. By proactively handling benefits administration, consultants enable HR teams to focus on other critical areas of their roles, thereby increasing overall efficiency and productivity.

Managing Open Enrollment

Open enrollment can be a stressful period for both employers and employees. An experienced employee benefit consultant provide the necessary guidance and support to ensure employees understand their available plans and make informed decisions.

Effective communication and education are key during open enrollment. Consultants often conduct informational sessions and provide resources to help employees navigate their options. This support not only empowers employees to choose the right plans for their needs but also fosters a sense of confidence and satisfaction with the benefits offered.

Navigating Compliance Requirements

Staying compliant with the ever-changing landscape of rules and regulations can be challenging for businesses, particularly smaller ones with limited HR resources. Employee benefit consultants are well-versed in compliance matters and provide invaluable assistance in this area.

Consultants keep their clients updated on the latest compliance requirements and deadlines. They offer step-by-step guidance to ensure that businesses avoid costly compliance errors. By managing the complexities of healthcare reforms and other regulatory changes, consultants allow companies to focus on their core operations without getting bogged down in red tape.

Designing Benefits for Small Businesses

Designing benefits packages for small businesses is a specialized service that employee benefit consultants excel in. Small businesses often have unique needs and budget constraints that differ from larger corporations. Consultants help these businesses navigate the complexities of benefits management by offering tailored solutions that provide maximum value within their budget.

The Value of Employee Benefit Consultants

Employee benefit consultants are more than just intermediaries between companies and benefit providers. They are strategic partners who help businesses design tailored benefits packages, ensure compliance, and provide continuous support to both HR teams and employees. By taking on these critical tasks, consultants enable businesses to offer competitive benefits packages that attract and retain top talent.

At KBI Benefits, our team of employee benefit consultants brings decades of cumulative experience to the table. We have a proven track record of saving companies like yours up to 40% year over year on their benefits spend. Our experts are dedicated to creating customized, cost-effective benefits strategies that meet your unique needs. Speak with a KBI employee benefit consultant today to get started and experience the difference that professional, personalized support can make for your business.

Unique Employee Benefit Packages to Help Your Business Stand Out

Tue, 18 Jun 2024 15:56:44 GMT

In today's competitive job market, offering traditional employee benefit packages like medical insurance and retirement plans is no longer enough to attract and retain top talent. Companies are increasingly turning to unique, non-traditional employee benefit packages to differentiate themselves and foster a positive work environment. These innovative perks not only make your company more attractive to potential employees but also contribute to higher employee satisfaction, productivity, and retention. Here are some creative employee benefit packages to help your business stand out.

1. Mental Health Support

Mental health issues affect a significant portion of the workforce. Providing access to mental health resources, such as reduced-cost counseling sessions, online therapy, and confidential consultations, demonstrates a commitment to your employees' overall well-being. Supporting mental health can lead to a happier, healthier, and more productive workforce.

2. Personalized Appreciation Notes

Recognition is a powerful motivator. Regularly sending personalized appreciation notes from senior management can boost morale and make employees feel valued. This simple, cost-effective gesture can improve job satisfaction and foster a positive work culture.

3. Work Anniversary Celebrations

Celebrating work anniversaries acknowledges employees' contributions and loyalty. Whether it's a lunch, a coffee date, or a small celebration, recognizing these milestones can boost morale and create a sense of belonging and appreciation.

4. Free Food and Drinks

Providing free snacks, beverages, or meals can be a great way to show appreciation and keep employees energized throughout the day. Even if you don't have the budget for extensive offerings, small gestures like occasional lunches or coffee runs can go a long way.

5. Parental and Family Leave Policies

Extended parental leave policies acknowledge the importance of family bonding in the early stages of a child's life. Allowing parents to take additional time off without repercussions supports their need to balance family and work responsibilities, fostering loyalty and satisfaction among your employees.

6. Childcare Discounts or On-Site Childcare Facilities

Finding reliable and affordable childcare is a significant concern for working parents. By offering childcare discounts or on-site childcare facilities, you alleviate this burden and help parents feel more at ease while at work. This benefit can significantly improve productivity and reduce absenteeism.

7. Pet-Friendly Workplace

Pets are beloved members of many households, and employees often feel guilty about leaving them at home. A pet-friendly workplace, with designated areas for pets and pet-friendly policies, can boost morale and reduce stress. Employees who can bring their pets to work are often happier and more engaged.

8. Kid’s College Assistance

With the rising costs of college education, providing financial assistance for employees' children's education can be a game-changer. Whether through 529 plans, scholarships, or other forms of support, this benefit demonstrates a long-term investment in your employees' families and can significantly enhance employee retention.

9. Surprise Days Off

Rewarding employees with surprise days off for achieving major milestones or simply to show appreciation can be a delightful and motivating perk. It recognizes their hard work and provides them with valuable personal time to recharge.

Conclusion

Offering unique employee benefit packages is a strategic way to attract and retain top talent while fostering a positive and productive work environment. At KBI Benefits, we specialize in developing customized employee benefit packages that align with your company's budget and work culture. Our solutions can help you save up to 40% year-over-year while ensuring your employees feel valued and supported. Speak with a KBI Benefits agent today to get started and see how we can help your business stand out.

How Can an Employee Benefits Broker Benefit my Small Business?

Mon, 10 Jun 2024 14:52:54 GMT

Running a small business comes with its own set of unique challenges. One of the most significant hurdles is providing competitive employee benefits. Unlike large enterprises, small businesses often face higher health insurance rates per employee due to limited purchasing power. This is where an employee benefits corporation can make a substantial difference. By pooling resources, an employee benefits brokers can offer small businesses access to top-tier employee benefit plans at reduced costs, helping them compete with larger companies.

How Can an Employee Benefits Broker Benefit my Small Business?

Employee benefits, particularly health insurance, play a critical role in employee satisfaction and retention. A study revealed that over 80% of employees consider health insurance "very or extremely important" when deciding to change jobs . In the current climate, benefits such as medical, life, disability, and supplemental insurance have become even more crucial in employment decisions. Offering a robust compensation package, which includes comprehensive health benefits, is essential for attracting and retaining top talent.

Benefits of Partnering with an Employee Benefits Broker

Partnering with an employee benefits broker allows small businesses to provide their employees with a wide range of health insurance options, as they’re connected with the most prominent employee benefits corporations. These group health insurance options include nationwide medical coverage, various health plan options (HMO, EPO, PPO, POS, and HDHPs), comprehensive dental and vision plans, and global travel insurance. Small businesses can offer the best employee benefits, rivaling those of larger corporations, when partnering with the right employee benefits broker.

Disability, Life, and Supplemental Insurance

Employee benefits insurance through an employee benefits broker also includes life insurance, disability insurance, and supplemental insurance. These plans help employees prepare for unexpected life events, offering peace of mind and financial security. Options typically include basic and supplemental life insurance, short-term and long-term disability insurance, and accident, critical illness, and hospital insurance.

Additional Employee Perks and Discounts

Beyond standard health benefits, employee benefits brokers enable small businesses to offer a variety of additional perks. These can include Flexible Spending Accounts (FSA), legal plans, home and auto programs, financial wellness programs, identity theft protection, and pet wellness insurance. Commuter benefits and entertainment perks further enhance the compensation package, making small businesses more attractive to potential hires.

Administrative Support and Compliance

One of the significant advantages of working with an employee benefits broker is the administrative support they provide. Managing employee benefits can be complex and time-consuming, but a broker handles these tasks efficiently. They offer online enrollment and compliance tracking, a 24/7 benefits hotline, expert claims assistance, and new hire benefits review and enrollment support. Brokers also provide digital platforms for self-service benefits management, making it easy for employees to view their benefits and connect with providers.

Strengthening Your Workforce

Employees are a company's most valuable asset, especially in uncertain times. Providing comprehensive workplace benefits can significantly enhance employee satisfaction and retention. According to research, over 60% of employees consider medical, dental, and other benefits to be critical factors in job satisfaction. Companies with the best benefits for employees typically see higher retention rates, which are associated with greater long-term profits.

Partnering with an employee benefits broker to tailor employee benefit plans for small business needs can help attract and retain top talent. This not only boosts employee morale but also ensures the long-term success and growth of the business. With a well-rounded compensation package, small businesses can effectively compete with larger companies for the best employees.

Conclusion

Incorporating an employee benefits corporation into your small business strategy can significantly improve your ability to offer competitive employee benefits. By leveraging the combined purchasing power of an employee benefits broker, small businesses can access top-tier health insurance and additional perks, reduce administrative burdens, and ensure compliance. Most importantly, a comprehensive compensation package that includes the best employee benefits can attract and retain top talent, driving long-term business success.

If you're ready to enhance your small business employee benefits, speak with a KBI Benefits broker today . Tailoring a plan to fit your specific needs can help you build a strong, satisfied, and loyal workforce, propelling your business toward future growth and success.

What to Know About Small Business Employee Benefits Packages

Wed, 22 May 2024 19:12:36 GMT

In today's competitive job market, employee benefits packages play a pivotal role in attracting and retaining top talent. This importance has only grown since the COVID-19 pandemic, which has shifted employee priorities, often valuing comprehensive benefits over higher salaries. For small businesses, constructing an effective benefits package is not just a perk; it's a strategic tool essential for long-term success. Let’s review the most effective aspects of a small business employee benefits package. Speak with a KBI Benefits agent today for personalized assistance.

What to Know About Small Business Employee Benefits Packages

An employee benefits package is more than just a salary. It includes various perks and advantages offered by employers, ranging from health insurance to flexible working arrangements. While larger companies might offer a broad spectrum of benefits, small businesses need to carefully select which benefits to provide, balancing employee needs with budget constraints.

Key Components of a Benefits Package

If you’re building your small business employee benefits package, here are the key features to include to stand out to potential employees:

Health Insurance: Despite company size, offering health insurance can significantly impact employee satisfaction and retention. It’s often seen as a must-have by many employees.

Retirement Plans: Including a 401(k) plan, possibly with employer matching, helps employees feel secure about their future.

Paid Time Off (PTO): Small business employee benefits such as vacation days, personal days, and sick leave are highly valued by employees, promoting a healthy work-life balance.

Dental and Vision Insurance: These are considered standard parts of a benefits package, helping cover everyday health needs that can otherwise lead to significant expenses.

Emerging Trends in Employee Benefits

Since the pandemic of 2020, there has been a notable shift in the types of benefits employees value:

Healthcare Savings Accounts (HSAs): HSAs are becoming popular as they provide a way to save tax-free money for medical expenses, making high deductible health plans more attractive.

Mental Health Support: The increasing awareness and destigmatization of mental health issues have prompted more companies to include mental health services in their benefits, such as Employee Assistance Programs (EAPs) and access to counseling.

Flexible and Remote Work Arrangements: The pandemic accelerated the adoption of flexible work schedules and remote work capabilities, which are now often expected by employees. Not only is this beneficial for work-life balance, but it also increases the chances that employees will push through mild sickness to remain productive instead of calling off.

Legal Considerations

Small business employee benefits packages must also include legally mandated benefits, which vary depending on state and federal laws but generally include:

Worker’s Compensation: This insurance is mandatory for covering employees who get injured on the job.

Unemployment Benefits: Employers are required to participate in this program, which provides temporary financial assistance to eligible former employees.

Family Medical Leave Act (FMLA): Qualifying employees are entitled to unpaid, job-protected leave for specified family and medical reasons.

Improving Employee Financial Wellness

To stand out, some businesses might offer unique perks that align with their culture and values, such as:

On-site Childcare: This can be a significant benefit for working parents.

Pet-friendly Workplaces: Allowing pets at work can enhance the work environment and reduce stress.

Wellness Programs: Initiatives like fitness memberships, health screenings, and wellness challenges can improve overall employee health and reduce healthcare costs.

Conclusion

For small businesses, an effective employee benefits package is not just about the traditional perks. It’s about understanding the evolving needs of the workforce and responding in a way that supports the health and well-being of employees while aligning with the company’s capabilities and culture. By carefully selecting and managing these benefits, small businesses can compete effectively for top talent, even in a challenging market.

If you’re ready to optimize your small business employee benefits package and save up to 40% on total cost, speak with a KBI Benefits agent today for assistance from a veteran employee benefits agent.

How Total Job Benefits and Total Employee Compensation Differ

Mon, 20 May 2024 14:35:04 GMT

The significance of a robust compensation and benefits package cannot be overstated in the hiring process. Highlighting the value of the benefits you offer can help employees understand their worth beyond their salary. Toward this end, understanding the distinction between total employee compensation and total job benefits is essential.

For more personalized assistance in improving your hiring practices, speak with a KBI Benefits agent today.

How Total Job Benefits and Total Employee Compensation Differ

Compensation encompasses everything employees receive as part of their income, which can directly translate to cash. This includes:

Base Pay: Annual salary or hourly wage.

Incentives: Bonuses or cash rewards for achieving goals.

Equity: Stock options or company shares.

On the other hand, Benefits are non-wage compensations provided to employees. These do not directly translate into cash as part of their income. According to the U.S. Department of Labor’s Bureau of Labor Statistics, benefits include:

Paid leave
Supplementary pay (overtime, holiday work, nonproduction bonuses)
Retirement plans (401(k), pensions)
Insurance (health, dental, vision, life, disability)
Legally required benefits (Social Security, Medicare, unemployment insurance, workers’ compensation)

What Are Total Benefits?

Benefits cover a wide range of items that enhance employees' well-being and work-life balance. These include:

Paid Time Off (PTO): Vacation, sick days, personal and bereavement leave.

Insurance: Health, dental, vision, life, and disability insurance.

Retirement Plans: 401(k) or 403(b), pension plans.

Additional Benefits: Daycare assistance, tuition reimbursement, educational benefits, career advancement opportunities, relocation expenses.

How to Determine Total Employee Compensation

Calculating total employee compensation involves several steps:

Base Pay: Determine the employee’s annual salary or hourly wage.

Bonuses and Incentives: Include any additional earnings from performance-based rewards.

Value of Time Off: Calculate the value of PTO, sick leave, and vacation days.

Insurance Benefits: Quantify the employer-paid portions of health, dental, vision, life, and disability insurance.

Miscellaneous Benefits: Include the value of on-site daycare, tuition assistance, relocation expenses, and other perks.

Emphasizing Benefits During Recruitment

When advertising job openings, emphasize the total compensation package, including benefits. Highlighting key benefits immediately after discussing base pay can attract candidates who value comprehensive compensation. During the new hire stage, provide detailed benefits information and support through Human Resources to help new employees understand and appreciate their benefits.

Conclusion

Understanding and effectively communicating the value of total job benefits and total employee compensation is vital for attracting and retaining talent. By breaking down the components of compensation and benefits, employers can showcase the true worth of their offers. For personalized assistance in creating and communicating a compelling compensation package, speak with a KBI Benefits agent today .

How to Change Employee Benefit Brokers

Mon, 13 May 2024 14:15:42 GMT

As rates continue to climb, many companies find themselves questioning whether it is the right time to switch their insurance and employee benefits broker. It's a significant decision, especially given that most firms are hesitant due to the anticipated complications. However, the process of finding and transitioning to a more adept broker is often simpler and less disruptive than many anticipate. This might be the ideal opportunity to seek a new partnership, especially with the rising costs of insurance and employee benefits. Speak with KBI Benefits today to allow our experts to handle the transition for you while saving your company as much as 40% on your benefits.

Reasons to Consider a Broker Change

The decision to change brokers typically stems from a loss of confidence in the broker. This could be due to strategic oversights on the broker’s end, such as failing to accurately predict market trends, a weak relationship with insurers, or an inability to procure the best coverage at competitive prices. Moreover, subpar service can leave clients feeling neglected and wondering what they’re paying their broker for.

In other cases, a company might simply outgrow its current broker. As the business expands, it may require a broker with more advanced technical skills or better capabilities in managing costs effectively for a growing firm.

How to Change Employee Benefit Brokers

Contrary to common belief, switching brokers mid-term usually has minimal impact on the insurance or benefits programs and does not adversely affect employees. The existing coverage continues unchanged, while the new broker starts representing the client immediately with the existing carriers.

A noteworthy consideration is the handling of ongoing claims. If the current broker is involved in resolving claims, the new broker will need to take over this responsibility.

Similarly, for employee benefits, the transition to a new broker is smooth, with the new broker taking over responsibilities, including any dispute resolutions. Minor logistical tasks such as redirecting calls to the employee claims center and communicating details during open enrollment periods are managed efficiently by the successor broker.

Benefits of Changing Brokers Mid-Term

Changing brokers mid-policy can provide several advantages. Firstly, it allows the new broker ample time to familiarize themselves with the client’s program before renewal negotiations, offering a strategic advantage. Secondly, a new broker can quickly address technical policy issues or service gaps, potentially enhancing the user experience and reflecting positively on the management.

Most importantly, there is typically no financial cost associated with changing brokers mid-term. Business insurance brokers generally begin servicing a new client without immediate payment, with compensation following at the next renewal cycle. In the realm of employee benefits, new brokers usually receive payment after insurance company fees are transferred, which occurs about two months after the change is initiated.

How to Initiate a Broker Change

Breaking up with your current broker is more straightforward than it seems, with much of the heavy lifting done by the new broker. The process starts with a Broker of Record (BOR) letter, a recognized industry standard for changing brokers. The client needs to print this letter on their company letterhead, sign it, and forward it to the new broker, who then submits it to the client’s insurance companies. There's typically a brief waiting period of five to ten days before the change takes effect, providing a short window for reconsideration.

Once the insurance companies are notified, they usually confirm the change by contacting the successor broker. While it’s considered a professional courtesy to inform the current broker in advance about the change, it isn’t mandatory. The entire transition process can generally be completed in less than a month, allowing businesses to quickly benefit from their new broker’s services.

Changing your benefit brokers need not be a daunting task. With careful planning and the right guidance, businesses can make the transition smoothly and reap significant benefits from a new brokerage partnership. Speak with a KBI Benefits agent today to initiate the process and start saving on your benefits sooner.

How to Receive UnitedAg Medical Insurance

Mon, 06 May 2024 15:13:46 GMT

Despite their essential role in keeping the population food secure, farmers often struggle to protect their own families from sickness and mounting medical bills. That’s where KBI Benefits steps in, proudly offering UnitedAg medical plans tailored to meet the unique needs of agricultural professionals. If you’re in the agriculture industry and you’re looking for affordable healthcare coverage and wellness initiatives for your employees, let's discuss how KBI Benefits, partnered with UnitedAg, is making that process easier than ever.

United Ag: Powering the Agriculture Industry’s Healthcare

At KBI Benefits, we’re thrilled to extend UnitedAg medical plans to members of the agriculture industry. Our commitment to providing exceptional benefits packages is matched only by our dedication to supporting the health and well-being of your workforce. UnitedAg is designed to provide lower medical plan rates to agribusinesses than if they purchased a plan on the open market. KBI Benefits is simplifying this process even further. Speak with a KBI Benefits agent today to sign up for a UnitedAg medical plan for your business.

Navigating the Enrollment Process

Enrolling in UnitedAg medical insurance through KBI Benefits is a straightforward process designed to streamline your experience. Our team of experts is here to guide you every step of the way, ensuring that you understand your options and can make informed decisions for your organization. Simply reach out to a KBI Benefits representative today to kickstart the enrollment process and embark on a journey toward comprehensive healthcare coverage.

Key Features and Benefits

Highlighting the advantages of UnitedAg medical plans is essential to understanding the value they bring to your agribusiness. From extensive wellness programs to cost-saving initiatives, these plans are designed to prioritize the health and happiness of your workforce. Let’s delve into some of the standout features:

Comprehensive Coverage: UnitedAg medical plans offer robust coverage options tailored to the needs of agricultural businesses. Whether it's routine check-ups or specialized treatments, you can rest assured knowing that your team has access to top-tier healthcare services.

Wellness Programs: Promoting employee well-being is at the core of UnitedAg's mission. With a range of wellness programs aimed at fostering healthy habits and lifestyles, you can empower your workforce to thrive both in and out of the workplace.

Flexibility and Support: KBI Benefits understands that every organization has unique needs. That’s why we offer unparalleled flexibility in crafting commercial medical insurance solutions that align with your specific requirements. Our team is here to provide personalized support and guidance, ensuring that you receive the coverage that best suits your organization.

Exclusive Benefits: From free generics at Costco Pharmacies to virtual primary care services, UnitedAg medical plans come packed with exclusive benefits designed to enhance the overall healthcare experience for your team. With features like mental health support, travel reimbursement programs, and built-in Cobra administration, you can rest assured that your workforce is well taken care of.

Empower Your Organization Today

In conclusion, accessing UnitedAg medical insurance through KBI Benefits is a game-changer for agricultural businesses looking to prioritize the health and well-being of their workforce. With comprehensive coverage, extensive wellness programs, and exclusive benefits, these plans empower you to provide top-tier healthcare solutions to your team. Don’t wait any longer – reach out to a KBI Benefits representative today to unlock the benefits of UnitedAg medical insurance for your organization.

How to Receive Medical Insurance for Your Agribusiness

Tue, 23 Apr 2024 18:20:51 GMT

As the agricultural sector evolves and expands, the need for comprehensive medical plans tailored to the unique demands of this industry has become more pronounced. That’s why KBI Benefits is proud to offer UnitedAg medical plans designed specifically for agribusinesses, providing a robust solution to protect your employees and your agribusiness. Let’s discuss what agriculture medical insurance is, who it’s for, and how KBI Benefits can help you get started.

What is Agriculture Medical Insurance?

Agriculture medical insurance, particularly in the context of medical plans, offers coverage that protects farm owners, operators, and their employees against the financial burdens of medical expenses. This insurance is essential for mitigating the risks associated with illnesses and injuries that can be common in a physically demanding job. Health insurance for agribusinesses not only covers medical and hospital bills but often also includes wellness programs and preventive care, which are crucial in maintaining a healthy workforce.

How to Receive Agriculture Insurance for Your Agribusiness

The scope of agriculture medical insurance, extends to many entities in the agricultural sector, including entities that empower or influence agricultural businesses. This includes:

Agriculture Production: Businesses engaged in crop and livestock production.

Agricultural Services: Companies providing support services to the agriculture sector, such as soil preparation, planting, and harvesting.

Forestry and Timber: Entities involved in the management and production of forest resources.

Commercial Fishing and Hatcheries: Businesses focused on the breeding, raising, and harvesting of fish and other aquatic species.

Agribusiness Support: Firms involved in the processing, distribution, and marketing of agricultural products, as well as those supplying equipment and inputs like seeds, chemicals, and machinery.

To qualify for UnitedAg medical plans through KBI Benefits, companies must demonstrate that they derive at least 51% of their income from production agriculture or agribusiness-related activities. Most businesses within the Standard Industrial Classification (SIC) Codes for Agriculture, Forestry, and Fishing are eligible, although there are specific criteria and exceptions that may apply. Speak with a KBI Benefits agent today to learn more.

How KBI Benefits Facilitates Agriculture Insurance

KBI Benefits, in collaboration with UnitedAg, provides specialized medical plans tailored to the needs of the agricultural industry. Our recent appointment to offer agriculture medical plans underscores our commitment to enhancing the well-being of those who work hard to feed the nation. Here's how we help:

Customized Solutions: We understand that no two agribusinesses are the same. KBI Benefits offers personalized consultations to ensure that the coverage meets the specific needs of each business, considering factors like company size, types of activities, and employee needs.

Easy Accessibility: Our team of dedicated agents is just a call away, ready to guide you through the process of selecting and setting up the right plan for your business.

Comprehensive Coverage: The UnitedAg medical plans offered by KBI Benefits cover a range of health services, from emergency care and hospitalization to preventive wellness programs, ensuring comprehensive coverage for your workforce.

Support and Advisory: Beyond just providing insurance, we serve as a partner in ensuring the health and productivity of your employees, offering ongoing support and advice regarding your agriculture medical insurance to keep your operations running smoothly.

Conclusion

The health of your employees is as critical as the health of your agribusiness. In an industry as physically demanding as agriculture, having the right medical coverage is not just beneficial; it's essential. Protect your most valuable asset—your people— by speaking with a KBI Benefits agent today . We'll help you choose the agriculture medical insurance plan that best suits your agribusiness's needs, ensuring peace of mind and fostering a healthier, more productive workforce.

How to Save Money on Small Business Employee Benefits

Thu, 11 Apr 2024 18:19:52 GMT

Self-funded health plans represent a departure from traditional fully-insured plans where employers pay a fixed premium to an insurance carrier. Instead, in a self-insured model, employers pay for out-of-pocket claims as they are incurred, often setting aside funds in a trust to cover these expenses. Let’s explore the positives and negatives of this funding model and whether your company could benefit from adopting it. For more personalized assistance with improving your employee benefits ROI, speak with a KBI Benefits agent today.

What Are Self-Insured Health Plans?

At its core, a self-insured health plan allows an employer to tailor healthcare benefits to the specific needs of its workforce, avoiding the one-size-fits-all approach of traditional insurance policies. This customization is not just about meeting employees' health needs but also about financial management. By directly funding healthcare claims, employers can improve cash flow and save on the premium taxes and margins that insurance carriers typically charge.

Furthermore, self-insured plans offer employers the opportunity to retain control over the plan's reserves, potentially earning interest income that would otherwise benefit the insurance carrier. They also allow for greater flexibility in selecting healthcare providers or networks that best match the needs of their employees, providing a potentially higher quality of care.

Why Self-Insured Health Plans?

The appeal of self-insured plans is underscored by the numbers. A report by the Employee Benefit Research Institute highlighted that a significant portion of the workforce is covered by employer-sponsored self-insured plans. This model is commonly chosen for its numerous advantages, including customizable health care plans, improved cash flow due to the absence of pre-paid premiums, exemption from state health insurance regulations, and savings on state premium taxes.

However, the suitability of self-insurance varies by employer. While large employers may comfortably absorb the financial variability of claims, smaller employers or those with less stable cash flows may find self-insuring risky. Despite this, even some small businesses with as few as 25 employees have successfully adopted self-insured health plans, highlighting the model's flexibility.

Unsure if this funding model suits your company? Speak with a KBI Benefits agent today to schedule an in-depth audit.

Risk Management and Administration

One of the critical concerns with self-insuring is the potential for unpredicted or catastrophic claims. To mitigate this, many employers purchase stop-loss insurance , which covers claims exceeding a certain amount. This strategy helps manage risk while still allowing employers to enjoy the benefits of self-insuring.

Claims administration is another crucial aspect. Employers may choose to handle it in-house or outsource it to a third-party administrator (TPA). TPAs can offer valuable services in setting up and managing self-insured plans, including coordinating stop-loss insurance and provider networks.

Compliance and Employee Contributions

Self-insured plans are subject to a range of federal laws, including ERISA, HIPAA, and COBRA. These regulations ensure that plans provide fair and consistent benefits and protect employees' rights. Employee contributions towards their coverage continue to be processed through payroll deductions, maintaining a familiar structure for funding their benefits.

The Conclusion: Finding the Right Balance

While self-insured health plans offer numerous advantages, they are not suitable for every business. The decision to self-insure should be based on a comprehensive analysis of an employer's financial stability, risk tolerance, and the specific healthcare needs of its workforce. For those considering this path, working with a knowledgeable partner can make all the difference.

This is where KBI Benefits comes in. Specializing in developing creative financing models, KBI Benefits can enhance your employee benefits ROI by as much as 40%. By partnering with KBI Benefits, employers can discover the optimal funding structure for their benefits plan, tailored to their unique needs and circumstances. Whether you're looking to transition to a self-insured model or optimize an existing plan, speaking with a KBI Benefits agent today could be the first step towards a more efficient and effective benefits strategy.

Self-Insured Health Plans Weighing the Pros and Cons

Tue, 09 Apr 2024 10:51:17 GMT

What Are Self-Insured Health Plans?

Why Self-Insured Health Plans?

Unsure if this funding model suits your company? Speak with a KBI Benefits agent today to schedule an in-depth audit.

Risk Management and Administration

Compliance and Employee Contributions

The Conclusion: Finding the Right Balance

The Ultimate Guide to Benefit Plan Administration for Small Businesses

Tue, 02 Apr 2024 16:47:57 GMT

Employee benefit plan administration is not just an essential HR task, but an essential step in hiring and retaining high quality employees for the best possible ROI. Small business owners understand better than most that a highly optimized value proposition for hiring new employees makes the difference between profitability and unprofitability. This is where the expertise of benefit consulting becomes invaluable, guiding you through the complexities of benefit plan administration and ensuring your business is positioned as an employer of choice. For personalized assistance with an expert, speak with a KBI agent today .

Understanding Employee Benefits Administration

At its core, employee benefits administration is about crafting and managing the suite of benefits your company offers to its employees. This critical HR function spans evaluating and communicating employee benefits, facilitating benefits enrollment services, and ensuring compliance with relevant legislation, such as ERISA regulations. When done right, your employee benefits administration system fosters employee advocacy, underlining your company’s commitment to your team’s well-being and professional growth.

Choosing the Right Benefits Administration System

Today's market offers a range of HR benefits platforms, from full-service benefits administration software to specialized online HR portals that streamline enrollment and management of benefits. These systems are pivotal in communicating employee benefits effectively, ensuring every team member understands and appreciates the full value of what's available to them.

For small businesses, the assistance of employee benefit brokers like KBI Benefits can be a game-changer. KBI Benefits offers employee benefits consulting services that can tailor a benefits package to your unique business needs, ensuring you’re competitive yet compliant with all HR compliance requirements.

The Pillars of Effective Benefits Administration

Strategic Decision-Making: The journey begins with deciding which benefits to offer. This involves a deep dive into employee education about the types of benefits that matter most to your team, from health insurance to wellness programs that support their overall well-being. You can learn more about popular employee benefits offerings in this blog .

Ensuring Compliance: Navigating the legal landscape, including ERISA compliance, is a task where an ERISA attorney may be invaluable. Their expertise ensures your benefits plan not only meets legal standards but also supports your business goals without unintended liabilities. KBI Benefits stays the forefront of compliance laws so you can focus on running your business. To speak with an ERISA compliance professional, reach out to KBI Benefits today.

Employee Engagement: Communicating employee benefits effectively is crucial . An online HR portal can be an excellent tool for this, providing a one-stop-shop for employees to explore their benefits, enroll in new programs, and seek employee claim assistance when needed.

Continuous Improvement: Regular HR reporting and feedback from your team will highlight areas for enhancement, whether it's adding new benefits, adjusting existing ones, or improving the way benefits are communicated.

How to Get Started with Your Benefit Plan Administration

Navigating the intricacies of employee benefit services can be daunting, especially for small businesses without large HR departments. This is where KBI Benefits shines. Our approach to employee benefits consulting services focuses on optimizing your benefits expenditure while maintaining or enhancing the quality of your offerings. By utilizing proprietary funding models and detailed cost reporting, KBI Benefits is uniquely positioned to reduce your benefits costs by as much as 40%. Speak with a KBI Benefits agent today to start strategizing.

Optimized Employee Benefits Strategies to Improve ROI

Mon, 25 Mar 2024 15:00:30 GMT

A well-structured employee benefits package is not just a tool for recruitment and retention but a strategic asset that can significantly impact a company's return on investment (ROI). An optimized employee benefits strategy goes beyond the traditional offerings to include a suite of tailored, meaningful options that align with both employee needs and organizational objectives. Understanding and implementing such a strategy can lead to improved employee satisfaction, productivity, and ultimately, a healthier bottom line. For professional assistance with optimizing your employee benefits plan, schedule a chat with a KBI Benefits agent.

Optimized Employee Benefits Strategies to Improve ROI

The cornerstone of an optimized employee benefits package includes not only the basics like medical, dental, and life insurance, but also extends to more personalized options. These can range from mental health support and flexible work arrangements to financial wellness programs and beyond. Offering a broad spectrum of benefits meets diverse employee needs and positions the company as a desirable place to work, as a one-size-fits-all approach to employee benefits is often less effective.

Tailoring benefits to fit the unique demographics and preferences of your workforce can enhance employee satisfaction and engagement. For example, younger employees might value student loan repayment assistance, while older employees may prioritize retirement planning services. Conducting regular surveys and feedback sessions can help identify what benefits your employees value most.

Monitoring and Adjusting Your Benefits Offering

To ensure your benefits package continues to deliver value, it's crucial to evaluate its effectiveness regularly. This involves monitoring utilization rates, gathering employee feedback through surveys and exit interviews, and assessing the impact on recruitment and retention rates. By staying attuned to these metrics, businesses can adapt their benefits offerings to meet changing employee needs and external conditions.

Of course, this is easier said than done when you’ve got a business to run. That’s why KBI Benefits synthesizes this information on your behalf and provides actionable solutions to make your employee benefits work for you. Speak with a KBI Benefits agent today to learn more.

Balancing Costs with Value

While offering a comprehensive benefits package is important, it's equally crucial to manage costs effectively. Employers should evaluate the cost-benefit ratio of each component of their benefits package. High-cost benefits that do not significantly enhance employee satisfaction or productivity might need to be reevaluated. Conversely, investing in benefits with a high perceived value by employees can be a cost-effective way to enhance satisfaction and loyalty.

Maintaining a dialogue with your employees is an essential step in this process to ensure your investment is resonating with your employees, as an optimized employee benefits strategy can have a profound impact on company culture and performance . Benefits that support work-life balance, such as flexible scheduling and remote work options, can lead to a more engaged and productive workforce. Similarly, benefits that address financial wellness and mental health can reduce stress and improve overall well-being, contributing to a positive work environment and higher levels of employee engagement.

Leveraging Expertise for Enhanced ROI

Developing and maintaining an optimized employee benefits strategy requires a nuanced understanding of both the market and the specific needs of your workforce. Businesses seeking to enhance the ROI of their employee benefits offering can benefit from expert guidance.

KBI Benefits specializes in employee benefits can provide valuable insights into industry trends, help tailor benefits packages to meet specific needs, and offer strategies for measuring and improving the impact of benefits on employee satisfaction and company performance.

By carefully selecting, tailoring, and continuously evaluating the benefits offering, businesses can enhance employee satisfaction, attract and retain top talent, and ultimately, improve their ROI. Business owners looking to elevate their employee benefits strategy should consider partnering with experts in the field. Speaking with a KBI Benefits expert today can provide personalized, actionable suggestions on how to refine your employee benefits offering for maximum impact.

How to Save Money on Your Employee Benefits

Mon, 18 Mar 2024 14:28:39 GMT

Navigating the world of employee benefits can feel like trying to solve a puzzle, especially when you're aiming to balance providing high-quality benefits with managing costs. As business owners wrestle with the rising premiums of group health insurance, the quest for creative financing methods to reduce benefits-related expenditures has never been more critical.

However, there's a silver lining in the form of alternative funding options that can help companies, whether they have 25 or 2,500 employees, potentially slash their benefits costs. Here's how you can save money on your employee benefits, keeping both your team and budget happy.

How to Save Money on Your Employee Benefits

Gone are the days when only the largest corporations could think about stepping away from fully-funded insurance programs towards self-funded options. Thanks to the evolution of the market and the introduction of the Affordable Care Act, a myriad of alternative funding options have emerged. These alternatives provide nearly any business owner the opportunity to explore different funding arrangements based on their financial capacity, objectives, and employee demographics.

Alternative Employee Benefit Funding Options

Fully-Insured Plans : This traditional route offers the least risk to employers but comes with higher costs. You pay a premium to an insurance carrier for a specified plan, with no financial surprises but also no savings on lower-than-expected claims.

Self-Insured Plans : Self-funded employee benefits refer to a system where, instead of paying premiums to an insurance company, an employer directly assumes the financial risk of providing healthcare benefits to its employees. Under this model, the company pays for each claim as it arises, typically setting aside a pool of funds for this purpose. Companies might opt for this financing choice to gain more control over their benefits plan, enjoy potential cost savings, and increase flexibility in plan design. This approach allows businesses to tailor their benefits offerings more closely to the needs of their employees and can lead to significant savings, as they avoid the overhead and profit margins built into traditional insurance premiums.

Level Funding : Level funded employee benefits are a hybrid model that combines elements of both fully insured and self-funded insurance plans. In this approach, an employer pays a fixed monthly fee to a third-party administrator or insurance provider, which covers estimated claim costs, administrative fees, and stop-loss insurance. This setup aims to offer the cost-saving and customization benefits of self-funding, with the financial predictability and lower risk of fully insured plans.

Captive Funding: Captive funded employee benefits involve companies coming together to form their own insurance company, or "captive," to finance their risks, including employee benefits. This approach allows businesses to pool their resources to self-insure, sharing the risks and rewards of funding their health plans collectively. Companies might opt for captive funding as a strategic choice to gain greater control over insurance costs, benefit from potential savings through reduced insurance overheads and profit margins, and achieve more stable premiums over time.

Consortium Funding: Consortium funded employee benefits involve a group of companies coming together to pool their resources and share the risks associated with providing healthcare benefits to their employees. This collective approach allows smaller employers to leverage the buying power and risk-sharing advantages typically available only to larger organizations.

Reference-Based Pricing : Reference-based pricing (RBP) for employee benefits is an alternative payment model that sets spending limits on certain medical services. Instead of using traditional insurance networks, employers pay healthcare providers based on a fixed reference point—often a percentage above the Medicare reimbursement rate for the same services. This method aims to contain costs by eliminating the wide variance in pricing for healthcare services and creating price transparency.

The Benefits of Being Creative

By stepping out of the fully insured comfort zone and exploring alternative funding methods, employers can gain greater control over their benefits plans. This control enables a more tailored approach to benefits that can better meet employees' needs while managing costs effectively. Additionally, alternative funding models can provide more predictability in expenses, avoiding the month-to-month variability that can make budgeting a headache.

The Benefits of a Benefits Consultant

Saving on employee benefits through alternative funding methods can be complex and daunting, but that's where KBI Benefits comes in. Our clients have saved up to 40% on their employee benefits thanks to our decades of experience in the space and unique approach to analyzing expenditures.

Ready to explore how you can provide excellent employee benefits while keeping an eye on your bottom line? Speak with a KBI Benefits representative today.

How Does Human Resources Consulting Benefit Your Business?

Mon, 11 Mar 2024 14:31:17 GMT

From implementing new technologies to navigating complex regulatory frameworks, the realm of human resources (HR) management demands expertise and adaptability. This is where HR consulting firms step in, offering invaluable assistance to businesses seeking to optimize their HR strategies and cultivate a thriving work culture.

Let’s discuss the ways your business could benefit from human resources consultant expertise.

How Does a Human Resources Consulting Firm Benefit a Business?

HR consulting firms serve as specialized entities that offer tailored solutions to diverse HR-related needs within organizations. Unlike in-house HR departments, these firms bring external expertise and perspective, providing independent insights and innovative approaches to address specific projects or objectives.

One of the primary advantages of engaging businesses like KBI Benefits who offer HR consulting services lies in their ability to offer specialized expertise tailored to meet the unique needs of each client. Whether it's HR software implementation, strategic planning, audits, or special projects like mergers and acquisitions, these firms provide a spectrum of services designed to enhance organizational efficiency and effectiveness.

Another fundamental aspect of HR consulting is its profound impact on shaping and enhancing the work culture within organizations. By fostering an environment of trust, transparency, and empowerment, KBI Benefits plays a pivotal role in nurturing a positive and productive workplace atmosphere. Here's how:

Strategic Talent Management: The HR consultant experts at KBI Benefits collaborate with businesses to develop robust talent management strategies, encompassing recruitment, workforce planning, and employee engagement initiatives. By aligning talent acquisition with organizational goals and values, these strategies ensure the retention and development of top-tier talent, thereby bolstering workforce effectiveness.

Diversity, Equity, and Inclusion (DEI) Initiatives: In today's diverse and inclusive work environments, HR experts offer invaluable expertise in DEI initiatives. By integrating diversity and inclusion principles into recruitment, training, and performance management processes, these firms foster a culture of belonging and respect, driving innovation and creativity across the organization.

Employee Engagement and Well-being: Comprehensive HR assistance is rooted in thorough research. KBI Benefits prioritizes employee engagement and well-being through comprehensive surveys, assessments, and interventions. By proactively addressing factors influencing job satisfaction and morale, such as workload, recognition, and work-life balance, KBI Benefits enhances employee productivity and retention while mitigating burnout and turnover risks.

Change Management and Communication: During periods of organizational change or transformation, HR experts serve as catalysts for effective change management and communication. By facilitating open dialogue, providing transparent information, and offering support mechanisms, these consultants mitigate resistance to change and ensure smooth transitions, thereby fostering resilience and adaptability among employees.

Turn to KBI Benefits for Human Resources Consulting

With decades of collective experience, KBI Benefits stands out as a premier source of HR consulting committed to empowering businesses with strategic HR solutions. Leveraging a wealth of industry knowledge and a client-centric approach, KBI Benefits helps organizations streamline HR processes, navigate regulatory complexities, and cultivate inclusive work cultures conducive to growth and success. Speak with a KBI Benefits agent today to learn more about our HR consulting services.

Are Small Business Employee Benefits Worth the Investment?

Tue, 27 Feb 2024 18:25:19 GMT

In today's competitive job market, attracting and retaining top talent is crucial for small businesses aiming to thrive and grow. While salary is an important factor, offering a comprehensive employee benefits package can significantly enhance a company's ability to recruit and retain skilled employees. But are these benefits worth the investment for small businesses who need to optimize every dollar they’re spending?

The short answer: yes, if your plan is to keep expanding your business . Employee benefits not only contribute to building a relationship between the company and its employees, but they also play a pivotal role in driving overall productivity. As small businesses and startups contemplate expanding their teams, understanding the significance of employee benefits becomes imperative.

Are Small Business Employee Benefits Worth the Investment?

Attracting and Retaining Talent: In a competitive job market, offering a wide range of benefits can give small businesses a competitive edge in attracting top talent. For example, health insurance has become a standard and expected offering among Gen Z particularly. Companies that want to keep up with the competition need to ensure their benefits package offering can compete with companies in their vertical. And now, thanks to KBI Benefits’ alternative funding models , you can stretch your employee benefits budget even farther while maintaining, and in many cases improving, your benefits offering.

Improving Employee Productivity: Financial worries can significantly impact employee engagement and productivity. According to a recent survey , employees with severe financial stress can lose up to a month’s worth of workdays every year coping with these concerns. By providing financial benefits and wellness programs, employers can alleviate employee stress and achieve higher productivity levels among their employees.

This naturally results in a better relationship between the employee and the company, which boosts loyalty and reduces turnover rates. Employees are more likely to remain with a company that demonstrates employee appreciation by offering comprehensive benefits , which means that you save on costs associated with recruiting and training new hires.

Enhancing Employer Brand: All of the above benefits that employee benefits bring to your organization come together to build a positive brand narrative that’s worth its weight in gold. A robust benefits package can contribute to shaping a positive association with the brand, attracting not only potential employees but also customers who value companies that prioritize employee well-being. This positive reputation can further support business growth and success into the foreseeable future.

Choosing the Right Benefits

When considering employee benefits, small businesses should assess their budget, employee demographics, and industry standards to determine the most suitable offerings. While health insurance remains a cornerstone benefit, employers can also explore additional options such as dental care, vision coverage, life insurance, and retirement plans to meet diverse employee needs.

Moreover, offering unique benefits beyond traditional offerings can set small businesses apart and further enhance their appeal to potential employees. These may include backup care options, employee assistance programs (EAPs), pet insurance, wellness initiatives, and flexible work arrangements. If you’re ready to start investing in your business’s growth and your employees’ success, speak with a KBI Benefits agent today for a professional consultation .

Partnering with KBI Benefits

For small businesses seeking guidance in navigating the complexities of employee benefits and optimizing their offerings, KBI Benefits specializes in providing tailored solutions to businesses of all sizes. With a focus on enhancing employee productivity and job satisfaction, KBI Benefits assists small businesses in designing comprehensive benefits packages that align with their goals and budgetary constraints. Clients have seen savings of up to 40% after our employee benefits consultants optimized their offerings. Speak with a KBI Benefits agent today for a comprehensive consultation of your employee benefits plan.

How Employee Benefits Services Will Change in 2024

Mon, 19 Feb 2024 15:17:43 GMT

As organizations navigate a rapidly changing labor market, the design of employee benefit plans plays a pivotal role in achieving this goal. With healthcare costs on the rise and the workforce becoming increasingly diverse, employers are tasked with striking a delicate balance between cost-effectiveness and the delivery of valuable benefits. In response to these challenges, several key trends are expected to shape the landscape of employee benefits services in the coming year. Let’s discuss what these changes are and how businesses can best adapt to them.

Addressing Healthcare Costs

As healthcare costs continue to soar, employers are compelled to explore innovative strategies to mitigate expenses while maintaining comprehensive benefits for employees. From modifying the financing structure of health plan designs to leveraging timely and proactive processes to stay ahead of changes, successful organizations are adopting multifaceted approaches to navigate the complex healthcare landscape in 2024.

One such proactive approach that businesses are taking involves embracing preventive care services for their employees. Companies are encouraging healthy and active lifestyles for their employees to help them stay healthy more often , which is an excellent method of reducing the number of large medical bills that employees might accrue had they not taken care of their health. This benefits both the organization and the individual equally.

Personalization and Flexibility

In a workforce characterized by diverse needs and preferences, the demand for personalized and flexible benefits is on the rise. Employers will increasingly offer tailored benefits packages in 2024, including flexible spending accounts, customizable retirement plans, and expanded leave options, to accommodate the individual requirements of employees. By empowering employees to select benefits that align with their lifestyles and priorities, organizations can enhance engagement and satisfaction across the workforce.

To keep up with the rising need for customized employee benefits packages, businesses will turn to employee benefits consultants to design these plans. Employee benefits brokers operate as part of your team to provide their expertise and attention to reduce your benefits expenditures so you can focus on running your business. Speak with a KBI Benefits agent today to discover how you could reduce your employee benefits costs by as much as 40%.

Prioritizing Mental Health

Employee mental health emerges as a focal point for employers in 2024, as the ongoing effects of the pandemic and economic uncertainties contribute to heightened stress levels . Employers will invest in specialized mental health treatment, meditation resources, and virtual therapy sessions to support employee well-being and productivity. By fostering a culture of psychological safety and providing resources for coping strategies, organizations can cultivate a supportive environment where employees thrive.

Fostering Belonging

Building upon diversity, equity, and inclusion (DEI) initiatives , employers will emphasize the importance of belonging in the workplace to foster a sense of connection and community among employees. Through initiatives such as open-door policies, social bonding activities, and transparent compensation practices, organizations will strive to create an inclusive environment where every employee feels valued and respected.

This focus on inclusivity is how businesses are responding to an ever-diversifying workforce. People from all walks of life are coming together to support an organization’s success, and businesses that provide initiatives such as these want to assist in bridging the gaps between these different worldviews.

Speak with an Employee Benefits Agent Today

In conclusion, the landscape of employee benefits services in 2024 is characterized by a focus on cost-effective solutions, personalized offerings, and holistic support for employee well-being. By embracing these key trends and partnering with benefits consultants to tailor benefits packages to the evolving needs of the workforce, organizations can enhance their competitiveness and appeal to top talent in a dynamic labor market.

Discover how well your organization is adapting to these changes in employee benefits by scheduling a call with a KBI Benefits agent today . Our expert agents will review the current structure of your employee benefits plan and provide actionable changes to improve your employee benefits ROI and overall employee satisfaction for the rest of 2024 and beyond.

The difference Between PPO and HMO Insurance Plans - What You Need to Know

Mon, 12 Feb 2024 18:58:53 GMT

Navigating the intricate landscape of health insurance plans involves understanding key concepts and weighing various factors to make an informed decision. Among the array of options available, Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs) stand out as prominent choices. Let's delve into the nuances of these plans to determine which works best for you and your family.

HMO vs. PPO: Unpacking the Differences

When considering your healthcare coverage, it's crucial to comprehend the differences between HMOs and PPOs. To get started, let’s define a few essential terms related to healthcare.

In Network - The most common term you’ll hear is "In-network". “In-network” refers to healthcare providers and facilities that have contracted with your insurance company to provide services at discounted rates. Utilizing in-network providers typically results in lower out-of-pocket costs for the insured individual.
PPO Insurance - PPO stands for Preferred Provider Organization. This type of insurance plan offers a network of healthcare providers at negotiated rates. PPOs provide greater flexibility compared to HMOs, allowing individuals to seek care from both in-network and out-of-network providers without requiring referrals.
HMO Insurance – HMO stands for Health Maintenance Organization. HMOs generally require you to live in its service area to be eligible for coverage, which allows you to utilize in-network doctors in your area.

HMO: Prioritizing Cost Control and Coordination

HMOs are structured around cost containment and coordinated care, offering several distinct features:

Preferred Care at Home – HMO plans often emphasize preventive care and may offer benefits such as preferred care at home services, promoting overall wellness and cost-effective management of healthcare needs.
Primary Care Physician (PCP) - In an HMO, you're required to select a primary care physician who serves as your central point of contact for managing your healthcare needs. Your PCP coordinates all medical services and referrals within the network.
Referrals – Accessing specialized care within an HMO network typically necessitates a referral from your PCP. This ensures that your healthcare remains coordinated and cost-effective.

PPO: Balancing Flexibility and Affordability

PPOs offer greater flexibility at a potentially higher cost, catering to individuals seeking a broader range of options:

Benefits Package – PPO plans may include comprehensive benefits packages, encompassing services such as preferred care at home, prescription drug coverage, and access to a wide network of providers.
Provider Flexibility – Unlike HMOs, PPOs do not mandate the selection of a primary care physician or require referrals for specialist care. This flexibility allows individuals to directly access healthcare services from both in-network and out-of-network providers.
Out-of-Network Coverage – PPOs provide coverage for services obtained from out-of-network providers, albeit at a higher cost to the insured individual. This flexibility expands healthcare options while necessitating careful consideration of associated expenses.

KBI Benefits Consulting: Make the Right Decision for You

Choosing between an HMO and a PPO requires careful consideration of individual healthcare needs, preferences, and budgetary constraints. This is where benefits consulting services, such as what KBI Benefits offers, can play a pivotal role:

Expert Guidance – Benefits consulting professionals offer expertise and guidance in navigating the complexities of health insurance, assisting individuals and employers in selecting the most suitable plan.
Tailored Solutions – Through benefits consulting, individuals gain access to tailored solutions that align with their specific requirements, whether it involves preferred care at home services, comprehensive coverage options, or cost-effective plan selections.

In conclusion, whether you’re prioritizing cost control and coordination with an HMO or seeking flexibility and provider options with a PPO, individuals can tailor their healthcare coverage to suit their unique needs and preferences.

Speak with a KBI Benefits agent today for personalized professional help with choosing your next healthcare plan!

What Is an Employee Benefits Consultant?

Thu, 01 Feb 2024 20:34:15 GMT

Beyond competitive salaries, employee benefits are one of the most important strategies businesses have to attract and retain top talent. Therefore, navigating employee benefits deftly can be essential to getting the most bang for your buck. This is where an employee benefits consultant steps in as a strategic ally, offering expertise and guidance to optimize benefit programs effectively. Let’s answer the question, “What is an employee benefits consultant?” and discover what your business could achieve by partnering with one.

What is an employee benefits consultant?

An employee benefits consultant serves as a trusted advisor to businesses. They offer their expertise of designing, implementing, and managing comprehensive benefit packages on the company’s behalf. Employee benefits consultants possess in-depth knowledge of the ever-evolving landscape of employee benefits, including healthcare plans, retirement options, wellness programs, and more. By staying abreast of industry trends, regulations, and best practices, they help businesses tailor benefit solutions that align with their organizational objectives and cater to the diverse needs of their workforce.

Does my business need an employee benefits consultant?

If you’re wondering if your business could benefit from a benefits consultant, it’s important to discuss the categories of work a team of benefits consultants could offer your business:

Expertise and Guidance: Employee benefits consultants bring specialized expertise to the table, offering strategic guidance at every step of the process to ensure that your money is being allocated effectively. This ensures that you have an expert on your side to sort through the complexities of employee benefits on your behalf.

Cost Reduction and Optimization: One of the primary objectives of an employee benefits consultant is to help businesses optimize their benefit offerings while minimizing costs . Through innovative strategies and alternative funding models, benefits consultants like KBI Benefits can achieve significant cost savings without compromising the quality of benefits. Essentially, we make sure you aren’t leaving money on the table.

Customized Solutions: Every business is unique, and so are its employee demographics, budgetary constraints, and strategic goals. Employee benefits consultants recognize this diversity and work closely with businesses to design customized benefit solutions that address their specific needs and priorities.

Compliance and Risk Management: Staying compliant with regulatory requirements and mitigating risk are critical aspects of benefit administration. Employee benefits consultants keep abreast of legislative changes and help businesses navigate compliance challenges, minimizing the risk of penalties and legal issues.

Enhanced Employee Engagement: A well-designed benefit program can significantly impact employee morale , productivity, and retention. Employees that feel cared for are more likely to be actively at work , which improves the company’s bottom line. Employee benefits consultants assist businesses in crafting benefits packages that resonate with employees, fostering greater satisfaction and engagement in the workplace.

The KBI Benefits Difference

At KBI Benefits, we take pride in our commitment to excellence and innovation in employee benefits consulting. With years of industry experience and a dedication to client satisfaction, we go above and beyond to deliver tangible results for our clients.

Through our strategic approach, we help businesses achieve cost reduction while enhancing the quality and scope of their employee benefits. Our alternative funding models can reduce costs by 15-40%, making comprehensive benefit packages accessible to businesses of all sizes. Whether you have 20 employees or 200, our benefit plan administration experts are here to guide you through every step of the process.

From discovery and design to communication and delivery, we provide comprehensive support to ensure the success of your benefit program. Our services encompass benefit plan administration, reporting, underwriting, and strategic goal-based plan design, including HSA, HRA, MERP, RBP, and ASO options.

But don't just take our word for it. Our long-standing clients attest to the value we bring to their organization.

Contact a KBI Benefits employee benefits consultant today to discover how you could be saving up to 40% on your employee benefits while improving employee retention and productivity. Let us help you unleash the true potential of your workforce!

What Is the Value of an Online HR Portal for My Business?

Thu, 25 Jan 2024 21:16:28 GMT

As technology continues to reshape industries, businesses must adapt to new paradigms to thrive in the digital age. And within this transformative journey, human resources (HR) plays a pivotal role.

The HR division serves as the backbone of any organization, not merely supporting business strategy but enabling its execution. As businesses scale and evolve, HR transformations driven by modern technology solutions become increasingly critical, particularly for large enterprises. Today, around 73% of US companies utilize talent acquisition software to streamline employee recruitment, hiring processes, and onboarding procedures.

This is what makes the HR portal an essential aspect of any well-organized business. Online HR portals are centralized platforms that revolutionize how businesses manage their human capital. But what exactly is an online HR portal, and why is it essential for your organization? Let’s discuss.

What Is the Value of an Online HR Portal for My Business?

Online HR portals, also known as human resource portals, are tech-driven systems that centralize employee information , facilitating easy access for both employees and employers. These portals streamline administrative tasks, providing employees with self-service access to essential information from onboarding to exit. By eliminating manual processes and physical paperwork, online HR portals save time and improve efficiency, all while fostering employee engagement and collaboration.

Let's delve into five key challenges that online HR portals address:

Regulating Employee Onboarding

Efficient onboarding is crucial for fostering a positive employee experience . However, many organizations struggle to provide a seamless onboarding process, leading to dissatisfaction and high turnover rates. Online HR portals streamline onboarding by delivering structured information to new hires, ensuring a smooth transition into the organization. No more solely relying on more experienced employees to set down their workload to run new employees through the basics, as this information has been compiled into one convenient place.

Company-wide Collaboration

The size of many organizations, coupled with the speed at which business moves, makes maintaining alignment and communication across departments challenging for HR teams . Online HR portals facilitate company-wide collaboration by disseminating announcements synchronously, recognizing achievements effectively, and fostering cross-departmental communication. This helps to create a cohesive work environment and reduce redundant or mismatched work.

Managing HR Information Management with Transparency

There is an unfortunate amount of overlap between easily accessible information and information that could be subject to security risks. Large enterprises often grapple with managing HR information and maintaining transparency while also keeping that information away from malicious actors.

Online HR portals can automate administrative tasks, ensuring transparency and accessibility while freeing HR teams to focus on strategic initiatives. Importantly, effective online HR portals are also encrypted to avoid data leaks. KBI Benefits takes the extra step of educating personnel on the importance of protecting your digital credentials to avoid data leaks or other security issues that could affect the staff or the company.

Fair Performance Evaluation

Ensuring fair and transparent performance evaluations is essential for employee morale and retention . Online HR portals facilitate streamlined and transparent evaluation processes, empowering employees with visibility into appraisal decisions and fostering a culture of fairness and accountability. As mentioned above, HR portals also make it easier to recognize employees’ accomplishments in these fields by sending out company-wide notices of rewards, which gives high-performing employees their chance to shine.

Low HR Reporting Cycle

An HR reporting cycle refers to the systems in place that allow employees to communicate with decision-makers in the company about suggestions for improvement. In a less-than-optimized HR environment, these cycles of sending in feedback and receiving responses to that feedback can potentially take weeks, which could reduce the effectiveness of the feedback.

Effective feedback mechanisms are critical for addressing workplace issues and improving employee satisfaction. Online HR portals enable anonymous feedback cycles, allowing organizations to gather actionable insights quickly and drive continuous improvement. Meanwhile, employees can directly communicate with their managers more effectively.

Optimize Your HR

In conclusion, the value of an online HR portal for your business cannot be overstated. As businesses navigate the complexities of the digital age, online HR portals serve as indispensable tools for streamlining processes, enhancing employee experiences, and driving organizational growth. For comprehensive HR solutions that simplify HR information management and streamline HR employee services, look no further than KBI Benefits. Speak with a KBI Benefits agent today to discover how our innovative online HR portal can transform your business .

How to Celebrate Employee Appreciation Day the Right Way

Thu, 18 Jan 2024 19:02:33 GMT

Employee Appreciation Day is a fantastic opportunity for employers to show gratitude and recognition to their hardworking teams. It's essential for companies to explore creative ways to celebrate and express appreciation. In this blog, we'll discuss the significance of Employee Appreciation Day and provide unique ideas to make your employees feel valued.

Why Employee Appreciation Day Matters

Employee Appreciation Day, celebrated on the first Friday of March, offers a dedicated moment to recognize and celebrate employees' contributions. Research indicates that expressing appreciation positively impacts morale, engagement, and reduces turnover . Moreover, it boosts oxytocin levels, fostering social bonds within the workplace.

How to Celebrate Employee Appreciation Day the Right Way

From surprising your team with employee appreciation gifts to handwriting employee appreciation cards to providing a free floating holiday for employees, there are dozens of effective ways to show your team that you care. Let’s dive into a few of these methods of celebrating Employee Appreciation Day:

Play Games & Socialize: Team members are already so used to collaborating with one another, why not give them a fun project to work on together? Organize scavenger hunts, quizzes, or virtual games to encourage teamwork, healthy competition, and innovative thinking. This is also a great way to make your team more effective problem solvers!

Gift Bags: Create personalized employee appreciation gift bags with company-branded items, treats, and gift cards to show your appreciation. Don't forget to include personalized employee appreciation cards to make the day even more special.

Get Creative : Schedule creative workshops on painting, cooking, or other hobbies to provide a fun, creative outlet for your team. This can help your employees feel more engaged with their workplace, and they could also walk away from the event with a new skill!

Provide a Lunch Experience: Cater a special lunch for employees to make the day a little more exciting. You could also offer post-lunch activities such as walking tours of the local area, if you feel like getting out of the office. Consider asking your employees which of these they would prefer.

Throw a Team Happy Hour: Host a relaxed happy hour at a local restaurant or pub, with alternatives for non-drinkers. This can help your team connect in a casual environment.

Take a Field Trip: Organize a field trip to local attractions, museums, or parks. A fun outing can make a world of difference in your employees’ interactions with one another, and it can also be a great way to help them get to know the local area.

Introduce a Free Floating Holiday: On the topic of special employee appreciation gifts, there’s nothing like a free floating holiday to get your workforce excited. You could announce this holiday for your Employee Appreciation Day celebration and allow your employees to schedule the holiday themselves.

KBI Benefits: Making Employee Appreciation Easy

Employee Appreciation Day is a fun break for your employees, but it certainly shouldn’t be the only time of the year you’re expressing your appreciation for your employees. Providing comprehensive employee benefits is a tangible and long-lasting expression of your appreciation that goes beyond a single day of fun. With the rising costs of individual health insurance in the U.S. , employee benefits are becoming a crucial aspect of expressing appreciation and boosting motivation.

Employees aren’t the only ones benefiting either. By choosing a benefits consultant like KBI Benefits, employers can enjoy up to 40% savings on new employee benefits plans . Our creative financing models ensure that the benefits practically pay for themselves when coupled with improved employee productivity. To learn more about how KBI Benefits can enhance your employee appreciation efforts, consult with a KBI Benefits expert today .

Reducing Work Distractions for Better Focus

Wed, 10 Jan 2024 20:59:23 GMT

As we usher in the new year, businesses across the United States are gearing up for changes in minimum wage laws that will impact their bottom line. With the cost of living steadily rising, several states are taking proactive measures to ensure that employees are making enough to keep pace with inflation. In this post, we'll take a closer look at the upcoming minimum wage increases by state for 2024 and explore how businesses can navigate these changes while simultaneously enhancing employee retention through strategic cost-cutting measures.

Minimum Wage 2024 Increases By State

Let's delve into the specifics of the minimum wage increases slated for 2024, according to data from GovDocs :

Alaska: $10.85 to $11.73
Arizona: $13.85 to $14.35
California: $15.50 to $16
Colorado: $13.65 to $14.42
Connecticut: $15 to $15.69
Delaware: $11.75 to $13.25
Washington, D.C.: $17
Florida: $12 to $13 (effective September 30)
Hawaii: $12 to $14
Illinois: $13 to $14
Maine: $13.80 to $14.15
Maryland: $15
Michigan: $10.10 to $10.33
Minnesota: $10.59 to $10.85 (large employers) and $8.63 to $8.85 (other employees)
Missouri: $12 to $12.30
Montana: $9.95 to $10.30
Nebraska: $10.50 to $12
Nevada: $10.25 or $11.25 (depending on health benefits) to $12
New Jersey: $14.13 to $15.13
New York: $14.20 to $15
Ohio: $10.10 to $10.45
Oregon: $14.20
Rhode Island: $13 to $14
South Dakota: $11.20
Vermont: $13.18 to $13.67
Washington: $15.74 to $16.28

Strategic Cost-Cutting: A Solution for Businesses Facing the Pinch

With minimum wage on the rise, businesses are inevitably feeling the financial squeeze. However, there's a silver lining for employers looking to navigate these challenges with finesse. In a time of economic uncertainty, many companies are reevaluating their benefits offerings to identify areas for cost savings.

One avenue to explore is partnering with employee benefit providers that offer comprehensive employee benefit packages – up to 30-40% lower rates – while still providing valuable benefits to their employees. Not only are these savings significant on their own, but employee benefits help to reduce overall operating costs by helping to retain highly-trained employees longer. Additionally, employees are more satisfied with their jobs and want to stay with the company longer because their loyalty is being rewarded.

Investing in Long-Term Success

In the current economic climate, the importance of supporting the mental health and overall well-being of the workforce cannot be overstated. A Gallup poll revealed that nearly one-fifth of U.S. workers rate their mental health as fair or poor , leading to increased unplanned absences and substantial costs in lost productivity.

By strategically reducing costs through streamlined employee benefit plans, businesses can not only weather the financial impact of rising minimum wages but also foster a healthier, more engaged workforce. Investing in employee well-being is a long-term strategy that pays dividends in terms of retention, productivity, and overall company success.

Prepare for the Future Today

As minimum wages increase across the nation, businesses must proactively seek solutions to maintain financial stability. To explore tailored solutions for your business, speak with a KBI Benefits agent today . By taking this step, you can position your company to thrive in the face of economic challenges and ensure a brighter future for both your business and your employees.

Minimum Wage 2024 Increases By State

Tue, 02 Jan 2024 15:33:42 GMT

Starting a new job is a significant life change, and it can be difficult for new employees to know how they want to develop in their new role. In order to help new employees settle into their role as effectively as possible, a well-defined set of goals tailored to the individual's role, experiences, and skill sets is essential.

Shockingly, 60% of businesses fail to establish a new hire checklist that aligns both with the business’s overall goals and the employee’s individual skills.

As a manager, setting new hires up for success should be your number one priority during their learning period. Goals are not just performance benchmarks; they are the keys to employee engagement and retention, a fair review process, and a productive, satisfied workforce. Let’s discuss how you can start setting new hire goals for long-term success with your company.

The significance of clear goals

Clear and effective new hire goals are not just a checklist, but instead a vision for how this new employee will fit into the broader structure of your company and provide a unique set of skills to their team. These goals act as a destination that new employees should strive for, which can ensure that they know the standards they need to reach to make a positive impact.

In essence, clear goals offer role clarity to your employees, aligning employees with overall business objectives. They provide a sense of direction, telling employees what's expected of them to excel in their roles.

Ensuring alignment and productivity

When goals are communicated effectively, employees can align with business objectives and improve their overall productivity and work engagement . Clear goals also empower employees to tailor their personal development goals, shaping a future within the company. This personal investment is an invaluable asset to your team’s overall effectiveness.

For those struggling with self-doubt, well-defined goals coupled with mentorship can be a confidence booster. Goals provide a tangible framework for success, making it easier for managers to provide constructive feedback and conduct fair performance reviews.

Communicating and managing expectations effectively

The alignment of goals is crucial to get everyone working in the same direction. Making goal-setting a collaborative task ensures that the entire team is aware of critical milestones and specific performance objectives. Encouraging new hires to seek clarity on their goals is equally vital.

Defining success metrics is another essential step in managing new hire performance expectations. Whether it's onboarding clients or meeting project timelines, having clear Key Performance Indicators (KPIs) provides a measurable way to gauge success.

Additionally, recognizing that new hires may not have the same performance objectives as long-tenured employees is crucial. Tailoring goals to the individual and the specific role ensures fairness and acknowledges the unique challenges and learning curve faced by newcomers.

Improve new hire productivity

As you embark on this journey of setting new hire goals, consider how employee benefits can further enhance your ability to attract and retain top talent. Comprehensive and personalized employee benefits can make a substantial improvement in retention for new employees .

Speak with a KBI Benefits agent today to explore how you could save up to 40% on your employee benefits expenditures while elevating your team's success. After all, an investment in your team is an investment in the future of your organization, reflecting best hiring practices and contributing to small business hiring employees with precision and foresight.

Setting New Hire Goals For Long-Term Success

Mon, 18 Dec 2023 18:32:30 GMT

Remote work has become more than just a trend—it's a paradigm shift that has fundamentally altered the way businesses operate. But many businessowners are rightfully concerned about how this “new normal” will impact their team’s productivity – will this pivot ultimately be positive, or simply another bite out of your bottom line?

Surprisingly, the data suggests that not only can remote workers maintain productivity, but they may even exceed expectations . Let’s discuss this trend and how your business can make the most of a remote team.

What employers need to know about remote work productivity

Initially, the idea of employees working from home may seem counterintuitive to the notion of productivity. Surely, there are more distractions in one’s personal space, and the desire to wander away from work every few minutes must be overwhelming. Right?

Wrong. Various studies have consistently demonstrated a positive correlation between remote work and increased productivity. Ergotron’s study, for instance, found that 40% of employees work longer hours at home than in the office, with an average increase of 48.5 minutes per day . This translates to more than 193 additional working hours annually for full-time employees.

Moreover, remote work has shown a remarkable impact on work-life balance. According to a survey by Great Place to Work, remote employees experience a much healthier work-life balance compared to their office-bound counterparts. Notably, this improvement in balance has not come at the expense of increased stress; in fact, a Nitro study found that remote workers reported lower stress levels, with 29% feeling moderately stressed, down from 33% in the pre-remote work era .

Supporting remote employees for optimal productivity

While the benefits of remote work are evident, managers play a crucial role in ensuring that employees remain productive and engaged. Establishing structured daily check-ins can provide a sense of routine and connection, whether through one-on-one calls or team meetings. This regular communication helps employees feel supported and keeps everyone aligned with organizational goals.

Providing diverse communication technology options is equally important. While email serves its purpose, it’s difficult to connect with your team members through a bit of text. (There’s also reason to believe that work email is taking up too much of your team’s time without increasing their productivity.) Richer communication tools like video conferencing can bridge the gap created by physical distance and bring your team a little closer. Visual cues and eye contact can make a big difference in helping your team get to know one another beyond their name and a profile pic.

Providing emotional support is another vital aspect of managing remote teams. Making an effort to reach out to your employees about concerns before they come to you can greatly improve their working experience. You can demonstrate that you’re invested in their wellbeing before they think to bring it up for themselves, which goes a long way toward building a healthy relationship with your team.

Improving productivity from every angle

As businesses continue to embrace remote work, optimizing productivity becomes paramount. If your company is seeking reliable methods to boost productivity and enhance employee well-being, exploring a robust employee benefits plan can be a strong strategic move. KBI Benefits agents specialize in creating customized plans that not only save your company up to 40% on related expenditures but also contribute to a healthier, more productive team. Speak with an agent today to learn more .

In the era of remote work, understanding the dynamics that drive productivity and actively supporting your remote employees can set your company on a path to success. Embrace the change, invest in your team's well-being, and witness the positive transformation in both productivity and employee satisfaction.

What Employers Need to Know about Remote Work Productivity

Mon, 11 Dec 2023 16:41:58 GMT

What employers need to know about remote work productivity

Supporting remote employees for optimal productivity

Improving productivity from every angle

Mental Health in the Workplace

Tue, 05 Dec 2023 18:09:12 GMT

The importance of mental health in the workplace cannot be overstated.

Recognizing that mental health in the workplace is not just the absence of illness but a state of well-being crucial for optimal performance, employers are increasingly acknowledging the need to prioritize the mental health of their employees. This shift is not only a moral imperative but also a strategic move to enhance overall workplace productivity and satisfaction. Let’s discuss how a person’s mental health can impact themselves and their work and what an employer can do to help.

Understanding mental health in the workplace

Before delving into strategies to improve mental health in the workplace, it's essential to understand what mental health truly means. Mental health is not just about the absence of mental illness ; it encompasses an individual's ability to cope with stress, work productively, realize their full potential, and contribute positively to their community. In the context of the workplace, mental health is intertwined with human performance, forming the foundation for employee well-being .

Five Key Takeaways on Mental Health

Comprehensive Well-being: Mental health in the workplace is more than the absence of mental illness. It involves nurturing a state of comprehensive well-being that integrates physical health, social well-being, and mental resilience.

Holistic Approach: Physical health is inseparable from mental health . To achieve optimal well-being, both aspects must be considered and addressed holistically.

Coping Mechanism: Mental health in the workplace is a critical factor in coping with stress. A positive mental state equips individuals to navigate challenges effectively, both personally and professionally.

Synergy of Human Performance and Mental Health: Human performance and mental health in the workplace are interconnected. Together, they contribute to the flourishing of individuals in all aspects of their lives.

Priority of Workplace Wellness: Recognizing the pivotal role of mental health in the workplace in overall well-being, workplace wellness must be a top priority for businesses seeking high-performing employees.

Work-Related Risk Factors and Their Impact on Mental Health

Several work-related risk factors can negatively affect employees' mental health in the workplace. Identifying and addressing these factors is crucial for creating a workplace environment that fosters well-being. Some of these risk factors include:

Communication and Management Practices: Effective communication and management practices are the cornerstone of a healthy manager-employee relationship. Poor communication creates strain, leading to increased workplace stress and diminished mental health in the workplace.

Low Levels of Support: Managers who fail to provide adequate support, remove obstacles, or share resources contribute to employee feelings of overwhelm and demotivation. Offering guidance and resources is key to maintaining a positive work environment.

Performance Pressure: Unreasonable expectations for constant peak performance result in increased workload, stress, and emotional exhaustion. Balancing expectations with realistic goals is crucial for mental health in the workplace.

Lack of Incentive Structures: Incentives are essential for maintaining employee motivation and satisfaction. Enhancing incentive structures, including comprehensive employee mental health benefits, is a historically effective way to boost morale and job satisfaction .

The Role of Employee Benefits in Improving Mental Health

A big proactive step employers can take to improve mental health in the workplace is offering comprehensive employee benefits packages . These packages, including medical and mental health resources, empower employees to take charge of their well-being. By relieving employees of major stressors like healthcare arrangements, businesses can create an environment where individuals feel comfortable and satisfied in their professional and personal lives.

Take care of your employees with KBI Benefits

Empower your team to be their best selves and to beat burnout at work by investing in their well-being. Speak with a KBI Benefits agent today to explore how our employee advocacy-focused employee benefits plans can not only enhance the lives of your employees but also save your business up to 40% in related expenditures. Together, let's create a workplace where daily mental health check-ins are not just a practice but the foundation for success.

Employee Benefits - a Cost-Efficient Method of Improving Employee Retention

Mon, 27 Nov 2023 18:54:42 GMT

Running a successful company in today's ever-evolving business landscape poses numerous challenges, and by far one of the biggest headaches is keeping up with the constant changes in regulations and best practices regarding employee benefits. The worst part is that these changes can significantly impact your bottom line unless they’re addressed in a timely manner, and that’s just one more thing on your plate.

This is where employee benefits consultants play a crucial role in ensuring your employee benefit services are fully optimized for your business. Let's explore the reasons why partnering with an employee benefits consultant, or an employee benefit corporation, can be a game-changer for companies of all sizes.

Problem solving

When faced with challenges, employee benefits consultants, with their expertise in employee benefit services, step up as creative problem solvers. Armed with knowledge about industry-leading trends, we help companies stay ahead of the curve.

As health benefit requirements continue to escalate, consultants assist in implementing innovative programs, alternative funding methodologies, and other cost-control strategies to mitigate healthcare cost increases and ultimately increase your bottom line.

True consultants act as partners, suggesting changes for the betterment of your company's employee engagement and productivity on an ongoing basis. KBI Benefits’ wealth of experience equips you to navigate various industry challenges, regardless of complexity. Having encountered similar situations in the past, we can provide a range of creative solutions to optimize your employee benefit package and save you up to 40% off your employee benefits expenditures in the process.

Addressing compliance and employee productivity

With great information comes better decisions, and employee benefits consultants are experts in their field, ensuring your compliance with laws related to employee benefit services. We possess an in-depth understanding of laws and their specific implications for your company, cutting through regulatory complexities to provide essential information for avoiding unnecessary red tape. Consultants ensure your company remains on the right side of the law, contributing to employee engagement and productivity.

A study by the Ponemon Institute and Tripwire, Inc. highlighted the stark contrast between the cost of compliance and non-compliance , emphasizing the importance of employee benefit services. The average cost of compliance for organizations in the study was $3.5 million, while the cost of non-compliance-related problems was nearly $9.4 million. Staying compliant not only safeguards your company from potential penalties but also ensures uninterrupted operations, positively impacting employee productivity.

Tailoring Your Employee Benefit Package

Employee benefits consultants cultivate relationships not only with client companies but also with vendors and carriers to enhance your employee benefit package. These relationships allow us to customize programs to best suit your business’s needs, contributing to your employee engagement and productivity while staying within your budget. Consultants provide a roadmap for the future while keeping budget constraints in mind, a crucial aspect of employee benefit services.

Moreover, consultants have access to market statistics and benchmarking data that may elude companies without the right connections. This privileged access ensures that clients are well-informed about the latest trends and pertinent information, providing a distinct advantage in the competitive business landscape and ultimately contributing to increased employee productivity.

KBI Benefits: Your Trusted Partner for Employee Benefits Success

KBI Benefits stands out for its dedication to helping businesses of all sizes maximize their return on investment in employee benefits programs. We’ve historically saved up to 40% on clients’ employee benefits expenditures without compromising the quality of benefits offered, showcasing the effectiveness of employee benefit services.

Take the first step toward optimizing your employee benefits program— contact a KBI Benefits agent today to review your employee benefits offerings.

A Brief Guide to Employee Benefits Consultants

Mon, 20 Nov 2023 17:43:37 GMT

Problem solving

Addressing compliance and employee productivity

Tailoring Your Employee Benefit Package

KBI Benefits: Your Trusted Partner for Employee Benefits Success

Take the first step toward optimizing your employee benefits program— contact a KBI Benefits agent today to review your employee benefits offerings.

Exploring Alternate Employee Benefit Funding Options

Mon, 13 Nov 2023 17:25:00 GMT

Employers are facing the ongoing challenge of retaining top talent. While it’s commonly thought that the only way to improve employee retention is to ballon your expenditures even more, that’s not the case.

An extremely effective strategy for enhancing employee satisfaction is to effectively communicate the depth and value of their benefits package. In this blog, we'll explore how employers can boost employee retention by leveraging state-of-the-art benefits communication services.

The Link Between Employee Benefits and Retention

Before diving into how to improve employee retention through benefits package communication, it's essential to understand the relationship between the two. A well-designed benefits package is a valuable component of an employee's compensation, and ensuring that employees comprehend its full value can significantly impact their job satisfaction and, ultimately, their decision to stay with your company.

How to Improve Employee Retention (Without Spending More)

To address the challenge of improving employee retention, employers need to explore innovative ways to communicate the benefits they provide. KBI Benefits offers a range of cutting-edge technology and tools that can make this process seamless and cost-effective.

Online HR Benefits Portal - Gone are the days of paper communication describing employee benefits. KBI Benefits provides an all-in-one portal that allows employees to easily and clearly track their available benefits. This transparency makes them aware of all the services your organization provides. Moreover, your business can utilize this service to track your employees' benefit usage and identify which benefits are used most frequently. KBI Benefits offers ongoing support by helping you analyze usage figures as part of routine plan optimizations.

Digital Postcards - Beyond merely granting employees access to their benefits information, you can proactively keep them informed about changes to their plans. This dynamic approach to communication engages employees and ensures they stay updated on the latest developments in their benefits. This can foster a sense of connection and appreciation for the benefits provided.

Educational Video Library - Another valuable service is KBI Benefits' educational video library, available to your employees at no cost. This resource allows employees to access in-depth videos that discuss their benefits, how to navigate the online portal, and address common questions. It's a valuable tool for helping employees troubleshoot any issues they may encounter while using the system, improving their overall experience.

Total Compensation Statements - Often, employees find it challenging to comprehend the relationship between their take-home pay and the various components of their benefits package. KBI Benefits offers a tool that simplifies this understanding. Employees can easily calculate their total compensation, including their benefits, giving them a more comprehensive picture of the value your organization provides.

Pulse Surveys - To optimize your employee benefits offerings, gathering feedback is crucial. Pulse surveys allow you to periodically check in with your employees and determine which aspects of their benefits they appreciate the most and which see less usage. This data helps ensure that every dollar spent on the benefits plan generates the most return on investment in terms of employee satisfaction and retention.

KBI Benefits: Your Partner in Employee Retention

Enhancing employee retention doesn't necessarily require spending more money. By investing in effective benefits package communication through KBI Benefits' advanced services, you can demonstrate the full value of your benefits, engage your employees, and ultimately foster a workplace environment where employees are more likely to stay. To discover how you can improve employee retention and productivity without breaking the bank, speak with a KBI Benefits agent today .

How to Improve Employee Retention (Without Spending More)

Fri, 03 Nov 2023 17:49:06 GMT

The Link Between Employee Benefits and Retention

How to Improve Employee Retention (Without Spending More)

KBI Benefits: Your Partner in Employee Retention

Tackling HR Compliance Issues

Thu, 26 Oct 2023 20:54:05 GMT

In today's highly competitive job market, offering a comprehensive and enticing benefits package has become essential for businesses of all sizes. Employee benefits go beyond just salary; they encompass the additional perks and support that employees receive, which can significantly impact their job satisfaction, engagement, and overall retention. With the evolving expectations of the workforce, staying ahead in the benefits game is crucial to attract and retain top talent. In this blog, we will explore popular employee benefits packages that can help improve retention and why they are vital in today's work environment.

Popular Employee Benefits Packages to Improve Retention

One of the key findings from a recent survey by Willis Towers Watson is that 94% of employers believe that voluntary benefits will play a crucial role in their employee value proposition in the coming years. So, what are some of the popular employee benefits packages that are trending in 2023 and beyond?

1. Health Insurance Coverage

The COVID-19 pandemic underscored the importance of health and well-being. According to CVS Health , 77% of people started paying more attention to their health during the pandemic. It's a win-win situation when employees are healthy because they tend to be more productive , take fewer sick days, and are less prone to workplace injuries.

Offering comprehensive health insurance plans is a must, but you can also consider supplementing these with dental insurance, vision insurance, short-term and long-term disability insurance, flexible spending accounts (FSAs), and health savings accounts (HSAs). All of these can greatly improve the employee value proposition and thus contribute to an employee’s sense of gratitude and loyalty for the company. Speak with a KBI Benefits representative today to start customizing your employee benefits package.

2. Flexible Hours

Flexibility in work hours is a highly sought-after benefit, especially among the millennial workforce. Not everyone is at their best during the typical 9-5 workday. Offering flexibility allows employees to choose the hours that suit their productivity and personal lives . This can lead to reduced distractions, improved work-life balance, and increased productivity. For example, Netflix takes this to the extreme by letting employees choose their work hours, as long as they meet their goals. This approach can be tailored to your company's needs by letting employees choose between working mornings, afternoons, or evenings, making adjustments within the day, or even offering part-time work options.

3. Remote Work Arrangements

The pandemic accelerated the adoption of remote work, and it's here to stay. In fact, a survey in 2020 found that two-thirds of employees prefer full-time remote work. Not only does remote work enhance employee satisfaction, but it also saves them time and money on commuting. Remote workers are known to be more productive and less prone to workplace distractions. If you're unsure about full-time remote work, consider starting with a hybrid arrangement, allowing employees to work from home a few days a week. Then you could compare productivity before and after the change and poll employees on their level of satisfaction with the change.

4. Paid Time Off

Offering ample paid time off is a strong signal that you value your employees' work-life balance and well-being. Lack of paid sick days can lead to employees coming to work when ill, affecting both their health and overall productivity. You can offer different types of paid time off, such as maternity leave, vacation time, or even mental health days. Unlimited PTO is another attractive option, with only a small percentage of employers currently offering it. In most cases, employees won’t take more vacation days than if they were given a set amount , and many employees will even take less.

5. Retirement Benefits

Retirement planning is a significant concern for employees, given the increasing cost of living and economic uncertainty. Offering retirement plans, such as 401(k)s, SEP IRAs, or SIMPLE IRAs, can provide employees with peace of mind about their financial future. Employers can sweeten the deal by matching a percentage of their employees' contributions or providing retirement planning services.

Retain your best employees

It's clear that offering an attractive benefits package is essential for retaining top talent. However, the cost of providing these benefits can be a concern for businesses, especially small and mid-sized enterprises. This is where KBI Benefits comes in, with creative financing plans that offer up to a 40% reduction in costs compared to competitors' plans. With KBI Benefits, businesses of all sizes can afford to provide their employees with the popular benefits packages they desire. Reach out to a KBI Benefits agent today to learn more and stay ahead in the race for top talent.

Popular Employee Benefits Packages to Improve Retention

Fri, 20 Oct 2023 16:33:29 GMT

Popular Employee Benefits Packages to Improve Retention

1. Health Insurance Coverage

2. Flexible Hours

3. Remote Work Arrangements

4. Paid Time Off

5. Retirement Benefits

Retain your best employees

Describing How Total Job Benefits and Total Employee Compensation Differ

chris@kbibenefits.com (Chris Freitas) — Fri, 13 Oct 2023 18:17:28 GMT

Your company’s culture, mission, and impact are key factors in attracting and retaining top talent. However, a competitive compensation and benefits package is equally essential. According to a recent Gallup poll , "a significant increase in income or benefits" took the top spot for what employees wanted in their next job.

Highlighting the value of the benefits you provide to your employees helps them comprehend their worth to the company beyond their salary. Delineating the true significance of a comprehensive compensation package begins with distinguishing between total employee compensation and total job benefits. This distinction can be somewhat intricate, but the employee benefits experts at KBI Benefits are here to guide you. Let's delve into the specifics!

Describing how total job benefits and total employee compensation differ

Compensation encompasses all that employees receive in return for their efforts , constituting their income and directly translatable to cash. This includes their salary, hourly wages, incentives like bonuses, equity, and stock options.

Benefits, on the other hand, are non-wage compensation provided to employees , making up a vital part of their overall compensation package. These benefits include various categories such as paid leave, supplementary pay, retirement plans, insurance, and legally required benefits.

Understanding Total Job Benefits

Benefits cover a wide array of offerings essential for employees' overall wellbeing and satisfaction. These comprise paid time off, health, dental, and vision insurance, retirement plans like 401(k) and pension schemes, educational benefits, and more. Notably, benefits play a critical role in employee retention and satisfaction, with a significant percentage of employees staying with an employer due to favorable benefits.

Employee turnover can have substantial financial implications for a business . The cost associated with turnover includes hiring expenses, onboarding resources, and lost productivity during the learning curve, especially for specialized roles. Providing a comprehensive total benefits package can significantly reduce turnover rates and the associated costs by keeping well-trained employees on your team longer.

Leveraging Total Benefits for Recruitment and Retention

When recruiting new talent, effectively communicating the value of the total compensation package, including benefits, is crucial. Many potential candidates primarily focus on the base salary; hence, incorporating benefits information immediately after mentioning the base pay in job postings can effectively showcase the complete compensation package.

During the onboarding process, providing a comprehensive overview of the available benefits and opportunities for questions and discussions ensures that employees understand and appreciate the value of the benefits offered. This sets the stage for a motivated workforce, contributing to the company's success.

Employee benefit plan administration and more

KBI Benefits specializes in optimizing employee benefit plan administration for mid-size business benefit plans and benefits for small businesses. By partnering with KBI Benefits, you can potentially save up to 30-40% on your employee benefits expenditures while still offering sought-after employee benefits such as wellness programs, healthcare, and retirement plans for employees. Utilizing proprietary creative financing models and regular optimization reviews, KBI Benefits ensures you pay a competitive price for your employee benefits while fostering a motivated workforce. Speak with a KBI agent today to explore how your business can benefit from this strategic partnership.

What's the Difference Between Insurance Agents and Insurance Brokers - And Why it Matters?

Mon, 02 Oct 2023 13:31:48 GMT

Insurance is an essential aspect of personal and business life, providing financial protection and peace of mind in times of uncertainty. When seeking insurance, whether for personal needs or business operations, individuals often interact with insurance agents or brokers. Understanding the distinctions between these two roles is vital for making informed insurance decisions. In this blog post, we will delve into the roles of insurance agents and brokers, their differences, and why these distinctions matter for both personal and business insurance purchasers.

What's the Difference Between Insurance Agents and Insurance Brokers? And Why it Matters

Insurance brokers and agents serve as the connection between individuals and businesses and companies selling insurance. They help clients find suitable insurance coverage that meets their needs while ensuring a fair price. Let's explore the differences between insurance agents and insurance brokers, shedding light on their respective roles and how they impact insurance purchasers.

Key Differences Between Insurance Agents and Insurance Brokers

The primary differences lie in who insurance agents and insurance brokers represent, how they initiate policies, and the compensation structure each receives.

Insurance Agents Represent the Insurer: Insurance agents represent the insurance company and possess comprehensive knowledge about the insurance coverage offered by those companies. They can be captive agents, representing a specific insurance agency, or independent agents, representing multiple insurance companies.

Insurance Brokers Represent the Buyer: Insurance brokers work on behalf of the consumer, providing expert advice and representing the client's best interests. They can be retail brokers directly assisting clients or wholesale brokers working with retail agents and brokers to offer specialized insurance products.

Policy Initiation and Binding: Insurance agents can initiate policies, whereas brokers require an insurance binder signed by the insurance company's underwriter to initiate a policy. Brokers provide a temporary insurance binder, which is eventually replaced by a permanent policy.

Compensation Structure: Agents and brokers receive compensation differently. Agents typically receive commissions from the insurance companies, while brokers may also charge a broker's fee in addition to commissions.

Why Do These Distinctions Matter?

Understanding these distinctions is crucial for both personal and business insurance purchasers:

For Personal Insurance: When seeking personal insurance, understanding whether you are working with an agent or a broker helps you comprehend the perspective from which you are receiving recommendations. Brokers prioritize your interests, potentially leading to more tailored insurance solutions.

For Business Insurance: In the realm of business insurance, the role of agents and brokers can significantly impact your coverage, costs, and compliance. Brokers, representing the buyer, can help you save time, ensure legal compliance, and secure competitive rates, ultimately safeguarding your business against unforeseen risks.

In California, among other states, businesses can benefit from specialized expertise provided by employee benefits brokers. Brokers professionals assist in securing comprehensive healthcare packages, life insurance, disability insurance, dental insurance, vision insurance, and more, tailored to the needs of both the business and its employees.

KBI Benefits: On Your Side

KBI Benefits is a brokerage, and our incentives directly align with the best interests of our clients, not the interests of the insurance company. Only by ensuring that you’re happy with your coverage and our services can we be successful. That’s how we earned the “ Top Employee Benefits Consultant Aware of 2023 ”.

Want to learn more about our commitment to our clients? You can speak with a KBI Benefits agent today and discover the KBI difference yourself!

Mployer Advisor Names KBI Benefits a Winner of ‘Top Employee Benefits Consultant Award’ for 2023

Tue, 26 Sep 2023 15:17:54 GMT

Los Altos, CA – September 26, 2023 – Mployer Advisor , the leading independent platform for employers to research, review, and evaluate insurance advisors has named KBI Benefits a winner of its third annual “Top Employee Benefits Consultant Awards” for 2023. Mployer Advisor’s Top Employee Benefits Consultant Award Program evaluates brokers based on breadth and depth of experience across employer industries, sizes, insurance products, and employer reviews. We recognize esteemed brokers that demonstrate market-leading competencies and a proven track record of success among employers, insurance providers, and peers.

"Our team is truly an extension of yours. We have a vested interest in your success and are committed to delivering resources to drive that fulfillment."

— Mike Radakovich, President KBI

“Our team is proud to recognize this group of 2023 top-rated insurance advisors as part of our third annual Top Employee Benefits Consultant Awards,” said Brian Freeman, the Founder and CEO of Mployer Advisor. “Employer-sponsored healthcare and benefits cover over 150M Americans. Who an employer selects as their benefits advisor has more impact on employee cost and satisfaction with their healthcare than who an employer chooses as the insurance carrier. We have rated these brokerages utilizing sophisticated, industry-first algorithms, and we applaud the winners’ demonstrated commitment to service, quality, and positive employer feedback.”

Mployer Advisor determined the winners of the third annual “Top Employee Benefits Consultant Award” by analyzing each brokerage based on historical data, online reviews, their M Score rating , and demonstrated business experience.

To view a complete list of the 2023 recipients of Mployer Advisor’s “Top Employee Benefits Consult Award,” visit MployerAdvisor.com .

To learn more about KBI Benefits, please visit kbibenefits.com .

About KBI Benefits:

We believe the relationship between employer and employee has tremendous untapped potential. Our benefit consulting and technology team is here to help our clients unleash that potential.

If our purpose is something you would like to be part of, you will find it highly valuable to explore how KBI is helping business owners and key decision-makers just like you achieve greater success.

About Mployer Advisor:

Mployer Advisor is changing the way employers search, evaluate, and select insurance advisors. The intuitive platform connects employers and employees to great benefits and insurance plans by providing employers with actionable data to easily evaluate and select the best advisor for a company’s specific needs. Most brokerages have a profile on Mployer Advisor, which provides independent ratings of insurance advisors to support employers. Insurance brokers cannot pay to influence their Mployer Advisor rating. Only highly rated brokerages are allowed to advertise on the platform. To learn more about Mployer Advisor, visit https://mployeradvisor.com and follow us on LinkedIn .

Disclaimer: Rankings are dynamic, and this report may not reflect the rankings currently listed on Mployer Advisor’s website. Because Mployer Advisor’s research is ongoing, interested companies that want to join next year’s list are encouraged to claim their free profile on Mployer Advisor.

Contact Details:

221 Main Street #1462
Los Altos, CA 94023
kbibenefits.com
408-366-8880

Chris Freitas
Director, Business Development & Technology
chris@kbibenefits.com

What are the Benefits of Employee Advocacy for Your Business?

Tue, 26 Sep 2023 14:46:24 GMT

Thanks to the widespread use of social media and other outlets, employees can spread the word about their company organically, which makes them a valuable public relations asset for businesses. This phenomenon, known as employee advocacy, is a strategic approach that not only benefits the employees but also has a significant impact on the organization's marketing efforts and brand awareness. If you’re wondering, “What are the benefits of employee advocacy for your business?”, let’s discuss.

What are the benefits of employee advocacy for your business?

Employee advocacy and employee engagement are closely intertwined . Engaged and empowered employees are more likely to actively participate in advocating their company's brand organically, which is an extremely valuable kind of brand awareness. When employees feel a sense of ownership and benefit from being brand advocates, they become engaged, and their advocacy efforts are driven by genuine interest. Employee advocacy programs foster a culture of engagement and sharing within the organization, which is a win-win scenario for employees and employers alike.

Humanize your brand

Employees possess considerable marketing potential, often having more followers on social platforms than official brand channels. Leveraging employees to share branded content humanizes the brand, making it more relatable and trustworthy. When content is shared through employees' personal channels, it generates wider reach, enhances brand awareness, and creates a personal touch, thereby resonating better with the audience.

Content shared by employees has proven to receive significantly more engagement than content shared through official brand channels . The collective power of employees amplifying content contributes to an increased social presence without the need for additional advertising expenditures. Modern marketing strategies benefit greatly from this 'always-on' content approach, extending the brand's reach beyond traditional marketing channels.

Positioning employees as thought leaders

Effective communication and transparent discussion of advocacy goals with employees are essential. When employees understand the value proposition in advocacy for them, they are more likely to passionately represent the brand. Companies can position their employee brand advocates as thought leaders and industry experts by investing in their personal and professional growth, fostering a sense of trust and credibility among the advocates.

You can foster employees’ journey to becoming thought leaders in your industry by providing education and insight into the industry they might not discover on their own. By providing employees with relevant and engaging content to share on their social networks, companies can foster thought leadership within their industry. Employees sharing insightful content demonstrate expertise and industry knowledge, attracting qualified referrals and leads to the business. This collaborative approach through employee advocacy ultimately benefits the brand's perception and positioning.

Enhanced brand visibility, recognition, and loyalty

Building trust is crucial in the modern business landscape, and people tend to trust recommendations from family, friends, and peers . Leveraging employee advocacy amplifies the always-on content that, in turn, boosts brand awareness. Studies have shown that organizations with employee advocacy programs experience increased brand visibility, improved brand recognition, and enhanced brand loyalty.

Provide the right incentive for employee advocacy

Employee advocacy is a two-way road – your employees should understand that if they support the company, their efforts will be rewarded. The most effective method of supporting employees and turning them into genuine advocates for your company is to provide comprehensive employee benefits that address employees’ essential needs, such as healthcare .

By fostering a culture of engagement, collaboration, and trust, businesses can harness the potential of employee advocacy to elevate their brand in the digital realm. For more insights and tailored employee benefits plans that support your workforce, speak with a KBI Benefits agent today and discover how you could save up to 30-40% on your current employee benefits plan.

Why Do Some Employees Work Harder Than Others? How Employee Benefits Can Make the Difference

Mon, 18 Sep 2023 14:05:33 GMT

In the world of work, there's an age-old debate: what truly motivates employees to give their best? Some argue that passionate employees are driven by the love of their job, caring less about the paycheck and more about the satisfaction they derive from their work. They're the ones who willingly arrive early and stay late without batting an eyelid at the thought of overtime pay. On the other side of the ring are proponents of the "motivation-productivity" theory, asserting that engaged employees not only work harder but also produce more, ultimately earning higher wages.

So, which theory holds more water? Let's delve into this age-old question and explore how proper incentivization, particularly through employee benefits, can significantly impact productivity and save companies money in the long run.

The Donating vs. Motivation-Productivity Debate

In recent years, labor economists have sparred over the motivations that drive employees in their professional pursuits. Is it the intrinsic satisfaction of appreciating their workplace, or is it the allure of a bigger paycheck? The "donating" theory posits that workers who find deep satisfaction in working for their organization are willing to accept lower wages, as they appreciate their workplace and wish to support it. They're the ones who clock in early and leave late, driven by a sense of purpose rather than financial gain.

Contrastingly, the "motivation-productivity" camp argues that engaged employees not only excel in their roles but also contribute to increased work output. These employees, driven by motivation, naturally earn higher wages through their enhanced productivity.

The Study that Shed Light on the Debate

To settle the score, a group of Italian economists conducted a study focusing on 4,134 paid workers from 320 Italian non-profit organizations. These organizations often offer lower wages than other industries, making them a prime candidate for passionate employees. Participants were asked to rate their identification with a definition of work as a contractual relationship where labor is exchanged for pay.

The results were illuminating. Those who fully embraced the idea of working solely for monetary compensation earned, in some cases, up to 5 percent less than their peers. Intrinsic motivation, the desire to help their company succeed, had a notable impact on wages. Those willing to work for the love of the job often earned more than those solely motivated by financial gain.

Why does this happen? One reason is that intrinsically motivated employees tend to be more productive, putting in additional hours, which offsets the "donated" work. While the effect on pay was relatively modest, amounting to around 1% of total wages, it became clear that intrinsic motivation leads to extra productivity, resulting in higher paychecks.

Additionally, the researchers highlighted the importance of personal goals aligning closely with the company's objectives. When employees feel a strong connection between their aspirations and the company's mission, it fosters commitment and loyalty, ultimately contributing to increased productivity.

The Key Takeaway for Employers

So, what's the key takeaway for employers? It's essential to ensure that your employees genuinely care about their workplace, as their increased productivity can pay for itself. And one of the most effective methods to motivate employees to care about their workplace is by offering robust employee benefits.

Employee benefits act as a central motivating factor intrinsically connected to the workplace. They provide crucial support to employees, helping them feel positively about their job, and in turn, encouraging them to put their best foot forward. When employees see that their well-being is a priority for the company, they're more likely to reciprocate with enhanced productivity.

But here's the kicker: employee benefits don't have to be a financial burden for your company. At KBI Benefits, we've helped countless clients save a substantial 30-40% on their employee benefits costs compared to the competition. Our innovative financing models make it possible for companies of all sizes to offer enticing benefits packages, effectively incentivizing their employees to be their most productive selves every day.

In conclusion, the age-old debate about what motivates employees is far from settled. However, what is clear is that when employees feel genuinely connected to their workplace and well-supported through robust employee benefits, their motivation and productivity soar. If you're looking to motivate your team and save money in the long run, consider the power of employee benefits. Speak with a KBI Benefits agent today to learn how we can help your company thrive by incentivizing your employees to be their best. After all, when your employees succeed, your company succeeds.

What are the 5 Most Common Employee Benefits?

Sat, 09 Sep 2023 17:46:50 GMT

In the competitive landscape of talent acquisition in 2023, offering attractive employee benefits is crucial for any company aiming to secure top talent. In this blog, we will delve into the five most common employee benefits that companies provide to entice new talent. We will also explore how your company can enhance its offering while reducing costs, with KBI Benefits’ proprietary creative financing solutions.

Health Insurance

Health insurance is a cornerstone of employee benefits. It not only promotes the well-being of your workforce but also positively impacts your company's bottom line. Providing affordable healthcare options to employees can save them money and increase their productivity.

While health insurance is a common offering, KBI Benefits has pioneered creative financing solutions that can help your company save up to 30% on the same quality benefits. Consult with a KBI Benefits agent to discover cost-saving strategies that can free up more of your budget.

Life Insurance

According to the Bureau of Labor Statistics, around 55% of companies provide life insurance as part of their benefits package as of 2019, and that number has likely risen in recent years. Offering life insurance equivalent to an employee's salary, either fully paid or partially covered by the employer, can be a valuable addition to your benefits package with minimal effort required from your employees. Life insurance offers peace of mind to employees and their families, which can help them focus on their work.

Dental Insurance

Dental insurance is a cost-effective addition to your benefits package. Typically, employers and employees share the cost, often in an 80/20 split. However, this ratio can be adjusted to suit your business's needs so you can provide affordable dental care to your employees without straining your budget.

Retirement

Retirement benefits are a significant attraction for prospective employees. The most common retirement accounts offered by employers are 401(k)s and 403(b)s, depending on whether your company is for-profit or not-for-profit. Providing a robust retirement plan demonstrates your commitment to your employees' long-term financial security, making your company more appealing to top talent.

Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs)

Flexible spending accounts (FSAs) and health savings accounts (HSAs) offer tax-advantaged ways for employees to manage healthcare expenses. While FSAs are available with most health insurance plans, they come with a "use it or lose it" clause, meaning unused funds are forfeited at the end of the year. HSAs, in contrast, never expire, allowing employees to save and invest in their future healthcare needs. Both FSAs and HSAs have their upshots for employees and employers alike. Speak with a KBI Benefits agent to discover which might be best for your employees.

Conclusion

Your investment in employee well-being and financial security can lead to a stronger, more loyal workforce and contribute to your company's overall success. KBI Benefits offers a range of innovative benefits solutions tailored to meet your employees' needs while optimizing your company's budget. Speak with a KBI Benefits representative today to explore how you can stay ahead of the competition by enhancing your employee benefits offering.

What do Employees Value More than a Pay Increase?

Sat, 09 Sep 2023 17:44:33 GMT

In the effort to keep employees motivated and efficient, many businesses assume that employees will only respond to a bigger paycheck. While competitive compensation is undoubtedly important, it's not everything – there are several factors that employees often value even more than a pay increase. In this blog, we'll explore some of these factors and how you can motivate your staff without inflating your expenses.

Comprehensive employee benefits

Employee benefits are hands-down the most highly sought-after feature for employees . Employee benefits not only make employees' lives easier but also contribute to their overall well-being. Employer-sponsored group health plans can be more attractive to employees than a mere bump in their salaries for two big reasons:

Simplified Healthcare Access: Navigating the complex world of healthcare can be a daunting task. Employer-sponsored healthcare plans streamline the process, making it easier for employees to access the medical services they need. This not only reduces the administrative burden on employees but also ensures that they receive the necessary care without worry.

Cost Savings: Group health plans can offer lower per-person costs compared to individual plans that employees may find. This means that employees can enjoy comprehensive coverage without breaking the bank.

For employers who partner with KBI Benefits, there's even more to gain. By working with KBI Benefits, businesses can provide their employees with high-quality healthcare while securing up to 30% savings on their current employee benefits costs. It's a win-win situation that keeps both employees and employers happy and financially sound. Speak with a KBI Benefits agent today to learn more.

Effective work-life balance

Encouraging employees to disconnect from work-related emails and messages outside of business hours promotes a healthy work-life balance . When employees have designated time to relax and unwind, they return to work more refreshed and productive. This approach also boosts morale and productivity while at work, since the employee can look forward to uninterrupted relaxation time when they’re done.

Flexible hours and remote/hybrid work are also extremely attractive benefits that employees often look for. While this benefit will look different for each company, offering flexible work hours or remote work options can significantly improve employees' lives. Lengthy commutes can be a significant source of stress for some, while rigid 9-to-5 schedules may hinder others' work-life balance. Allowing employees to choose what works best for them can reduce stress, enhance job satisfaction, and ultimately boost productivity.

Meaningful Work and Career Growth

Employees want more than just a paycheck; they crave purpose and opportunities for growth. Aligning individual roles with organizational goals and values can greatly increase productivity, as it helps employees realize they’re meaningfully working towards a larger goal. Additionally, providing learning and development opportunities shows that you value your employees and their professional development. This not only enhances their job satisfaction but also contributes to increased productivity.

Investing in employee training and development is also crucial. Employees who lack the necessary skills to perform their jobs effectively may experience increased stress and decreased productivity. A robust onboarding process and ongoing training opportunities demonstrate your commitment to supporting employees' mental well-being and preventing costly mistakes.

Providing supplemental learning opportunities for employees that want to learn more about the company’s other departments can help employees improve their morale. Perhaps the employee would be happier and more productive in another position – they wouldn’t learn this about themselves without a little support from management.

More than a paycheck

While a competitive salary is undoubtedly important, it's not the sole factor that motivates employees. By offering comprehensive employee benefits, fostering effective communication, providing flexibility, aligning work with purpose, and creating a stress-free workplace, businesses can motivate their staff without significantly increasing their expenses.

For businesses looking to motivate their employees while keeping an eye on their budget, KBI Benefits is ready to help. Our clients often see up to 30% savings on their employee benefits expenditures due to the level of industry expertise at their disposal. Speak with a KBI Benefits agent today to start strategizing.

What Matters Most to Employees in the Workplace?

Tue, 29 Aug 2023 13:17:49 GMT

Understanding what truly matters to employees is crucial for creating a positive and productive work environment. The specifics may vary between industries, but several key factors consistently emerge as the most important predictors of an employee's happiness and productivity. In this blog, we’ll explore what matters most to employees in the workplace.

1. Feeling Respected

The foundation of a thriving workplace culture rests on respect. Research has shown that feeling respected at work is the single best predictor of employee satisfaction with their company culture.

The language employees use to describe disrespect underscores its profound impact. Employees describe feeling demeaned, degraded, or like cogs in a machine. The kind of treatment that leads to this self-perception erodes morale and job satisfaction. In industries with a large number of public-facing employees, such as salespeople, agents, and customer service representatives, respect is even more critical.

Respect isn't just about avoiding negative behaviors; it also involves actively recognizing and appreciating employees' contributions. When employees feel valued and respected, they are more likely to be engaged, motivated, and committed to their roles. Employers can enhance employee satisfaction significantly by acknowledging their feelings, giving them the floor to speak when they want it, and treating them as the valued professionals they are. People rise to their roles, given the opportunity.

2. Receiving Employee Benefits

Employee benefits play a pivotal role in employee satisfaction and happiness. When it comes to predicting a company's culture score, benefits are more than twice as important as compensation . These benefits most often include health insurance, retirement plans, wellness programs, and other perks.

Health insurance and benefits are particularly significant predictors of employee satisfaction. With the escalating costs of healthcare, employees greatly appreciate not having to worry about this essential aspect of their well-being. This sense of security and gratitude translates into increased commitment and productivity at work. Employers who provide comprehensive benefits packages signal to their employees that they genuinely care about their welfare.

KBI Benefits has helped dozens of companies improve their employees’ wellbeing and productivity with employee benefits plans that suit their budgets. Speak with a KBI Benefits agent today to discover how you could offer comprehensive employee benefits at a 30% discount compared to our competitors.

3. Learning and Development

In today's rapidly changing job market, employees highly value opportunities for learning and development.

Employees in companies that prioritize learning and development initiatives are more engaged and motivated. Programs that incentivize additional education, such as tuition reimbursement for relevant classes and mentorship opportunities with senior executives, not only support the employee’s growth, but the company reaps the benefits of their improved skills as well.

Whether employees seek career advancement within their current roles or aspire to pivot into new ones, learning and development opportunities are essential for personal and professional growth. Companies that invest in their employees' continuous learning demonstrate a commitment to their long-term success.

4. KBI Benefits Builds Company Culture

If you're looking to enhance your company's relationship with its employees, action speaks louder than words. Providing a robust employee benefits plan can be a game-changer. It shows your commitment to employee well-being and significantly boosts job satisfaction. KBI Benefits, with its comprehensive benefits plans, can help you create a workplace culture where employees feel respected, supported, and valued. Speak with a KBI Benefits representative today to discover how affordable employee benefits can help your employees and your company thrive.

KBI Benefits Earns 'Great Place to Work' Award in 2023!

Sat, 19 Aug 2023 02:27:45 GMT

We are proud to announce that we have earned the prestigious 'Great Place to Work' award for the year 2023. This recognition underscores our unwavering dedication to nurturing an exceptional workplace culture that resonates with its employees, making it an organization that people love to work at.

We’re going to discuss a bit about why this award is so meaningful to us by going over how we were able to earn it.

It's clear that the 'Great Place to Work' certification isn't handed out casually. The organization that provides this awards partners with Fortune to publish the acclaimed Fortune 100 Best Companies to Work For list. This is a truly prestigious organization that KBI is humbled to receive recognition from.

The 'Great Place to Work' certification involves a certification process in which our employees are given the floor to speak their mind about the company. KBI’s success in earning the 'Great Place to Work' recognition can be attributed to the overwhelmingly positive feedback provided by its workforce.

Employee opinions hold immense significance in determining the company's scores, validating that KBI Benefits is indeed an organization where people thrive and grow. This award, therefore, provides job seekers with objective insight into how employees feel about working with us.

To earn this certification, a company must demonstrate a commitment to fairness, safety, engagement, and diversity from the perspective of their employees. Our achievement of this award showcases how KBI Benefits values its employees' well-being, ensures an inclusive environment, and fosters exceptional engagement compared to other organizations.

KBI Benefits' achievement of the 'Great Place to Work' award serves as an inspiration for us to continue to improve our employees’ lives and experiences at work. Without their dedication, we couldn’t provide the valuable services that our clients enjoy. By adopting flexibility, promoting respect and value for employees, championing diversity and inclusion, fostering work-life balance, and actively seeking employee feedback, KBI Benefits acts on its promises of excellence rather than simply making promises.

In conclusion, KBI Benefits' celebration of the 'Great Place to Work' award for 2023 isn't just about the accolade itself. It's a symbol of our commitment to fostering a workplace where employees flourish, thrive, and find meaning in their contributions. KBI Benefits is both humbled and proud to receive this recognition, a testament to its ongoing dedication to providing an exceptional and rewarding environment for its employees. As the journey continues, KBI Benefits remains steadfast in its mission to be more than just an organization—it is a true home for those who believe that work can be both impactful and fulfilling.

What are the 3 kinds of employees, and how do they affect your bottom line?

Sat, 19 Aug 2023 02:23:02 GMT

In every workplace, there exists a dynamic mix of employees, each with their own unique perspective, attitude, and work ethic. Understanding this spectrum of employee engagement is crucial for businesses, as it significantly impacts their bottom line. The three broad categories into which employees can be classified are: engaged, disengaged, and actively disengaged. Let’s discuss each of these categories, how employees might become disengaged, and what management can do to turn those numbers around and improve the company’s profits.

Engaged Employees - The Powerhouse of Productivity

Engaged employees form the bedrock of any successful organization. These individuals not only enjoy their work, but they also have a deep sense of connection with the company they work for. Their dedication and enthusiasm lead them to consistently go the extra mile, striving to make their organization better every day. They're the ones who transform an ordinary workplace into a vibrant and thriving community.

Here are some qualities commonly found in engaged employees:

Team Players: Engaged employees want to feel like an integral part of the team. They thrive on collaboration and feel motivated when they know their contributions matter.

Feedback Seekers: They crave real-time feedback. This helps them understand their strengths and areas for improvement, driving them to excel.

Value Perks and Rewards: Engaged employees appreciate perks and rewards that go beyond monetary compensation or paid time off. These incentives make them feel valued and recognized for their hard work.

Actively Disengaged Employees – Demoralized and Unmotivated

On the opposite end of the spectrum, we find actively disengaged employees. These are individuals who don't find joy in their work. They may be unhappy with their responsibilities, their managers, or even the company as a whole. This discontentment can cast a shadow over the workplace, potentially eroding the positive environment that engaged employees work hard to create.

Here are some qualities typically seen in actively disengaged employees:

Isolation: They often lack opportunities to interact with their co-workers. Isolated employees can feel disconnected from the company's mission and goals.

Poor Management: Bad management can be a significant factor in employee disengagement. When employees feel undervalued or unsupported by their superiors, their motivation plummets.

Limited Feedback: If employees only receive annual performance reviews, or none at all, it can leave them feeling disconnected from the company and undervalued.

Not Engaged Employees - The Silent Majority

Surprisingly, a recent report from Gallup showed that over half of employees in the U.S. fall into the category of "not engaged." These employees, while not actively harming the workplace environment, do not contribute much either. They show up, do their job, and that's about it. They're neutral, not adding any significant value to the organization.

What now?

Understanding these three categories is crucial because they play a pivotal role in determining a company's success. Employee engagement isn't just about a feel-good factor; it directly affects the bottom line. Annually in the U.S., a staggering $450 to $550 billion is lost in productivity costs due to employee disengagement.

But there's hope. By making a few strategic adjustments, businesses can significantly reduce these losses. One of the most impactful changes an organization can make is offering comprehensive employee healthcare benefits. In today's world, this is a vital incentive that can motivate employees to not only show up but to give their best effort.

KBI Benefits: Transforming Employee Engagement and Your Bottom Line

Imagine the positive impact on your company when employees are engaged, when they see themselves as part of a team, receive timely feedback, and appreciate the perks and rewards you provide. This isn't just a dream; it's a tangible result that KBI Benefits has helped many businesses achieve.

KBI Benefits has been a game-changer for numerous companies seeking to improve employee engagement and ultimately boost their profits. By providing valuable employee benefits and the education employees need to make the most of them, KBI Benefits helps create a workplace where employees feel valued, supported, and motivated.

If you're ready to unlock the true potential of your employees, reach out to a KBI Benefits agent today . Discover how you could save up to 30% on your employee benefits expenditures while creating a workplace that attracts, retains, and motivates top talent. It's a win-win for both your employees and your bottom line.

What Employee Benefits Should Every Employer Offer?

Wed, 09 Aug 2023 15:56:03 GMT

In a recent survey done by Forbes Advisor, 40% of employers stated that workers leave their jobs to seek better benefits elsewhere. To keep your company hiring competitively and retaining highly-trained staff, it's essential to understand the most sought-after employee benefits. This blog will provide you with a shortlist of these benefits to help you retain high-quality employees, as determined by Forbes research.

Employer-Covered Healthcare

The following are a variety of healthcare benefits that employees consistently are looking for:

Medical healthcare: Healthcare is consistently rated as the most crucial employee benefit. Both employees and employers recognize its importance. Comprehensive health insurance not only supports employees' well-being but also fosters a sense of security, making them more likely to stay with your company for the long term.

Life insurance: Life insurance is the second most valued benefit, with 45% of employees and 43% of employers considering it vital when surveyed. Offering life insurance coverage not only provides peace of mind to employees and their families but also demonstrates that your company values their financial security.

Mental health assistance: Mental health is gaining recognition as a significant concern in the workplace. Offering mental health assistance, such as counseling services or stress management programs, can create a healthier and more productive work environment.

Retirement plans: Planning for the future is crucial for employees, and 34% of both employees and employers surveyed by Forbes agree that pension and retirement plans are essential benefits. Offering a robust retirement plan can attract experienced professionals who prioritize long-term financial stability.

Given how essential healthcare is for employees and employers alike, it’s important that your company can effectively budget for this significant expense. KBI Benefits is ready to help you save up to 40% on your current employee benefits budget while maintaining the same level of benefits quality. Speak with an agent today to learn more about how your business could benefit from a strategic partnership with KBI Benefits.

Company culture benefits

Aside from traditional benefits, employees and employers both agree that company culture plays a vital role in employee productivity and retention. Key elements of a positive company culture include:

Work-Life Balance: Work-life balance is the top priority for both employees (51%) and employers (47%). Encouraging flexible work arrangements and respecting personal time fosters a healthy work environment and enhances employee well-being.

Building Trust: Building trust within the organization is crucial for fostering positive relationships between employees and management. Employees (20%) and employers (27%) recognize the importance of trust in creating a productive and motivated workforce.

Flexible Hours: Flexibility in work hours is highly valued by both employees (34%) and employers (40%). Allowing remote employees to set their schedules can lead to improved productivity and job satisfaction.

Conclusion

Understanding the needs and preferences of your workforce is key to creating a competitive benefits package. KBI Benefits specializes in providing customizable employee benefits plans that help companies save up to 40% on total benefits expenditures. By partnering with KBI Benefits, you can ensure that your employees feel valued and supported, leading to a more engaged and productive workforce. Speak with a KBI Benefits agent today to discover how you can optimize your employee benefits and gain a competitive edge in the hiring market.

How to Achieve Your New Hire Goals -- Attracting High-Quality Employees Efficiently

Mon, 31 Jul 2023 16:10:15 GMT

Gone are the days when corporations filled most job openings from within. In today's market, hiring from the outside is more common, which means organizations need to rethink their hiring strategies. If you’re wondering how to achieve your new hire goals, here are some essential tips for you to consider:

Create Strategic Job Postings

To streamline your recruitment process and attract the right candidates, it's crucial to create realistic job descriptions. Start by conducting a thorough job analysis to identify the specific tasks and attributes required for the role.

Additionally, internal job boards are an excellent resource for promoting job openings to current employees, encouraging career growth and reducing turnover. By posting vacancies internally first, you might find talented individuals who are already invested in your company and ready to take on new challenges.

Tip: Avoid piling on unnecessary requirements. It might be tempting to hyper-specify what sort of employee you want to fill a given position, but you may unintentionally make your applicant pool bigger rather than smaller.

Focus on Active Job Seekers

Employers looking to fill vacant positions are most often looking "passive candidates” (experienced candidates that aren’t looking to leave their position), according to a LinkedIn survey conducted in 2015. The appeal is obvious, since experienced employees don’t typically need to bounce from job to job, but there’s also the erroneous assumption that employees looking for a new job may have something “wrong” with them.

While passive job seekers may seem appealing, data suggests that active job seekers, who are actively looking for a new position, are more passionate about their work and career growth and are more likely to become dedicated employees. Concentrate on attracting candidates who are genuinely interested in the opportunities you offer, rather than spending an excessive budget on passive candidate outreach.

Test Candidates' Skills

Objective testing of candidates' standard skills can be an effective way to predict a candidate's potential success in a role. Skills assessments should be standardized and consistently applied across all applicants to provide a consistent basis from which to gauge a candidate’s potential success in a position.

It’s important to remember that skill and competency are the names of the game. Avoid falling for the allure of trendy technologies that claim to predict hires, like personality tests and other pseudoscientific measurements. Instead, focus on real-world skills that directly align with the job requirements.

Revamp the Interviewing Process

Interviews play a critical role in hiring decisions, but they can be susceptible to bias and inefficiency. As mentioned above, standardizing your hiring processes can greatly improve your ability to find employees with favorable skills and experience.

To optimize the interviewing process, develop a structured interview format, centered on past behavior and relevant performance. Resist the temptation to extend the number of interviews, as it can slow down the hiring process without necessarily improving candidate selection. With an effective interview format, there’s no need to continually call the candidate back in so you can make your decision.

The Power of Comprehensive Employee Benefits Plans

Businesses can significantly enhance their hiring efforts by offering comprehensive employee benefits plans. Research shows that companies with attractive benefits packages are more likely to attract highly-trained employees compared to those with higher salaries alone. An appealing benefits plan not only helps to retain existing talent, but also serves as a powerful recruiting tool that sets you apart from the competition.

The next logical question is, what benefits do employees want , and how can my company afford them?

All of these questions and more can be answered by one of our strategists at KBI Benefits.

KBI Benefits specializes in crafting tailor-made benefits packages that cater to your employees' needs and boost your company's appeal in the competitive hiring market while keeping an eye on your budge. Speak with a KBI Benefits agent today to discover how you can save up to 40% on your employee benefits plan through their proprietary creative financing models. Take the first step towards building a stronger and more competitive team today!

What do Employees Look for in a Benefits Package?

Fri, 21 Jul 2023 14:09:13 GMT

Attracting and retaining skilled employees is crucial for the success of any business. That’s why offering a comprehensive benefits package can make a significant difference in attracting top talent and keeping your current employees satisfied. In a survey conducted by Forbes Advisor, it was found that 40% of employers believe that workers leave their jobs in search of better employee benefits. Therefore, it's essential for employers to understand what benefits are most sought-after by employees to build a competitive package that meets their needs. Let’s discuss the kinds of benefits that employees are looking for.

The most sought-after employee benefits

Employer-Covered Healthcare: Both employees and employers agree that healthcare coverage is the most important benefit. It provides employees with the security of having their medical needs taken care of and helps employers retain a healthy and productive workforce. You can read more about the value of employee wellness here .

Life Insurance: Life insurance is another crucial benefit that provides financial protection to employees and their families in case of an unfortunate event. It is considered an essential aspect of a comprehensive benefits package , and employees will often look for this kind of coverage when finding a new job.

Pension and Retirement Plans: Planning for the future is vital, and employees appreciate having retirement plans that help them secure their financial stability after they stop working. This is one of the many ways that employers can help incentivize employees to perform their job effectively in the long-term.

Mandatory Paid Time Off: Offering paid time off is highly valued by employees, especially as it allows them to take care of personal matters, spend time with family, and recharge when necessary. Allowing employees to handle personal matters gives them the peace of mind to perform their role effectively.

Mental Health Assistance: Mental health support is gaining importance as employees recognize the significance of emotional well-being. Employers should consider providing resources and support to help their staff cope with stress and mental health challenges.

Most Important Culture Benefits

Apart from tangible benefits, a positive company culture is essential for employee satisfaction and engagement as well. Let’s discuss the types of work benefits that employees often look for when accepting a new job.

Work-Life Balance: Both employees and employers agree that work-life balance is the most valued element of company culture. It shows that the company cares about the well-being of its employees, leading to increased loyalty and productivity. A healthy balance between the two helps to maintain the quality of an employee's work as well.

Building Trust: Trust is a critical aspect of a positive work environment. While this goes both ways and employees need to earn the trust of their employers, employers can give employees the opportunity to prove their ability to work independently. When employees feel trusted by their superiors and peers, they are more likely to be engaged and committed to the organization.

Give employees what they want

As the job market becomes increasingly competitive, offering a robust benefits package has become essential for attracting and retaining top talent. Employees are seeking a combination of financial security, work-life balance, and a positive work culture.

At KBI Benefits, we understand the importance of designing a comprehensive benefits package that meets the needs of your employees while being cost-effective for your business. With a focus on the most sought-after benefits, we can help your company develop an employee benefits plan that attracts and retains top talent.

We help businesses like yours save up to 40% on your benefits expenditures with creative financing while offering a competitive package that keeps your employees happy and engaged. Contact a KBI Benefits agent today to learn more and enhance your employee benefits package for a happier, more productive workforce.

4 Strategies to Improve Workplace Productivity

Tue, 18 Jul 2023 15:51:29 GMT

Smart employers aim for a golden combination – an engaged workforce that is also highly productive. In this blog, we will discuss four effective strategies to increase productivity in the workplace, tried and tested by industry professionals.

Encourage Learning Opportunities

Providing employees with opportunities for continuous learning has a direct impact on productivity . Companies can offer internal cross-training and employee development programs to help employees develop their skillsets, which benefits both the employee and the company. Employees gain a better understanding of how their work slots into the larger goal of the company, while the company expands the employee’s competency at their work.

Additional education from outside of the company can also be a vital asset to improving an employee’s competency and productivity in their workplace. Supporting employees in pursuing higher education, such as a degree in Business Administration, through tuition assistance programs can also significantly boost productivity as employees bring new ideas and professional approaches to their daily work.

Provide Employees with the Right Technology

Equipping employees with the right tools is crucial for maximizing productivity . Many employees feel frustrated and unproductive when they lack the necessary technology to perform their jobs effectively, even if they’re capable at their work otherwise.

Aside from the basic tools that a job requires, managers could speak with employees directly and ask them what tools would improve their productivity even more. Ready access to the latest tech, such as AI programs that can quickly sort through data, or a greater quantity of the same tools, can reduce bottlenecking and ensure that every employee can reach their full productivity potential.

Strengthen Communication Protocols

Open and effective communication is essential for boosting productivity in the workplace . Managers should be accessible to their employees, providing clear expectations and responsibilities while also being available to answer any questions or provide backup when necessary. When communication channels are established and managers effectively communicate the company's mission and goals, employees have a greater sense of purpose in relation to their work. This sense of connection fosters efficiency and job satisfaction as employees come to understand the value of their output and the necessity of their participation in the company.

Implementing regular check-ins and feedback sessions can also enhance communication and alignment between employees and the company's objectives. Check-ins serve the dual purpose of giving managers a deeper insight into how effectively employees are accomplishing their tasks while also creating a positive bond between managers and employees. Instead of only speaking to employees when they’ve done something wrong, this sets the precedent that managers are proactively helping employees rather than retroactively punishing them.

Partnering with KBI Benefits to Optimize Employee Benefits

Offering employee benefits is a historically effective method of increasing employee productivity . Not only do employees enjoy better health and require fewer sick days, but employee benefits give employees something to work towards every day. They understand that doing a good job provides them with reduced healthcare costs and other benefits such as reduced-price gym memberships, which motivates them to excel in their role. These benefits serve to improve employees’ lives, boost workplace morale, and generally give them more mental space to perform their job effectively.

By working with KBI Benefits, companies not only encourage their employees to perform their best at work but also save up to 40% on their benefits expenditures using proprietary creative financing models . This allows even smaller companies to comfortably afford a comprehensive employee benefits plan on a tighter budget. Over time, these benefits begin to pay for themselves by improving both the quality and quantity of employee output, which has a noticeable impact on your bottom line.

Ready to get started?

Improving productivity in the workplace requires a multi-faceted approach. By implementing strategies such as encouraging learning opportunities, providing necessary technology, emphasizing company culture, and strengthening communication protocols, businesses can enhance employee productivity. Furthermore, partnering with KBI Benefits enables companies to not only motivate and support their employees but also achieve substantial cost savings. By working with KBI Benefits, companies can create a thriving and productive workforce, driving their success in the long run. Speak with a KBI Benefits agent today to learn more .

Do employees prioritize employee benefits? The answer is a resounding yes!

Wed, 12 Jul 2023 19:44:43 GMT

Employee benefits play a crucial role in attracting and retaining top talent, boosting morale, and increasing productivity . In this blog, we will explore the reasons why employees prioritize benefits over other forms of compensation and discuss how employers can prioritize employee benefits to create a positive impact on their organization.

Employee benefits make employees feel valued

Employee benefits are essential because they help employees feel valued and cared for by their organization. Benefits go beyond monetary compensation and help employees achieve a work-life balance, enhance their mental and physical well-being, and provide support when they need it most. Employees prioritize finding a job that caters to these needs.

To prioritize employee benefits effectively, employers must understand the specific needs and preferences of their workforce. While there are common benefits that employees value, with dental, vision, and medical benefits being the most common, it's crucial to acknowledge that different groups of employees have different priorities. Tailoring benefits to accommodate diverse needs is key to creating a positive impact.

That’s why employers turn to KBI Benefits to help them develop a comprehensive employee benefits plan. We work directly with you to determine what benefits will most effectively satisfy your workforce and ultimately boost productivity. Speak with a KBI Benefits agent today to learn more .

Employee benefits help your business stand out

However, prioritizing employee benefits requires more than simply offering the typical benefits that any company might offer. It requires careful consideration of the company itself to properly highlight differentiating factors from other companies.

To help your business stand out to potential new employees, you first have to consider how the company’s values and goals factor into your employee benefits plan. Do you want to emphasize your company’s focus on employee wellbeing in order to attract highly-trained talent? Does your business want to clearly incentivize loyalty and a consistently strong work ethic? The right employee benefits plan can help you make these stances very clear to current and potential employees.

Another method of helping your business stand out from the competition is to develop your employee benefits strategy around the benefits that employees want the most. Consider developing a list of benefits preferences from your current employees via focus groups and anonymous surveys. Not only will this give employees an opportunity to be a part of a team decision, but it will ensure that your employee benefits plan will optimally satisfy your employees’ preferences.

Effectively communicating your employee benefits to employees

It's no secret that employees want to establish a clear line of communication with their employer , and that goes double for employee benefits. Proactive communication is essential to ensure employees are aware of the benefits available to them. Even the most generous and innovative benefits package won't have the desired impact if employees are not informed about their eligibility and how the company supports them.

Don’t let your comprehensive employee benefits plan slip into obscurity – KBI Benefits will help you communicate your new benefits plan to your employees with an easy-to-follow, turnkey process. We provide a suite of apps, statements, and live help to make it easier than ever for employees to understand and engage with their benefits. Learn more here .

KBI Benefits can help you respond to your employees’ needs

KBI Benefits knows employee benefits. We're ready to leverage our cumulative decades of experience to help you determine your employees’ needs and create a balanced employee benefits package that suits your budget. KBI Benefits regularly helps clients save up to 40% on their employee benefits plan with proprietary financing strategies and smart bookkeeping. Speak with a KBI Benefits agent today to start transforming your employee benefits program .

Do Employee Benefits Improve Productivity?

Tue, 27 Jun 2023 18:34:30 GMT

More than just a buzzword, employee wellness has emerged as a crucial concept in the modern workplace. The impact of disengaged employees on productivity and the economy is staggering, costing the U.S. economy billions of dollars annually . In order to address this issue and foster a healthy and productive workforce, businesses can adopt a holistic approach to their employees’ health. Let’s define employee wellness and go over the various ways that it can affect workplace productivity.

What is employee wellness?

Employee wellness is the overall well-being of your team . It extends beyond their physical health, although that is still important – this concept also addresses an employee’s emotional, financial, and social health as well. Given how much time employees spend in the workplace, employers that emphasize positive employee wellness can have a significant impact on their employee’s overall health.

That’s employee wellness in the abstract, but what does it look like day-to-day, and how can employers make practical changes to address it? Let’s break down this term into actionable solutions and the benefits of addressing each aspect of wellness.

Physical Wellness

Physical wellness is a fundamental aspect of employee well-being . Employers play a pivotal role in promoting a healthy lifestyle by offering resources and benefits that support exercise, proper nutrition, and overall physical health. Access to comprehensive healthcare benefits is especially important, as it’s one of the biggest stressors that Americans commonly face. All forms of wellness can suffer if physical wellness isn’t addressed.

That’s why KBI Benefits strives to provide your employees with a quality healthcare plan that comprehensively addresses their physical wellness needs. With a strong, healthy foundation, employees are more likely to innovate and remain loyal to their employers . Speak with a KBI Benefits agent today to learn more .

Emotional Wellness

Addressing mental health in the workplace is vital to ensure employees feel supported and valued. Employers can do their part by raising awareness of mental health in the form of workshops and mental health training programs, which can help to remove the stigma around addressing one’s mental health. This can help employees feel seen and supported.

Providing holistic mental health resources can also go a long way to helping struggling employees come to terms with their mental health. Employee benefits plans can empower employees to seek a professional when they need one, which allows them to address and nurture their emotional wellness at their own pace.

Financial Wellness

Financial wellness is closely tied to overall employee well-being, as money-related stress can impact all aspects of life . If an employee feels financially secure, they’re more likely to be content with their job and remain with the company. Employers, in turn, can benefit from retaining highly trained employees. This means less turnover, and less money spent on hiring and training new employees.

Employee benefits offer an excellent method of supporting your team’s financial wellness without ballooning expenses. KBI Benefits can help you develop a wellness plan at a fraction of the cost of competing employee benefits solutions.

Social Wellness

Traditional workplace socializing took an unexpected turn in 2020, and many teams started to experience less and less facetime with one another. While it may not be immediately obvious, the time that employees could spend socializing with one another during work hours can be imperative to building a strong team rapport and even to improving workflows. Employees could bounce ideas off one another, learn about each other’s jobs and specialties, and gain knowledge about their position within the company. Embrace your employees’ desire to chat – it could benefit your organization more than you realize.

Conclusion

Employee wellness is not just a passing trend; it is an essential aspect of building a healthy and productive workforce. KBI Benefits understands the significance of comprehensive employee benefits plans that address physical, emotional, financial, and social wellness.

By offering creative financing options and regular optimization check-ins, KBI Benefits helps businesses save up to 20-40% on their employee benefits budget, ensuring that both the company and its employees can thrive. Speak with a KBI Benefits agent today to start supporting your employees’ wellness in all its forms.

How do you define employee wellness?

Tue, 27 Jun 2023 14:32:34 GMT

What is employee wellness?

Physical Wellness

Emotional Wellness

Financial Wellness

Social Wellness

Conclusion

What are the causes of low employee productivity?

Fri, 23 Jun 2023 21:39:16 GMT

In a more health-conscious world, more companies are tackling the very real issue of low employee productivity and engagement. Why are employees disengaging, and how can organizations help to align incentives? Let’s explore some common reasons that employees and managers report low productivity in their organizations, along with methods of resolving these issues and improving your bottom line.

Lack of training

One of the leading causes of low employee productivity is a lack of training . When employees feel like they don’t have the right tools to perform their job adequately, they may feel overwhelmed and uncertain with their responsibilities, which leads to mistakes, missed deadlines, and low morale. The up-front cost of investing in training programs is nothing in comparison to the potential cost of lost productivity.

But it’s not simply a lack of training that can hamper productivity – employees that don’t feel they have forward momentum in their career can also struggle to perform their job effectively. Companies that provide training opportunities for employees to expand their skillset prove that they’re willing to invest in their workers, which is an important aspect of nurturing high morale in the workplace. The company benefits too, as these employees can expand their competencies and thus perform a broader breadth of work efficiently.

Lack of management and recognition

We all appreciate a “job well done” from someone we respect, but this could be a lot more important to a company’s overall health than you might think . When employees feel that their efforts aren’t acknowledged or valued, their motivation to perform at their best diminishes. This work-related ennui can start to affect even your most productive employees, and over time the productivity of your organization drops with your employees’ morale. Training your management to incorporate praise and recognition into their employee feedback can be essential for keeping the organization running at its most efficient.

The relationship between management and your team can also degrade productivity if it isn’t handled properly. Micromanagement, a lack of clear communication, and a lack of verbalized respect can undermine an otherwise healthy working environment. By setting clear expectations for your employees and giving them the necessary space to perform their work, you can avoid this kind of chafing between management and your team.

Lack of workplace wellness

Workplace wellness encompasses both mental and physical well-being. If employees are stressed, fatigued, or dealing with health issues, their productivity is likely to suffer. High levels of stress can lead to burnout, absenteeism, and decreased focus. Therefore, companies should prioritize employee wellness by providing resources for stress management, promoting work-life balance, and offering access to employee benefits that keep them healthy.

Workplace wellness isn’t just about the individual either; it also benefits the company as a whole. Research has shown that companies that invest in employee benefits and wellness programs experience higher levels of employee engagement, innovation, and productivity. When employees feel supported and valued, they are more likely to go the extra mile and contribute their best efforts to the organization.

Boost your team’s productivity

KBI Benefits has emerged as a valuable partner for businesses looking to enhance their employee benefits programs. With our collective decades of expertise, we can help your business save up to 40% on your employee benefits program. That means more liquidity to help your company expand and thrive.

Are you ready to help your employees perform at their peak? It’s time to invest in an employee benefits program that offers savings you won’t find from our competitors. Speak with a KBI Benefits representative today and discover the true value of employee health.

Can Small Companies Afford to Provide Employee Benefits?

Wed, 14 Jun 2023 20:36:09 GMT

Employee benefits have long been considered a cornerstone of attracting and retaining top talent. However, for small companies with limited resources, providing employee benefits might seem like a significant financial burden. The upfront costs and ongoing expenses associated with employee benefits can be daunting. But the truth is, there are solutions available that can help small companies afford and even save money on employee benefits while reaping the long-term benefits of a happier and more productive workforce. Let’s discuss how companies can strategically approach funding an employee benefits program in order to increase their profits and improve productivity.

How can small companies afford to provide employee benefits?

To make employee benefits more affordable, small companies can explore creative financing solutions with experienced benefits consultants . Partnering with KBI Benefits can help companies access cost-saving strategies that can reduce expenses by up to 40%. These solutions may include alternative funding arrangements, such as self-insured plans or captives, which can help manage risks and control costs more effectively. We’ll work alongside you to determine what funding options make the most sense for your organization.

Do we have to reduce employee benefits quality to reduce the price?

It’s important to note that a less expensive employee benefits plan does not have to mean a lower quality plan. Rather, by optimally leveraging every dollar in your budget, your company can enjoy the same or a higher quality employee benefits plan.

How does this work, and how can you optimize your plan? KBI Benefits specializes in comprehensive benefits reporting that provides an easy-to-follow overview of where your money is going and if it could be spent more effectively. We continually monitor and improve your plan to ensure that you’re receiving the best possible prices for the service you’re receiving.

How can my company get the most out of our employee benefits program?

To get the most out of their budget, small companies can leverage the expertise of benefits consultants to review and optimize their employee benefits offerings. KBI benefits specializes in designing benefit plans tailored to the unique needs and budgetary constraints of your business. By conducting a thorough analysis of the company's employee population, utilization patterns, and market trends, consultants can identify opportunities for cost savings and efficiency improvements. We can help your company select the most cost-effective benefit options and negotiate favorable rates with insurance providers.

What are the benefits of employee benefits plans?

The up-front cost of an employee benefits plan can turn away a lot of businesses with tight budgets, but the long-term benefits of employee benefits are important to consider. One of the key advantages of offering employee benefits is the potential to improve employee productivity . When employees feel valued and supported through benefits like healthcare coverage, retirement plans, or flexible work arrangements, they are more likely to be engaged in their job and motivated to continue innovating. Over time, this positive shift in morale manifests in faster turnaround time, lower employment churn, and overall improved employee satisfaction with the company.

Save money on your employee benefits program

KBI Benefits wants to help you business save money in the short term and enhance your team’s productivity in the long term. Investing in employee benefits can yield significant returns by improving employee productivity, overall satisfaction, and stronger profit margins. By utilizing our creative financing solutions, small companies can effectively manage costs while still providing valuable benefits to their employees. Speak with a KBI Benefits agent today to learn more.

Here's Why Most Companies Offer Health Benefits to Their Employees

Wed, 07 Jun 2023 21:24:33 GMT

Employee benefits have become a crucial aspect of attracting and retaining top talent . While salary is undoubtedly important, offering comprehensive health benefits helps your business stand out from the competition – and with the right plan, it could cost your business a lot less. Let’s discuss the advantages of providing employee health benefit packages and how they contribute to increased productivity, improved recruitment efforts, and cost savings for companies.

Health benefits engage employees

Employee benefits play a vital role in fostering a sense of value and motivation among employees. When employees feel that their health and well-being are prioritized, they are more likely to be engaged and satisfied in their roles. Comprehensive health benefits, including medical, dental, and vision coverage, provide a sense of security and peace of mind, allowing employees to focus on their work rather than worry about potential healthcare expenses. As a result, employees are more motivated, productive, and committed to their jobs.

Health benefits attract top talent

Companies that offer attractive employee benefits packages gain a competitive edge in the talent market . Highly trained professionals are more likely to be drawn to organizations that prioritize the well-being of their workforce. By providing comprehensive benefits, companies can differentiate themselves from competitors. Prospective employees see these benefits as valuable and are more likely to choose a company that invests in their long-term well-being.

Health benefits can be affordable for businesses

While offering employee benefits may seem like a significant financial investment for companies, innovative financing solutions can help alleviate the financial burden. Creative financing options offered by KBI Benefits allow your company to save up to 40% on their employee benefits programs. By leveraging alternative financing methods , companies can tailor benefit packages to meet the specific needs of their employees while maintaining cost control.

Health benefits nurture loyalty

Comprehensive employee benefits are not only instrumental in attracting new talent but also in retaining existing employees . When employees feel supported and valued through benefits like health insurance, retirement plans, and wellness programs, they are more likely to remain loyal to the organization. Reduced turnover leads to continuity, increased productivity, and cost savings associated with recruiting and training new employees.

Conclusion

Offering health benefits to employees is a strategic decision that yields numerous benefits for both the company and its workforce. Comprehensive benefit packages motivate and engage employees, leading to increased productivity and job satisfaction. Moreover, organizations that provide attractive employee benefits have a competitive advantage in recruiting top talent, enhancing their ability to build a skilled and dedicated workforce.

That's why KBI Benefits strives to provide comprehensive employee health benefits for less than the competition - we believe that employee benefits are an essential part of any company’s long-term strategy. By investing in employee health and well-being, companies foster a positive work environment and ensure their long-term success. Speak with a KBI Benefits agent today to discover how our plans can benefit your company and your employees.

Employee Productivity KPIs -- How to Improve Employee Productivity

Tue, 30 May 2023 18:00:58 GMT

Employers strive to create an environment where their team members are engaged, motivated, and perform at their best. To achieve this, organizations need to establish effective methods to measure and enhance employee productivity. Let’s talk about key performance indicators (or KPIs) to measure employee productivity along with strategies for improving productivity.

Employee KPIs for employers

To evaluate employee productivity, organizations rely on various KPIs that provide insights into individual and team performance. Some common KPIs include:

Key Result Areas (KRAs)

KRAs outline the primary responsibilities and goals for each employee. Measuring progress and achievements in these areas helps assess an employee’s productivity in their specialized area. Employers can provide job-specific feedback that can be more helpful for the employee than generic feedback.

Objectives and Key Results (OKRs)

OKRs define specific, measurable goals aligned with the organization's overall objectives. Regular evaluation of progress against these goals helps gauge an employee’s participation in the growth of the company overall. Employees, in turn, are given a wider snapshot of how their work helps to support the rest of the company.

Performance Reviews

Regular performance evaluations allow employers to assess individual contributions, identify areas for improvement, and provide feedback to enhance productivity. Employees receive advice from performance reviews specifically tailored to their performance strengths as well as potential areas of improvement.

Improving Employee Productivity

Using these methods of measuring productivity, employers can then hone in on strategies that address the pain points highlighted by their preferred KPIs. Here are some effective methods of nurturing employee productivity:

Clear Communication and Goal Setting

Establishing transparent communication channels and clearly defining individual and team goals fosters alignment, clarity, and motivation. If your team has a well-defined understanding of their expectations, as well as the ability to reach out if they have any follow-up questions, they’re much more likely to succeed.

Training and Development

Providing opportunities for skill enhancement and professional growth empowers employees to perform at a higher level and stay updated with industry best practices. Your organization could offer training programs that allows employees to improve their overall capability at the work that they’re doing. You could even encourage employees to learn more about other jobs in your organization that may be of interest to them.

Employee Benefits

Offering robust employee benefits plays a significant role in improving productivity and fostering a positive work environment. Competitive benefit packages that address employees' well-being, health, and financial security act as powerful incentives. Benefits such as comprehensive health insurance not only attract top talent but also cultivate a sense of loyalty, motivation, and job satisfaction among existing employees.

Enhancing employee productivity is a continuous journey that requires effective measurement, strategic initiatives, and the provision of comprehensive employee benefits. By implementing KPIs to evaluate productivity, adopting strategies to optimize performance, and offering robust benefits packages, employers can create an environment that motivates employees, increases productivity, and fosters loyalty. KBI Benefits empowers organizations to design and implement employee benefits plans that align with their goals and enhance the overall well-being of their workforce.

Speak with a KBI Benefits agent today to discover how employee benefits can enhance your employee productivity.

How Employee Advocacy Affects Productivity

Thu, 18 May 2023 19:22:24 GMT

Employers advocating for their employees can have a profound impact on productivity in the workplace . When employers actively support and advocate for their employees, it creates a positive work environment that fosters engagement, motivation, and loyalty. Let’s discuss the ways that employee advocacy positively affects the productivity of the workplace as a whole.

Enhanced company culture

When employers advocate for their employees' well-being, it shows that they genuinely care about their workforce. This sense of care and support increases employee engagement, as employees feel valued and appreciated. Engaged employees are more committed to their work, leading to higher productivity levels, higher quality work, and higher morale.

Employers who advocate for their employees also demonstrate a positive and supportive company culture. If the company’s higher-ups practice encourages open communication, respect, and fairness, employees will emulate and participate in this positive behavior. Employees in such a supportive environment are more likely to be proactive, innovative, and dedicated, which benefits the quality of their work and the company overall.

Improved Health and Well-being

Offering comprehensive healthcare benefits is a tangible way for employers to support their employees' physical and mental health. By providing access to healthcare services, preventive care, and wellness programs, employers help employees maintain and improve their overall well-being. Healthy employees experience fewer health-related issues, take fewer sick days, and have higher energy levels, all of which contribute to increased productivity.

Healthcare benefits that cover mental health support and stress management resources demonstrate that employers recognize the importance of mental health as well as physical. By offering these resources, employers help employees effectively manage stress, cope with challenges, and build resilience. Reduced stress levels can lead to improved focus, concentration, and problem-solving abilities, which helps employees feel more contented with their jobs.

Talent Attraction and Retention

Employee healthcare benefits are a highly valued aspect of the total compensation package. When employers provide comprehensive healthcare coverage, it demonstrates their commitment to the welfare of their employees, which can encourage employees to stay with the company longer. A stable and skilled workforce translates to higher productivity through reduced turnover, consistent performance, and institutional knowledge retention.

Additionally, by showing for their employees, the company starts to build an external reputation. High-quality, prospective employees are more likely to be attracted to organizations that demonstrate a genuine commitment to their employees' welfare. Positive employer branding enhances the organization's ability to attract top talent, contributing to a more skilled and productive workforce.

Conclusion

The evidence is everywhere – employers that are willing to advocate for their employees actively encourage improved productivity, and comprehensive healthcare benefits are a notable method of doing so. If your company is looking to hire the best employees in an affordable manner, speak with a KBI agent today and discover how we can help you save up to 40% on your employee benefits costs. Your employees are worth it!

Can Employee Benefits Help You Retain Employees?

Wed, 17 May 2023 17:40:10 GMT

Employee benefits have historically incentivized employees to stay with a company for long periods of time. As these employees learn new skills and master their craft, their potential to add more value to your organization also increases.

Let’s discuss the ways that employers can keep quality employees on their team longer and improve the company’s bottom line.

Employees are grateful

Employee benefits take a lot off of your employees’ plates. By offering them a high-quality health insurance plan at better rates than they could find on their own, they have a lot less to worry about. This simultaneously helps them concentrate at work and makes them grateful to your organization.

So, how can you improve your benefits offerings? Offering health insurance is a big one, but flexible hours and offering paid leave are also popular low-cost alternatives. The most important thing is to understand what your employees value and what works best for them. Consider asking your employees what kinds of benefits would make them happiest. Then, you can meet with a skilled benefits consultant to create a competitive benefits package that will meet the needs of your workers and your business. It’s also valuable to regularly review your employee benefits and perks to ensure that they're comprehensive and appreciated by your employees.

Talented employees will gravitate toward your company

Talented workers looking for a new job are more interested in working for a company that invests in their wellbeing. These extra benefits beyond high pay can make a difference when candidates receive multiple job offers, so investing in employee benefits now increases the chances that you’ll have the right talent coming to you for a job.

In a crowded job market, employee benefits are essential to attracting and retaining top talent. In fact, a recent survey from Vantage Circle revealed that 50% of employees would choose to work for an employer with better benefits than another company, and this number is even higher among younger workers.

Employees are healthier

Benefits can also reduce absenteeism and the number of sick days used. Employees that are receiving regular healthcare checkups are less likely to get sick, and thus they’re willing and able to come to work for their shift instead of needing to stay home to recover.

A higher percentage of your workforce coming to work more often can have huge implications on the productivity of your team. This helps to reduce miscommunications and workflow slowdowns when everyone is in their station.

Employees are loyal

Providing employees with the right employee benefits not only makes them happier and more productive, but it also increases their loyalty to your organization. Employees are less likely to look for another job if you provide them with everything they need to be contented. They’re also more likely to innovate and bring their best ideas to work if they feel that you’re showing up for them.

Conclusion

Employee benefits can help you keep employees and save you money in the long run by reducing direct costs (like sick leave) and indirect costs (lost productivity). Furthermore, offering comprehensive benefits will actually increase your workforce’s morale, which can ultimately drive higher productivity and help your business grow.

If you’re ready to start investing in the health of your business, speak with an experienced benefits consultant at KBI Benefits today.

Advantages of Human Resource Information Systems

Sat, 06 May 2023 02:42:49 GMT

A human resource information system is a centralized database for the management of employee data. It helps in reducing the amount of time spent on clerical work and also ensures that all employee information is accurate and stored in one place. Let’s discuss the benefits of utilizing an HRIS in your employee’s workflow.

Automation

The most significant advantage of human resource information systems is that they enable a company to streamline and automate the management of all employee data. Not only does this take a lot of repetitive work off your workforce’s plate, but it also greatly reduces the potential for error.

HRIS systems can also help automate many daily human resources tasks, such as payroll and administering employee benefits. These automated features allow HR teams to focus on the human side of HR, like training and development. For example, an HRIS system updates employee records for every new hire and every change of status, which reduces the need for employees to update their personal information manually so they can focus on performing their role.

Reporting

HRIS reporting is a great way to empower managers and employees with relevant insights into their teams. It helps to identify talent gaps and gives managers the insight they need to develop their staff and improve performance.

HR reporting can also be used to track the progress of training and development programs for current employees. This can help management determine which employees are already trained in certain areas and thus who might be suitable for a promotion or job title change.

These systems also enable HR professionals to send out instant alerts, such as when a new employee is hired, or an existing employee has an opportunity to move to a different position. These messages can be sent to employees from an authorized supervisor or team leader with the expediency of automation.

Compliance

HRIS software allows the collection of a wide range of employee data, including benefit details and mandated training. This allows the management of an organization to adhere to local and international laws.

For example, a human resources information system can track when your workforce was last educated on modern cybersecurity or sexual harassment laws. KBI Benefits can provide comprehensive training materials on a wide variety of subjects so your HR team doesn’t need to create them from scratch.

Cloud technology

A cloud-based HRIS allows for scalability, flexibility, and data security, which can be especially beneficial in today's climate of tightening government regulations and data leaks. It also eliminates the need for a local IT infrastructure, making it easier to manage employee information on mobile devices. These platforms can connect all of the key aspects of a human resource department, from recruiting and onboarding to payroll and benefits administration, and make them easily and securely accessible to your team.

Implementation

A well-designed and functional HRIS can take a few weeks to integrate with the company's existing infrastructure. This process can involve migrating data, ensuring employees are trained to use the system, and launching the new platform. But with the help of KBI Benefits, you’ll have your employees acclimated to the new processes in no time. Schedule a call with one of our expert consultants today and discover how KBI Benefits can become a seamless extension of your HR team.

Are Employee Benefits Better Than Higher Pay?

Thu, 13 Apr 2023 19:53:45 GMT

When your company hires a great employee, it’s only natural that you’ll want to keep them on your team for a long time. But when it comes time to offer your exceptional employees additional compensation for their hard work, you might be asking yourself: should I provide an employee benefits program or higher pay?

In short, employees typically prefer to have access to a health benefits program over a higher salary. Let’s discuss some of the potential reasons for this and the ways it impacts your bottom line.

Employee benefits provide peace of mind

Everybody needs regular healthcare checkups whether they have coverage or not, so offering a benefits program can help your employees feel more at ease in case of an unexpected injury or a high medical bill. You can help them prepare for a rainy day by offering comprehensive coverage.

Recipients of these benefits are more likely to feel healthy, require fewer sick days, and have a better quality of life overall. One study asserted that 90% of businesses saw the quality and quantity of employee work improve when employee wellness is considered a priority. When your employees are thriving, so is your business.

Employee benefits save money (for employees AND employers)

Given the discounts that companies like yours can provide to your employees with a group health plan, your employees stand to save more money in the long run than what a comparable raise could provide them. This is also coupled with a reduction in emotional stress that a lack of health insurance can cause, which can help prevent stress-related illnesses and more trips to the doctor.

An employee benefits plan may seem like an expensive investment at first, but the financial benefit companies see when they invest in their employees’ mental and physical wellbeing cannot be overstated. When you invest in your employees, you’re investing in the health of your business.

Employee Benefits Can Help Your Company Retain Its Top Talent

Attracting and retaining employees is a major factor in your company's success, as turnover can have serious consequences for your business's bottom line. By focusing your recruitment and retention efforts on delivering employee benefits that are too good to give up, you can improve your odds of securing and keeping the best people in the industry. In exchange, your employees feel valued and motivated to do their work.

Plus, the financial and productivity cost of hiring and training new employees can be difficult to manage in comparison to maintaining a consistent workforce. By prioritizing the staff you already have, you can save yourself a significant amount of headache and lost productivity time on hiring new employees.

Conclusion

Employee benefits programs are a must for companies that want to retain their employees and keep them happy and productive at work . They help employees feel valued and secure while they save money on healthcare costs. If you’re ready to invest in your employees and the future of your business, speak with a KBI Benefits consultant today .

How to Improve Employee Engagement on a Budget

Mon, 03 Apr 2023 20:50:45 GMT

Employee engagement is a must for any business that wants to boost productivity, quality of work, and turnaround time, but it doesn’t have to cost a fortune. With the right strategies, your employees can be happier and more productive on a budget!

Let’s discuss some low-to-no cost strategies that you can easily implement to improve employee engagement.

1. Encourage Leaders to Connect With Employees

One of the easiest ways to increase employee engagement is to create a culture where leaders communicate and work closely with their team members. This helps ensure that leaders are able to build relationships with their team members, which can help them feel more appreciated in the workplace and improve their performance. Positive reinforcement is consistently a more potent motivator than punishment, according to a variety of studies.

Offering specific feedback when an employee succeeds is also crucial to maintaining a high level of employee engagement. If you want to help employees improve their performance, consider working with members of management to develop their ability to provide “compliment sandwiches” to their team. This involves offering two comments on the good work the employees have done on either side of every criticism.

2. Develop a Workplace Environment That Encourages and Supports Employees

One of the most important aspects of improving employee engagement is to create a workplace environment that encourages and supports professional development. According to a study done by the Harvard Division of Continuing Education, professional development can bolster employee confidence, job satisfaction, productivity, and morale .

This can include providing opportunities to expand their knowledge of their job such as additional training. Employees can organically seek out a better understanding of the company when they want it, which gives them the room to grow and improve their output. You could also consider implementing a mentoring program with your more experienced staff members. This can help new hires feel welcome while they acclimate to their new positions and the current staff members receive recognition for their exceptional job performance.

3. Prioritize your company’s core values in the workplace

A simple way to promote a high level of employee engagement is to establish your company’s core values and communicate them to both prospective employees and existing employees. This will help employees to understand what it is that makes your company unique and how they can align their careers with those values.

The most effective method of instilling your company’s values on your employees is for the senior staff members to demonstrate them. For example, if one of your company’s values is promoting the value of teamwork, your senior staff members can make a point to ask newer staff members if they need any help. This can encourage your employees to offer a helping hand to one another, cultivating a supportive work environment in which employees feel supported.

4. Provide a suite of employee benefits

Employee benefits are hands down the most effective method of boosting employee engagement . Employees feel more valued and overall are physically healthier when they receive employee benefits, both of which are significant contributors to an employee’s productivity in the workplace. For these reasons and many more, employee benefits are an essential investment in your employees and your business.

Unfortunately, too many employers believe that employee benefits are prohibitively expensive and don’t consider including them in their business model. But with consultation assistance from KBI Benefits , you can reduce the overall cost of your employee benefits program by as much as 40%. Coupled with the increased productivity that employee benefits cultivate, companies are missing out on an important financial investment. Contact us today to schedule a free consultation.

How to Reduce the Cost of Employee Benefits

Thu, 30 Mar 2023 17:15:00 GMT

Now that we’ve completed our five-part blog series focused on optimizing your benefits plan, we hope you feel more informed and empowered to reduce the cost of employee benefits. Given the ever-increasing costs associated with healthcare, everyone needs to adopt the right option and develop the best strategy to save their business and employees.

According to Kimberly Amadeo of The Balance , U.S. healthcare costs totaled $3.6 trillion in 2018, making healthcare one of the nation’s largest industries. That translates to a nearly unfathomable cost of $11,172 per person that year versus the comparatively meager $147 per person in 1960.

It’s enough to make business leaders wonder how much more their employees can take when trying to manage productive and fulfilling workdays while maintaining and paying a great deal of money on good healthcare if they need it.

But fortunately, as you’ve seen in the preceding posts in our Benefits Plan Optimization series, you have plenty of options available to explore to see how well they fit your budget and employees’ and the company’s needs.

EXPLORE OUR BENEFITS PLAN OPTIMIZATION SERIES

Part One: Fully Insured Plans

Part Two: Level-Funded Plans

Part Three: Partially Self-Funded Insurance Plans

Part Four: Self-Funded Insurance Plans

Part Five: Captive and Consortium Health Plans

HOW TO REDUCE THE COST OF EMPLOYEE BENEFITS: 5 OPTIONS TO EXPLORE

Our KBI Benefits team has worked hard to come up with and share with you what we believe are the best ways to reduce your healthcare spend. Let’s take a look back at the highlights of each of these five important health plan alternatives to see which ones might best align with your corporate culture, employee needs, and your bottom line.

1. FULLY INSURED INSURANCE PLANS

In our April blog post regarding fully insured plans , we wanted to touch on this traditional model, discussing its advantages and disadvantages. It is the least self-empowering type of plan for employers who want to save their business and employees. The more autonomy you can have regarding health insurance, the more advantageous deals you can make.

With fully insured insurance agreements, you pay a premium based on the carrier’s determination, depending on several variables, including:

Age and gender
Health status of eligible individuals
Location
Tobacco use
Individual vs. family enrollment
Administrative costs

Ultimately, all the factors determining premium pricing are combined among the organization’s covered members to calculate an average that represents all employees. Therefore, if you have a largely healthy employee population that takes their health seriously, you might still see higher costs if a few employees are older or experience significant and costly health issues.

Regardless of how the numbers are spread across your employee population, the total figure is what you and your employees are responsible for paying each month, six months, or per year, depending on what terms you work out with your insurance carrier.

The benefits of a fully insured plan include:

Consistent insurance rates make things more predictable and stable
The insurance carrier manages all claims
The insurance carrier assumes all the risk

The disadvantages of a fully insured plan include:

Higher premiums than alternative plans, such as self-insured models
Higher employer tax burden
Inflexibility

If your business relies on a fully insured model, you might want to keep reading to review other models that ask you to take more risks but offer some intriguing rewards.

2. SELF-FUNDED INSURANCE PLANS

We recently discussed self-funded insurance plans as an alternative to traditional fully insured plans. One of the first things we note in self-funded, or self-insurance, plans is that they instantly require more willingness from you to take on more risk. Both you and your employees must also take on more responsibility to enjoy access to a more flexible program.

With a self-funded plan, you grow to better understand the value of any health insurance you invest in to protect your employees.

Using a self-insurance plan, each time one of your employees has a health insurance claim, they will submit the claim to your HR or benefits department, and your employer will pay for all claims out-of-pocket. Employers set up a special trust fund earmarked to pay for all claims as they are turned in.

Many employers worry about this type of plan because of the associated risk. Consider the possibility of an employee experiencing a completely unexpected health emergency that might completely overwhelm your earmarked trust fund. Such a situation could theoretically wipe out your fund and any other money and assets your organization has.

Fortunately, there is a built-in fail-safe for this catastrophic scenario called stop-loss insurance. This specialized insurance was designed to cover these situations where the risk of certain ventures is substantial and could destroy a business without a backup plan. What happens is that once your bill exceeds your agreed-upon threshold with your self-funding insurance carrier, your stop-loss insurance will kick in to pay the outstanding balance.

One overwhelmingly positive aspect of self-funded insurance is the use of a third-party administrator (TPA), which carries out standard but time-consuming processes, such as collecting premiums and claims processing.

The benefits of self-insured plans include:

Lower fixed costs
Fewer administrative expenses
Quicker administrative claims processing
Improved cash flow
Ability to rent a network
More control over your health plan

3. PARTIALLY SELF-FUNDED INSURANCE PLANS

Partially self-funded health plans have all the tell-tale signs of a self-insured plan, but they offer more protection against overages, limiting risk, and the need for the use of stop loss funds. These plans rely on a reinsurance carrier through an administrator working behind the scenes.

This alternative health plan has become popular among small-to-mid-sized businesses that tend to encounter less predictable claims.

Here are some additional benefits to partially self-funded insurance:

Similar to self-insured plans, you only pay for claims as they come in, and you can rest assured that your reinsurance coverage will kick in if your claims exceed your threshold.
Transparency and Control. By eliminating the middle man, you take greater control over your employees’ health coverage, offering the ultimate transparency.

4. LEVEL-FUNDED PLANS

A level-funded plan (LFP) offers you a unique health insurance solution that fits somewhere between a fully-insured and self-insured plan. An LFP combines the financial stability of fully-insured plans and the ability to customize and control a self-insured plan.

Similar to self-funded and partially self-funded plans, you’ll need to set aside specially marked funds to pay for all claims. You’ll pay a consistent and steady fee each month, ensuring that your health insurance plan is considered self-insurance. As noted in our previous blog post , since it is a hybridized plan that also includes some traditional small health group aspects, you’ll still create a contract with an insurance carrier while taking on more of the associated financial risks.

In this type of plan, you will pay a “level” or “fixed” fee each month to a third-party health services organization, which is frequently a health insurance carrier. These fees cover both anticipated employee claims and administration costs.

The benefits of an LFP include:

Cost savings
Predictable expenses
Stop-loss coverage
Access to your health insurance usage data to provide you with additional control to work toward future savings
Lower tax payments
End-of-year refunds

5. CAPTIVE AND CONSORTIUM HEALTH PLANS

Finally, captive and consortium health plans offer your business some unique savings possibilities. In these plans, a group of employers work together to jointly manage health care costs. These plans allow you to enjoy self-funded insurance without the risks.

What happens is that you’ll distribute the risks and costs among your business and the other businesses in your group, meaning that catastrophic risks are automatically lower than they would be with a fully self-insured plan or even a partially self-insured plan.

These are two distinct plans, however, so let’s take a look at both.

A captive health plan allows the group members to own and operate their own health plan to share risk among businesses that feature a similar group size and risk profile. One of the biggest benefits of this type of plan is that owners can become a part of the plan, allowing the insureds to benefit from the insurer’s underwriting profits.
A consortium health plan is where a group of businesses joins together to provide health insurance coverage, saving administrative costs and additional expenses spread among all the associated companies.

Both plans offer an array of possible benefits due to your focus on risk management and sharing various costs and burdens among like-minded organizations with similar interests in savings and fully insuring valued employees.

OPTIMIZE YOUR HEALTH BENEFIT PLAN AND REDUCE THE COST OF EMPLOYEE BENEFITS WITH KBI BENEFITS

We hope this series has given you a firm foundation to optimize your organization’s health benefit plan. Our goal was to share exciting new and growing opportunities to beat the high costs of health insurance by showing you that fully insured plans are no longer the standard. While they aren’t all bad, there are several other options to consider saving you and your employees' money without compromising quality healthcare.

Personnel Files: What Employee Documents to Keep on File?

Fri, 24 Mar 2023 20:41:28 GMT

Employers have a lot of employee data to manage. Ensuring that information is appropriately recorded and stored is essential to doing business. Compliance, security, accuracy, and maintenance are all critical aspects that require careful consideration.

Personnel files are used to store many types of employee information collected, though not all types of information belong in a personnel file.

What Are Personnel Files?

A personnel file is a place employers use to store the necessary documentation associated with each employee working with the company. Personnel files represent the individual's employment status, position, and employment history.

Some employment information is specific to each employee, while others are standard and go in every employee's file.

What Are Other Types of Employee Files?

Due to security, compliance, and confidentiality, not all employment information and files should be in a personnel file. For this reason, other files are often used, including a payroll file, benefits file, medical file, and I-9 form file.

Payroll file: A payroll file includes documents related to compensation and pay, like tax forms, base salary, bonuses, and time sheets.
Benefits file: Benefits files maintain an employee's benefit elections, beneficiary information, and other benefit-related information.
Medical file: Medical files include any documentation about medical accommodations, medical leave, and emergency contacts.
I-9 file: I-9 forms must be stored separately in their own file. Many organizations keep all employee I-9s in a single file for efficiency.

Most employee files are maintained electronically in today's world. However, some organizations might still use hard-copy files for different types of information.

What Are the Different Types of Employee Information?

Employment documentation spans the entire employment lifecycle, from pre-employment through to post-employment. Certain types of documentation are wise to maintain but not necessarily required by law. Others, however, are required by law.

Here are some types of documentation employers typically maintain in employee files.

Basic Personal Information

Primary data maintained about employees includes personal information, like full name, preferred name, home address, mailing address, date of birth, emergency contact, spouse, employment status, and so on. Education, certifications, and qualifications are also maintained as basic personal information.

Onboarding, Hiring, and Employment-Related Documents

Employers should maintain hiring documents to support reference to pertinent information at the time of hire should any questions arise. Hiring-related documentation includes:

I-9 forms
Offer letters
Resumes
Employment applications
Reference checks
Interview notes
Employee handbook receipt acknowledgments
Policy receipt confirmations
Employment agreements
Confidentiality agreements
Non-disclosure agreements
Union contracts
Non-compete contracts.
Non-solicitation agreements
Corporate credit card agreements
Company car agreements

Many of these documents must be maintained by law for a certain period of time. Even if they aren't, many should be kept because they provide legal protection should an employee question their agreements and offers or if they don't adhere to policies they signed.

Performance Documentation

It's vital for employers to maintain performance documentation to protect both the employee and the employer should an issue arise. Performance documentation also supports ongoing employee development and growth. Typical performance-related documentation includes:

Performance evaluations
Performance issue documentation
Performance improvement plans
Employee self-assessments
Peer reviews
Employee awards and certificates
Internal and external complaints
Demotion records
Promotion records

Training and Development

Training and development records, like the following, help organizations remain on top of an employee's career development plan and current skillset and support succession planning processes.

Training records
Education
Development plans
Career development path
Succession plans

Payroll and Benefits

Most of the following types of information will go in an employee's payroll file, while some will go in a benefits or medical file.

Employee salaries
Merit increases
Cost of living (COL) increases
Annual bonuses
Retention bonuses
W-4s
W-9s
Timecards
Benefits enrollment
Beneficiaries
Worker's compensation claims
Leaves of absence
Paid time off records

Post-Employment Documentation

Employment documentation doesn't end with the end of employment. Below are some of the pertinent types of employment documentation maintained in employee files. Most of these will go in a personnel file, while some will go into one's payroll and medical files.

Termination letters
Retirement documentation
Resignation letters
Reasons for dismissing or terminating employee documentation
Cobra notification
Unemployment compensation forms
Copy of final paycheck
Confirmation of return of company property
Exit interviews

What Documents Are Required by Law?

Laws require employers to ensure employee data remain protected and secure. Many laws also dictate what documents are required by law.

The Equal Employment Opportunity Commission (EEOC) requires all employment records be maintained for a year. If an employee is involuntarily terminated, their personnel record must be retained for one year following the termination date. The ADEA recording guidelines require employers to maintain all payroll records for three years. They must also keep any written merit system or seniority system and employee benefit plan records for the entire period the plan is in effect or at least a year after its termination. The Fair Labor Standards Act (FLSA) also requires employers to maintain all records that explain why employers pay employees of opposite sexes different wages, including job evaluations, collective bargaining agreements, wage rates, merit systems, and seniority systems, for at least two years.

The following documents are required to be maintained by law:

Basic employee information, including name, phone number, address, and emergency contact details
Payroll and compensation data as listed above
IRS tax withholding forms, including W-9s and W-4s
Employment agreements and contracts, including offer letters and others listed above
Worker's compensation documentation and claims
Child support documents
Termination documents, as outlined above
Employee benefits forms, including enrollment forms, beneficiary information, 401(k) forms, and HSA agreements

What Should You Not Place in Employee Files?

Though a significant amount of data is required by law, and that data can be maintained in one of the different types of employee files, some data must be kept separately or additionally secured. This data includes:

EEO records
Background checks
Documents related to an ongoing investigation
Private employee data, like social security numbers, bank account information, and immigration documents
Documents protected by the Health Insurance Portability and Accountability Act (HIPAA)
Worker eligibility documents, like I-9s, driver's licenses, and immigration status documents
Medical records and doctor's notes
Pre-employment records, except for applications

Who Maintains Personnel Files?

Personnel files are typically maintained by individuals within the HR department. Payroll generally oversees payroll files, benefits manage benefits files, and so on. HR managers, advisors, or generalists typically maintain general personnel files.

What's the Best Way to Organize and Secure Employee Personnel Files?

An effective employee file management policy addresses how an organization files, retains, and destroys company records to remain compliant and have ease of access. To support the policy, you also have to determine how you will maintain your files.

Maintaining a paper filing system is one option, though it's outdated and tends to be cumbersome. However, an electronic filing system allows for improved efficiency, productivity, compliance, privacy, and security. All documents can be maintained in a centralized location, allowing for ease of storage and access. An electronic document management system (EDMS) also allows for improved reporting, metrics, and analytics.

Additional benefits of an EDMS are that they come with an encrypted service to support compliance, you can choose to manage the entire employment lifecycle within one system, from onboarding to offboarding, and an EDMS solution can be cloud-based. Cloud-based solutions make ease of access possible, regardless of where your employees are located or working.

Tips for Personnel File Maintenance

1. Develop a personnel file policy. As previously mentioned, an employee file management policy, including a personnel file policy, should outline document filing, access, and retention guidelines.

2. Conduct an annual audit of your records. An HR audit of employee records should be conducted annually to ensure compliance.

3. Develop a coding system. A coding system that allows you to quickly determine what files contain what type of information and how long they should be maintained will support compliance and filing efficiency.

4. Create a retention spreadsheet. A retention spreadsheet that includes all your employee names is useful when an employee terminates employment. As employees leave the company, you can use the retention spreadsheet to help you determine when you can shred their documents by inputting their date of termination and working forwards from there.

5. Back up files . Even if you use an electronic management system, issues can arise, technology can malfunction, and files can corrupt. Backing up your files will ensure you can remain efficient and productive if any of these challenges occur.

How Do You Select the Best Personnel File Solution for Your Business?

Personnel files are essential for data collection, access, and compliance. To determine the best process and system that works for your organization, begin with the information provided above and research solutions that meet your organization's current needs and size.

You can also work with technical consultants. The KBI team includes HR technology solutions experts that can guide you in choosing the best system to support your needs. Contact us today for more information.

Ways Technology Is Changing Employee Benefits

Fri, 24 Mar 2023 20:29:25 GMT

Technology continues to change employee benefits in many ways for both the employee and the employer. It is impacting the way benefits are administered, accessed, and delivered.

In a very competitive landscape, employers who take advantage of the flexibility technology has to offer in terms of benefits have more of a competitive edge to attract and retain talent. Rob Whalen , co-founder and CEO of PTO exchange shares, “By providing more robust financial support, offering flexibility, and rethinking benefits, HR teams will play a critical role in talent acquisition and retention in 2023.”

Ways Employee Benefits Technology Is Changing – Employee Focus

Here are ways many employers are utilizing employee benefits technology to positively impact their workforce through empowerment, personalization, and flexibility.

1. Empowerment with Healthcare Choices

Technology allows employers to beautifully support their employees with new options in terms of benefits, which empowers them to take their well-being into their own hands. Instead of booking an appointment to go to the doctor’s office when an illness or issue arises, many workers opt to book a telehealth appointment through their insurance or healthcare provider, a convenient solution that saves them time and hassle. Mental health appointments are frequently offered by telehealth as part of many benefits platforms today, as well, allowing employees to feel empowered to not only care for their physical health, but their mental and emotional health, too. Additionally, employees appreciate having the ability to choose how they use their benefits to support their financial wellbeing, like converting their paid time off to a cash payment to help pay down a personal loan or using the money to invest in a retirement or HSA plan.

Online benefits portals also give employees the opportunity to research and asks questions to take care of themselves and their families. Many portals offer e-learning tools, risk assessments, and a medical reference library.

And let's not forget about the many applications employers can offer their employees as part of a current benefit offering or as an additional perk to their benefits platform. Wellness tracking, fitness, wellness game, and meditation apps are just a few examples.

2. Personalization of Benefits

Research suggests that companies are continuing to attract and retain top talent through expanded and personalized benefits options. Selecting benefits is not always the easiest thing for employees to do, and technology can make it a bit less cumbersome and overwhelming. Technology allows employers to provide employees with personalized experiences and education about their options, which increases engagement, and in turn, increases participation.

By providing an online questionnaire, for example, employees have the opportunity to answer a list of personalized questions that can in turn provide them with benefits suggestions to meet their needs, making their decision-making process easier and less overwhelming. Employees can receive information about cost savings and the benefits of certain benefit choices, like securing an HSA, enrolling in short- and long-term disability, or participating in a high deductible health plan (HDHP). Cost calculators also make it possible for employees to make more informed, educated choices that align with their financial circumstances and current demographic.

3. Flexibility in Choices and Selection Process

Not all employers are offering flexible benefits yet, though when they are ready to do so, current trends in technology are ready to assist. Technology provides employers with the capability to allow employees to utilize their benefits in ways they need to, based on their current circumstances. And as more employers focus on the well-being of their employees, offering flexible benefits becomes part of the conversation.

Flexible benefits, as the name implies, provide employees with flexibility in how they use their benefits. If an employee needs additional money to pay for an unexpected expense, for example, some employers allow them to convert their unused vacation time or paid time off to a cash payment. This helps to take the financial burden off the employee and allows to avoid dipping into their retirement account or taking out a loan that increases their debt load.

Research shows that employees that are less stressed, including financially stressed, are more productive and engaged at work. Research also shows that flexibility is linked to job satisfaction, which in turn is also linked to productivity, employee morale, and retention. In other words, employers have an opportunity to use technology to create a healthier, happier, and more productive workforce.

Ways Employee Benefits Technology Is Changing – Employer Focused

When the employee benefits from technological advances, the employer does, too. All the above employee enhancements that result from technology provide benefits to the employer in terms of recruiting and retention, productivity, performance, morale, engagement, and more. Technology also supports employers in terms of efficiency, streamlining, compliance, and improving benefits offerings that can improve the bottom line and reduce some of the stress of in-house benefits administrators and HR departments.

1. Improve Efficiency

Using online systems for the digitization of processes and putting the power into the hands of the employees for benefits selection helps to improve efficiency and reduce headaches for both the employee and employer. It also allows HR to have more time to focus on other aspects of their jobs, like recruiting, retention, and employee relations.

2. Streamline Processes

From online enrollment to data storage and analysis, technology streamlines processes and takes a hefty burden off HR benefits administration in these areas. Onboarding software, as an example, allows for the integration of benefits platforms, so new hire enrollment is more seamless. Benefits platforms can also be integrated with other HR systems or be a part of the company's HR enterprise system, for general streamlining and ease of access to employee data and for reporting.

3. Ease Compliance Burdens

Technology and digital platforms allow employers to take ownership of data to support compliance. If someone has a qualifying event to secure benefits, for example, the employee can input the event in the benefits system and the employer or HR will be notified of the event. Next, the employer can verify what they need to ensure compliance and avoid the employee experiencing any unnecessary lapses in coverage or denial. Benefits platforms also make reporting easier to ensure compliance with Federal, state, and local laws.

4. Improve Benefit Offerings

Enrollment platforms allow employers to more easily analyze data regarding benefits and utilization. The result is benefits departments being able to make better, more informed choices about benefit offerings moving forward.

Pros vs. Cons of Employee Benefits Technology

One would be hard-pressed to say that, with the many benefits that technology brings, there are not some cons that come with it, as well. Regarding benefits technology, though it can provide personalization and empowerment, it can also lead to a lack of communication and the necessary connection required to work with an employee one-on-one to ensure their questions are correctly answered and they feel confident about their choices. Technology should not be used in place of benefits communication, and instead, should be used to ensure continuous benefits communication occurs throughout the year and not just during open enrollment. This approach further engages employees and helps ensure that they are aware of your organization's current offerings and any new offerings or offerings that are being eliminated.

Here are some additional challenges that can come with technology:

It requires a learning curve for new users and any time a new system is installed or updated.
Using technology can bring about frustration when it malfunctions and employees do not have the expeditious access they need to resolve any issues, especially ones that are time sensitive.
Technology enhancements can be costly, so small and medium-sized businesses, especially, need to find solutions that are effective and cost-efficient and avoid unnecessary upgrades or new technology if it is not going to add enough value.
We can sometimes become so dependent on and trusting of technology that we do not have a backup plan if something were to go wrong and there is a time-sensitive need, like an employee needing access to their HSA funds after hours but there is a glitch in the system and there is no way to fix it due to no resources being available.

The pros and cons of benefits technology need to be balanced so the benefits outweigh the cons.

Employee Benefits Brokers and Benefits Technology

If you’re looking for ways to enhance your employee benefits technology, an employee benefits broker can help. Benefits brokerage firms often have team members that specialize in benefits technology to ensure their clients are receiving the best options for their needs. That way, you don’t need to go it alone to optimize your benefits platform technology and processes.

Ways Technology Is Changing Employee Benefits: Key Takeaways

Technology is enhancing the way benefits are administered, accessed, and delivered.
Technology empowers employees in a variety of ways, including providing them with the ability to choose alternative healthcare options, like virtual appointments, to choose how they use their benefits to support their financial well-being, and to research and ask questions to take care of their wellbeing within the employer benefits platform.
Research suggests that companies are continuing to attract and retain top talent through expanded and personalized benefits options.
Technology eases the burden and hassle of selecting benefits for employees.
Technology allows employers to provide employees with personalized experiences and education about their options, which increases engagement, and in turn, increases participation.
As more employers focus on the well-being of their employees, offering flexible benefits becomes part of the conversation, and technology makes the administration of flexible benefits easier.
Technology provides employers with the capability to allow employees to utilize their flexible benefits in ways they need to, based on their current circumstances.
From online enrollment to data storage and analysis, technology streamlines processes and takes a hefty burden off HR benefits administration in these areas.
Using online systems for digitization of processes and putting the power into the hands of the employees for benefits selection helps to improve efficiency and reduce headaches for both the employee and employer.
Technology and digital platforms allow employers to take ownership of data to support compliance.
Enrollment platforms allow employers to more easily analyze data regarding benefits and utilization, which allows benefits departments being able to make better, more informed choices about benefit offerings moving forward.
Benefits brokerage firms often have team members that specialize in benefits technology to ensure their clients are receiving the best options for their needs.

KBI Offers Technology Consulting Services

At KBI, our technology consulting services can help your organization mitigate risks and provide you with the resources you need to achieve success within your organization. We can help you digitize your entire program and support you in your employees making an educated decision to receive the most value for their specific circumstances.

Common HR Challenges & How to Address Them

Thu, 09 Mar 2023 22:18:36 GMT

As an HR professional, you often wear many hats from day to day. This is especially true if you work for a small to mid-sized business. The many hats you put on and take off from moment to moment can be challenging to keep up with and, at times, overwhelming.

The good news is, once you have dealt with a particular problem or challenge and gone through the learning curve of how to solve or handle it, you are better prepared to be both proactive and reactive to prevent and respond to such challenges in the future. Also, there is a wealth of information available to help you navigate some of the most common challenges HR professionals face.

What Do HR Professionals Do?

Before focusing on HR challenges and how to address them, let’s first discuss the myriad of activities that typically fall under the human resources umbrella. HR managers oversee a wide range of functions, including:

Employment law compliance
Benefits design and administration
Compensation design and administration
Performance management
Training and development
Recruiting and retention
Organizational development
Onboarding
Workforce development and design
Payroll
Employee relations
Diversity, equity, and inclusion (DEI)

In larger organizations, these functions are often divvied between different departments and individuals within those departments. In smaller organizations, however, many of these functions are assigned to a very small team, which is often made up of just one to two people. As a result, the burden of addressing HR challenges can take up a large portion of an employee’s time, leaving less time for them to focus on important HR base business goals and projects.

Common HR Challenges & How to Address Them

By better understanding the common challenges that can occur, a small team can be better prepared to quickly address issues as they arise and put processes and procedures in place to prevent unnecessary challenges from happening. Six common challenges HR professionals deal with on a regular basis include:

Recruiting top talent
Retaining talent
Compensation and benefits design
Compliance
Performance management
Change management

Below, we address these challenges, including tips on how to manage them.

Recruiting Top Talent

Hiring top talent is challenging in today’s world, regardless of your company size. Still, if you are a smaller organization that doesn’t have a brand name or size to support your recruiting efforts, it’s even more challenging, and you need to get creative to garner the attention of potential candidates. This is especially true in today’s world, where there is a shortage of talent, as well as steep competition.

Challenges

Challenges that arise include:

Having resources to compete with companies that court candidates or have a large benefits platform
Investing in candidates during the hiring process and then having them turn your offer down in the end
Allocating the resources, including time and money, to locate and hire in a highly competitive market with a talent shortage

Possible Solutions

Solutions to consider include:

Developing a college recruiting program to hire talent you can bring on board
Focusing on your employer brand and the benefits you offer compared to the competition, including the benefits of working for a smaller organization
Utilizing free social media and channels where your talent hangs out, so you can get your job ads in front of them and communicate directly with them
Putting energy into passive candidates on LinkedIn and elsewhere to build a connection with them, so they are aware of what you have to offer when they are ready to jump ship at their current employer

Retaining Talent

In the same vein, recruiting is retaining talent once they are hired. Turnover is costly on many fronts, making it an effort that takes up much of HR’s time.

Challenges

Challenges that arise include:

Considering all the factors that result in employees leaving, like lack of growth and career development opportunities, external poaching, lack of culture fit, and benefit and salary concerns
Attempting to balance the risk of talent leaving with the cost of hiring them
Allocating sufficient resources to retention efforts
Analyzing and curing why employees are leaving

Possible Solutions

Solutions to consider include:

Ensuring your recruiting efforts focus on job and culture fit to hire the right person for the job
Addressing retention issues quickly
Regularly evaluating your compensation and benefits platforms to ensure they align, at a minimum, align with the market
Asking your employees how you’re doing through surveys, one on one meetings, and so on

Compensation and Benefits Design

Compensation and benefits design is an important aspect of the HR function that is also very time-consuming. Without a competitive compensation and benefits platform, it is very difficult to recruit and retain talent. It also impacts employee morale, productivity, engagement, and more.

Challenges

Challenges that arise include:

Offering competitive benefits and perks that meet the requests of your target market
Conducting research to determine what competitors are offering
Designing a compensation package to remain competitive within the market and industry
Matching compensation packages in a tight labor market, especially when dealing with larger and more well-known competitors
Having the resources available to attend compensation benchmarking sessions

Possible Solutions

Solutions to consider include:

Prioritizing and researching competitors to know what they are promoting as part of their employer brand and value proposition in terms of comp and benefits
Seeking out free and low-cost salary and compensation benchmarking tools, like those offered on PayScale and Salary.com .
Identifying creative ways to enhance compensation packages when they fall short compared to competitors
Using employer branding to share and promote intangible and tangible perks and benefits to candidates
Working with an employee benefits broker to adhere to support you in designing a competitive benefits platform to meet your needs and budget

Legal Compliance

A vital aspect of HR is to ensure employment laws and regulations are followed. Equal employment, anti-discrimination, benefits, and many other aspects of employment are governed by federal, state, and local laws. Not complying with such laws can result in hefty fines and penalties that can significantly impact a small business.

Challenges

Challenges that arise include:

Keeping up with the ever-changing employment law landscape
Lacking resources that possess the necessary expertise to address compliance
Ensuring the entire workforce understands and adheres to required regulations

Possible Solutions

Solutions to consider include:

Hiring a legal expert to address questions about employment regulations
Ensuring at least one person on your management or HR team is focused on employment law and has the required time and resources to study and keep up with the legal landscape
Regularly auditing current processes and procedures to ensure they align with local, state, and federal employment laws
Working with an employee benefits broker to understand laws governing employee benefits

Performance Management

Performance management is a shared responsibility between leadership and human resources, with HR generally being the facilitators and stewards of the process. Also, if tough decisions need to be made related to performance, it is often up to HR to ensure the performance is addressed by working with management. Performance management processes and monitoring take time and expertise. It also requires a positive working relationship with senior leadership.

Challenges

Challenges that arise include:

Getting management invested in the performance management process
Identifying best processes and procedures to monitor performance and productivity to assess efficiency and operations
Effectively assessing and identifying causes for performance issues and providing effective solutions

Possible Solutions

Solutions to consider include:

Researching best practices in performance management and presenting ideas and solutions to leadership
Offering training to managers to enforce the importance of regular performance assessment and communications with their teams
Addressing performance issues quickly and effectively with managers
Securing HR software that integrates goal and performance management that both employees and managers utilize
Having performance management policies in place, including performance reviews and discipline policies

Change Management

Change is inevitable in the workplace. Whether the change is economical, managerial, procedural, or technological, the burden often falls on HR to work with leadership to implement change and develop plans for it to be successful.

Challenges

Challenges that arise include:

Providing transparent communication about change throughout the change process
Matching the needs of longer-term employees with newer employees
Handling frustrations of employees regarding change
Aligning HR policies and procedures with organizational goals and growth

Possible Solutions

Solutions to consider include:

Clearly communicating and being transparent about change and why it is happening with employees before, during, and after
Effectively communicating the benefits of change
Developing a change management process that defines the communication timeline and project plans for change
Asking employees for their feedback about changes after they have occurred

Overcoming HR Challenges

There are many jobs to be done within the HR team, regardless of its size. All these jobs are important, though you can only do as much as your team’s bandwidth will allow.

It is understandable that the lack of resources and manpower is often central to many common HR challenges. Fortunately, with the right level of creativity and thoughtfulness, these challenges can become less problematic and easier to handle and move through. Being innovative, effectively communicating, utilizing technology, and setting clear expectations and goals within your team will also support you in overcoming the above challenges.

International Employee Benefits & Compensation

Thu, 02 Mar 2023 21:07:20 GMT

If you’re a US-based business considering global expansion, one of your global strategies will undoubtedly need to focus on international employee benefits and compensation. Similar to offering employee benefits to US-based employees, offering international benefits is necessary to:

· Attract and retain employees

· Remain competitive in the workforce

· Maintain and increase employee productivity and morale

· Increase brand loyalty and trust

· Remain compliant with local employment regulations and laws

This post serves as a guide for business and HR professionals looking for support in launching an international employee benefits and compensation plan.

What Are International Employee Benefits and Compensation?

International employee benefits and compensation are the benefits and compensation you offer to overseas, nondomestic employees. The goal is to offer compensation, benefits, and perks that are considered competitive in the regions where you do business to entice, retain, and engage your workforce. International benefits and compensation packages often include medical insurance, bonuses, travel allowances, merit pay, cost of living (COL) adjustments, and more.

International Employee Benefits & Compensation Guide

Before you hire your first international employee, having a structure in place will help to guide you and ensure you remain consistent and compliant. Here are some questions to ask to help you develop your international employee benefits and compensation structure.

1. What Are the Requirements in the Country Where You’re Hiring?

First, you’ll need to carefully study the requirements in the country where you want to hire employees. Due diligence will help you understand the international and local payment methods, employment laws, and any other obligations you’ll have as an employer in that country. For example, regarding laws, you’ll want to familiarize yourself with collective bargaining, equal employment, and discrimination protection laws.

Additionally, you’ll want to have a thorough understanding of the local job market. You’ll need to have working knowledge of the talent pool, economy, policies, culture, worker readiness, worker qualification status, typical recruiting process, and so on.

2. Do You Need to Hire Experts for Support?

As you delve into your international research and strategy development, ask yourself if you and your team are equipped to go the journey alone or if hiring experts to support you in all or specific areas is necessary. Generally speaking, compensation and benefits structuring is complex in any country, so it’s best to hire experts to support the process if you or your team lack expertise in any aspect. Doing so not only ensures you remain in compliance but also takes much of the heavy lifting off your and your team’s shoulders so you can each focus on the base business strategies where you do have expertise.

You might choose to hire any number of local experts to support your strategy, from local consultants and benefits experts to local legal counsel, recruiting experts, and market research firms.

3. What Are Your Competitors Doing?

Part of your international analysis will include a competitor analysis. If possible, consider your local domestic competitors that also operate in your country of focus. What internal benefits are they offering in the area where you’d like to do business? What about compensation? Your aim is to offer a better benefits and compensation structure, or at a minimum, one that is at least in alignment with theirs. Otherwise, you’ll run into challenges with hiring top talent.

4. What Are Your Budget and Compensation Requirements?

To determine your budget to operate in that country, you’ll need to clarify the number of employees you’ll require, cost of living standards, rate of currency conversion, and the typical compensation system used. Also, what is the typical workload like in the country? This will help you determine the number of full-time-equivalent employees (FTEs) you’ll need to get the work done in a day or week.

5. How Will Your Employees Be Classified?

To determine compensation structure and benefits eligibility for employees, you’ll need to classify employees based on that country’s labor laws and employee classification definitions. For example, in the US, it’s common for freelance workers to be paid differently than full-time employees, and benefits eligibility will typically differ between these two classes, as well. The clearer you are in classifying your employees, the less likely you are to run into compliance issues.

6. What Will Your Benefit and Compensation Terminology Be?

Different terms have different meanings in different countries. Therefore, you must define terms for each country where you have employees to avoid confusion and mitigate the risk of penalties. For example, how will you define terms like “wage,” “travel allowance,” “stipend,” “employee,” “full-time,” “part-time,” and “bonus.”

Designing Your Compensation Plan

Once you’ve answered the above questions and have a benefits and compensation structure in place, you’re ready to design your compensation plan. Here are some necessary steps for compensation design.

· Outline the necessary employee data. Determine how many employees you’ll have and the positions they’ll fill, along with any other necessary data required to effectively budget for and pay employees.

· Design your organizational chart. You need to understand your organizational hierarchy to accurately assign a compensation structure. An organizational chart also supports your recruiting and hiring efforts to support talent in knowing how you’re structured and where their position falls in the hierarchy.

· Define your salary ranges and compensation structure. Based on employee classification, skills, and other factors, define how your employees will be paid, where they will fall within the structure, and so on.

· Determine the compensation for each position you’ll fill. Based on your research, local customs and laws, market data, and your budget, what is the salary range, bonus structure, and so on for each position you’ll need to fill?

· Identify Key Performance Indicators (KPIs). What are your employee and business objectives, goals, and so on that will align with your compensation structure, including bonuses, allowances, and pay increases?

· Develop a timeline for disbursements and pay raises. Based on your annual reviews, KPIs, and so on, determine when you’ll issue bonuses, various disbursements, pay increases, and other compensation adjustments.

· Train your HR and recruiting departments. Your team needs to know how to implement and manage your international compensation plan. You can also choose to outsource these roles.

· Remain current on local regulations and requirements. Ensure you remain current on local employment laws and regulations to remain in compliance.

· Conduct regular compensation analysis and reviews. To determine if you’re remaining competitive and meeting the needs of your workforce, be sure to conduct annual compensation reviews based on market data, as well as surveying your workforce for input on needs and overall satisfaction.

· Make necessary adjustments as needed. Based on your compensation analysis and survey results, make necessary adjustments to your current compensation structure.

Ensuring International Benefits Compliance and Competitiveness

Similar to your compensation structure, you want to remain current on local regulations and requirements pertaining to employee benefits to remain in compliance. Conducting regular benefits reviews and analyses based on market research and your employees’ input is also necessary to remain competitive.

To support you in remaining competitive and compliant, consider the following:

· Offer proper training to in-house employees, including your HR, recruiting, and legal teams.

· Outsource compliance to local HR and legal counsel.

· Outsource market research to a local firm specializing in job market analysis and competitiveness.

· Offer more than the statutory minimum requirement to remain compliant and ahead of the competition.

International Employee Benefits & Compensation: Key Takeaways

· International employee benefits and compensation are the benefits and compensation you offer to overseas, nondomestic employees.

· Similar to offering employee benefits to US-based employees, offering international benefits is necessary to attract and retain employees, remain competitive in the workforce, maintain and increase employee productivity and morale, increase brand loyalty and trust, and remain compliant with local employment regulations and laws.

· Before you hire your first international employee, having a benefits and compensation structure in place will help to guide you and ensure you remain consistent and compliant.

· There are several variables to consider developing an international benefits and compensation structure, including the requirements in the country where you’re looking to hire, what your competitors are doing, what your budget and compensation requirements are, and how your employees will be classified.

· To support competitiveness and compliance, businesses should consider offering proper training to in-house employees, outsourcing compliance to local HR and legal counsel, outsourcing market research to a local firm specializing in job market analysis and competitiveness, and offering more than the statutory minimum requirement to remain compliant and ahead of the competition.

· One option for US-based organizations seeking to expand globally is to work with a local, domestic US benefits brokerage firm to help connect them with the resources they need for success.

Get KBI Expertise Support

Regardless of where you’re located, implementing and administering benefits and compensation plans are complex processes. That’s why many business and HR professionals turn to outside experts to support them.

One option for US-based organizations seeking to expand globally is to work with a local, domestic US benefits brokerage firm. A reputable brokerage firm can support you in connecting with the international resources you need to successfully launch an international employee benefits and compensation plan.

Our team of expert brokers at KBI is standing by to offer you that type of support with the highest level of satisfaction possible. We can guide you with the right steps and necessary connections to meet your goals for success. Contact us today for more information.

How Do Insurance Brokers Get Paid?

Wed, 22 Feb 2023 19:34:40 GMT

Supporting and managing a business takes time and effort and also comes with risks. Insurance can help mitigate those risks.

Also, when you support and manage a business with employees, offering your employees a solid benefits platform is essential. Offering great benefits helps to attract and retain employees and keeps your workforce happy.

If one or both above situations describe your situation, it’s common knowledge that there are a wide range of policies available to support your business and your employees. With such a large selection, along with the diverse needs of each business and workforce, selecting policies can be a cumbersome and complicated process. Insurance brokers can support you in reviewing the many insurance policies available to you and selecting the right plans for your specific needs.

How Do Insurance Brokers Get Paid?

It is helpful for companies and individuals working with brokers to understand how they get paid. Having this knowledge means they can make the best decision on who to work with and forge a long-standing relationship built on understanding and trust.

As experts in their field, insurance brokers are equipped with valuable knowledge about the ins and outs of insurance policies they specialize in, including business insurance policies and employer-sponsored benefits. In exchange for their services and expertise, brokers receive commissions and broker fees.

Broker Commissions

Commissions are paid directly by the insurance company and are generally based on the annual premium paid by the insured. The insurance company includes the broker commissions in the cost of premiums paid by the insured. The compensation and commission received by the broker often varies between the insurance companies with which they work.

Broker Fees

Broker fees, on the other hand, are typically charged by the broker to the client to cover services provided by the broker. Broker fees are governed by state law, and where permissible, are required to be reasonable, clearly disclosed, and generally must be accepted by the client with signature validation.

Captive and Independent Insurance Agents vs. Insurance Brokers

An important distinction when it comes to purchasing insurance is the difference between captive and independent insurance agents and insurance brokers. Captive and independent agents represent the insurance company and get paid in commissions. Therefore, their interest lies with the company and not the client—they have a personal incentive to help the companies they represent secure more clients, and as such, direct clients toward certain insurance carriers or policies. The carriers and policies might not best align with the client’s best interest.

Insurance brokers represent their clients vs. insurance companies. Though they do get a commission from the insurance company, that commission only continues for as long as the client remains with and pays for the insurance policies they secure. It’s in the insurance broker's best interest to work for the client so the client remains satisfied and sticks with their policies. As previously mentioned, any broker fee charged to a client must be reasonable and clearly disclosed to the client, which minimizes or entirely eliminates any potential for financial, personal bias.

Benefits of Working with a Brokerage Firm

To get the coverage you need for your business or employees, it’s vital to understand your options. Insurance brokers add a lot of value in terms of the decision-making process from onset to finalization and beyond. Insurance brokers:

Offer a few plan options and premium quotes for your review based on your needs.
Help you understand the fine print and details of your plan options.
Provide ongoing service to the account, including determining eligibility, billing issues, and claims support.
Review your current plans to identify any insurance gaps to fill.
Save you time and resources by doing the up-front research and weeding out for you.
Support the implementation of the plan with the insurance provider.
Help you maximize your coverage once secured.
Assist with updates and the renewal process.

As experts, insurance brokers also remain current with market trends to ensure you’re getting all the information and insights needed to make the best and most competitive decision. Brokers can help you get the best policy for your needs vs. one that is just good enough. Also, insurance brokers remain up to date with local, state, and federal laws influencing insurance and employee benefits to help you remain compliant with current regulations. This helps to protect you against avoidable liability claims, debts, and fines.

Types of Insurance Policies Represented by Brokers

An insurance broker can specialize in a variety of insurance types or a single type of insurance. Though the primary focus of this post is regarding business insurance and employee benefits, brokers can also represent personal insurance policies. Insurance brokers are required to hold licenses for each type of insurance they represent.

Personal insurance policies a broker might offer include:

Automobile insurance
Dental Insurance
Disability insurance
Flood insurance
Homeowner’s insurance
Life insurance
Medical Insurance
Vision Insurance

Commercial or business insurance a broker might offer includes:

Business interruption insurance
Commercial auto insurance
Employee benefits (see below)
Errors and omissions insurance
General liability insurance
Property insurance
Worker’s compensation insurance

The type of employee benefits a broker might help a business secure include:

Dental insurance
Disability insurance
Life insurance
Medical insurance
Pet insurance
Vision insurance

Tips for Finding an Insurance Broker for Your Business

If you’re an HR or Benefits Manager, working with an insurance broker can support you in selecting the most competitive benefits to meet the needs of your workforce while remaining compliant and protected. If you’re a business owner, senior leader, executive, or partner, you’ll avoid the hefty lifting by working with an insurance broker to save you money, time, and other resources you can direct elsewhere. For those representing a small or medium-sized business, an insurance broker serves as a trusted partner that can walk you through the insurance securitization process.

Regardless of your position, working with a reputable insurance broker means:

Your interests and needs are priority.
You don’t have to invest time going through insurance research and selection.
You’ll receive competitive plan and rate options that align with your goals.
You can rest assured you’re legally compliant.
You’ll remain competitive in the job market.
You’re forging a long-term relationship for your insurance and employee benefits needs.

To select an insurance broker for your business, look for the following qualities:

Accessibility: It’s essential that your broker be accessible when you need it. This means being available to answer questions or support challenges and being timely when returning emails and calls.

Honesty: Honesty and transparency are hallmarks of a lasting professional relationship. If you feel the broker you’re speaking with is trying to hide their fees or any details pertaining to insurance coverage from you, move on.

Expertise: It’s necessary to work with an insurance broker that has expertise in your area of interest.

For example, securing employee benefits requires a different type of expertise than seeking professional liability insurance does. Some insurance brokerage firms choose to specialize in one area of interest, whereas others offer expertise for a variety of insurance needs.

Finally, take the time you need when researching insurance brokers. You have options, so interview a few to determine which best aligns with your business.

Key Takeaways: How Do Insurance Brokers Get Paid?

Selecting insurance policies can be a cumbersome and complicated process for businesses due to the many options available and the specific and diverse needs of each business.
As experts in their field, insurance brokers are equipped with valuable knowledge about the ins and outs of insurance policies they specialize in, including business insurance policies and employer-sponsored benefits.
In exchange for their services and expertise, brokers receive commissions and broker fees.
Broker commissions are paid directly by the insurance company and are generally based on the annual premium paid by the insured.
Broker fees are typically charged by the broker to the client to cover services provided by the broker.
Broker fees are governed by state law, and where permissible, are required to be reasonable, clearly disclosed, and generally must be accepted by the client with signature validation.
An important distinction in terms of purchasing insurance is the difference between captive and independent insurance agents and insurance brokers: captive and independent agents represent the insurance company and get paid in commissions, and Insurance brokers represent their clients vs. insurance companies.
An insurance broker can specialize in a variety of insurance types or a single type of insurance and are required to hold licenses for each type of insurance they represent.
As experts, insurance brokers remain current with market trends and with local, state, and federal laws influencing insurance and employee benefits to help you remain compliant with current regulations.
When selecting an insurance broker, seek out a broker that has the expertise you need and offers honesty and accessibility.
Take the time you need when researching insurance brokers, and interview a few to determine which best aligns with your business.

KBI Benefits Brokerage Firm for Your Insurance Needs

There are many insurance considerations for your business, and you have options for insurance brokers. At KBI, we appreciate how daunting purchasing employee benefits and business insurance can be for you and your business. Our team of experts can walk you through the process and ensure you choose the best plans to meet your business’ goals and meet legal obligations. Contact us today for more information.

Do Temporary Employees Get Benefits?

Thu, 16 Feb 2023 22:38:29 GMT

Employers develop benefit plan structures to support budget requirements, as well as the needs of their workforce. In terms of benefit and insurance costs, employers must consider which of their employee populations will receive benefits —the more employees that are eligible for benefits, the higher the costs. Legal requirements and compliance also drive which populations to which employers offer benefits.

To Whom Do Employers Typically Offer Benefits?

It’s common practice for employers to offer benefits to regular full-time employees and not offer them to part-time employees. Questions often come into play, though, regarding seasonal and temporary full-time employees. Where it’s generally clear that employers are not required to offer benefits to part-time employees, are employers required to offer benefits to temporary and seasonal full-time employees?

What Defines a Temporary Full-Time Employee?

According to the IRS, temporary full-time employees work at least 30 hours per week, or 130 hours per month, and are hired into a job for under 12 months. The Affordable Care Act (ACA) calls those who are temporary full-time employees short-term employees.

Do Temporary Employees Get Benefits?

Several factors impact whether a temporary full-time employee receives benefits. The size of the organization, whether the employee is paid or unpaid, and whether they are variable-hour or seasonal workers impact whether you’re required to offer benefits to temporary full-time employees.

Other factors that impact employee benefit eligibility are state and local laws and the type of benefit offered. Unlike federal laws, some state and local laws require employers to offer all employee categories—part-time and full-time—the same level of benefits, depending on the benefit type. Sick leave, for example, is mandated for all employees regardless of the category in some states.

In many instances, if they meet the 30-hour-per-week threshold, temporary full-time employees are eligible for the same benefits as regular full-time employees. According to the ACA , applicable large employers (ALEs) with 50 or more employees are required to offer benefits to any class of full-time employees. Employers with less than 50 full-time employees might also need to comply with ACA benefit requirements to avoid penalties. Essentially, the IRS prevents exemptions for penalties for short-term, variable-hour, and seasonal employees unless specific requirements applicable for each type of employee are met.

Note: Independent contractors are not considered employees under the ACA, so employers are not required to offer them benefits.

Seasonal Employees and Variable-Hour Employees Defined

Seasonal Employees

Seasonal employees are hired to work a specific part of the year, such as during the Christmas holiday or summer months, and their employment is projected to last less than six months.

Variable-Hour Employees

Variable-hour employees can be deemed variable-hour if the employer is unsure if they’ll work full-time hours at the time of hire.

Seasonal Employees and Variable-Hour Employee Benefit Eligibility

Seasonal Full-Time Employees

Employers need to use the initial measurement period to determine if seasonal employees are eligible for benefits, even if they work over 30 hours weekly. A status can be assigned to a new seasonal employee using the following look-back method:

1. Use a look-back measurement period, like six or 12 months, to calculate the average weekly hours worked and assign a status to the employee.

2. For a subsequent stability period that spans several months, lock in the employee’s status, regardless of the hours worked on average during the defined stability period.

Variable-Hour Full-Time Employees

To determine which variable-hour employees are eligible for benefits, employers should use the look-back method mentioned above.

Interns and Temporary Workers

Temporary workers and interns could fit into the variable-hour or seasonal employee category, which would require using the same methodology to determine if they’re eligible for benefits.

Pro Tip: Since it’s not always straightforward or clear-cut, it’s best for employers to consult an insurance or employee benefits broker or legal consultant to determine how to properly categorize employees.

At What Point Do Employers Need to Offer Temporary Full-Time Employees Benefits?

According to the ACA, employers have a 90-day waiting period before they have to offer full-time temporary employees benefits. To take this approach, employers need to create a temporary worker or intern category specific to this group. For employees that employers know will work at least 30 hours per week, they should offer them insurance benefits from the time of hire to avoid penalties.

It’s possible for employers to take three to 12 months from the hire date and use the look-back method before offering benefits. However, if the employer knows the employee will work at least 30 hours weekly, they need to offer them benefits during that period or from their hire date. Employers that fail to offer benefits to seasonal employees during the initial measurement period, though, even if they are working 30 hours or more weekly, are typically not liable for ACA fines and penalties.

Since large employers have the ability to establish separate employee classes for temporary workers with a 90-day waiting period, they have the flexibility to wait a bit before offering benefits to clarify who will or won’t fall under the eligible category. Many temporary employees end up leaving the organization prior to becoming eligible for benefits, so the employer will be safe and not incur any penalties and fines for non-compliance.

What Are ACA Penalties for Non-Compliance?

If you’re an ALE and do not offer the minimum essential coverage required under the ACA to 95% of your full-time employee workforce, it carries a hefty penalty of $2,500 annually for every employee. The fine is $3,750 annually per employee if you meet the 95% threshold but still don’t offer coverage to certain categories of eligible workers.

What Are the Requirements if You’re Not an Applicable Large Employer (ALE)?

Employers that are not considered ALEs under the ACA still need to remain in compliance with state and local regulations to determine who is eligible for benefits within their workforce. Some questions to consider include:

· What are our organization’s provisions for benefit eligibility, and do full-time temporary workers meet those requirements?

· Do our benefits programs have exclusions for seasonal, interns, variable-hour, or other temporary workers?

· What are our local and state laws regarding benefits eligibility?

Key Takeaways: Do Temporary Employees Get Benefits?

· It’s common practice for employers to offer benefits to regular full-time employees and not offer them to part-time employees.

· Employers need to determine if their full-time temporary employees are eligible for benefits similar to their regular full-time employees.

· According to the IRS, temporary full-time employees work at least 30 hours per week, or 130 hours per month, and are hired into a job for under 12 months.

· The size of the organization, whether the employee is paid or unpaid, and whether they are variable-hour or seasonal workers impact whether you’re required to offer benefits to temporary full-time employees.

· If they meet the 30-hour-per-week threshold, temporary full-time employees are typically eligible for the same benefits as regular full-time employees.

· Unlike federal laws, some state and local laws require employers to offer all employee categories—part-time and full-time—the same level of benefits, depending on the benefit type.

· According to the ACA, applicable large employers (ALEs) with 50 or more employees are required to offer benefits to any class of full-time employees.

· Employers with less than 50 full-time employees might also need to comply with ACA benefit requirements to avoid penalties.

· The IRS generally prevents exemptions for penalties for short-term, variable-hour, and seasonal employees unless specific requirements applicable for each type of employee are met.

· A status can be assigned to new seasonal and variable-hour employees using the following: 1) Use a look-back measurement period, like six or 12 months, to calculate the average weekly hours worked and assign a status to the employee, and 2) for a subsequent stability period that spans several months, lock in the employee’s status, regardless of the hours worked on average during the defined stability period.

· If you’re an ALE and do not offer the minimum essential coverage required under the ACA to 95% of your full-time employee workforce, it carries a hefty penalty of $2,500 annually for every employee.

· The ALE fine is $3,750 annually per employee if you meet the 95% threshold but still don’t offer coverage to certain categories of eligible workers.

· Employers that are not considered ALEs under the ACA still need to remain in compliance with state and local regulations to determine who is eligible for benefits within their workforce.

· Due to the complexities of the process, business leaders and human resources often work with an employee benefits or insurance broker, legal counsel, and benefits administrators to understand how to categorize their employees for benefits eligibility properly.

Benefits Brokers Can Help Define Employee Categories and Eligibility

Categorizing employees can be a complex process, which is why business leaders and human resources choose to work with an employee benefits or insurance broker, legal counsel, and benefits administrators to understand how to properly categorize their employees to remain in compliance.

KBI’s team of expert brokers is standing by to help. Contact us today for more information.

Understanding Multigenerational Communication Preferences at Work

Thu, 09 Feb 2023 17:37:58 GMT

There are currently five generations that make up the U.S. workforce: Traditionalists, Baby Boomers, Generation X, Millennials , and Generation Z. To ensure they’re meeting the needs of each generation and understanding their perspectives, employers need to make an effort to appreciate how each generation prefers to communicate and function.

Generations Defined

From birth, individuals are influenced by their personal and social experiences. One’s personal view is unique to the individual based on individualized experiences. One’s social experiences are shared by others and help to form and define the generation they become a part of.

A group of people born within the same timeframe experience the same sociological events, which help to shape their worldview. For example, COVID will shape Generation Z’s behaviors as they continue to enter the workforce and will also be a defining and shared experience for the Generation that comes in after them. The invention of cell phones shaped Generation X as they entered the workforce. Millennials and Generation Z grew up in a high-tech environment compared to any other generation, and The Great Depression greatly influenced Baby Boomers.

Through consensus, generations are named with a date range of who belongs within that generation based on the types of influencing social factors that shape one’s worldview. There will also be individuals at the cusps of each generation that might share characteristics of both groups. For example, someone born between 1976 and 1981 might have Generation X and Generation Y characteristics.

Communication Preferences by Generation

Here is a breakdown of communications preferences by generation, including some influencing factors that drive those preferences.

The Silent Generation (aka Traditionalists)

Traditionalists are those born between 1928 and 1945, making them between 7 and 95 years old as of year-end 2023. Also referred to as the Silent Generation, they make up about 5.76% of the U.S. population and 2% of the workforce .

Traditionalists were shaped by the losses of WWII, the Great Depression, the Dust Bowl, and being drafted for the Korean War. They were considered a generation to be seen vs. heard and therefore learned to keep to themselves. With more than 50% of Traditionalists being veterans, the chain of command and management hierarchy that led to efficiency in getting things done became a part of the labor force. Traditionalists are also known for their hardworking and loyal nature.

In terms of communication preferences, Traditionalists prefer that communications be written and that they come from an authority figure. They prefer to receive their information directly from a healthcare provider, trusted public figure, or another expert in a particular field. The Traditionalists’ leadership and communication styles have left a lasting impression and are still much a part of how we operate in the work world today.

Baby Boomers

Baby Boomers are those born between 1946 and 1964, making them between 43 and 58 years old as of year-end 2023. They comprise about 21.16% of the U.S. population and 25% of the workforce.

National crises like the Cuban Missiles Crisis, Vietnam War, and the JFK assassination shaped Baby Boomers. In part due to these types of events, trust and credibility are important to Baby Boomers. As a result, this generation responds well to credible communication that they feel they can trust.

Baby Boomers appreciate direct, decisive, and personalized communications. They tend to like receiving printed mailers, enjoy personal relationships with their providers, and appreciate intimate, in-person presentations. Word-of-mouth referrals are often preferred, and they tend to innately trust their healthcare providers.

Generation X (aka Gen X)

Generation X is comprised of individuals born between 1965 and 1977, making them between 43 and 58 years old as of year-end 2023. Also referred to as Gen X, this population makes up about 19.83% of the U.S. population and 33% of the total workforce.

The Gen X population grew up sandwiched between the Baby Boomers and The Millennials, making it challenging to care for both their aging parents and their children . Gen X’s formative years were shaped by an expansion in technology and increased television consumption, with Cable TV becoming more readily accessible. The access to television meant increased exposure to things like political scandals, the dotcom bust, and the AIDS epidemic, which led to an increased lack of trust in institutions for this generation, making them a generally skeptical population. It’s not uncommon for the Gen X population to question authority, so they appreciate transparency and honesty to build credibility when it comes to communications from leaders and organizations in general.

Those within the Gen X population tend to prefer communications that are to the point and direct, with efficiency being key. Visuals are also ideal for this population, so think of websites with lots of visual aids and easy-to-navigate links to necessary information and resources.

This generation is also active in requesting and researching information and is likely to rely on several sources of information before making major decisions, like medical decisions. They are more likely to seek out recommendations from traditional sources than Millennials are, though do like an abundance of information that is easily accessible, similar to Millennials.

Generation Y (aka Millennials)

Millennials currently make up the largest group in the labor force today. Also referred to as Generation Y, or Gen Y, they were born between 1980 and 1996, making them between 27 and 42 years of age as of year-end 2023. They make up about 21.75% of the U.S. population and 35% of the labor force.

Millennials entered the workforce hearing that they were often entitled and lazy, making it challenging for many of them from the get-go. They also grew up during a highly tumultuous time, with tough and devastating events, like the Columbine school shooting, the 9/11 terrorist attacks, the 2008 recession, and the COVID-19 pandemic shaping their worldview. Trust does not come easy for this generation, and instead of simply doing what they are told to do, they want to understand why they are being told to do it. As a result, this generation prefers organizations that present authentic, open, honest, and collaborative dialogue and communications.

Communication through technology is key for Millennials. They prefer their communications to be easy to access and convenient through ways like text messaging, social media, and websites. Millennials are more likely to seek out peer advice than expert advice and like to have lots of information accessible at their fingertips. In terms of brand loyalty, emotions tend to drive Millennials.

Generation Z (aka Gen Z)

Also referred to as Gen Z, Generation Z comprises individuals born between 1997 and 2012, making them 11 to 26 years old as of year-end 2023. They make up about 20.67% of the U.S. population and 5% of the U.S. workforce.

Generation Z, like Millennials, also grew up in challenging times, though due to different events. Gun violence, a recession, debates over global warming, the War on Terror, and widespread disease have influenced their formative years, leading to high levels of anxiety and stress at a young age. Additionally, they are the first generation to grow up without any recollection of dial-up internet or the pre-smartphone era. Like Generation Y, Gen Z does not trust easily. Individuals of this generation need to be shown that organizations value their people as much as they do their bottom line.

Though Generation Z is highly tech-savvy, they tend to prefer face-to-face personal communications and digital communications by email or text messages. They also like to keep their professional lives separate from their personal lives, so they generally prefer to use social media for personal communications vs. professional communications. Because Gen Z is still relatively young, with many yet to enter the workforce, they tend to turn to a parent figure for input on major decisions, like medical decisions.

Taking Steps to Communicate Effectively

It should go without saying that each individual within each generation is unique. And no single individual will encompass all of the facets that define a generation in the workforce. However, understanding how a generation generally responds and shows up at work is one element to navigating how to best meet their needs and offer communications that they can more easily receive based on their preferences.

Doing research by reading posts like this one is a great starting point. As an employer, you can also survey your employees to get a better understanding of their communication preferences. Is what you’re currently doing working for them or not ? What forms of communication might they prefer? Are there ways to expand your current communication methods to reach more of your population’s preferences?

It can also be beneficial to offer communication and generational training to help your leadership team, and employees better understand each other. Understanding where each person is coming from can often make meeting their needs and communicating with them an easier process.

For more information or support in navigating the needs of your multigenerational workforce, including different needs in terms of benefits and insurance, KBI’s expert brokers might be able to help. Contact us today for more information.

Mental Health in the Workplace

chris@kbibenefits.com (Chris Freitas) — Thu, 02 Feb 2023 19:21:18 GMT

Mental health in the workplace is now receiving the dialogue it deserves, or we’ve at least made great strides in ensuring the dialogue is occurring. These discussions are essential given that mental health support at work is now a requirement compared to the nice-to-have it once was. It’s estimated that one in five individuals experience a mental illness per year in the United States. Since COVID, that number has jumped significantly, with as many as 80% dealing with depression.

The impact of mental illness at work is costly for both the employer and employees. Depression alone costs $17 billion to $44 billion for employers, with an estimated 200 million lost workdays annually. To reduce mental health challenges in the workplace and the costs associated with them, employers must make supporting mental health a priority by providing the right level of job support and mental health benefits , as well as having and adhering to policies that focus on well-being and safety.

Mental Health Defined

According to the Centers for Disease Control and Prevention (CDC), mental health includes “emotional, psychological, and social well-being. It affects how we think, feel, and act and helps determine how we handle stress, relate to others, and make healthy choices.”

Mental health is essential at every life stage, from childhood to adulthood. Mental well-being is far more than a lack of a mental health condition—it means we feel safe, healthy, and well, in general, and can function effectively and productively in life, including at work. When our mental health takes a hit, it impacts all facets of our life, both personally and professionally.

Risk Factors that Negatively Impact Mental Health in the Workplace

Here are some of the risk factors that occur in the workplace and harm an employee’s mental well-being:

• Poor management practices

• Weak safety and health policies

• Pressure to perform

• Inadequate levels of support for employees

• Lack of job security

• Lack of health and wellness benefits

Poor Management Practices

Managers that don’t clearly communicate with employees, don’t regularly discuss performance, and don’t show respect towards their teams provoke stress within their teams. This leads to unhealthy stress and strain on relationships, which can lead to mental health conditions like depression and anxiety.

Weak Safety and Health Policies

Employees have the right to feel safe at work, both physically and psychologically. When a company doesn’t have the proper policies in place to support safety, an employee’s mental well-being is put at risk.

Policies that focus on workplace safety and health help to protect not only employees, but the company’s consumers, clients, business partners, and the employer itself, as well. Safety policies cover a myriad of work concerns, from antidiscrimination and equal employment to OSHA compliance , worker’s compensation, and anonymous reporting guidelines for violations.

Pressure to Perform

When employees feel they must perform above average regularly, it is unreasonable. This type of pressure leads to an increase in work hours, exhaustion, and additional stress, all of which can negatively affect mental health.

Inadequate Levels of Support for Employees

A manager with solid leadership skills realizes that part of their role is to provide the resources and support for employees to be successful. This looks like being available to answer questions, offering training opportunities, and more. When this type of support is lacking, it can increase stress on employees and lead to a lack of motivation to perform.

Lack of Job Security

The loss of work during COVID exasperated the concerns and fears of employees in terms of job security. Being able to take care of one’s self and families are an important component to feel mentally well, in general. Employees need to feel secure in their jobs and the company’s ability to survive for the long term to avoid stress related to feeling insecure in their ability to keep their jobs.

Lack of Health and Wellness Benefits

Employers who appreciate the importance of a healthy workforce offer ample wellness benefits, including mental health support and benefits. A lack of such benefits can send a message that the employer doesn’t care about this aspect, and at best, employees aren’t getting the support they need to take care of their mental health needs.

Ways Mental Health Challenges Impact Employee Performance

When employees feel good, they are flexible, adaptable, agile, and resilient. If mental health challenges surface for employees, it can lead to burnout and increase the chances of other health conditions occurring. Performance is negatively impacted due to many factors that can result, including a lack of motivation and the inability to optimally function linked to the level of mental health challenges. And mental health challenges do not need to be excessive or extreme to negatively impact an employee’s job.

Employees at all levels can be impacted by mental health challenges. Five specific ways the impact of poor mental health might show up include:

1. Ineffective decision-making. Poor decision-making can sometimes occur when mental health challenges set in, which can result in poor habits like being late for work and missing commitments like company events and meetings.

2. Impaired daily functioning. Poor mental health can impact one’s ability to cope emotionally, reduce cognitive function, cause an increase in anxiety, and impact one’s physical health, to name just a few of the possibilities. All of these symptoms can then lead to impaired daily functioning, which in turn impacts job functioning.

3. Lower performance and productivity levels. When we don’t have easy access to our creativity and resilience due to poor mental health, it can make it difficult to perform at work, especially at the level one might have been previously. As a result, productivity takes a hit.

4. Decreased engagement with coworkers and work. We tend to fixate on problems or become distracted by mental health challenges and issues at work, which leads to a lack of focus and engagement.

5. Poor communication. Struggling with our mental health can cause us to act out and come across as more aggressive or passive-aggressive. Employees also tend to have a more difficult time listening and communicating in general when they are struggling with their mental health.

Additionally, poor mental health in the workplace can cause:

• High turnover

• Decreased revenue and profits

• Safety liabilities

• Discrimination complaints and lawsuits

Tips to Promote Mental Health in the Workplace

There are several steps employers can take to enhance mental health in the workplace to take care of their employees. Four considerations include:

• Offer a broad range of mental health resources and benefits

• Promote a safe and secure workplace

• Promote diversity, equity, and inclusion (DEI)

• Offer additional well-being benefits

1. Offer a Broad Range of Mental Health Resources and Benefits

Offering benefits that support overall well-being, including mental health, is vital in today’s world. Options employers can offer:

• Health insurance with ample mental health benefits

• Employee Assistance Programs (EAPs)

• Free mental health assessment and screening tools

• Relaxation and meditation spaces

• Training on mental health and well-being, including coping skills

• Easy access to in-house or local clinic mental health practitioners

• Employer-sponsored mental health resource groups

2. Promote a Safe Workplace

Employers have a responsibility to provide and promote a safe work environment. Companies can foster a safe working environment by:

• Training their leadership team to ensure members are effective and know how to motivate vs demotivate.

• Ensuring discrimination, harassment, and equal employment opportunity policies are in place and foster a no-tolerance environment for the poor treatment and bullying of others.

• Making sure there is a process in place for employees to report concerns and issues regarding safety, harassment, bullying, and more.

• Addressing signs of stress quickly to support employees without pushing them to share how they’re feeling if they don’t want to share.

• Closely adhering to and educating employees on OSHA policies and procedures to maintain physical safety and well-being.

• Ensuring employees feel safe enough to take the breaks they need throughout the day to care for their personal needs.

• Encouraging the workforce to take part in self-care activities they enjoy, like spending time in nature, meditating, reading an inspirational book, or breathing exercises.

• Foster connection between coworkers, helping to reduce feelings of isolation and lack of belonging.

3. Promote Diversity, Equity, and Inclusion (DEI)

Mental well-being and DEI in the workplace are closely connected, and a lack of diversity, equity, and inclusion in the workplace can increase mental health problems for employees at work. Employers that promote DEI through various means, like Employee Resource Groups (ERCs) and DEI hiring and recruiting initiatives, have greater productivity and a more engaged workforce.

4. Offer Additional Wellbeing Benefits

Financial well-being is closely tied to mental health. Finances are a major source of stress for many Americans, which can lead to emotional and mental health concerns. Organizations can offer Financial Wellbeing Programs, including training, financial coaches, and more, to help them take care of their financial well-being. Employers can also offer wellness perks, like gym memberships or an in-house gym, to foster physical well-being.

Employer-Sponsored Mental Health Support Provides Positive Results

Employers that offer mental health benefits and support and ensure an environment that fosters overall well-being see an increase in productivity, reduced stress, and more. As reported by BetterUp , Prudential Financial, Inc. is an example of an organization aiming to destigmatize mental health in the workplace.

Prudential incorporated a behavioral health team that provides training and referrals to help employees manage their mental and emotional well-being. They also offer health risk assessments that guide their strategic planning in how to best support their workforce. Prudential reports that, since they enacted these mental wellness benefits, their employees have been less burdened by stress, been more productive, reduced illness-related absences, and can better deal with work challenges and opportunities.

If you would like to review the types of mental health programs and benefits available to offer to your workforce, KBI can help. Our team of employee benefits brokers can help you assess your current demographic and provide options to meet their needs.

What Is Financial Wellness and How it Affects ROI for Businesses

Wed, 25 Jan 2023 22:36:33 GMT

Employers who emphasize and appreciate how important the well-being of their employees is are more likely to attract and retain employees, which is significant, especially in today’s challenging labor market. If the Great Resignation has taught us anything, it’s that employees aren’t afraid to leave their current jobs or ask for what they want if their employers want them to remain. Employee wellness is also vital in terms of optimal productivity and a healthy and happy workforce.

A well-rounded employee benefits program considers employee wellness from all aspects—mental, physical, and financial. Financial wellness directly impacts mental and physical wellness. Individuals who struggle with finances feel the stress of those struggles, and there’s plenty of evidence that unhealthy stress impacts our mental and physical health, which leads to missed work, lower employee morale, and other consequences that impact an organization’s bottom line. In other words, when companies don’t help employees take care of their financial health , it costs both the employee and the employer.

What Is Financial Wellness?

You have financial wellness when you have control of your money and don’t feel stressed or worried about your financial scenario. According to Ramsey Solutions , financial wellness is not:

• Living paycheck to paycheck

• Making high-risk investments in things like crypto

• Swiping credit cards and racking up debt

• Using earned wage access programs and payday loans

Conversely, financial wellness does include:

• Having control of your day-to-day finances

• Having enough cushion to handle financial emergencies

• Being out of debt and able to manage expenses without swiping a credit card

• Staying on track to meet savings and retirement goals

Financial Wellness and ROI for Employers

You can’t always measure ROI in numbers. However, when something benefits both the employee and employer, you can generally trust that there is a positive ROI. For example, in the 2021 Financial Wellness Benefits Study , 91% of employers participating said they were more competitive in the job market since they offered a financial wellness benefit, and 81% said that, as a result of offering a financial wellness benefit, they’d seen a positive impact among their workforce. The 2022 SmartDollar Employee Benefits Study showed that:

• 26% of employees use their financial wellness benefits monthly.

• 8 in 10 employees indicate that employer-offered personal finance tools and resources are important.

• 25% of employees used their financial wellness benefits to build up an emergency fund.

• Due to their financial wellness benefit, 29% of employees began saving for retirement.

• Individuals with a financial wellness benefit at work were twice as likely to state they were extremely satisfied with their benefits package compared to those without the benefit.

As these states show, employees appreciate receiving benefits that support financial wellness and reap the benefits of such benefits, which means employers benefit too. Employers that offer financial wellness benefits often experience:

• Lower levels of reported employee stress

• Reduced healthcare costs

• Lower number of 401(k) loans

• Higher voluntary benefits participation

• Increased productivity levels

• Increased participation in retirement savings plans offered by employers

• A lower number of workers’ compensation claims

Financial Wellness Program Options

As a business or HR leader, there are several financial wellness programs available that you can offer to your employees. Some are true wellness programs, whereas others can do more harm than good. Thus, as with any employer-sponsored benefit consideration, it’s wise to do your homework to ensure the program you’re considering is on the up and up and is truly positive for your employees.

Earned wage access programs, for example, are not an option you’d likely want to avoid offering for reasons explained in the next section. Other programs that prompt concern, as well as some options that do offer positive benefits, are outlined below.

Earned Wage Access Programs

Programs that allow individuals to access their earned wages prior to them hitting their bank accounts are referred to as earned wage access programs. They offer a short-term fix to cash flow challenges and often encourage poor financial spending habits and behaviors, like purchasing items that are not essential or necessary.

Programs such as these make money by charging a hefty fee upfront for the use of the service, as well as a high-interest payment or penalty if the loan isn’t paid back on time. In short, these programs generally cause more problems for those using them vs. supporting financial wellness for the long term.

Financial Coaching Programs

Some financial coaching programs are legit and beneficial. Others are not. A beneficial financial coach will support your employees in understanding why they are having financial challenges and help them work on their emotional foundation to be healthier spenders and savers. They also won’t attempt to sell products and services that aren’t beneficial to the client or worse, makes their financial situation more difficult to navigate.

Financial coaching programs can be pricey when you opt for individual coaching. However, some financial coaching services offer group coaching and tools that are cost-effective for the employer while also being beneficial to the employee.

Financial Literacy Bank Products

Bank products tend to provide information to your employees, but they don’t necessarily do anything to support them in shifting their behavior to support healthy personal financial practices. Products offered by banks can include options like financial education webinars, budgeting tools, and financial advising. Again, these tools can be beneficial but don’t necessarily shift behavior. Also, many banks attempt to make money by offering free to low-cost services and then following up with costly credit card and loan offerings that can increase debt vs. eliminate it.

Financial Wellness Programs

Financial wellness platforms are those that want to work with business and HR leaders to determine the best approach to support an employee’s financial well-being. They offer tools and resources, like training and applications, that equip individuals to shift and develop behaviors that support saving, wise spending, getting out of debt, and more—the goal is to help achieve long-term financial success from where an individual is today through to retirement and beyond.

These types of programs are typically free to employees and make money by charging employers a fee to provide access to their platform. Use caution, however, if the program is backed by a big bank with the primary goal of making money vs. assisting your employees.

Student Loan Repayment Programs

Over 40 million people have student loan debt. With the student loan debt crisis, many organizations have begun to offer student loan repayment programs as a benefit. However, they’re not all created equal. Some student loan repayment programs are legit and beneficial to employees. Others, not so much.

If the student debt program offers loan refinancing options or pushes debt products onto those with student loan debt, they’re not serving individuals, but instead helping them get into more debt leading to additional financial illness. The goal is to ensure the student loan repayment program you’re considering for your employees is beneficial to your workforce by helping them get out of debt and not the other way around.

Choosing a Financial Wellness Program

As an employer, you have a lot of options when it comes to selecting the best financial wellness plan for your employees. Here are a few tips and reminders to guide you throughout the research and selection process:

• Do your homework to ensure the program is legit and beneficial for your workforce.

• Seek out programs that encourage behavior changes and development to support financial wellness.

• Avoid programs that make money through offering any type of loan or credit card that could increase debt vs. alleviate it or worsen the financial wellness of your team.

• Select programs that have your employees’ best interests at heart and truly want them to live debt free and embrace financial freedom for the long term.

• Work with an employee benefits broker to help you research and choose the best option for your organization.

Additional Tips to Encourage Financial Wellness

In addition to offering a beneficial financial wellness program for your employees, here are some additional tips to support financial wellness among your workforce:

• Offer a 401(k) or other retirement savings plan and offer financial planning along with it.

• Regularly educate your employees on the financial wellness benefits you offer through frequent and different forms of communication, like webinars and email communications, and by placing fliers and posters up in the work area.

• Offer an employee discount program, so they can save on items like car insurance, home insurance, phone plans, and various forms of technology they use.

• Continuously provide financial literacy tools in addition to your financial wellness programs, such as a regular speaker to share fundamental financial principles, remind them about planning for the financially secure future they want, and share financial podcasts, books, and other helpful resources.

Financial Wellness Benefits Are In-Demand

More and more employees are seeking employers that offer financial wellness benefits. Also, offering the best solution for your workforce is highly beneficial for both you and the employees in terms of productivity and overall well-being.

Whether you’re a business or HR leader that already offers such benefits and are curious as to whether it’s a solid option, you would like to enhance your current offerings, or you are looking to add such benefits to your benefits platform, an employee benefits broker, like KBI can support you at whatever stage you’re in. You have several options to choose from, and a broker can help take much of the weight and work off your shoulders to implement the best financial wellness solutions for your organization.

What Is a Maturity Model in Business?

Thu, 19 Jan 2023 14:37:34 GMT

Various performance evaluation tools can be used for evaluating different aspects of a business to help identify areas for improvement, improve upon processes, improve upon products, and grow departments and the business as a whole. Some evaluation tools might be as simple as a survey, whereas others are more robust software tools. For example, employee benefits surveys can help organizations understand their employees’ needs and benefit utilization to improve their platforms, leading to increased employee morale and retention. Performance appraisals and evaluations help organizations identify gaps and issues and grow their staff and leadership teams.

Maturity models are another performance evaluation tool that business-oriented and software development companies utilize to measure their management styles and processes. When considering a maturity model for your business, there are different types based on your specific needs.

What Is a Maturity Model in Business?

A maturity model helps software development and business teams determine how well their processes and projects are going and if continual improvement and progress are possible. They also help organizations assess their products. Maturity models help you answer:

• How capable is our organization, process, or system of achieving continuous improvement?

• How good is our business, process, or system at self-improvement?

A unique benefit of maturity models compared to other goal-driven measuring tools is their ability to assess qualitative data that allows a company to evaluate performance and long-term trajectories.

Why Are Maturity Models Valuable?

Maturity models help answer the question: Are companies maturing through constant growth, improvement, and testing? Maturity models can determine and apply different levels of effectiveness, which then allows the model to precisely identify where a team, project, person, product, or company is currently positioned.

Implementing maturity models offers several benefits , including the ability to focus on improvement and learning . Through identifying the current position of a team, project, person, or process, what needs to be changed for movement to the next step or level is highlighted. Additionally, they reveal evidence about an organization’s potential and current state while providing flexibility in terms of performance monitoring.

Levels of Maturity

Each maturity model assigns levels to processes to indicate their level of maturity. Generally, there are five levels, regardless of the maturity model, with level one being the lowest in maturity and level five being the highest.

According to Indeed’s Career Guide , the following five levels are used for the different types of maturity models, with some variation, to assess an organization’s process maturity.

• Level 1 – Initial: The initial level is the lowest level. It characterizes inconsistent management practices or teams that react to crises rather than predict them. As a result, processes are unpredictable, reactive, and poorly controlled.

• Level 2 - Managed: The second level defines teams and businesses with a management foundation, but the individual teams within the business still work in silos with minimal collaboration or evidence of incorporating improvement strategies. Processes are characterized by projects and are often reactive.

• Level 3 – Standardized: The standardized, or process management, level means the business is aware of its processes and is working toward consistency and uniform delivery. More proactivity occurs at this level.

• Level 4 – Predictable: At the predictable level, also referred to as the managed level, organizations use their process infrastructure and asset capabilities to achieve reliable results by controlling the variations within their outputs. Processes are controlled and measured.

• Level 5 – Optimizing: At this level, companies are continuously improving and focused on innovation. The focus is on process improvement.

Types of Maturity Models

There are several types of maturity models available, four of which include the:

• Capability maturity model

• Business process maturity model

• Product Management Maturity Model

• Agile ISO maturity model

Capability Maturity Model

Originally created in 1986 through funding by the US Department of Defense to study business practices and the performance of numerous private military contract entities, the capability maturity model aimed to improve existing software development processes. Today, the capability maturity model is now also applied to other business processes. “Maturity” refers to the degree of optimization and formality of processes.

The maturity model compares the maturity of an organization to best practices in the industry. Models can be used to evaluate effective management techniques, awareness of current business processes, and areas for improvement through the measurement of results and then assigning maturity levels based on those results. For the capability maturity model, the five levels outlined above are related to development processes.

Business Process Maturity Model

Through the use of feedback and qualitative measures, business process maturity can illustrate how imminent a developing process is to completion and the capability of ongoing improvement after completion. For a process to be labeled mature, according to iSixSigma , it must be automated, complete in its usefulness, continuously improving, and reliable in information.

A business process maturity model also focuses on domain process areas—specifically strategies that teams and organizations can apply—to get to the next model level. Examples of domain processes include work unit control and monitoring, product assurance requirement management, and change management tools.

Product Management Maturity Model

Companies have come to realize that they must evaluate how their products are being managed in addition to evaluating items like functionality, revenue, and customer numbers. With this realization comes a shift from project-based, incremental product development to a more holistic product development approach that looks at all the ways consumers interact with a single product. Another element of consideration is how different teams manage different products. A product management maturity model evaluates the performance of systems, processes, and people that support a particular product.

Agile ISO Maturity Model

The agile ISO maturity model (AIMM) can standardize levels to define expectations determined by an international body—the International Organization for Standardization (ISO)—to help minimize criticism many have towards some of the other models. The ISO maturity model focuses more on individual phases of the development life cycle vs sequential development and emphasizes the use of agile business process management tools to reach ISO-level standards.

Benefits of Maturity Models

There are several benefits organizations can appreciate when utilizing maturity models, including:

• Team alignment

• It can be applied to varied audiences

• Enhanced learning

• Improved abilities

Team Alignment

By identifying shortcomings, leadership can apply daily changes and updates to improve operations and raise them to the next maturity level. Also, thanks to the measurement of qualitative progress, internal strategies with goals that align with your specific priorities and needs can be implemented.

Can Be Applied to Varied Audiences

Though initially created and designed to support software development, maturity models have been updated and modified to apply to a variety of circumstances and business types and sizes.

Departments and teams of all types and sizes apply maturity models, including those in academics, process specialists, and small and large businesses.

Enhanced Learning

In addition to being able to understand what level you’re at, you also get the benefit of steps you can take to get to the next level.

Improved Abilities

By considering your current level and identifying weaknesses and strengths, you can then prioritize areas for improvement. From there, your team can develop strategies for improvement to get you to the next level.

Key Takeaways

• Maturity models are another performance evaluation tool that business-oriented and software development companies utilize to measure management styles and processes.

• Maturity models help software development and business teams determine how well their processes or projects are going and if continual improvement is possible.

• A unique benefit of maturity models compared to other goal-driven measuring tools is their ability to assess qualitative data that allows a company to evaluate performance and long-term trajectories.

• Several types of maturity models are available, including the capability maturity model, business process maturity model, product management maturity model, and agile ISO maturity model.

• Generally, there are five levels, regardless of the maturity model, with level one being the lowest in maturity and level five being the highest.

• Level 1, the initial level, is characterized by inconsistent management practices or teams that react to crises rather than predict them.

• Level 2, the managed level, defines teams and businesses that have a management foundation, but the individual teams within the business still work in silos with minimal collaboration or evidence of incorporating improvement strategies.

• At level 3, the standardized level, the business is aware of its processes and is working toward consistency and uniform delivery.

• At level 4, the predictable level, organizations use their process infrastructure and asset capabilities to achieve reliable results by controlling the variations within their outputs.

• At level 5, the optimizing level, companies are continuously improving and focused on innovation.

• Benefits organizations can appreciate when utilizing maturity models, including team alignment, enhanced learning, and improved abilities, and they can be applied to varied audiences.

Maturity Models and Continuous Improvement

Maturity models help set out internal strategic goals for businesses resulting from qualitative progress measurement. This allows for growth, optimizations, and more effective and smoother-running processes and systems. Which maturity model might work best for your business needs per the information provided above?

What Are Fringe Benefits? Tips to Attract, Retain, & Inspire Talent

Wed, 11 Jan 2023 22:40:21 GMT

Employees want to work for employers that offer a solid benefits package . Many individuals would even choose to work for a company for less pay if they had better benefits . Bamboo HR reported that better benefits were one of the top five reasons employees left companies in 2022, and 21% of applicants would leave their current job for another job offer with better benefits . Therefore, in today’s competitive labor market, where many industries are facing a shortage of qualified candidates to fill their open positions, employers must offer an extraordinary fringe benefits package in addition to their compensation package.

What Are Fringe Benefits?

Fringe benefits are any benefit an employer offers its employees outside of a standard compensation package that’s typically comprised of base pay and bonuses. Often, an employer offers the same fringe benefits to all full-time employees. In some instances, however, certain fringe benefits may also be granted to part-time employees, and some might only be granted to employees within certain positions or at a certain level of the organization, such as the executive level.

Types of Fringe Benefits

Many fringe benefits are offered to support overall job satisfaction and reduce dissatisfaction and others are offered to compensate employees for expenses incurred out of necessity for doing one’s job. For example, health insurance is expected by employees, so not having it as an option would increase dissatisfaction, while offering it simply keeps the status quo, though doesn’t necessarily increase satisfaction. Offering benefits, like flex time or additional paid time off, isn’t a requirement or offered by all employers, so when it’s offered, it tends to increase employee satisfaction.

Several fringe benefits offered are standard and offered as part of one’s employment, like medical insurance, dental insurance, disability insurance, life insurance, cafeteria subsidies, employee discounts, tuition reimbursement, and the use of a company vehicle. Fringe benefits that aren’t as common—though many are becoming more common in today’s competitive market—include pet-friendly workplaces, on-site sports and workout facilities, free fitness classes, pet insurance, free commuter services , paid maternity leave, on-site childcare centers, and free on-site meals.

Cafeteria Plans and Fringe Benefits

When an employer offers a suite of benefits to employees that they can choose from, similar to an individual selecting food from a cafeteria menu, it’s referred to as a cafeteria plan. Some of these types of fringe benefits are on a pre-tax dollar basis, including retirement benefits, life insurance, health savings accounts, and health insurance plans.

Fringe Benefit Taxation Rules

Fringe benefits are taxable unless they conform to the IRS rules for exemption. Taxable fringe benefits must be included on one’s federal tax return as taxable income for the tax year based on its fair market value or the retail amount the individual would pay for the same benefit. For employer-provided vehicles, the fair market value is generally the amount an individual would need to pay a third party to “lease the same or similar vehicle on the same or comparable terms in the geographic area where the employee uses the vehicle.” A cents-per-mile rule is permissible instead of fair market value if certain criteria are met.

If a fringe benefit does fall under the IRS exemption list, it doesn’t necessarily mean the entire value of the benefit received is exempt. For example, fringe benefits that are considered working condition benefits are only exempt to the extent they were used for work-related use and only taxable to the extent they were used for personal use.

Let’s say an employee is provided with a smartphone. The taxable income would be the percentage of time dedicated to it being used for personal use. So, if the smartphone is used 40% of the time for personal use and 60% of the time for business use, then 40% of the fair market value of the smartphone is taxable and should be included on your federal tax return as income.

The IRS publishes its Employer’s Tax Guide to Fringe Benefits that outlines which benefits qualify as exemptions. The list includes:

• Accident and health benefits

• Achievement awards (up to $1,600 for qualified awards)

• Adoption assistance

• Athletic facilities

• Commuting benefits

• De minimis (minimal) benefits

• Dependent care assistance

• Educational assistance (up to $5,250 per year)

• Employee discounts

• Employee stock options

• Employer-provided cell phones

• Group-term life insurance coverage

• Health savings accounts (HSA)

• Lodgings on your business premises

• Meals

• No-additional-cost services

• Retirement planning services

• Transportation (Commuting) Benefits

• Tuition reduction

• Working conditions benefits

The majority of fringe benefits that are income tax-exempt are also exempt from Medicare, Social Security, and federal unemployment taxes.

Additional Exemption Considerations

Each type of exemption has its own rules and conditions that need to be met, and different types of employers have a specific set of rules to qualify for the exemptions. Most of the time, employee prizes or awards given to them by their employer are taxable, which is always the case for cash awards.

Achievement awards are an example of exempt employee awards. However, they are only exempted up to $400 for non-qualified plan awards and up to $1,600 for qualified plan awards. The award cannot be in the form of meals, vacations, sporting events or theatre tickets, lodging, cash, cash equivalents, bonds, stocks, or any other type of security. A tangible award, like a tablet or set of golf clubs, would fall under the tax exclusion up to the value amount allowed. Qualified plans are those that are available to all employees and not solely highly paid employees.

Aside from achievement awards, fringe benefits that are offered to highly paid employees only are taxable—they do not fall under the tax-exempt rule—including dependent care assistance, adoption assistance, and employee discounts.

Tips to Attract, Retain, and Inspire with Fringe Benefits

Research shows that if organizations want to attract and retain top talent, they need to step up their benefits strategy. To do so in your organization:

Know the research: What benefits are being offered by your competitors that are attracting talent?

What does the research say about what employees are seeking? Health insurance, dental insurance, vision insurance, and retirement benefits are still top priority for employees when it comes to necessary employer-sponsored benefits. In addition, employee rewards, employee performance bonuses, flexible working arrangements, mental health services, paid vacation, and increased paid time off are the types of benefits employees appreciate and prioritize these days.

According to research by Buck Consulting , the top 10 fasting growing voluntary benefits being offered include:

1. Hospital indemnity insurance

2. Personal loans

3. Financial coaching/planning

4. Caregiving

5. Critical illness insurance

6. Discount Marketplace

7. Pet insurance

8. Health accident insurance

9. Auto/Home Insurance

10. Long-term care insurance

Ask your employees: To better understand what your employees desire regarding fringe benefits, ask them. Ask what’s working for them, which benefits they wish they had, which ones they love, and so on. It’s also a good step to conduct exit interviews and inquire about the employee’s satisfaction with their benefits while they were employed with you.

Educate your employees: If your employees don’t know or understand the benefits available to them, you and the employee could be missing out. Employees often report they don’t understand their benefits fully and 45% indicated they wished they had a better understanding of them.

Promote your employee benefits platform: In addition to ensuring your internal employees are aware of the benefits available to them, you want to advertise your benefits, especially those that set you apart, in your job postings, on social media, and more.

Key Takeaways:

• Fringe benefits are any benefit an employer offers its employees outside of a standard compensation package that’s typically comprised of base pay and bonuses.

• Research shows that if organizations want to attract and retain top talent, they need to step up their fringe benefits strategy.

• Fringe benefits are taxable unless they conform to the IRS rules for exemption.

• Several fringe benefits are exempt from taxation.

• To attract, retain, and inspire with Fringe Benefits, learn what your employees want, know what the research says, promote your benefits platform internally and externally, and educate your employees on the benefits you offer.

Work with a Benefits Broker Regarding Fringe Benefits

Another step you can take when it comes to fringe benefits is to work with a benefits broker. Understanding the complex aspect of taxation of fringe benefits for your company and its employees can be a complicated endeavor, as well as deciding which benefits are best for you and your organization, which is where a broker can provide invaluable support.

Benefits brokers are experts in the field and can guide you on current market trends and research, the benefits that tend to work best to offer in your market and sector, and the many benefit options available to you. A broker can also help you survey and assess your workforce and help you to determine what would work for your specific demographic now and in the future, while also keeping up with employment law legislation in your area.

If you have questions or need support when it comes to understanding, identifying, or selecting fringe benefits for your organization, KBI can help. Contact us today for more information on how we can support your benefits needs.

HR Data Security: HR’s Role in Employee Privacy & Data Protection

Thu, 05 Jan 2023 15:21:26 GMT

With an increase in data breaches and cybersecurity attacks, organizations are on high alert (or should be if they aren’t already) in terms of employee privacy and data protection. HR departments are central to ensuring that responsible practices are implemented to protect their employees’ data.

This piece covers what employee privacy and data protection are, misconceptions about the topic, the costs of a data breach, global privacy laws, and what HR can do to protect employee data throughout the life cycle.

Employee Privacy & Data Protection Defined

As the phrase implies, employee privacy and data protection are when organizations take measures to ensure their employees’ personal data is safely stored and only accessed or released with the permission of the employee—their personal employee data should not be released without their consent. Personal data includes home and cell phone numbers, home and mailing addresses, social security numbers, birth dates, bank account information, number of dependents, medical history, and more. In the wrong hands, this type of information can be used illegally and cause a lot of problems for the employee.

Misconceptions about Employee Data

Employers have several rights to consider when it comes to how they can use employee data. Oftentimes, there are many misconceptions the employer about what they can and cannot do with an employee’s data. Privacy and data security firm security highlights the following four common misconceptions by employers when it comes to employee data:

1. Employers believe that they do not need to notify employees before processing data. However, most global privacy laws require employers to notify their employees on every instance of data collection and data processing.

2. Employers believe that they have an unrestricted right to monitor their employees for security and productivity reasons. However, most global privacy laws allow monitoring of employees only under certain conditions and as long as such monitoring is not unreasonably intrusive to employees.

3. For an employer sitting in the US, they believe that laws from other countries do not apply to them. This is incorrect, as laws such as the GDPR may also apply in the US if, for example, they are processing data belonging to EU residents. Most global privacy laws have extraterritorial applications. Therefore, it is important for an organization to identify which privacy laws apply to them depending on their employees’ residencies, citizenships, place of work, or any other appropriate factors.

4. Employers believe that a data breach will result in fines. This can be the case, but it depends on the severity of the breach and its impact. Apart from fines, employers might also be asked to provide further mitigation services to employees affected by the breach as well as overhaul or upgrade their security frameworks to ensure that the breach does not take place again.

The Costs of an Employee Data Breach

There have been several known data breaches in recent years. In the third quarter of 2022 alone, there were 15 million records exposed throughout the world due to data breaches, a 37% increase from the same quarter in 2020. Specific to personnel and employee records, Snapchat had a data breach that exposed the payroll information of 700 former and current employees—the breach was the result of an attacker appearing to be the CEO of the company, Evan Spiegel. In 2017, the City of Calgary in Canada experienced a breach that impacted over 3,700 of its employees, which lead to a $92.9 million lawsuit.

Employee data breaches are costly in several ways for both employees and employers. Employees must deal with the stress and aftermath of their personal details being accessed by unknown parties, which could lead to identity theft, lowering one’s credit, and more.

Employers have to deal with the costs directly associated with handling the breach, understanding how and why it happened, and doing their best to mitigate damages due to it. Additionally, employers have to deal with the fallout with their employees and consumers. Their reputation is negatively impacted and both groups tend to lose trust in the organization. For employees, the stress and lack of trust can also lead to lower morale and losing employees within the organization.

HR’s Role: Data Protection for the Employee Lifecycle

Human Resource departments need to be aware of the data security requirements and obligations throughout an employee’s lifecycle with the company, from the pre-hiring recruitment process to the employment tenure and finally, their post-tenure.

Pre-Hiring Recruitment Phase Data Protection Measures

During the pre-hire recruitment phase, organizations must be mindful of the following:

• Applicants must be informed of what information will be collected and why.

• Data collection should be specific to the job the candidate is applying for.

• Background checks should only request required information to make an informed decision about the candidate’s history without being too intrusive.

• Authorization forms need to be included for any documentation where third-party vendors might be pulling or using the candidate’s information.

• In some areas, publicly available data can be used as part of the employment process, whereas in other areas, it cannot be, so it’s essential you know the employment and data privacy laws in your area and where you do business.

• Unsuccessful job candidates’ information should only be stored if it’s relevant for them to be considered for a future open position.

Employment Phase Data Protection Measures

During the employment phase, organizations must be mindful of the following:

• Many privacy laws and regulations require employers to let their employees know before any of their personal data is collected or processed.

• Collection, processing, and retaining personal data should only be done for relevant reasons and as it pertains to the employee’s job function.

• When monitoring employees of implementing privacy protection tools, the employee must be informed of such actions being taken, and the company must put measures in place to protect such monitoring.

• Risk-based assessments, risk-mitigating tools, and appropriate security measures need to be in place by employers to protect their employees’ data.

• Employee records need to be regularly updated by employers to reflect accurate and current information.

• Employers need to review and communicate any third-party vendors’ privacy practices to protect employee data if they are accessing or processing it for any reason.

Post-Employment Phase Data Protection Measures

During the post-employment phase, after the employee has exited the company, organizations must be mindful of the following:

• Employees must consent to their information being retained for the purpose of future open positions with the company.

• Clear data retention policies and procedures need to be in place as to when an employee’s data will be deleted and must abide by local employment laws on such practices.

• Employers don’t need to keep former employee info current and up-to-date, but they do have to provide a copy of an employee’s records to them upon request.

Global Laws Related to Employee Privacy and Data Protection

With the many types of data an organization holds on its current and former employees and job candidates, it’s vital that the organizations and their HR departments carefully consider the best route to protect such data. The numerous types of employee data, the increase in security breaches, and more have prompted many governments to implement legislation and regulations to protect employee data. Brazil, European Union, New Zealand, Singapore, and California in the United States are countries that have implemented such legislature.

Brazil - Lei Geral de Protecao de Dados (LGPD)

The Lei Geral de Protecao de Dados (LGPD) in Brazil covers the requirements of private and public organizations in terms of personal data to protect individual privacy rates in the country.

European Union - General Data Protection Regulation (GDPR)

The European Union’s General Data Protection Regulation (GDPR) treats consumers and employees equally to provide protection related to the processing of personal data.

New Zealand - New Zealand Privacy Act 2020

The New Zealand Privacy Act 2020 is a modernized version of the Privacy Act of 1993. The Act provides several safeguards and rights related to the processing of personal data and treats consumers and employees equally.

Singapore - Personal Data Protection Act 2012

The Singapore Personal Data Protection Act 2012 has two primary provisions, one of which focuses on Data Protection and the other focuses on the national Do Not Call Registry.

California in the United States - California Consumer Privacy Act (CCPA)

The California Consumer Privacy Act (CCPA) requires data collection privacy notices and disclosures to be issued by employers and provides statutory damages of between $100 and $750 for the breach of personal information.

Next Steps for Improved Data Security

For companies that have outdated software or manual employee data security, it’s time to shift to updated and automated processes to help ensure your employee data is as secure as it can be. Conduct research to identify the best approaches and organizations you might want to work with that specialize in data security. Taking these steps is imperative to help mitigate risks and reduce costs associated with privacy and data breaches. The health of your organization and employees depends on it.

How to Correctly Enact an "Actively-At-Work" Clause?

Tue, 13 Dec 2022 21:44:37 GMT

Many employer-sponsored group insurance plans include Actively-At-Work provisions. These provisions are included to help insurance carriers avoid the exploitation of benefits. This post defines “actively-at-work” and includes challenges employers face with such clauses, as well as how to correctly incorporate and adhere to them.

What Does “Actively-At-Work” Mean?

Actively at work, also referred to as active work or active employment, means an employee is performing all regular duties of their occupation at any of the established business locations of the employer, as well as any location the employee might be required to travel to for conducting employment duties.

Insurance plans, for the most part, will not begin covering employees until they are actively at work. On the flip side, once an employee’s employment is terminated, the employee is always deemed no longer actively at work.

Are Employees Considered “Actively at Work” When on Approved Leave?

An employee could be considered actively at work when absent due to health-related leave. Employees are also generally considered actively at work when on permitted leave, such as vacation and paid time off, as long as the employee would be able to perform their duties if at work. However, it’s important to understand the fine print of each insurance policy and how “actively at work” is defined to ensure you don’t unintentionally commit fraud or leave yourself and your employees unprotected.

How do “Actively at Work” Provisions Function?

Many group benefits, like medical insurance and life insurance, have actively at work provisions that define eligibility under the plan. Contracts, such as reinsurance contracts or stop loss contracts, also have actively at work clauses. These provisions are meant to define when and how long an employee is eligible for a specific benefit if something occurs that deems them not to be actively at work.

The length of time an organization can allow their employees that are not actively at work to remain on a group health plan differs between carriers. However, how the actively at work provisions are administered is typically similar across carriers. Insurers often audit eligibility upon a large death claim or medical claim through proof of employment, such as requesting payroll records or another form of verification.

What Are Possible Issues with “Actively at Work” Provisions?

It is common for employers to think they are doing their employees a favor when they allow them to remain on their group health plans after they’ve been diagnosed with a terminal or chronic health condition. Understandably, the employer faces a difficult decision in these situations when it comes to how to proceed in that they want to support the employee. In these situations, it isn’t uncommon for the employer to allow the employee to remain on their benefits programs even if they have no more time off or leave left and no longer meet the definition of actively at work. However, allowing the employee to remain on employer-sponsored benefit plans under these circumstances creates a huge liability for the business.

Let’s say your organization offers a fully insured medical plan and life insurance plan through Insurance Company A. The provisions of both plan’s contracts require employees to be terminated from the plan if they go more than six months without being actively at work, regardless of the type of leave.

You then have an employee, we’ll call her Amy, that’s diagnosed with a terminal brain tumor. Amy has exhausted all of her leave, and you choose to allow Amy to remain on your group medical plan and life insurance plan because you believe it is helping her. After all, her medical bills are costly, and she is single with no one else to help her with her expenses.

Eight months go by, and Insurance Company A finds out that Amy is not actively at work. As a result, your company’s failure to report the circumstances are deemed as a misrepresentation of a material factor or fraud, and the insurer cancels the insurance coverage retrospectively to the six-month mark.

Now, your company faces the liability of having to self-fund the full cost of coverage for Amy out of the company’s general assets. Further, the COBRA eligibility timeframe is exhausted since more than 90 days have elapsed, and under such circumstances, the insurer does not need to reinstate COBRA coverage for your employee. The timeframe for your employee to choose to port their life insurance has also passed. Additionally, your company might be required to cover the cost of the death benefit due to not correctly administering the group life insurance plan.

How Does HIPPA Impact “Actively at Work” Clauses?

The Health Insurance Portability and Accountability Act (HIPAA) is an effort to ensure that a person’s health information is protected and appropriately accessible. Since HIPAA only pertains to health insurance, HIPPA only applies to an employer’s group medical plans.

HIPAA includes a nondiscrimination rule that states that employers cannot “refuse to provide benefits because an individual is not actively at work on the day that the individual would become eligible for benefits.” In other words, if the actively at work clause denies access to the plan because of a health factor on the day the employee would otherwise have access to the plan, the provision is not allowed.

An actively at work provision would be HIPAA compliant under the following three scenarios:

1. The provision only requires employees to report for their first day of employment for coverage to begin. You hire Employee A to begin work on February 1 as a full-time employee. However, Employee A becomes ill with COVID on January 31 and therefore is not able to report to work until February 14. Your insurance plan has no waiting period, and employees satisfy the eligibility requirement on the first day they report to work. Though Employee A would have been granted benefits on February 1 if they would have reported as planned, they do not become eligible until they actually report to work, which is February 14 in this case.

2. The health plan considers the employee to be absent if actively at work for health coverage purposes. You hire Employee A who begins work on February 1. Your group health plan has a 90-day waiting period for eligibility, which Employee A satisfies on May 1. However, Employee A is in a car accident at the of April and is out of the office on May 1. Since Employee A’s absence is related to a health factor, you still enroll Employee A into the group health plan effective May 1.

3. The provision applies only to absences unrelated to a health factor. You hire Employee A who begins work on February 1. Your group health plan has a 60-day waiting period for eligibility, which the employee meets on April 1. However, April 1 falls on a day that the employee does not work, like a Sunday, so you enroll Employee A in coverage on April 2, instead, when they’re at work. The April 1 factor is not health-related, so it is permitted under HIPAA.

Key Takeaways

• Actively at work means an employee is performing all regular duties of their occupation at work.

• These provisions are meant to define when and how long an employee is eligible for a specific benefit if something occurs where they are no longer actively at work.

• An employee could be considered actively at work when absent due to health-related leave.

• Employees are generally considered actively at work when on permitted leave, such as vacation, as long as the employee would be able to sustain their duties if at work.

• Insurance plans don’t generally begin covering employees until they are actively at work and coverage is always terminated after employment is terminated.

• The length of time an organization can allow their employees that are not actively at work to remain on group health plans varies between carriers, though the administration is similar.

• HIPAA includes a nondiscrimination rule that dictates what an actively at work provision related to group health plans can and cannot include.

• When employers allow employees to remain on employer-sponsored benefit plans for longer than the actively at work clause permits, it creates a significant liability for the business.

What Is the Correct Way to Define and Implement an “Actively at Work” Clause?

Actively at work provisions can sometimes be confusing, so when in doubt, turn to your insurer, plan administrator, or insurance broker for guidance. Any of these individuals or groups will be able to communicate with you what the details of the contract say pertaining to being actively at work. They can also support you in helping your employees understand their rights and requirements under the plan, including how to transport or convert coverage when it is possible to do so.

If you have questions about your plans’ actively at work provisions, give KBI a call. Our team of brokers can support you in understanding your plan and how it works, as well as guide you for future plans.

Indirect Loss vs Direct Loss: What Are the Differences?

Tue, 13 Dec 2022 14:51:49 GMT

There are several types of insurances available to protect businesses and individuals against loss and damages. Insurances break down and fall into one of two categories—they either protect against direct losses or protect against indirect losses.

This piece explains direct and indirect losses with examples of what each type of insurance covers.

What Types of Losses Are There in Insurance?

A loss in insurance terms is a reduction in asset or property value or damage of said assets or property due to an accident, natural disaster, man-made disaster, or other risks . Losses fall into one of two categories in terms of property insurance: direct loss or indirect loss.

Direct Loss Definition

Direct losses are damages that are immediately caused by or inflicted by an accident, disaster, or other incidents, which are referred to as perils in the insurance world. Direct losses are tangible losses that can be touched and seen.

Examples of Direct Losses and Direct Loss Insurance

If a car runs off the road and into your storefront, direct loss insurance would help to cover the repairs related to rebuilding and making the storefront functional again. Direct losses would not only include damage to the structure, but damage to the furniture, equipment, inventory, and other items within the structure, too.

Theft, smoke, rain, and fire damage generally also count as direct losses. Shock and damage from an earthquake, a tornado touching down and damaging your structure, and your corporate building catching on fire would be considered perils under direct loss coverage. The water sprayed into the building by the fire department to put out a fire would also fall under direct loss.

Casualty insurance is routinely purchased by businesses to cover direct losses, including damages, loss of property, and other liabilities. Some of the most common types of causality insurance include property insurance, theft insurance, liability insurance, and vehicle insurance.

Indirect Loss Definition

Indirect losses are also referred to as consequential losses. Indirect losses are not caused by the risk or peril directly, but are losses that are a consequence of, or caused by, and resulting from, the direct loss. There are two primary types of indirect losses: extra expenses and loss of income.

Examples of Indirect Losses and Indirect Loss Insurance

The most common example of indirect loss insurance is business interruption insurance. Business interruption insurance, also referred to as business income insurance or contingent business interruption coverage, covers losses due to an event that causes your business to shut down temporarily. Business interruption insurance is generally triggered when direct physical damage to insured premises occurs, or a covered peril causes physical damage that causes the need to suspend business operations.

For example, if a car runs off the road and into your storefront, causing you to have to shut down for days or weeks until repairs are finished, a business interruption policy can help cover the loss of profits and other costs associated with having to temporarily close your business. Direct coverage insurance will help to cover the cost of rebuilding due to the car running into your storefront, and indirect loss coverage would help cover the losses due to not being able to operate until the rebuild and repairs are completed. Business interruption insurance can cover:

• Loan payments that need to be made while your business is not able to operate

• Employee payroll

• Revenue you would typically make if open

• Relocation costs if you need to move your business to a new or temporary location

• Monthly or quarterly taxes

• Rent, mortgage and lease payments related to the business space

• Training costs associated with employees needing to learn how to use new equipment or machinery following the loss

Items typically excluded from business interruption insurance coverage include:

• Undocumented income

• Utilities that are typically shut off when businesses are under repair

• Damaged property otherwise covered under commercial property insurance

• Communicable disease-related closures

• Damages due to an earthquake or flood that generally require separate insurance policies

Business interruption insurance might also cover losses due to having to temporarily shut down from a government-mandated road or bridge closure that impacts your business.

Another example of an indirect loss would be the need to rent a car while one’s car is being repaired following a car accident or damage. The damage to the car is the direct loss, and the need to rent a car is the indirect loss.

Many business owners’ policies include both direct and indirect loss insurance coverage by bundling interruption insurance with commercial property insurance and general liability insurance.

Are Physical Losses Always Considered Direct Losses vs. Indirect Losses?

Generally, insurers require that a physical loss occurs for the loss to be covered under a direct loss policy. However, they do not tend to define the word “physical,” leaving a lot of grey areas and uncertainty when attempting to determine what does and does not qualify as a direct loss. In many cases, these types of quandaries end up in front of the courts to make a determination.

Where some losses are clearly physical losses, others are not so clear. Building damage, for example, is most certainly a physical loss, or direct loss. However, if the power to a restaurant is knocked out due to a heavy rainstorm moving through, and all the produce and food in the coolers goes bad, it is unclear if the loss of produce is a physical direct loss or an indirect loss. No rain damage was actually done to the building, making it debatable as to whether a physical loss occurred, yet a loss did indeed occur, which is the loss of the produce that resulted from a peril.

Direct Loss Insurance vs. Indirect Loss Insurance Needs

Indirect losses must be insured separately from direct losses. Direct loss insurance is virtually always included as part of business casualty insurance policies. However, it is indirect losses that can be the most damaging to organizations. A business can often recover from the losses associated with the need to repair damaged buildings or equipment, but many will go under due to a loss of ongoing monthly income and additional expenses because of such direct damages. As a result, it is essential that organizations review their business insurance policies to ensure that business interruption is also covered, and if it is not, they secure such insurance to fill in any insurance gaps.

Key Takeaways

• Indirect losses are also referred to as consequential losses, which are the indirect result of property damage or loss.

• Direct losses are caused by the direct impact of perils that cause property loss and damage, including losses associated with damage to buildings, equipment, and more.

• Direct losses are defined as tangible, or physical losses.

• Indirect losses must be covered separately from direct losses.

• Indirect loss coverage policies cover losses due to business interruptions.

• There are two key types of indirect losses: extra expenses and loss of income.

• Indirect losses can cause more damage to businesses in terms of costs compared to direct losses, which can be easier to recover from.

• Business interruption insurance is the most common type of indirect loss insurance coverage.

• Business owner’s policies often bundle interruption insurance with commercial property insurance and general liability insurance.

• Common types of direct loss causality insurance include property insurance, theft insurance, liability insurance, and vehicle insurance.

• Since insurances commonly have exclusions, it is important to read the fine print to highlight any gaps and purchase additional coverage when needed.

• An insurance broker can help ensure businesses do not have any gaps when it comes to indirect loss and direct loss coverage.

Insurance Brokers for Indirect and Direct Loss Insurance Coverage

If you are researching insurance and want to ensure you have mitigated risk to the fullest extent for your business, consider reaching out to an insurance brokerage firm, like KBI. They can help to take the heavy lifting from your plate, freeing you up to focus on your day-to-day business operations.

A broker knows how to read the fine print to identify any gaps between direct and indirect loss coverage within your current policies, so you know you are covered, regardless of the peril or type of loss. A broker can also help you determine the level of insurance you need by assessing the industry, your business, the number of employees you have, and more.

Additionally, reputable brokers understand local laws and requirements, ensuring you have the right types and levels of insurance to remain in compliance. Finally, insurance brokers have relationships with hundreds of insurance companies and agencies, so they can work to find you the best rate and plans for your needs.

If you’re in the process of evaluating or purchasing direct loss and indirect loss insurance, contact KBI for support. We will point you in the right direction to make sure your needs are met with a customized plan.

Once you have an insurance package you are comfortable with today, it will be easier to make necessary adjustments down the road, as well.

What Is First Dollar Coverage?

Tue, 29 Nov 2022 22:34:46 GMT

First dollar coverage is a type of insurance coverage that pays out and protects policyholders from day one or with the very “first dollar” billed. With these types of plans or built-in plan elements, as the case may sometimes be, there is no cost sharing between the insurer and the insured.

This post covers what first dollar coverage is, its limitations and benefits, and more.

What Is First Dollar Coverage?

First dollar coverage insurance policies don’t have a deductible, nor do they require copays or other out-of-pocket expenses before coverage commences. As a result, the insurer covers the entire payment when an insurable event occurs. That means that the insured doesn’t pay anything out of pocket, and the insurance company covers the whole expense related to the loss—there is no financial pressure placed on the insured.

You can typically secure first dollar coverage policies for car, health, and homeowner’s insurance. First dollar coverage can also be in other types of insurance, like professional liability insurance and business insurance.

Generally speaking, first dollar coverage is more prevalent and popular with health insurance policies compared to car and home insurance. This is in part due to the insurer covering the cost of all covered medical services for the insured with first dollar medical policies.

It’s common for first dollar coverage to be a subtype of insurance offered in a comprehensive insurance package. It’s not generally intended to be a stand-alone policy. It’s also common for plans to be hybrid plans, with some costs covered at first dollar and others covered after a deductible is met.

What Are the Limitations of First Dollar Coverage?

Though it’s nice to have a policy where you don’t have to pay anything out of pocket, there are some limitations to first dollar coverage, including lower payouts, higher premiums, and driving up costs due to misuse.

Lower Payouts

Since the insurer covers the entire cost of a loss and bears all the risk, the maximum payout or coverage under first dollar policies is typically lower than other similar types of insurance policies that have a deductible or copayment. In other words, with a first dollar policy, there is a limit to how much the policy will pay out compared to other deductible-first policies of that type, such as health insurance. The lower payout is partly why many opt for copay and deductible plans vs. first dollar plans. Also, generally speaking, the higher the payout, the higher the premium.

Higher Premiums

As with most insurance policies, the higher the risk to the insurance company or insurer, the higher the premium payments for the insured. As mentioned, the insurer is taking on a higher risk by covering the entire cost of the loss and therefore charges the customer more to help offset the risk. Due to the higher premiums, first dollar coverage tends to be less prevalent in the car and home insurance sectors.

Driving up Costs

Some criticize first dollar plans, indicating that many misuse or overuse first dollar policies, specifically in the healthcare industry. As a result, the costs of medical products and procedures are driven upwards. The unintentional result is those needing medical care are not getting it because they can’t afford to cover the costs of medical procedures or the premiums of first dollar policies. On the flip side, many argue that a high deductible could prevent people from seeking medical care, even if they truly need it, making their problem or health issue worse and more difficult and costly to manage down the road.

How Do First-Dollar Insurance Policies Work?

Here are some examples and explanations of how first-dollar policies operate.

First Dollar Car Insurance Example

Let’s say you’re in a car accident and need to repair your car. You take your car to the shop, and you’re told that the cost of your repairs is $3,000. If you have a traditional car insurance policy with a deductible, you’ll have to pay the deductible amount, and your insurance company will cover the rest. If your deductible is $1,000, for example, you’ll be responsible for $1,000 of the costs out-of-pocket, and your insurance company will be responsible for $2,000.

With a first dollar car insurance policy, you won’t be responsible for any portion out of pocket. Instead, your insurance policy will pay the entire $3,000, assuming your cap is higher than that.

First Dollar Medical Coverage Explanation

First dollar insurance policies are not typically meant to be one’s sole insurance policy. Instead, they’re often purchased as a supplement to one’s major medical plan or to provide peace of mind for immediate payout for certain expenses before your primary plan kicks in.

Oftentimes, first dollar medical plans are basic plans that cover routine screenings and standard procedures, like lab work and x-rays, at full cost. A person’s primary insurance would then cover major medical procedures, like surgeries, subject to the plan’s copays and deductible.

Affordable Care Act qualifying medical plans have first-dollar coverage for standard preventative care visits, like well-women exams and screenings. Even if you haven’t met your deductible for the year, your medical plan pays for these services at 100%.

Medicare Supplemental Insurance , also referred to as Medigap, is a policy you can purchase when you have a Medicare Part B policy that’s current. Some Medigap policies offer first dollar coverage features that can go towards out-of-pocket Medicare Part A and Part B costs, such as coinsurance and deductibles.

First Dollar Homeowner Insurance Example

If you happen to have damage to your home from a water leak, you’ll seek a professional to quote you on the cost of repairs. Let’s say the repairs cost $5,000, and the type of damage making repairs necessary is covered under your homeowner’s policy. In this case, if you have a first dollar policy, the insurance company will cover the entire $5,000 without you having to pay anything for the repairs.

Is a First Dollar Policy Right for You?

First dollar policies can work well for those that don’t have a lot of cash savings to help cover the cost of a deductible if you’re in a car accident. The same holds true for medical-related expenses—if you don’t have much cash saved up or access to a flexible spending account (FSA), health savings account (HSA), health reimbursement account (HRA), or similar, a first dollar policy can serve as supplemental insurance to help cover some of the up-front costs of certain medical expenses. Also, if you don’t have funds to cover the premiums for major medical insurance, you might opt for an affordable, basic first dollar policy, so you have at least some level of medical coverage.

Where Can You Find First Dollar Policies?

Many insurance companies offer first dollar policies. You can do an online search to compare companies and plans or call insurance companies directly to learn more. You can also choose to work with an insurance broker to identify plans that fit your criteria through their extensive network of providers. That way, you’re not having to sift through all the details, comparisons, and fine print on your own, saving you a lot of time and energy.

First Dollar Plans: A Recap

• First dollar coverage pays from the first dollar billed—they come with no copays or deductibles.

• The insurer pays for all costs after an insured event happens up to the payout limit.

• First dollar insurance is most prevalent in the health insurance sector, though it can also be found in car and homeowner insurance plans, among others.

• They come with a higher premium compared to similar types of plans with a deductible.

• First dollar plans tend to have a lower payout compared to plans with similar premiums.

• These plans might be a viable option for those without access to a cash savings or health savings plan account.

• They’re often meant to be supplemental health insurance policies vs. one’s primary medical coverage.

• You can secure first dollar policies from many major insurers.

• Insurance brokers can support one in securing first dollar insurance more easily.

• More people are likely to seek medical care following a serious injury, accident, or medical condition since there’s no pressure to cover the costs of care for the insured.

Insurance Brokers and First Dollar Coverage

If you’re interested in learning more about first dollar plans or if you think such a policy might fit your needs, consider working with a professional broker to assist you. Insurance brokers are experts in the insurance business, and they can help you navigate whether a first dollar policy would be a wise investment or a waste of money based on your personal circumstances.

Brokers also have access to hundreds of insurance companies and their policies to bring you a variety of options with competitive pricing. Health insurance regulations and plans change from year to year, and insurance brokers can guide you through those changes when needed.

Contact KBI today to discuss first dollar insurance and which policies, if any, might be best for your needs.

Final Expense Insurance: How it works

Wed, 23 Nov 2022 14:55:50 GMT

The main difference between other life insurance policies and final expense insurance is that final expense insurance allows insurers to sell a small policy that is more affordable. A funeral can cost anywhere from $7,000 to $12,000 on average. The goal of final expense insurance is to offer a benefit that the insured can use towards death-related expenses such as cremation, funerals, memorial services, caskets, tombstones, and embalming. With that said, beneficiaries of this type of insurance can apply the funds received towards anything they choose.

What Is Final Expense Insurance?

Final expense insurance is a type of whole life insurance, which is generally easier to be approved compared to most other types of life insurance policies (e.g., term life insurance). It offers a small death benefit, which is why it’s also referred to as burial or funeral insurance. It’s also referred to as modified whole life insurance or simplified issue whole life insurance, as it offers less than a typical whole life policy since it covers a death benefit only.

Do You Need Final Expense Insurance?

Insurers often target older individuals who are beginning to consider funeral expenses and ways to support their families after they pass. For those who already have life insurance policies in place or have already prepaid funeral expenses, final expense insurance might be redundant. Additionally, those who have investments or significant savings might not need final expense insurance.

Final expense insurance is ideal for those who don’t have much savings or a life insurance policy that can help with the costs people might face after a loved one's death. It’s also a consideration if your loved ones need funds immediately, as life insurance payouts are often faster than final settlement estate payouts—your beneficiaries will have faster access to cash.

What Are the Benefits of Final Expense Insurance?

Aside from paying out funds that can go towards death benefits, there are additional benefits of final expense insurance.

Final expense insurance premiums cannot increase once you’ve secured your policy. Also, the death benefit doesn’t decrease. Since final expense insurance is a whole life policy, it does not expire once you reach a specific age, as term life insurance does.

Your policy will also accumulate a cash value that you can choose to borrow against or use as collateral while living. If you have loans outstanding when you pass, your beneficiaries will receive a payout minus the amount you owe.

Additional benefits include:

• It’s guaranteed coverage for most.

• The policy cannot be canceled, regardless of your health status.

• It relieves the financial worries of your family upon your passing.

• It’s often an option for those who cannot secure other types of life insurance policies.

• It’s an affordable option compared to other life insurance policies.

• The premiums remain the same for the life of the policy—they do not increase or decrease.

• The payout benefit can be used towards anything—it’s not required to be used towards death-related expenses.

• It can be a viable option for those who no longer have life insurance through their employer

With all the benefits that come with final expense insurance, there can be some downfalls. Though it’s an affordable option given the lower benefit payout, comparatively speaking, it can be pricier than other insurance options with a similar payout due to the lack of a medical exam and health history requirement. Some policies also come with a waiting period, so you’ll want to be sure to read the fine print and details of the policy. Finally, it’s possible for your premium payout to exceed the death benefit if you live long enough.

What Are Costs Associated with Someone Passing Away?

Here are some of the cost estimates for when a loved one passes away:

• Embalming: $775

• Funeral home service fee: $2,300 (typically a required fee)

• Hearse: $350

• Transportation of departed to the funeral home or church: $350

• Staff required for viewing: $450 multiplied by the number of viewings

• Staff required for funeral service: $515

• Staff required for memorial service: $515

• Officiant: $100 - $200

• Preparations for funeral (i.e., hair, makeup): $275

• Service car: $150

• Metal casket: $2,500

• Cremation: $1,000 - $8,000 (depending on what you select on the lower or higher end)

• Vault: $1,572

What about Premiums and Medical Exams?

With final expense insurance, you will not be subject to a medical exam, nor will your medical records be accessed. However, you do need to answer some health-related questions, and as a result, not everyone will qualify for this type of insurance.

Premiums for final expense insurance are based on criteria like your health and age, similar to other life insurance policies. If allowed by state law, gender can also impact premiums since men have a shorter average life expectancy than women. Rates will be higher for those who are older and suffer from additional health-related issues. Some policies also charge higher premiums for those who use tobacco products.

Is There an Age Requirement?

Some companies have an age minimum and maximum, like 40 and 85, respectively, at the time you apply for coverage. Other companies issue final expense insurance to anyone from birth onward.

Your benefit amount is typically tied to your age — the older you are at the time of application, the smaller your maximum death benefit might be. So, the younger you are when you apply, the larger your maximum benefit can be. Some, for example, might be able to get a policy with a payout of up to $50,000 if under the age of 55 but might only be able to get a policy of $25,000 when over the age of 75. Still, some insurances will offer the same death benefit options to all applicants, regardless of age.

How Does Final Expense Insurance Work?

If you reach out to a life insurance company or broker to discuss your life insurance options, and your primary concern is having death benefits, you’ll be asked a series of questions to determine if you qualify or not. These questions will be used to determine your overall health status and liability level.

With final expense insurance, you’ll receive a smaller death benefit than with traditional life insurance policies, which makes the premiums easier on your wallet. And as long as you maintain paying the premiums, the payout won’t change. Though it might not be the total amount required to cover all of your death-related expenses, it will give some peace of mind and support to cover at least some of the costs.

Other Types of Final Expense Insurance

For those who might not qualify for standard final expense insurance, graded benefit and guaranteed issue might be options.

Graded Benefit Final Expense Insurance

A graded benefit final expense insurance has a partial waiting period before benefits will pay out. The policy, for example, might pay 25% to 40% of the benefit if the insured dies within the first year after the policy take effect, 65% to 75% if the insured dies within the second year after the policy takes effect, and 100% if the insured dies in the third year or beyond that the policy takes effect. This policy might work better for those who have semi-serious health issues.

If you have a serious condition that’s in remission, like cancer, you might qualify for a graded benefit policy.

Guaranteed Issue Final Expense Insurance

This type of final expense insurance is ideal for those with serious health issues that would disqualify them from standard whole-life final expense insurance. It has a waiting period required for benefits to be paid out. So, if the insured dies within that waiting period, the policy will not pay out the face value. The policy will pay the beneficiaries the premiums paid by the policyholder with interest.

If you have a terminal illness or recently had open heart surgery, then a guaranteed policy might be your only option.

Work With a Professional From KBI

Different companies offer different policy terms for final expense insurance, so it’s best to shop around to determine what plan is best for your needs. You can also choose to work with an insurance broker, like the professionals at KBI, so they can do the heavy lifting for you. Brokers have relationships with a myriad of insurance companies, allowing them to streamline the process and also get the best price available. A broker can take your information, identify policies that meet your needs, and share various options with you, saving you time and money.

If you’re in need of life insurance and death benefits, contact KBI today . We’ll work with you to find a policy that meets your specific circumstances and budget.

Compliance Caution: Understanding Form 5500

Thu, 17 Nov 2022 20:33:13 GMT

There are many required forms businesses must submit annually to remain in compliance . One such form is IRS Form 5500. As a retirement plan sponsor, you want to avoid common errors related to filing Form 5500. This article covers what Form 5500 is, filing deadlines, late fees and penalties, common errors, and tips to help you navigate the filing process.

What Is Form 5500?

Annual report Form 5500 from the IRS s a form filed with the U.S. Department of Labor (DOL). It includes information regarding a retirement plan’s operation, financial condition, and investments. The form provides the DOL and IRS with pertinent information related to the operation of the plan and its compliance with federal regulations.

Every retirement plan, like 401(k) and profit-sharing plans, has to submit a Form 5500 for each year that assets are held by the plan. There are three versions of the form:

• Form 5500: The primary form for the majority of private and public businesses with 100 plan participants and over.

• Form 5500-EZ: The form designated for retirement plans with a single participant.

• Form 5500-SF: The shorter version of the form for retirement plans with fewer than 100 plan participants.

Obtaining 5500 Filing Credentials

To file Form 5500, you need to have an account set up with the DOL with signing credentials. You can obtain your credentials at www.efast.dol.gov through a registration process that takes about 15 to 20 minutes to complete on average.

Small Business Fiduciary Responsibility to Submit Form 5500

It’s vital for entities that have retirement plans to understand Form 5500. There are many financial responsibilities required for reporting on the form. Included are how plan sponsors need to deposit employees’ wage deferrals or salaries as soon as possible into their retirement accounts. However, deposits must be made by the 15 ^th business day of the month succeeding the month when contributions occurred. The reason the plan must make deposits as soon as possible is so it can separate contributions by participants from the general assets of the employer. The safe harbor deadline supplies small businesses with less than 100 employees seven business days following the collection of employee deferrals to make plan deposits.

Deadlines for Form 5500

Form 5500, for the majority of plans, is due on the final day of month seven following the end of the plan year. That date is generally July 31 for calendar year plans. If July 31 falls on a Saturday or Sunday, then the form is due the following business Day.

For those that cannot complete Form 5500 by July 31, an extension request must be submitted to the IRS before July 31 to prevent late fees and filing penalties from accruing. Form 5500 must be electronically signed and filed with the DOL. Additionally, a copy must be kept on file with the plan’s records and needs to have all required signatures in ink, with attachments and schedules included.

What to Do if You’re Filing Late

If you realize you will miss the initial deadline to file Form 5500, an extension can be filed utilizing Form 5558 . Assuming you’ve filed your extension by the initial deadline and everything is correct, you’ll be given a two-and-a-half-month extension from the initial due date.

Filing Form 5558 is worth it, as it means hundreds to thousands of dollars in savings from fees and penalties. Bear in mind that the form needs to be mailed by the original required filing date to avoid late fees and penalties.

If you do happen to miss the original filing deadline and fail to file an extension, the IRS has programs that allow for penalty relief for late filers. They’re available to help reduce penalties due to Form 5500 late submissions.

Non-ERISA plans that are delinquent can apply for relief of penalties per IRS Revenue Procedure 2015-32. ERISA-covered plan can consider the DOL’s Delinquent Filer Voluntary Compliance Program (DFVCP).

DFVCP can help businesses keep potential penalties from getting too costly and spiraling. To be eligible for the program, you have to be an administrator of the plan with ERISA Title I filing obligations and show proper proof to the DOL indicating Form 5500 hasn’t been filed by the due date.

Filing a Late Form

If you’re filing a delinquent Form 5500, you’ll use the same process as you would for on-time reports. All 5500 Form filings are submitted using EFAST2, the DOL’s certified electronic filing system.

Form 5500 Late Filing Fees and Penalties

It’s possible to be penalized by both the DOL and IRS when filing Form 5500 late without an extension being filed or notice given. The DOL penalties are as much as $1,100 each day late without a maximum, and the IRS penalties are $250 per day, with a maximum of $150,000.

If you qualify for the DFVCP, a single late annual report has a maximum penalty for small plans of $750 and large plans of $2,000. Caps per plan limit the total penalties for small plans to no more than $1,500, and for large plans, no more than $4,000. These caps are what they are regardless of how many annual reports are simultaneously filed late for the plan. The cap on penalties is there to encourage plan administrators to come back into compliance, even if they’ve failed to submit an annual report for several years.

Summary Annual Report (SAR) Requirement

In conjunction with Form 5500, all plan sponsors are required to distribute a summary annual report (SAR) under ERISA (Employee Retirement Income Security Act). The SAR is a summary of the plan’s financial state as reported on Form 5500. Any participant and their beneficiaries receiving plan benefits must receive a SAR no more than two months after the deadline for filing Form 5500. The deadline is typically by September 15 when filing Form 5500 on time, and it’s December 15 if an extension was filed.

Fidelity Bond Requirement

Anyone who has authority to handle plan assets actually handles plan assets and is a fiduciary of the plan is required to be covered by a fidelity bond to protect against a loss for the plan related to dishonestly or fraud by those covered by the bond. The bond amount is required to be $500,000 or 10% of plan assets at the start of the plan year, whichever is less.

Common Errors When Filing

If you inadvertently leave a field blank or enter incorrect information on Form 5500 when filing, you might end up facing a DOL employee plan compliance check. To avoid this, consider the following common errors, per the IRS, to avoid them.

• Excess deferral. An excess deferral error indicates that the plan sponsor has permitted contributions to go over the annual limit one can contribute. The IRS has identified that some 457 or 40(b) contributions were coded as 401(k) deferrals.

• Stating you have no plan participants. It’s common, especially with new programs, for companies to mistakenly show that their plan participant number is zero. However, all eligible employees are defined as plan participants for Form 5500, as are all employees that have balances within the plan.

• Fraud. Typically, the area on the Form that asks if a plan experienced a loss caused by fraud or dishonesty should be left blank. Leaving it blank assumes a business did not experience fraud. However, the IRS finds that this section is often answered incorrectly by employers.

• Plan termination. Even if a plan’s terminated, Form 5500 should still be filed until assets have been entirely distributed. Terminated plans are documented as an aspect of annual reporting compliance. Errors that often occur include:

– Indicating zero assets following all plan assets being distributed.

– Misinterpreting a plan that’s frozen for one that’s terminated.

– Failing to mark Form 5500 as the final return.

– Not filing the form.

– Applying a plan number for more than a single plan.

– Inadvertently showing a plan as terminated when it wasn’t.

• Frozen plans. Entities have mistakenly used code 1l for accounts that are active when the code is intended to indicate a plan’s non-active or frozen.

• Incorrect numbers. It’s common for businesses to incorrectly input their plan number or EIN when filing Form 5500.

• Not using the correct vendors. When filing, some entities fail to utilize approved vendors or EFAST software when filing.

• Too much information. Sometimes, plan sponsors provide more information than necessary, like returns dated beyond 12 months.

Tips to Avoid Errors

There is a lot of information you’re required to provide in Form 5500. It can be easy to make mistakes, so it’s wise to triple-check your work, considering the following tips:

• Don’t copy your responses from a previous year’s form.

• Consult with appropriate professionals to make sure you’re answering questions accurately.

• Double-check codes to ensure everything is recorded correctly.

• Reread questions to make sure you’ve provided the correct answer.

• Recheck your answers to ensure they’re in the correct areas and boxes.

Work With a Plan Administrator

A third-party administrator can support you in navigating the Form 5500 filing process to ensure you file correctly and remain compliant with your retirement plans.

Have questions about the filing requirements for Form 5500 or securing a plan administered to meet your needs? KBI has the answers. Contact us today for more information.

USERRA Requirements for Benefits – FAQs

Tue, 08 Nov 2022 21:52:16 GMT

The Uniformed Services Employment Reemployment Act (USERRA) provides civilian employment protections for employees’ who are part of Military Service. The Act outlines the requirements of employers and employees. The Employer Support of the Guard and Reserve (ESRG) and the Department of Labor (DOL) aim to clarify the details of the Act for those covered by it through resources and frequently asked questions (FAQs).

Here are some of the most frequently asked questions about USERRA to help employers and employees better understand their rights and obligations according to the Act.

What Employers are Covered by USERRA?

USERRA applies to:

• Government, Private, and Public employers in the U.S.

• Foreign employers doing business in the U.S.

• U.S. and American entities operating in foreign countries, unless the laws of the foreign county would be violated due to USERRA compliance

What Military Service Types Does USERRA Cover?

Most often, USERRA is understood to apply to Guard and Reserve military personnel only. However, “service in the uniformed Services” according to USERRA’s definition coverall all categories of military service and training. Duty performed on an involuntary or voluntary basis in times of war or peace is also included.

USERRA applies to those serving in the active components of the National Disaster Medical System, Armed Forces, and the Commissioned Corps of Public Health Service along with Reserve and Guard military personnel.

Does USERRA Protect Federal Employees?

Yes. Under USERRA, non-Federal employees and Federal employees have the same rights and responsibilities.

The Department of Labor Veteran’s Employment and Training Service (DOL VETS) or ESGR are both options through which Federal employees can seek assistance. DOL VETS can refer cases to the Merit Systems Protection Board or Office of Special Counsel when appropriate.

Can Employers Discriminate Based on Present or Past Service in the Military?

No, employers cannot discriminate based on present or past military service. An employer cannot deny promotion, retention in employment, initial employment, reemployment, or any employment benefit based on a person’s military service. Also, an employer must not retaliate against an employee by employing any adverse action of employment because the employee:

• Has enforced protection afforded to anyone under USERRA

• Participated or assisted in a USERRA investigation

• Made a statement or testified in or in connection with a proceeding under USERRA

• Exercised a right provided for by USERRA

Does USERRA Provide Protection Against Initial Hiring Discrimination?

Yes, it does. Under USERRA, an employer does not actually need to employ an individual to meet the definition of “employer.” If a person, organization, institution, or other entity has denied initial employment based on the person’s military status of any sort, including affiliation application for membership, application for service, the obligation for service, or performance of service in the uniformed Services.

For example, if someone has obligations as a member of the Reserve or Guard and is denied initial employment as a result of those obligations, the entity denying employment is an employer as defined by USERRA. Likewise, if an employment offer is withdrawn because of one being called upon to fulfill a uniformed Services obligation, the employer withdrawing the offer is defined as an employer under USERRA.

Is There any Particular Form Requirement for Reemployment?

There is not any particular format to apply for reemployment. The returning employee can apply in writing or verbally to the pre-service employer or to a representative or agent of the entity who is the point of contact to receive employment applications.

Regardless of the form, the application should indicate that the employee is returning from the uniformed Services and that they seek reemployment with the pre-service employer. The employee can indicate the position of interest, though it is not required.

Is the employee required to provide reemployment application documentation?

Yes, if they are asked to do so by their employee and their Service is 31 or more days. The documentation must show that:

• The application for reemployment is timely

• The dismissal or separation from service was not disqualifying

• The total duration of service time limit of five years has not been exceeded

What are the USERRA Guidelines for Employees to Return to Work Following Military Service Completion?

The Service member is required to apply for reemployment or report back to work within the following guidelines or risk being ineligible for protection under USERRA:

• 1 to 30 days of service: Report next scheduled work day after safe travel and 8 hours of rest

• 31 to 180 days of service: Apply within 14 days after completion of service

• 181+ days of service: Apply within 90 days after completion of service

Is the Employee Protected From Discharge Under USERRA?

Yes. Unless for cause, an employee with military service of 30 days or more cannot be discharged for:

• One year after the date of reemployment if the employee’s most recent period of uniformed service was greater than 180 days.

• 180 days following the employee’s reemployment date if his or her most recent period of uniformed service was over 30 days but less than 181 days.

To be Eligible for Reemployment After Military Service, What criteria Does the Employee Need to Meet?

An employee will be eligible for reemployment under USERRA after being absent from a position of civilian employment if they meet the following criteria:

• The employee provided advance notice to the employer of the employee’s military obligation

• The employee has been away from the employer for five years or less because of military obligations (excluding exemptions)

• The employee return to work in a timely manner as defined by USERRA

• The employee hasn’t been separated from the uniformed Services with a disqualifying discharge or under other than honorable conditions.

Can Entities Contact One’s Military Chain of Command to Verify Military Service?

Yes, they can. According to USERRA, Service members only have to provide proof of uniformed service if it is 31 days or more and the employer requests it. However, employers may contact the employee’s military chain of command to request verification, and per Department of Defense Instruction 1205.12 , the Military Departments are required to verify periods of uniformed service upon an employer's request, regardless of the length of the service-related absence.

Service members' uniformed service information permitted to be released to third parties is highlighted in DoD 5400.11-R, Department of Defense Privacy Program, May 14, 2007. In section C4.2.2.5.2.. the following are described as routine use disclosures specific to military members (see DoD 5400.11-R for a complete list):

• C4.2.2.5.2.1.1. Full name.

• C4.2.2.5.2.1.5. Past duty assignments.

• C4.2.2.5.2.1.6. Present duty assignments.

• C4.2.2.5.2.1.7. Future assignments that are officially established.

• C4.2.2.5.2.1.13. Duty status at any given time.

To review DOD 5400.11-R. Department of Defense Privacy Program, click here .

After More Than 30 Days of Service, What Documents Satisfy the Requirement That the Employee Establishes Reemployment Eligibility?

Documents that satisfy the requirements of USERRA include any of the following:

• Discharge certificate showing character of service

• Copy of duty orders prepared by the facility where the orders were fulfilled and carrying an endorsement indicating completion of the described service

• Certificate of completion from military training school

• DD214 - Certificate of Release or Discharge from Active Duty

• Copy of extracts from payroll documents showing periods of service.

• Letter from the commanding officer of a Personnel Support Activity or someone of comparable authority

Documents required will vary between cases. Not all the listed documents are necessary or available in every instance.

Under USERRA, What Types of Separation or Discharge From Uniformed Service Make an Employee Ineligible for Reemployment Rights?

Termination of reemployment rights occurs if the employee is:

• Separated for bad conduct or dishonorable discharge

• A commissioned officer dismissed in commutation of a sentence of a general court-martial, by sentence of a general court-martial, or, in time of war, by order of the President

• Separated under other than honorable conditions, as characterized by uniformed Service regulations

• A commissioned officer dropped from the rolls due to a sentence to confinement in a Federal or state penitentiary or correctional institution, absence without authority for at least three months, or separation by reason of a sentence to confinement adjudged by a court-martial

Does the Employee Need to get Permission From an Employer Prior to Leaving for Military Service?

No. The only requirement is for the employee to give the employer notice of pending service.

Does an Employee Have any Seniority Rights When Reemployed Following Military Service?

Employees are entitled to seniority-based benefits and rights they had at the time military service began. In addition, they have access to seniority-based benefits and rights they would have achieved if they were continuously employed. In addition, status and rate of pay are treated similarly.

By When is a Civilian Employer Required to Reemploy the Employee?

Prompt reemployment as soon as practical on a case-by-case basis is required when the employee returns from Service and meets USERRA’s eligibility criteria. Outside of unusual circumstances, within two weeks of the employee’s reemployment application is when reemployment must occur. In cases where several years of active duty have passed, more time might be required to reassign or place the returning employee.

Does the Employee’s Level Within the Organization Impact Their USERRA Eligibility?

No. All employees at all levels, including professional, managerial, and executive levels, are covered under USERRA.

Are Independent Contractors Covered Under USERRA?

No. Independent contractors are not covered under USERRA.

Does the Employee Need to Give Notice in Advance to Their Employer for Military Service Leave?

Yes. An appropriate officer of the uniformed Service or the employee must give notice to all of the employee’s employers, if they have more than one, of the upcoming military service leave. The notice can be in writing or verbal. Though there isn’t a set rule, it’s recommended that the employee give as much notice as possible.

Does the Employee Need to Inform Their Employer of Their Desire for Reemployment Upon Military Service Completion?

Employees do not need to decide in advance and do not forfeit their right to reemployment, even if they state they don’t plan to pursue reemployment prior to their Military Service.

Is There a Service Accumulation Limit in the Uniformed Service for an Employee to Retain Reemployment Rights?

Yes. A cumulation of up to five years is permitted, in general, and under the current statute, for the employee and they still retain reemployment rights.

What are the Exceptions to the Five-Year Service Accumulation Limit Under USERRA?

The Department of Labor highlights these eight categories of service as exempt from the five-year limitation:

1. Service required beyond five years to complete an initial period of obligated service – Section 4312 (c) (1). Some military specialties, such as the Navy’s nuclear power program, require initial active service obligations beyond five years.

2. Service from which a person, through no fault of the person, is unable to obtain a release within the five-year limit – Section 4312 (c) (2). For example, the five-year limit will not be applied to members of the Navy or Marine Corps whose obligated service dates expire while they are at sea. Nor will it be applied when service members are involuntarily retained on active duty beyond the expiration of their obligated service date.

3. Required training for Reservists and National Guard members – Section 4312 (c) (3). The two-week annual training sessions and monthly weekend drills mandated by statute for Reservists and National Guard members are not counted toward the five-year limitation. Also excluded are additional training requirements certified in writing by the Secretary of the service concerned to be necessary for individual professional development.

4. Ordered to involuntary service, or retained on active duty during domestic emergency or national security-related situations – Section 4312 (c) (4) (A).

5. Ordered to service, or to remain on active duty (other than for training) because of a war or national emergency declared by the President or Congress – Section 4312 (c) (4) (B). This category includes service not only by persons ordered to involuntary active duty, but also service by volunteers who receive orders to active duty.

6. Active duty (other than for training) by volunteers supporting “operational missions” for which Selected Reservists have been ordered to active duty without their consent – Section 4312 (c) (4) (C). Such operational missions involve circumstances other than war or national emergency for which, under presidential authorization, members of the Selected Reserve may be involuntarily ordered to active duty under Title 10, U.S.C. Section 12304. This sixth exemption for the five-year limitation covers persons who are called to active duty after volunteering to support operational missions. Persons ordered to involuntary active duty for operational missions would be covered by the fourth exemption.

7. Service by members who are ordered to active duty in support of a “critical mission or requirement” of the uniformed services as determined by the Secretary involved – Section 4312 (c) (4) (D).

8. Federal service by members of the National Guard called into action by the President to suppress an insurrection, repel an invasion, or to execute the laws of the United States – Section 4312 (c) (4) (E).

Does the Employee Need to pay for the Continuation of Health Coverage?

If performing service for less than 31 days, employees cannot be made pay greater than the employee’s regular share. If service goes beyond 31 days, the employee cannot be required to pay more than 102% of the full premium, representing both the employee’s and employer’s share in addition to 2% for administrative costs. It is up to the employer to determine how the employee will pay for continuing coverage.

Social Engineering Fraud – A Resource for Employers

Wed, 02 Nov 2022 13:43:26 GMT

Social engineering is a form of fraud that engages psychological manipulation to trick individuals into handing over sensitive information, including addresses, social security numbers, and more. This type of manipulation can target people at home or work.

Social engineering can be especially dangerous due to the fact that it relies on human error vs. operating system, network, and software vulnerabilities. This means that the predictability of mistakes is much more difficult to gauge, making them difficult to uncover when compared to malware and software-related cyber attacks.

The Social Engineering Life Cycle

Social engineering can occur in one or more steps. Typically, preparation, hooking, being in play, and exiting are the steps utilized in the social engineering life cycle.

1. Preparation

Typically, the attacker prepares for the attack by identifying victims, gathering background information, and identifying the best methods for attack. They’ll look for weak security protocols and the best point of entry to make their move.

2. Hooking

Next, perpetrators make an effort to deceive the victim and hook them in through different methods. They might engage the target by sharing a believable story, for example, to take control of the interaction. Essentially, they are providing necessary stimuli to gain the trust of the victim, encouraging the victim to break security protocols and standard practices.

3. In Play

Once the victim is hooked, the attackers will try to obtain sensitive information over time to execute an attack, siphon information, and disrupt business operations.

4. Exit Strategy

The goal is for the attackers to exit the interaction without causing suspicion. To do so, they’ll attempt to bring the interaction to a natural close, remove malware, and cover their tracks in as many ways as possible.

Types of Social Engineering

There are several malicious activities that fall under social engineering. These activities can occur anywhere human interaction exists.

The five most common forms of online social engineering are:

• Baiting

• Phishing

• Pretexting

• Scareware

• Spear phishing

Baiting

Baiting, as the name implies, applies false promises that engage the victim’s curiosity. The bait lures people into a scheme that allows the attacker to steal personal information.

Baiting scams can be carried out online and in the physical world. Online, enticing ads and badges prompt people to click on them, taking them to malicious sites and encouraging them to download malware-infected software applications.

In the physical world, baiting most commonly involves the perpetrator using physical media to execute malware. The attacker, for example, might leave a malware-infected flash drive in areas where possible victims can see them—areas like elevators, parking garages, and bathrooms are commonly used. The flash drive will look legit, with a common logo or label on it indicating what it’s for, for example. Unfortunately, out of curiosity, individuals will pick up the drive and insert it into their computers, unknowingly allowing malware installation to automatically occur.

Phishing

Phishing is one of the most popular and commonly used social engineering tactics. They involve text messages and emails that prompt a sense of fear, curiosity, or urgency for a person to take action. As a result, the individual often ends up providing sensitive information, opening harmful attachments, or clicking on links that lead to malicious web pages.

Oftentimes, phishing schemes look very much like a legit email or website from a reputable organization. For example, an email might be sent to users of an online payment platform alerting them to a policy violation or concern about fraudulent activity. The notification prompts the user to change their password for security purposes and takes them to a legitimate-looking site to do so. When the information is entered and submitted, it goes to the phishing attacker vs. the legitimate company.

Fortunately, since the same phishing emails and texts are often sent to a mass audience, it makes it easier for mail servers to catch them when threat-sharing platforms are utilized.

Pretexting

Pretexting allows a perpetrator to gather all kinds of sensitive information, from social security numbers, phone records, and personal addresses to bank account information, employee vacation dates, and family member information. Oftentimes, the scam is enacted by a person that pretends to require sensitive information to perform a vital task for the victim.

With pretexting, attackers tend to craft a series of lies to obtain the referenced types of information. To establish trust, the perpetrator generally impersonates a person with which the victim has a business relationship, such as bank officials or an IRS representative.

Deception Software

Deception software also referred to as scareware, fraud ware, and rogue scanner software, sends an intended victim several fictitious threats hoping they’ll believe their system is infected with malware. The threat will include the option for the victim to download software to fix the issue, which, in reality, is likely malware or software that only benefits the perpetrator.

Deception software is used in spam emails and on websites as popup banners. “Your computer is infected with malware.” or “Your computer may be infected with spyware.” are common text messages on the popup banners aiming to get you to click on them.

Spear Phishing

Spear phishing is essentially the same as the phishing scams mentioned above but with a more targeted focus. With spear phishing, the perpetrator selects a specific entity or individuals to target. Messages are developed based on the specific details of the targets, so the attacks are less likely to be identified as attacks. Spear phishing may take several weeks or even months to pull off given the level of effort it requires. These scams are more difficult to detect and often have higher success rates compared to other forms of software engineering.

A spear-phishing scenario might involve a scammer who impersonates an organization’s CFO, CEO, or other executives. As such, they send out an email to specific employees that are worded as if it came from the executive, making it appear as if it is an authentic message. The message might indicate a security breach in the department’s accounting software, prompting recipients to update their password through a provided link that actually takes the recipient to a malicious page that captures the individual’s credentials, now placing it in the hands of the scammer.

Protecting Against & Preventing Social Engineering Attacks

To help your employees remain vigilant and avoid social engineer attacks, it’s vital to educate them and send reminders regularly on how they can protect themselves and the company. Here are some reminders to share with your employees during regular staff meetings, on the company website, and through regular email communications.

1. Remain alert and cognizant of emotional responses. Social engineering perpetrators rely on the manipulation of human feelings to lure victims into their schemes. Fear, concern, curiosity, and urgency are often prompted. Therefore, encourage employees to take note of any time they feel emotionally triggered or invoked by a text message, email, online ad, or phone call and use caution before taking action.

2. Do not open attachments or emails from unfamiliar sources. Remind your employees that if they don’t recognize the sender of a communication, they should not open or respond to the message. Or, even if they do recognize who the communication supposedly came from, but it seems suspicious, they should check with IT before taking any action, since there’s the possibility that the email address was spoofed. Oftentimes, emails from scammers will have misspelled words and language that is uncommon for the supposed sender, giving the receiver pause and reason to check with the IT department on whether the communication is a spoof or not.

3. Use multifactor authentication. With the increase in cyber attacks and the desire for attackers to acquire a user’s credentials, more and more organizations and individuals are turning to multifactor authentication. Using multifactor authentication helps protect accounts and user credentials. Imperva Login Protect , WatchGuard, and Duo are all examples of multifactor authentication tools to increase security.

4. Be wary of offers that seem too good to be true. It’s a good idea to remind your employees that if an offer seems too good to be true, it most likely is. Individuals should use caution and conduct research when they’re enticed by offers. Simply conducting an online search for a specific topic can generally help you quickly determine if an offer is a spoof or legit.

5. Ensure employees regularly update their antivirus and antimalware software. It’s best to engage automatic updates for employees’ computers. As a company, you should be scanning systems for possible attacks and infections and check periodically to ensure employees have the most recent updates installed.

6. Purchase cyber insurance. Cyber attacks can cost companies thousands of dollars, making it necessary for businesses to purchase cyber security insurance to mitigate risks. There are various policies available that cover the many different types of cyber attacks an entity might face, including social engineering.

Since COVID, social engineering attacks have become more common and severe. Given the high cost associated with such attacks, it’s imperative that enterprises protect themselves and their employees as much as possible. Regularly sharing and implementing the tips above is a great step toward preventing social engineering. To take preventative measures a step further, KBI can design a strong cyber incident response plan for your organization and help you find the right cybersecurity insurance to make sure you are covered. For more information contact KBI .

Health FSA and Qualified Transportation Fringe Benefits for 2023

Mon, 24 Oct 2022 21:37:45 GMT

On October 18, the Internal Revenue Service announced 2023 annual cost of living and inflation adjustments for over 60 tax provisions, including Flexible Spending Account (FSA) and Qualified Transportation Fringe Benefits changes. Revenue Procedure 2022-38 highlights an increase of $200 for the annual limit for FSAs and $20 for Qualified Transportation Fringe Benefits.

IRS Tax Adjustments

Annually, the IRS provides several adjusted tax limits as part of the Revenue Procedure process. The notices, in part, highlight employee and employer contribution limits toward health FSAs (flexible spending accounts), also referred to as health flexible spending arrangements, qualified transportation fringe benefits, and more. Each year, the limits generally increase at least some. For example, the annual limit on contributions allowed by employees toward health FSAs for 2023 is $3,050, compared to $2,850 in 2022 and $2,750 in 2021. The limit on monthly contributions toward qualified transportation benefits, including parking, for 2023 is $300 per month for transit and parking, compared to $280 per month in 2022 and $270 per month in 2021.

2023 Qualified Transportation Fringe Benefits

Qualified transportation fringe benefits are subject to monthly limits vs. annual limits. The 2023 $300 monthly limit, up from $280 per month in 2022, applies to each of the following separately:

• Transit passes and commuter highway vehicles, including vanpooling expenses

• Qualified parking

Employees could choose to elect up to $600 monthly to apply for qualifying parking and transportation expenses. Employer and employee contributions both count toward the monthly transportation fringe benefit limit.

Similar to the fact that contribution limits are applied monthly, employees can typically change their qualified transportation benefits elections monthly or more frequently if they choose to do so. However, unused contributions may not be cashed out. They can, though, be used for expenses in future months.

In other words, if an employee terminates participation in a qualified transportation fringe benefit program, contributions are forfeited. But, if they choose to continue participation in the plan and instead simply reduce their contribution amount per month, any unused amount from previous months can be applied to subsequent months up to the monthly contribution limit.

Annual FSA Contributions for 2023

With Revenue Procedure 2022-38 , employees can put an extra $200 annually into their health FSA in 2023, as the maximum annual contribution allowed increases to $3,050, up from the 2022 maximum of $2,850. Reflective of recent inflation rates, that increase amount between 2022 and 2023 is twice as much as it was between 2021 and 2022. In 2022, the increase was only $100 annually compared to the contribution limit set for 2021, which was $2,750.

Additionally, if the benefit plan design allows employers to permit the carryover of unused FSA amounts, the maximum carryover for 2023 to 2024 increased to $610 from the $570 amount for carryover allowed from 2022 to 2023.

The maximum contribution limit per year for health care FSAs of $3,050 for 2023 applies to employee contributions only. The limit also applies to limited-purpose and general-purpose healthcare FSAs.

Contributions by employers aren’t required to adhere to the contribution limit, though they are required to adhere to other restrictions related to healthcare reform guidelines.

Annual Employer FSA Contributions

If an employer’s Health FSA meets the “excepted benefit” status, the employer can also make contributions in addition to the maximum annual contribution limit allowed for employees. To adhere to the status of excepted benefit, the employer’s FSA needs to meet the following requirements:

• Availability Condition. Individuals must have access and be eligible for both a non-excepted group health plan or major medical coverage for the plan year and the FSA. However, individuals do not need to be enrolled in both plans.

• Maximum Benefit Condition. Maximum FSA benefits payable to plan participants can’t exceed the higher of:

– $500 plus the amount of the employee’s elected salary reduction

– Two times the employee’s elected salary reduction

If a health care FSA doesn’t meet “excepted benefit” status, the company is subject to fines for violating health care reform requirements.

Annual Employee FSA Contributions

The two types of employee contributions that are required to adhere to the 2023 annual contribution limit of $3,050 include:

• Flex credits offered by the employer that employees can apply toward cash and additional taxable benefits

• Pre-tax contribution amounts deducted from employees’ pay through an FSA cafeteria plan

Employees can elect to contribute up to the maximum limit, even if they chose to carry over the maximum allowed from the prior plan year. For example, an employee can still contribute $3,050 to their health care FSA, even if they carried over the allowed $570 from 2022 to 2023. Additionally, an employee who joins later in the plan year can also opt to elect up to the full contribution amount for the plan year.

In other words, if an employee joins the FSA health care plan in June of the current plan year, they can contribute up to the maximum amount allowed for that plan year, which would be $2,850 for 2022 and $3,050 for 2023.

The FSA health care plan contribution limit is applied on a per-employee basis instead of a per-household basis. That means that if each spouse is employed and meets the eligibility requirements to participate in FSA health care plans, they can each choose to contribute up to the maximum amount of $2,850 for 2022 and $3,050 for 2023.

The contribution limit also adheres to a per-employer basis, assuming that the employers aren’t related by being a part of an affiliated service group or a controlled group because of shared services or common ownership. Thus, if an individual is eligible for an FSA under more than one employer, regardless of if it is at different periods of the plan year or simultaneously, they can choose to contribute up to the maximum of $2,850 in 2022 or $3,050 in 2023 under each employer’s health care FSA if the employers aren’t related by being a part of an affiliated service group or a controlled group because of shared services or common ownership.

Health FSA Uniform Coverage Rule

Under the Uniform Coverage Rule, the full amount of both the employer and employer contributions must be made accessible at the beginning of the plan year to reimburse the employee for qualified healthcare expenses. This applies in cases where the contribution amount has not yet been contributed, as well. Also, if an employee terminates employment before the end of the plan year and their contributions have not yet equaled what they’ve used so far from their FSA, the employer can’t deduct additional funds from the employee’s final paychecks or request repayment to make up the difference.

On the flip side, FSAs apply a “use it or lose it” rule, which means that if an employee doesn’t use the contributed money in their FSA account before the end of the plan year, they lose it. Because it’s not uncommon for FSA funds to go unused, it’s helpful for employers to provide employees with a reminder notification to get the proper documentation submitted to the plan administrator by the final due date.

In addition to the optional carryover amount previously discussed for FSAs ($610 for 2023 and $570 for 2022), employers have the option to offer a grace period of up to 2.5 months after the plan year-end date for employees to use their remaining FSA funds. Claims can be submitted for both the grace period and the plan year. Employers can either offer a carryover or grace period option, but never both.

NOTE: An extended grace period of up to 12 months and an expanded uncapped carryover was issued under the Consolidated Appropriations Act of 2020 (CAA) due to COVID for plan years ending in 2020 and 2021. The extension and expansion have expired as of the beginning of the 2022 plan year and as such, are no longer an option.

Additional 2023 IRS Tax Adjustments

The following adjustments were also made to employer-offered benefits for the 2023 plan year:

• Adoption Assistance Exclusion and Adoption Credit: The maximum amount that can be excluded from an employee’s gross income under an employer-provided adoption assistance program in 2022 is $14,890. Additionally, the maximum adoption credit allowed to an individual for the adoption of a child is $14,890. These amounts are increasing to $15,950 and $15,950 each for 2023. Also, both the credit and exclusion will begin to be phased out for those with modified adjusted gross incomes (AGIs) of $239,230 or more. For those with modified AGIs of $279,230 or more, they will be phased out completely.

• Qualified Small Employer HRS (QSEHRA): In 2022, QSEHRA’s maximum payment and reimbursement amounts are $5,450 for self-only coverage and $11,050 for family coverage. These amounts are increasing to $5,850 and $11,800, respectively, for 2023.

Contact KBI with Questions

If you have questions about these changes or additional IRS Tax Adjustments for 2023, give KBI a call . We’re here to help.

OCIP vs CCIP: What Is the Difference?

Wed, 19 Oct 2022 14:16:45 GMT

In construction, there are two types of insurance policies often purchased to protect the project: OCIPs (Owner Controlled Insurance Programs) and CCIPs (Contractor Controlled Insurance Programs). OCIPs and CCIPs operate similarly and provide liability coverage across all parties on a project. The key difference is that property owners or project sponsors cover the cost of OCIPs, and lead contractors on the project under construction cover the cost of CCIPs.

OCIP vs CCIP: What Is the Difference?

There are pros and cons to each program type. Both OCIPs and CCIPs provide the following benefits for construction projects:

• Comprehensive insurance policy coverage for all involved

• Competitive use of WBE and MBE companies

• Economies of scale

• Higher coverage limits

• Reduced litigation

• Reduction in service and cost redundancies

• Safer construction project sites

In some instances, choosing a CCIP over an OCIP can be more advantageous since contractors can be given lower rates based on their historical safety track records. However, that’s not always the case.

CCIP (Contractor Controlled Insurance Program)

Also referred to as “wrap-up” insurance, a CCIP covers the project owner, general contractor, and the listed subcontractors from worker’s compensation and third-party general liability claims. Because a CCIP policy protects everyone from top to bottom, it’s nicknamed “the pyramid of coverage.”

Where OCIPs are managed by the property owner or sponsors, CCIPs are controlled by contractors. The project owner or developer is added as an insured party and is, therefore also provided protection.

Benefits of a CCIP

General contractors benefit from a CCIP, as it allows them to manage and control the safety plan of the construction projects outlined in the policy. In addition, because of the general contractor’s experience in keeping projects safe and assuming they have a solid safety track record, a CCIP is generally more cost-effective compared to OCIPs and traditional insurance.

CCIPs offer numerous benefits for all stakeholders—the owner, developer, and general contractor—including:

• Allowing small business entity participation

• Broadening coverage

• Improving site safety

• Lowering insurance costs

• Reducing coverage gaps

• Streamlining claims

Working with a single insurance company mitigates the risk of insurance gaps as well as lengthy litigation to identify the responsible subcontractor. Maintaining one policy also allows for a reduction in costs since subcontractors don’t have to secure policies individually.

CCIP policies also offer the benefits of:

• A large contractor pool, as subcontractors aren’t required to have their own insurance

• Adequate limits, which give peace of mind to project owners knowing that they are insured from top to bottom with all parties covered

• Insurance control, which helps identify all levels of risk throughout the project

• Coordinated claims

• Reduction in the number of insurers, allowing for easier claim management and coordination

Disadvantages of CCIP Insurance

Though there are many advantages that come with securing a CCIP, there are also some disadvantages:

• Lengthy negotiation process for subcontractors: CCIPs come with a lengthy negotiation process with subcontractors. After the initial subcontractor bid projection, general contractors need to add the process of insurance pricing. This brings about a challenging change order process. Final bids must incorporate the contractor’s insurance, with a change order allowing for the insurance pricing approval.

• Additional administration costs: The general contractor’s CCIP and subcontractor cost administration both add to the overhead for the project.

• Potential for insufficient insurance coverage: If an insufficient amount of liability insurance is secured, insureds run the risk of not being covered if projects go over budget for large claims.

• Contractor deductions might not offset the insurance premiums: The overall project budget might not see cost savings from the insurance premium credits of the subcontractors.

OCIP (Owner Controlled Insurance Program)

Insurance secured by a sponsor or property owner throughout the property renovation or construction is an OCIP. Also referred to as “Wrap-Ups,” Wrap Policies,” or “Wrap-Up Insurance,” this type of insurance program is utilized to cover construction project losses and liability.

The sponsor of the policy is most frequently the contractor or owner. Named insureds within the program will include the owner, general contractor, and secured subcontractors.

There are several ways an OCIP might be designed. A typical policy package contains the following insurance types:

• ELI - Excess Liability Insurance

• EL - Employer’s Liability

• WC - Worker’s Compensation

• CGL - Commercial General Liability

Some projects might require or benefit from policy endorsements that offer additional coverage, including:

• TI - Terrorism Insurance

• BRI - Builder’s Risk Insurance

• UI - Umbrella Insurance

• CPL - Contractors Pollution Liability

Traditional Method of Insuring vs. an OCIP

Traditionally, risks associated with construction projects are mitigated by each contractor securing insurance from the insurance provider they choose. From there, the cost of the insurance would be built into their overall cost structure and fees, which becomes a component of their bid for the project. When the property sponsor or owner selects the contractor for the job, they are then paying for that piece of the administrative cost or overhead from the myriad of insurance brokers and companies indirectly.

Alternatively, an OCIP streamlines the process of securing insurance. All building and construction-related insurance, including construction, hazard, materials, environmental, worker’s compensation, and terrorism insurance, is secured as one policy purchased from a sole insurer.

Benefits of an OCIP

The reasons OCIPs benefit property owners specifically are that:

• One policy premium is all that’s required, allowing for costs to be streamlined vs. scattered amongst multiple contractor and subcontractor bids.

• Since they’re only working with one insurer or broker, owners have total control over overseeing administrative fees and costs.

• Additional cost savings are sometimes possible by securing one OCIP for multiple construction projects when the owner has several projects being worked on simultaneously, like a school system development or real estate project investment.

Additionally, since OCIPs have traditionally been designed for construction projects beginning at $100 million and above in value, OCIPs allow for the creation of a profit center for the insurance sponsor. A center for profit allows for improved coordination of safety measures and loss prevention for large projects.

There are numerous other reasons a developer, general contractor, or property owner might consider utilizing OCIPs:

• They ensure all general and subcontractors working on a project are covered by necessary insurance.

• Since subcontractors aren’t required to secure insurance on their own and include the fee in the bid, overall costs of the project can be lowered.

• The included requirement for joint defense has the capability to save lots of resources, including money and time, during the process to resolve disputes.

Timing of OCIP Placement

To be valid and provide coverage, the OCIP policy has to be placed prior to construction commencing. The OCIP typically extends across the construction project’s substantial completion, in addition to several years after substantial completion. This additional period is referred to as the “tail” or “ERP (Extended Reporting Period).” The ERP often goes through the relevant repose statute, which equates to 10 years following substantial completion in California.

Recommended Next Steps for an OCIP or CCIP Purchase

Consider the project variables. To determine the best program type, you’ll need to consider the variables that are specific to your project, including the overall size, budget, number of subcontractors, and length of the project. Another consideration is whether you have more than one project you’d like to have insured. Whether you’re researching on your own or speaking with a broker, you’ll want to know the ins and outs of your project.

Weigh the pros and cons of each insurance program type for your project. With clarity about your project, you can then weigh the pros and cons of each insurance type to determine which best aligns with your project needs.

Identify the right policy and plan administrator. Once you decide on whether an OCIP or CCIP would be best, it’s time to conduct research to determine the best insurer and plan administrator. Teaming up with the right administrator can make all the difference to the overall success of an OCIP or CCIP policy.

Work with a reputable broker. A broker can support you from start to finish when choosing the best insurance to mitigate risks for your construction project.

Purchasing building-related insurance can be a complex process. Conducting your own research is a great place to begin, though you’ll likely find that working with a professional brokerage firm can support you in extensively reviewing your project parameters to ensure you have the right type of insurance and level of coverage for your construction project, taking the work required and related stress off of your plate.

KBI’s team of experts can support you in identifying whether an OCIP or CCIP is best for your needs and budget. Contact us today for more information.

Executive Benefits Retirement Planning & Consulting

Tue, 11 Oct 2022 21:12:03 GMT

Offering employees attractive retirement planning options is necessary to compete in today’s multigenerational workforce . A 2020 report by MetLife shows that 56% of Gen Z, 68% of Millennials, 72% of Gen X, and 70% of Boomers think a 401k is a must-have from employers.

Retirement is a significant factor in the overall financial well-being of employees. Yet, many employers either don’t offer a 401(k), or their employees don’t fully utilize what they offer. For example, MetLife shows that 38% of employees don’t have a defined retirement contribution plan, 26% don’t know if they have access to a defined contribution plan from their employers, and 39% are significantly behind or haven’t begun saving for retirement, all of which leads to poor financial health of the employee.

It’s the responsibility of the employer to support their employee’s financial well-being as much as reasonably possible. That includes offering plans that meet the needs of a multigenerational workforce and ensuring employees know how to fully utilize them. To make sure you are following through on these responsibilities as a retirement plan sponsor, you must meet your fiduciary obligations and understand the potential liabilities your organization faces. As such, working with a broker and retirement consultant is a smart move to ensure you have all your bases covered.

Executive Benefits Retirement Planning & Consulting

There is no one-size-fits-all approach to retirement planning and solutions for your organization, and when comparing vendors that offer retirement services, you’re not comparing apples to apples in most instances. As such, executive benefits retirement & planning consulting can be of great support. Consultants can support you in customizing a plan for your workforce through detailed analysis and planning.

At KBI, we offer a collaborative approach to help you work with the right consultants and vendors for your objectives. Consultants will get to know your business goals, workforce demographics, and needs while also analyzing your current benefits plan. Gaps can be identified through the analysis, so, if needed, those gaps can be filled with other options or additions to your current plan, or maybe you change plans altogether.

When working with KBI and retirement consultants, you’ll also be forging solid working relationships, so you have support for the long-term, and at any time, you might need to make changes down the road. A long-term relationship also means you have consultants by your side when you need to reevaluate your offerings through assessments of current market trends, changes in your workforce, and so on. Another benefit of working with consultants is ensuring that you’re meeting the legal requirements from a federal, state, and local perspective.

There are several types of qualified retirement plans available for consideration, including:

• 401(k) retirement plans

• 457 retirement plans

• 403(b) retirement plans

• Cash balance plans

• Defined benefit plans

• Pension plans

Aspects of Retirement Plan Management

When you work with a retirement planning expert, it’s easier to ensure you are taking a holistic approach to meet the needs of your employees and the company. The following are aspects that should be discussed and included in retirement plan management and implementation.

Workforce Retirement Evaluation

Workforce evaluation is one of the first steps a company needs to take to determine its retirement plan needs. Your retirement benefits are an important component of your total compensation and rewards package for your employees. A proper needs analysis can ensure you have the ability to tailor your program to meet the requirements of your organization.

Plan Design

A plan is designed after careful consideration and evaluation of your workforce’s needs. Where are they currently in their retirement readiness and how is it impacting the health of your business? Once a plan is designed, there should be continual evaluations with updates as necessary based on the evaluation.

A retirement plan should align with your business culture, goals, and philosophy. A consultant supports the selection of a defined contribution plan that is competitive with other employers for your industry and location. This step ensures you can retain and attract top talent.

Employer Services

There are numerous providers to choose from for retirement planning. An expert broker will support you in vendor evaluation, including what’s in the fine print and the services they offer. A broker can help you with price negotiations, conflict resolution, and ensure the vendor matches the needs of your organization.

Investment Coaching and Consulting

Plan selection, replacement, and investment review are essential components of a successful retirement plan. In addition, continued monitoring and guidance are necessary for all participants to optimize their results for a comfortable retirement when they reach the point that they’d like to retire.

Participant Readiness Services

Employers need to be empowered to utilize the tools at their disposal and maximize their retirement contributions and savings. Training to support them in how they spend, save, avoid debt, and have financial well-being, in general, should be provided.

Retirement consults can help you identify potential challenges your workforce faces to ensure they have the best tools, education, and programs to support their retirement savings choices. Employee retirement readiness, financial challenges, and spending habits are all assessed to support long-term financial stability, and when employees feel finically stable, they have less stress, which means better performance at work.

Examples of retirement readiness tools vendors could offer employees include:

• Pre-retirement and financial coaching and counseling

• Customized self-service online portals

• Benefit statements

• Call center support for questions

Plan Governance

A consultant can ensure you are mitigating fiduciary risk by assessing the operation of the plan’s committee. The committee has fiduciary responsibilities that must be met by establishing standards, compliant practices, and prudent processes.

Benefits Communication

How you communicate to your employees about retirement benefits matters, and it’s up to you to take the lead as an employer. With the right level of communication, benefit utilization and optimization can improve.

One-on-one training sessions, group sessions, fliers, posters, ongoing communications through emails, and your company website are options to disseminate information about retirement planning. Offering a one-on-one personal touch with a retirement consultant is ideal since an employee’s investment choice selection can be complex and should be based on items like the employee’s current age, retirement goals, and current retirement readiness.

Data Analysis

Retirement planning includes the need to delve into statistics and data to assess your plans for compliance and to understand utilization, retirement readiness, and possible shifts that might need to be made. Consultants can take the burden of data-driven analytics off your shoulders by using workforce evaluation systems, planners, projection models, and more.

Actuarial consultants have the ability to evaluate your current retirement plan structure and show you projections of different retirement funding levels. The costs of delayed retirement to the organization can be addressed through such analysis.

Compliance Testing

Compliance testing is necessary when offering retirement plans to employees. Testing requirements include benefits testing under IRC 401(a)(4), IRC 410, IRC 416 Top-Heavy testing, and Top-25 analysis. If compliance issues come up, they can be addressed quickly when working with a consultant.

Pension and Retiree Medical Plans

Though pension plans aren’t offered as frequently as defined contribution plans are today, they are still an option that some employers choose to offer or are phasing out, with some employees still having access to them. Experts can support you in working through the complexities of pension plans and retiree medical plans to avoid obstacles that could arise.

Pension plan analysis will assess how much your pension plans are truly costing your business. Additional services consulting experts can offer to include pension liability and risk management, financial cost projections and modeling, and qualified separate lines of business (SLOB) analysis testing. For retiree medical, assistance can include help with Comprehensive Annual Financial Reports (CAFR) notices, audits, other post-employment benefits (OPEB) notices, valuation, plan design, and more.

In cases of pension plan termination, employers are at risk of legal and compliance pitfalls. Financial analysis and final benefit calculations are necessary. These are common services that a consultant supports. Additional services include government and legal filings to close out the plan.

Annuity Purchases

With annuity transfers, it’s possible to reduce your liability. This can be a valuable option for some businesses since administration and holding pension liability costs for plan sponsors have increased. Retirement consults can help you market your plan, handle bid negotiations, and more to help you save money with a lower-cost insurer.

Working With a KBI and Executive Benefits Retirement Planning & Consulting Expert

Offering retirement plans to your employees is a smart move in today’s competitive landscape. It could make all the difference in a candidate accepting your offer or not.

Ideally, offering retirement plans would be a straightforward process, but instead, it’s a complex process with several factors to consider. Working with a retirement plan consultant can help you every step of the way and into the future, so you can rest more easily knowing your plan is being monitored and supported by experts that know the ins and outs of executive benefits and retirement options. At KBI, we understand the importance of having a financially healthy and productive workforce. We have a team of expert brokers on board that can ensure you connect with the right consultant to support your retirement planning needs. Give us a call today.

Applicable Large Employers (ALEs) - Ultimate Guide

Mon, 10 Oct 2022 13:58:03 GMT

The Affordable Care Act (ACA) set forth Federal regulations specific to healthcare and the requirements employers must adhere to. The employer mandate is one regulation that applicable large employers (ALEs) must follow. It requires employers to offer affordable health insurance with minimal essential coverage. ALEs that do not meet the mandate requirements risk facing a hefty penalty.

This guide walks you through the ins and outs of ALEs and the ACA employer mandate, as well as some affordable options to meet the mandate requirements.

What Defines an Applicable Large Employer (ALE)?

Any organization with 50 or more full-time or full-time equivalent employees is considered an ALE.

According to the ACA, the 50-employee threshold is based on an entity’s headcount for the previous calendar year, so even if their headcount is only 48 FTEs for the current calendar year, they would still be considered an ALE if they had 50 or more FTEs on average in the previous calendar year. At the same time, the employer would not be considered an ALE in the following calendar year if their headcount remains below 50 on average during the current year calendar year.

What Is a Full-Time Equivalent (FTE)?

You need to know the difference between a full-time employee and a full-time equivalent employee to determine if your organization qualifies as an ALE under the ACA. If an employee works a minimum of 30 hours per week or 130 hours in a given calendar month, they’re considered a full-time employee.

Your FTE headcount takes into account all of your part-time and full-time employees. An FTE is calculated based on the total number of hours worked instead of equating to your total headcount. In other words, if you have two employees that work 30 hours per week, which is considered full-time, and two employees who each work 15 hours per week, you have a total of 90 hours worked per week, which equates to three full-time equivalent employees. So your headcount is four, and your FTE is 3.

In most cases, you’ll need to count temporary, seasonal employees in your FTE count. The ACA defines seasonal employees as an employee hired to work six months or less. If you meet the following criteria, you likely won’t need to count your seasonal workers in your FTE:

• You had over 50 employees for less than 120 days of the current calendar year AND

• You would have had less than 50 employees if you excluded your seasonal workers during those 120 days.

Also, the 120-day period need not be consecutive to meet these two criteria for exclusion as an ALE.

The categories of workers that you should not include in your FTE count include:

• Independent contractors

• A 2% S-corporation shareholder

• A partner in a partnership

How Do You Determine if You’re an ALE?

The calculation to determine if you’re an ALE is as follows:

(number of hours worked by all part-time employees in a given calendar month / 120 calendar month work hours) + total number of full-time employees = FTEs for given calendar month

If your FTEs equal 50 or more employees for the 12-month calendar year average, then you’re considered an ALE unless you meet the season worker exclusion mentioned in the last section, which could drop you below the ALE 50 employee average threshold.

What Is the ACA Employer Mandate?

The employer mandate of the ACA falls under the employer shared responsibility provisions. The mandate requires ALEs to offer full-time employees, along with their dependents, a health insurance option with MEC (minimum essential coverage). A dependent is defined as an employee’s child by birth or adoption that has not yet reached age 26. Foster children, stepchildren, non-U.S. children not living in the U.S., nor spouses are considered dependents.

The plan offered by the employer must be considered affordable and provide minimum value. A tax penalty or shared responsibility payment may be required if an organization does not meet the mandate requirements.

Minimum Value

To be considered a qualified health plan that meets the employer mandate, the healthcare coverage offered by ALEs must cover a minimum of 60% of the average costs for a standard population. Bronze plans sold on the private health insurance market have a 60% actuarial value. Substantial coverage must also be provided for physician services and inpatient treatment, which major medical plans typically meet.

Affordable Coverage

ALEs have to offer coverage of a certain amount of their full-time employees’ premiums, so the healthcare plan is considered affordable. This means the lowest-cost self-only coverage can’t exceed a set threshold of an employee’s household income. In 2022, the threshold is 9.61%, so anything over that threshold would make an employer subject to the ACA tax penalty.

What Are the Penalties When the Employer Mandate Isn’t Met?

There are two possible employer mandate penalties under the ACA that an ALE might face:

• $2,750 per employee (in 2022), per year if MEC isn’t offered to a minimum of 95% of their full-time employees

• $4,120 per employee (in 2022), per year if affordable coverage isn’t offered to a full-time employee and their dependents

Adjustments are made to these penalties according to the number of employees receiving a premium tax credit through the Health Insurance Marketplace and the number of months they weren’t offered proper coverage in the previous year. Also, the IRS imposes the greater penalty of the two. In other words, an ALE won’t be hit with both penalties, only the greater of the two. Finally, though an ALE is defined as having more than 50 full-time equivalent employees according to the ACA, penalties are issued only if you have greater than 30 full-time employees, not 30 full-time equivalents.

What Are the Tax Reporting Requirements under the ACA?

Anytime you’re dealing with tax forms, it’s best to consult with tax experts. In general, though, here are the highlights pertaining to the ACA and tax reporting requirements.

All ALEs need to complete Form 1095-C, which provides information about the healthcare plans you made available to your employees. The form includes the number of months coverage was offered and the cost of coverage to help the IRS determine if you offered qualifying coverage.

A 1095-C should be completed by all employers for all of their employees employed during that calendar year, including terminated employees, regardless of whether they provided medical coverage to their workforce. All employees, including those that declined coverage, should receive a 1095-C, as well.

ALEs also need to complete 1094-C, which is a transmittal form that serves as the cover sheet for your 1095-C forms. Form 1094-C includes various information, like the number of employees by month, company information, and the number of 1095-C forms submitted. A 1094-C does not need to be provided to employees.

What Options Are Available for ALEs to Offer ACA-Compliant Health Coverage?

Most major medical plans meet the ACA employer mandate. However, even large organizations can face challenges when it comes to offering affordable healthcare to their employees. An HRA is an option that employers can consider that is more affordable than major medical, as outlined below.

Individual Coverage Health Reimbursement Account (ICHRA)

An ICHRA is a type of health reimbursement account (HRA) that is solely funded by the employer. It’s a tax-advantaged health benefit offered by employers to employees for reimbursement of permissible out-of-pocket medical costs. HRAs are one of the most flexible employer-sponsored benefit plan options available.

HRAs often accompany a high deductible health plan (HDHP), though they can accompany other types of major medical group health plans, as well. With that said, an ICHRA is commonly offered by employers who face difficulty offering traditional employer-sponsored medical plans and can be offered as a stand-alone ACA-compliant medical benefit if it meets certain criteria. It can also be offered to employees who might not qualify for your employer-sponsored group medical plan.

To meet the ACA requirements, the ICHRA must offer an affordable allowance to meet the employer mandate. An affordable allowance would be considered one that is greater than or equal to the minimum affordable allowance threshold. To calculate affordability, an employee’s salary and the lowest-cost silver plan for that employee’s geographic rating area and age are used.

There are additional types of HRAs available, differing based on tax advantages, allowable covered expenses, employee count limitations, and medical plan integration requirements. An integrated Group Coverage HRA is often used in combination with an HDHP to help offset the high deductible. The HDHP alone typically meets the ACA mandate requirements, however.

Working with an Employee Benefits Broker

It can also be beneficial to work with an employee benefits broker, like KBI , to guide you in selecting affordable health care options that meet the ACA employer mandate requirements. Brokers have access to a variety of benefit plan options to meet your needs and budget and to ensure you meet the legal requirements locally and federally. An expert broker can also guide you on how to roll out a new benefit plan, including open enrollment and communications. You also receive the benefit of forging a long-term relationship, so you don’t have to start over each time you consider a benefits platform change. Give us a call today!

How to Elevate Open Enrollment Communication

Tue, 27 Sep 2022 21:50:52 GMT

U.S. employers spend nearly 40% of payroll on benefits, per the Society of Human Resource Management (SHRM), prompting employers to want to ensure that the benefits they offer are properly and fully utilized. With such a high cost, employers must find ways to optimize their benefits package value.

Benefits are also a vital part of companies attracting and retaining top talent. A recent study indicated that 23% of employees left their jobs in 2021 to search for a new role due to poor benefits options.

Further, 42% of those that found a new job said it provided better benefits than their previous one.

As employers find ways to maximize their benefits package value and attract and retain talent in a competitive job market, organizations need to strategically approach benefits enrollment with the goal of maximizing access, utilization, and enrollment. As a result, it’s no longer just about offering the best benefits options but also about finding ways to make open enrollment season more successful.

Developing tools and techniques to ensure employees make the best choices when selecting healthcare benefits is vital to a successful open enrollment strategy. Here are some considerations to keep employees engaged during benefits open enrollment.

Combine Self-Service with One-on-One Sessions

Several employers have moved their benefits open enrollment to a self-service enrollment online, where employees enroll themselves in their healthcare and benefits plan choices. This approach is understandable to promote flexibility and convenience.

However, with the increasingly complex employee benefits landscape, an open enrollment season that is fully online runs the risk of employees selecting the wrong plans that can leave them under or over-insured. Being under or over-insured, and especially underinsured, can lead to problems when the employee needs more benefits than they have access to. It also impacts employers when employees are under or over-insured due to benefits not being utilized for maximum cost efficiencies.

Instead of only offering self-service benefits enrollment, employers should offer both self-service and one-on-one options. Employees should have the opportunity to meet one-on-one with an enrollment specialist so they can ensure the plans they choose to make the most sense for their circumstances.

There are two main reasons why this approach can be helpful:

• More information to capture unique scenarios

• Provide information in the now

More Information to Capture Unique Scenarios

Online benefits tools aren’t capable of capturing all of the scenarios your employees might deal with. It’s critical for employees to evaluate the health plan options available to them since no one individual has the exact same situation. Chronic health issues, prescription usage, the number of dependents, family planning, and budget are examples of variables that impact healthcare decision-making.

Benefits calculators and decision tools are a great place to start to evaluate roughly how much an employee or an employee’s family can expect to pay for healthcare and medical expenses in a given year. Though since such tools cannot take every situation into account, solely trusting them for decision-making can leave one underinsured.

If benefits and HR teams take the time to educate each employee about the different plans available to them, they can help them select the best plan for their personal needs and the needs of their families. With this approach, employees can feel more confident about their selection, and this can lead to better utilization of plans for both the employee and employer.

Provide Information in the Now

Selecting a medical plan is a challenging task for many. The several options presented and the differences between each plan can cause a sense of confusion for employees. What adds to the confusion is the employee’s inability to get answers to their questions at the moment they have them—in real-time.

One study showed that just 28% of employers offered one-on-one conversations for employees with HR during open enrollment so they could ask their questions. Also, just 30% of employees indicated they got answers about their health insurance processes from an HR team member. Employees tend to have questions about their healthcare benefits at the moment they’re reviewing their options.

Offering one-on-one sessions with employees allows them to get the answers they need in real-time. They also have a point of contact to ask questions when they come up later. With such sessions, medical plan selections can become less frustrating and confusing. Employees are also empowered to make educated choices to best support themselves and their families. Another benefit is that the HR representative might raise questions the employee hadn’t considered, so they can take additional factors into consideration.

Offer Meeting Options that Allow for Flexibility

Offer employees several options for open enrollment support. Telephonic, in-person, and virtual open enrollment are all viable options. Offering different options like these meet a variety of employees’ need to help reduce the stress that comes with making healthcare choices and meeting the open enrollment deadline.

Employees should also be given the option to schedule for a time that is suitable for them—an online scheduling system can help HR teams administer the scheduling process.

Provide a Personal Touch

In the digital age, employers sometimes mistakenly think that employees prefer to handle tasks like open enrollment by themselves online. However, that’s not always true. Employees frequently prefer a personal touch from their employers. This is especially true for important tasks, like selecting the right benefits plans—speaking to someone one-on-one is preferred over having to go it alone.

It’s also true that with the current hybrid and geographically diverse work environments, many employers feel they need to move everything online, including benefits open enrollment, thought that need not be the case, nor is it the wisest approach if you want to remain engaged with and meet the needs of your employees.

In recently published research, for example, just 12% of employees said they preferred self-service open enrollment options. It’s true that some self-service open enrollment options can connect you to a real person if needed, but it’s still not the same as having the option to connect with someone in the workplace to discuss benefits. The first line of contact should be the option for employees to speak with an HR or appropriate representative within the organization. Showing up for employees with a personal touch supports employees being appreciative of and loyal to the organization.

Since each employee’s needs are different, some choose ancillary benefits, whereas others don’t. Also, an employee’s needs will change over time. As employees contend with the ongoing shifts in their personal and work lives and the needs that come with them, third-party resources, and benefits educators could prove beneficial and add another personal touch for employees. Educators can share details about ancillary plans and also assess and support how such plans can work with standard benefits plans and fill in gaps that standard plans don’t.

Offer Consistency

Consistent messaging about benefits and benefit open enrollment is important so all employees receive the same information in a timely matter. Also, being consistent during employee one-on-one scheduling and discussions will help employees better understand their options to make the best choices.

Consider Factors that Influence Benefits Communication

When developing a communications strategy, including your open enrollment communication plan, it’s important to consider all the factors that influence that strategy. Factors that impact open enrollment communications include:

• Benefits Plan Changes

• Company Demographics

• Employee Schedules

• Existing Communication Channels

• Geographic Location

• Internal Resource Availability

• Life Stages

• New Hires

• Staffing Changes

• Technology

• Terminations

Common Pitfalls to Avoid

In developing an open enrollment communications strategy, there are a few pitfalls employers should avoid.

• Don’t be too general. Describe pertinent details about benefits and benefits changes thoroughly. And as previously mentioned, a personalized approach is best when helping individuals select their benefit plans.

• Don’t leave employees to go it alone. The point at the heart of this piece is to offer employees more than just self-service support when selecting benefits. Also, offer different avenues where employees can get one-on-one support that works with their schedules.

• Don’t under-communicate. It’s better to over-communicate vs. under-communicate about open enrollment. Use different mediums—email, flyers, posters, company website—to communicate about open enrollment and open enrollment sessions, and be sure to communicate about it frequently.

• Don’t go it alone as an organization. If you lack the resources to support an effective open enrollment communication strategy and support, consider working with your benefits plan administrators and employee benefits broker for support.

Employers Should Take the Lead

It still makes sense to offer self-service enrollment options to employees, and some might prefer it. It’s best, though, to offer open and flexible communication options so your employees can meet with your benefits and HR teams to talk one-on-one about their benefits and benefits choices. Such communication supports a proactive approach to employees making the wisest choices possible.

Employees are able to ask questions and receive answers in real-time, feel supported, have flexibility in scheduling to meet, and more. And a personal touch to the open enrollment process supports a more successful open enrollment period for both the employee and the employer.

Finally, for employees to receive consistent, accurate, and timely information about benefits open enrollment and their plan choices, HR and benefits teams must take the lead to start the conversation with the organization’s employees.

Benefits and Risks of Captive Insurance Companies

Mon, 26 Sep 2022 15:19:34 GMT

A captive insurer is one that is typically wholly controlled and owned by its insureds. The primary purpose of captive insurance is to insure the risk of its owners, and the insureds reap the benefits of the captive insurer’s underwriting profits. Most large companies that operated captive insurance companies established the captive insurance company to provide insurance coverage where it wasn’t readily available or reasonably priced. However, over the past few years, some closely held and smaller businesses have also come up to speed about the significant benefits captive insurance businesses can provide.

The Benefits of Captive Insurance

A well-managed and structured captive insurance entity offers the possibility to receive the following nontax and tax benefits:

• Covering risks that would otherwise not be insurable

• Providing access to a lower-cost reinsurance market

• Providing a tax-favored vehicle with the potential to accumulate wealth

• Insurance premiums paid to the captive are tax deductible for the parent company

• Distributions have favorable income tax rates for captive owners

• Estate and gift tax savings available for the shareholders

• Parent company and captive company income tax savings

• Asset protection related to a personal creditor and business claims

• Reducing the total insurance claims currently paid by the operating entity

• Additional tax savings opportunities

Types of Captive Insurance Entities

There are three types of captives that have evolved in the United States. They are:

• Pure captives

• Association captives

• Agency captives

With pure captives, the risks associated with a single group of related entities are insured by the insurance entity.

With association captives, the risks associated with the members of a specific association are covered by the insurance company.

With agency captives, the captive company is operated and owned by one or more insurance agents to insure their clients’ risks.

Pure captives carry the highest level of benefits compared to the other two, so the following content focuses on that type of captive insurance company.

Ideal Entities for the Use of Captives

As outlined in the Journal of Accountancy , certain criteria make companies an ideal candidate for the use of a captive, as outlined below:

• Businesses where the owner(s) are seeking protection for assets.

• Profitable organizations looking for opportunities for significant annual adjustable tax deductions.

• Businesses that have multiple entities or are capable of creating various operating affiliates or subsidiaries.

• Entities with sustainable operating profits of $500,000 or greater.

• Entities with requisite risk currently underinsured or uninsured.

• Business owner(s) interested in family-based wealth transfer strategies or personal wealth accumulation.

Requirements to Become and Be a Captive

A captive must show proof that it’s a valid insurance company for the premium payments to the captive to be tax deductible, which requires:

• Obtaining an insurance license from a foreign jurisdiction or state

• Providing insurance to the operating company or its affiliates

• Over 50% of total revenue must be from the issuance of annuity or insurance policies

Note: Self-insurance payments typically aren’t tax deductible.

To qualify as “insurance,” the insurance must include risk distribution and shifting elements.

The risk-shifting requirement is met when the operating company proves it’s transferred certain risks to the insurance company in return for a premium that’s considered reasonable.

Regarding the risk-distribution component, in Kidde, 40 Fed. Cl. 42 (1997), the Court of Federal Claims described the risk-distribution concept as follows:

Risk distribution occurs when particular risks are combined in a pool with other, independently insured risks. By increasing the total number of independent, randomly occurring risks that a corporation faces (i.e., by placing risks in a larger pool), the corporation benefits from the mathematical concept of the law of large numbers in that the ratio of actual to expected losses tends to approach one.

Based on this description, the captive needs to accept risks from various entities that are separate to meet the risk-distribution requirement. One avenue the IRS has taken is to issue private letter rulings on an entity’s risk sharing and risk distribution. The private letter also indicated whether the captives were truly insurance entities.

Possible Risks to Avoid with Captives

Captives first came on the scene in the 1950s, when the IRS’s approach towards them was rather aggressive, with captives coming under attack. In modern times, the IRS has modified its approach by implementing “safe harbor” rules to maintain regulations of captives while reserving the right to evaluate the captive arrangement based on each captive’s circumstances and facts.

As a result of the IRS’s approach, it’s essential for captives to correctly adhere to the principles of risk distribution and risk sharing. It’s also essential that the investment program is properly administered.

Appropriate levels of capitalization also need to be maintained.

On the flip side, the following risks need to be avoided to keep the captive in good standing with the IRS:

• Excessive loan-back to the operating company

• Attempts to offer life insurance arrangements

• Excessive distributions to shareholders

Tax Considerations for Captive Insurance Companies

Congress implemented rules in 1986 that opened up planning opportunities for small insurance businesses.

If a casualty or property insurance company referred to as a mini-captive, meaning it has a gross premium income of $1.2 million or less, requests an election under section 831(b), it owes tax only on its investment income and avoids tax on its premium income. However, once made, the IRS must consent to the election being revoked. Also, the election is terminated automatically once an entity’s gross premium income goes beyond the prescribed limit. If the company’s premium income level goes to $1.2 million or below, the company can make another election.

In regards to business structure, an insurance company is taxed as a C corporation, and tax returns must be filed on a calendar-year basis. The exception to this is if it is included in a consolidated tax return. Insurance companies established as a partnership or an LLC must elect to be taxed under the check-the-box regulations of Sec. 7701 as a corporation, so C corporation tax rules apply. With the C corporation tax rules, captives can issue more than one classification of stock and pay out qualifying dividends. These dividends can receive preferential taxation. With that said, if liquidation were to occur, the corporation, along with its shareholders, might be subject to double taxation due to the entity being a C corporation.

Though the federal tax structure can fluctuate, the American Tax Relief Act of 2012, P.L. 112-240, increased the long-term capital gain and dividend income tax rate for high-income taxpayers from 15% to 20% beginning in 2013. Thus, the benefits of operating a captive insurance company were slightly reduced, though they still exist.

State taxation requirements of the captive insurance business are based on the state’s regulations in which the captive is domiciled. The domiciled location does not need to be the state in which the operating company is located.

Ownership Structure and Taxation

The captive’s equity ownership structure offers additional planning opportunities. According to the Journal of Accounting:

If the shareholders of the captive are family members of the owners of the parent company or trusts with family member beneficiaries, any income of the captive would inure to their benefit. Since this is a transaction in the ordinary course of business, no gift or estate tax would attach to the intrafamily transfer of wealth. Likewise, some shares of preferred stock of the captive might be distributed to key employees of the operating company and then redeemed upon retirement. The capital gains tax on the redeemed shares should be less than the tax on any other form of deferred compensation.

Using Multiple Captives to Maintain Tax Benefits

In cases where the shareholders desire to have a captive with the potential to accept more than $1.2 million in premiums without forfeiting their tax benefits of having a mini-captive, it’s possible for multiple captives to be created with different shareholders. Still, careful consideration should be taken to avoid Sec. 1563 attribution rules that could lead to captives being aggregated and exceeding the $1.2 million threshold limit. Having various captives could also benefit shareholders that have differing investment philosophies and retirement goals.

Operating a Captive as a True Insurance Company

It’s clear that the tax benefits associated with smaller, mini-captives are clear. With that said, it’s essential that businesses don’t forget that captives must operate like a true insurance entity. To support this requirement, the utilization of a reputable and experienced captive management company is essential to support the day-to-day operations of the captive company. Such a company can support the need for:

• Annual financial statement audits

• Annual actuarial reviews

• Claims management

• Tax compliance oversight

• Support investment activities for planning to ensure liquidity needs are met

• Additional legal and regulatory requirements

This list of requirements typically falls outside of the scope of experience or expertise of general business managers and owners, and even if they have the expertise, they might not have the time to conduct what’s required appropriately for captives.

It doesn’t make sense for all companies to create a captive insurance entity, though, for many, the benefits are numerous. Since it’s a complex endeavor, it’s best to consult captive experts to ensure compliance and that a true insurance company exists and is maintained.

Understanding HSAs, HRAs, and FSAs for Employers

Tue, 13 Sep 2022 21:54:05 GMT

Health Savings Accounts (HSAs), Health Reimbursement Accounts (HRAs), and Flexible Spending Accounts (FSAs) allow employers to save costs on healthcare expenses. They also benefit employees by providing options to use pre-tax dollars towards qualifying healthcare expenses . An HSA, HRA, and FSA all work differently. Here, we discuss the differences between each so you can decide which is best for your business.

Understanding HSAs, HRAs, and FSAs for Employers

HSAs, FSAs, and HRAs are health savings accounts that allow employees to manage medical and healthcare costs. All three allow employees to use pre-tax dollars for covered healthcare expenses .

In understanding HSAs, HRAs, and FSAs for employers, it’s necessary to appreciate how each health savings account works, what is covered by each, and which medical plans they best accompany.

Health Savings Accounts (HSAs)

What Types of Medical Plans do HSAs Accompany ?

A Health Savings Account (HSA) is a savings plan that accompanies a high deductible health plan (HDHP). HDHPs are medical plans with a high deductible participants need to meet before the co-pay, or co-sharing aspect of the plan kicks in for covered medical expenses. To be considered an HDHP, the deductible has to be at least $2,800 for a family or $1,400 for an individual in 2022. Some base plans can have a deductible as high as $3000 or more for an individual and $5000 or more for a family. Similar to traditional co-pay medical insurance plans, HDHPs cover standard medical services, like lab tests, office visits, and prescription drugs. However, services are typically covered to a greater degree for in-network vs. out-of-network doctors.

Due to the high deductible of HDHPs, they are typically accompanied by an HSA or an HRA to help employees offset the up-front costs associated with a high deductible.

What Amount Can Be Contributed to an HSA?

An HSA allows employees to deposit money annually into the account on a pre-tax basis to cover qualified health-related expenses. HSAs can cover medical expenses such as deductibles, co-pays, vitamins, vision exams, dental exams, prescriptions, and more. The IRS sets the annual contribution limit allowable for HSAs, which for 2022 is $3,650 for an individual and $7,300 for a family.

Employees need to keep receipts for all expenses paid for using their HSA. This is in case they are asked for the receipts for verification purposes by the IRS.

Employers can contribute funds up to the IRS limit to their employees’ HSAs. Once funds are invested into the HSA by the employer or employee, they remain with the employee, even if their employment terminates—if an employee leaves the company, the HSA account goes with them. An HSA does not have a “use it or lose it” clause and does not require employees to use the funds within a certain period of time. The money placed into an HSA can stay in the account for as long as the participant wants it, or they can roll over and convert the funds to a 401k plan after certain criteria have been met.

Who Do HSAs Work Best For?

HSAs are ideal for employees that have a lower level of medical expenses or whose medical expenses are predictable. It is also ideal for workers who would like to keep pre-tax money in a savings account with the option of converting it to a 401k down the road.

Individuals on Medicare cannot contribute to an HSA, though any funds put into an HSA previous to being on Medicare can be applied towards any Medicare premiums.

Who Owns the HSA Account?

The individual owns their HSA account. This is the primary difference between an HRA and an HSA. HRAs are owned by the employer.

Health Reimbursement Account (HRA)

What Types of Medical Plans do HRAs Accompany?

A health reimbursement account (HRA) is a health benefit for reimbursement of an employee’s permissible out-of-pocket medical costs. It is a tax-advantaged account that operates much like an HSA. However, where an HSA can be both employee and employer-funded, an HRA is only funded by the employer. Employees cannot make contributions to an HRA.

HRAs often accompany an HDHP. They are also commonly offered by employers who cannot afford to offer traditional employer-sponsored medical plans. They are one of the most flexible benefit plan options available.

What Types of HRAs Are Available?

There are various types of HRAs available for employers to offer and fund. They include:

• Dental HRA

• Excepted Benefit HRA

• Group Coverage HRA

• Individual Coverage HRA (ICHRA)

• Qualified Small Employer HRS (QSEHRA)

• Retiree Health Reimbursement Arrangement (RHRA)

• Vision HRA

Differences between the available options include varying tax advantages, employee count limitations, different allowable covered expenses, and varying medical plan integration requirements.

What Amount Can Be Contributed to an HRA?

Allowable reimbursement amounts vary based on the type of HRA administered, and employers can choose what they offer to employees through their HRA within the permissible limit for that plan year. For the QSEHRA, contributions cannot exceed the IRS-specified dollar amount limits , which are $5,450 for individual coverage and $11,050 for family coverage in 2022.

Once the employer sets the allowable amount, the employee utilizes the account to cover qualifying healthcare purchases. The employee must submit proof of the purchase for approval and reimbursement by the employer.

HRAs do not have a “use it or lose it” clause, so the employer can allow employees to roll over a certain amount of unused funds into the next plan year. However, unlike an HSA, the funds do not go with the employee if their employment terminates.

Who Do HRAs Work Best For?

HRAs are the most flexible of all the available health savings accounts, and All employees can benefit from them. Medicare premiums are reimbursable with HRA funds, and HRA funds can be utilized to cover healthcare expenses for dependents and spouses.

Who Owns the HRA Account?

The employer owns the HRA account, unlike with an HSA, which the employee owns.

Flexible Spending Accounts (FSAs)

What Types of Medical Plans do FSAs Accompany?

FSAs have been around longer than any other health savings account. Typically, FSAs accompany traditional co-pay medical plans.

Similar to an HSA, an FSA permits employees to contribute pre-tax dollars to cover qualifying medical expenses up to the annual maximum allowed. FSAs can be used to cover expenses like chiropractor visits, co-pays, dental exams, and other expenses and services.

What Amount Can Be Contributed to an FSA?

Employees and employers can both contribute to an FSA up to the allowable IRS limit, which is $2,750 for 2022. Once employees make the election for the amount they want to contribute to their FSA, the amount is divided by the total number of pay periods in the plan year, and that amount is deducted from each paycheck.

Employees are permitted to borrow against the total amount they allotted to contribute to their FSA, meaning that the full allotment is available for use at the beginning of the plan year, which is different than how an HSA is designed.

The FSA does have a “use it or lose it” clause, so if an employee doesn’t use all the money deposited into the FSA for that year, they lose the money. On the flip side, if an employee leaves an organization and they’ve spent more than what was deposited, they don’t need to repay the money. Also, the IRS does allow employers to offer one or two carryover options for FSAs, left up to the employer’s discretion, including:

• Carryover: With the carryover option, up to $550 of unused funds can be carried over into the next plan year. For example, an employee that has $1550 remaining at the end of the plan year can carry over $550 and will forfeit $1,000.

• Grace period: The grace period option allows employees two-and-a-half months following the end of the plan year to use their FSA balance. Funds remaining after the grace period are forfeited.

Employers can choose to offer the grace period or the carryover options but cannot offer both. Or they can choose to go with the end-of-plan-year forfeiture option, where the employee would forfeit any unused funds at the end of the plan year.

Who Do FSAs Work Best For?

FSAs work well for those that want to use pre-tax dollars toward medical expenses and have a traditional co-pay medical plan. FSAs also work well for those that will have medical expenses early in the year since they can utilize the full allotment prior to the funds being deposited into the account.

Who Owns the FSA Account?

The employer owns the FSA account. Once an employee terminates employment, they are typically no longer eligible to utilize FSA funds.

Which Health Savings Plan Should You Choose?

As outlined, each health savings plan option provided different benefits to the employee and employer. Which you choose comes down to things like budget, your demographic population, and what is best overall for the health of your organization.

If you’re on the fence about which is best for your organization, a benefits broker like KBI can help. It’s our job to understand the ins and outs of employment benefits, so you don’t have to do the heavy lifting.

Give us a call today to discuss your medical and healthcare options.

The Complete Guide to Voluntary Benefits for Employers

Tue, 06 Sep 2022 22:00:51 GMT

Voluntary benefits are generally benefits offered to employees through their employer, though the employer bears no additional cost for offering the benefit. As a result, it’s often an obvious choice for employers to offer voluntary benefits. Employees appreciate having choices in selecting voluntary benefits they might not be able to afford or purchase on their own.

The Complete Guide to Voluntary Benefits for Employees

Here, we cover all you need to know about offering voluntary benefits to employees, including:

• What are voluntary benefits for employees

• What Types of Voluntary Benefits Exist?

• What’s the Benefit of Offering Voluntary Benefits for Employers?

• What’s the Benefit of Offering Voluntary Benefits for Your Employees?

• Tips to create a voluntary benefits package

• Why Work with an Employee Benefits Broker for Voluntary Benefits Selection?

What Are Voluntary Benefits for Employees?

Voluntary benefits, often referred to as employee-paid benefits, are benefits offered and sponsored by employers with no additional cost to the employer. Instead, when employees select such plans, they cover the full cost of the plan, which is offered through their employer. Voluntary benefits offered by employers give employees the option to purchase additional benefits in addition to the basic benefit options offered by their employer.

What Types of Voluntary Benefits Exist?

Employers can offer a wide range of voluntary benefits, including anything from personal benefits and security to healthcare and lifestyle-related insurance.

The categories that voluntary benefits fall into include:

• Health Insurance

• Lifestyle Insurance

• Personal Benefits

• Security Benefits

Health Insurance

It’s common for us to primarily consider medical insurance as the main health insurance benefit offered by employers, and though it’s one of the most sought-after benefits by candidates, it doesn’t cover all health-related costs. ER visits, annual check-ups, labs, and medications aren’t the only health-related needs we each have. Health insurance also encompasses critical illness, intensive care, long-term care, accident, vision, hospital indemnity, mental health, and dental insurance.

In terms of dental and vision voluntary benefits, according to the Society for Human Resource Management ( SHRM ), in 2020:

• Close to 95% of employers offered dental insurance

• Nearly 92% of employers offered vision insurance

Lifestyle Insurance

There are a variety of lifestyle-related insurances employers might offer. Short-term disability, long-term disability, financial counseling, legal support, and pet insurance are examples of lifestyle insurance.

While not all employees will gravitate toward lifestyle insurance, many will appreciate having them as an option. Also, as an individual’s needs change over time, so will their insurance considerations—someone who has never purchased short-term disability insurance might choose to do so after they have their first child to ensure they can support their family in the event of a disability occurring.

Most companies offer short-term and long-term disability insurance as either paid in full by the employee or in part by both the employer and employee. SHRM reported that in 2020:

• 62% of employers covered at least part of the cost of short-term disability insurance

• 71% of employers covered at least part of the cost of long-term disability insurance

Personal Benefits

Personal benefits are those that might support an employee’s lifestyle. They often include perks like merchandise discounts, umbrella insurance, concierge services, and discounts on auto, home, and pet insurance.

Security Benefits

Security benefits refer to benefits that provide protection and security for the employee. Identify theft protection, travel accident insurance, and life insurance are examples of security benefits employers often offer.

Though many of these benefits might not seem required for employees to have, offering them gives employees options to support them financially while also supporting their mental health and overall well-being and security.

What’s the Benefit of Offering Voluntary Benefits for Employers?

There are several benefits for employers when they offer voluntary benefits to their employees:

• Voluntary benefits cost very little to zero dollars in direct costs for employers.

• They help attract and retain top talent.

• They provide alternative options to high-cost medical benefits.

Little to Zero Dollars in Direct Costs

Offering voluntary benefits costs the employer very little to nothing as far as direct costs. They are not subsidized by the employer and are instead charged directly to the employee.

Attract and Retain Top Talent

Aside from the position and compensation, benefits are a priority for candidates when they are assessing their job offers. In some instances, candidates would accept a job with lower pay for better benefits. Offering competitive benefits is necessary for employers to attract and retain top talent.

Alternative Option to High-Cost Medical Benefits

As healthcare and medical costs continue to increase, several employers are having difficulty offering high-level, full-coverage employee benefits. As such, offering voluntary benefits allows employers to still offer a variety of healthcare benefit options to their employees without breaking the bank.

What’s the Benefit of Offering Voluntary Benefits for Your Employees?

Just as there are several benefits for employers when they offer voluntary benefits to their employees, there are several benefits employees receive, as well.

• They receive flexibility to choose the right plan for their needs.

• They can fill gaps in their insurance needs with voluntary options.

• Voluntary benefits often provide low-cost options for employees.

Flexibility to Choose the Right Plan

Many employees can benefit from the flexibility voluntary benefits provide. Voluntary benefits offer various options to meet the needs of employees regardless of current health status, age, needs, and so on.

Can Fill Gaps in Their Insurance Needs

For employees that have any gaps in their current insurance policies, voluntary benefits can be a good option to help fill those gaps. They can also provide additional financial security when it comes to healthcare expenses that are not covered by their current and primary medical plan.

Often Provides Low-Cost Options

As healthcare and medical costs rise for employers, they also increase for employees. As such, voluntary benefits can be an affordable solution for employees that might not be able to afford standard medical insurance, even if it’s offered through their employer—they can purchase voluntary healthcare benefits that won’t break the bank. Additionally, voluntary benefits are typically paid for on a pre-tax basis, allowing employees to save more money each paycheck on healthcare costs.

Who Is Eligible to Receive Voluntary Benefits?

Generally, all full-time employees are eligible to sign up for voluntary benefits with their employer, though it is up to the employer to determine eligibility based on the plan and how they want to approach each benefit offering.

However, local, state, and federal laws can dictate who is and isn’t eligible for voluntary benefits. Similarly, some state and local laws might require employers to provide certain voluntary benefits to their employees. It’s important to work with a team of experts that are familiar with your area to ensure you’re covered.

Tips to Create a Voluntary Benefits Package

Attracting candidates and retaining top employees required a competitive benefits package, which includes voluntary benefits options. Here are some tips to consider whether you’re just launching a voluntary benefits platform or are looking to add to or adjust your current offerings.

• Identify an employee benefits broker to work with.

• Determine your organization’s goals.

• Determine what your budget is.

• Survey employees for input.

• Administer a needs assessment.

• Consider state and local legal laws.

• Design a new plan or make adjustments to your current plan options.

• Develop a communications strategy.

• Reevaluate prior to launching and make necessary updates.

• Continually educate employees about all of their benefits options, including voluntary benefits—at launch, open enrollment, and throughout the plan year.

• Launch regular assessments bi-annually or quarterly.

Why Work with an Employee Benefits Broker for Voluntary Benefits Selection?

Designing and implementing a voluntary benefits program takes resources and dedication. Often, it takes a fair amount of time to research, evaluate, identify, select, and implement new employee benefits of any kind. If you’re short on resources or unsure of your options regarding voluntary benefits plan design, an employee benefits broker can be invaluable, as they can support you from start to finish when it comes to selecting your benefits and implementing the plans.

Some of the advantages of working with an employee benefits broker include:

• You save on resources—time and money—by allowing the experts to do the legwork and research for you.

• Your priorities and interests are a priority for the broker.

• The selection process is simplified.

• You can ensure you’re meeting legal requirements.

• You benefit from a competitive plan and pricing and choices.

• You have the ability to offer competitive voluntary employee benefits based on your budget and organizational needs.

• You have a partner by your side for the long haul.

KBI = Your Voluntary Benefits Experts

Offering voluntary benefit options is advantageous for both you, as the employer, and your employees, and you don’t need to go it alone. The team at KBI appreciates that you have a lot of options and considerations when it comes to offering benefits to your employees.

• What are the best options?

• What do our employees want and need?

• What can we afford?

• How do we go about implementing a new program?

• How can we make any changes as seamless as possible?

And the list goes on. As your expert employee benefits broker, we understand the ins and outs of employee benefits to guide you in making the best decisions possible for your business and the employees that support it. From our first meeting through to future implementation and changes, we’re here to ensure you’re comfortable with the choices you make when it comes to employee benefits and purchasing insurance for your company.

What Are Commuter Benefits?

Tue, 30 Aug 2022 20:15:35 GMT

Employers that offer non-traditional benefits generally stand out from the competition. Offering benefits and perks that other companies don’t can make the difference in whether an employee accepts an offer with your organization or not. In addition, offering non-traditional perks and benefits can help you retain talent and have a positive impact on company morale and culture.

Given that a candidate’s or employee’s commute is a significant consideration when they are deciding between job offers or deciding whether to leave and accept another job, respectively, it’s wise for organizations to offer benefits that help cover the cost of their commute or commuter benefits.

The good news? Commuter benefits not only benefit the employee — they provide several benefits, including a direct monetary benefit, for the employer, as well.

What Are Commuter Benefits?

Commuter benefits offered by employers allow employees to receive pre-tax dollars to help cover the cost of their commute to and from work. As a result, they can keep more money in their pockets each paycheck. Employers that offer commuter benefits can also save money in the reduction of payroll taxes.

Why Should Employers Offer Commuter Benefits?

Commuter benefits provide savings and benefits to both the employer and employee. For employers, they can:

• Save the organization money

• Enhance their benefits package

• Attract top talent

• Increase employee retention

• Engage employees

• Improve employee morale

• Promote a cleaner environment for the community

• Create a less stressed work environment

For employees, they:

• Reduce their taxable income

• Have more money in their pocket each month

• Have the opportunity to promote a cleaner environment

• Can build relationships with coworkers when choosing to rideshare or vanpool

• Can choose from various available commuting options

• Can reduce stress by avoiding sitting in traffic where applicable and possible

Without commuter benefits, employees are subject to taxes on the money spent for commuting costs.

Commuting benefits help employees reduce the cost of getting to work daily.

Regarding savings, employees can save an average of $740 annually when they put aside $280 per month to cover transit commuting expenses. Employers can save an average of $40 per employee participating per month. Thus, if the employer has 100 employees participating, they can save some $48,000 each year.

How Do Commuter Benefits Work?

By offering commuter benefits, employers are supporting their employees with their daily commute to work. When employees enroll in their employer’s commuter benefits program, it allows them to cover commuting costs on a pre-tax basis up to the IRS limit , which is $280/month for 2022.

Commuter benefits can cover all sorts of transportation costs, from transit and parking to bicycle, ridesharing, and vanpools. Given the many ways an employee can travel to and from work, employers can provide commuter benefits in all sorts of payment types, including:

• Transit Passes

• Direct Payments

• Vouchers

• Debit Cards

• Cash Expense Reimbursement

• Smart Cards

Once launched by the employer, employees enroll in the program by providing the necessary information, including their commuting details. Once enrolled, employees can receive their commuter benefit payment type at work or at home.

Current legislation indicates that organizations can provide commuter benefits in the form of:

• Pre-tax employee-paid payroll deductions

• Tax-free employer-paid subsidies

• A combination of the two

It’s possible to offer the benefit as a supplemental benefit, a substitute for taxable salary, or a combination of both.

Where Are Commuter Benefits Required by Law?

More and more areas throughout the U.S. are passing commuter benefits ordinances. Some of the regions and cities that have passed laws that require employers to offer commuter benefits include:

• Berkeley, CA: Berkeley employers with 10 or more employees are required to offer a pre-tax, employer-paid, or employer-provided transit to cover certain commuter benefits. Employees that work an average of 10 or more hours weekly qualify.

• Los Angeles, CA: The Los Angeles County Commuter Benefit Plan provides commuter benefit coverage to Los Angeles County employees who choose to join the program. Los Angeles law also requires employers with 50 or more full-time employees to provide a qualifying pretax transportation benefits program. Full-time employees are eligible for the program.

• New Jersey: The New Jersey Commuter Benefit Ordinance applies to all non-tax-exempt organizations with 20 or more employees to offer employees that work an average of 10 hours or more per week commuter benefits. Employees do not need to be New Jersey residents to qualify.

• New York City: The NYC Transit Ordinance indicated commuter benefits must be covered for transit expenses by employers in the five boroughs with 20 or more full-time employees. Employers do not have to cover parking benefits. Employees do not need to live in the five boroughs to qualify.

• Richmond, CA: Richmond requires employers with 10 or more employees that work at least 10 hours per week on average to offer a pre-tax election or an employer-paid benefit to cover qualifying costs, or they can offer an employer-provided transit.

• San Francisco, CA: The Bay Area requires employers with 50 or more full-time employees to offer a pre-tax benefit or employer-provided subsidy to cover transit or vanpool costs, or the employer can offer an employer-provided transit.

• Seattle, WA: Seattle requires all employers with 20 or more employees to offer a benefit. Tax-exempt employers are exempt from the requirement. Employees working 10 or more hours per week on average are eligible. They do not need to be a Seattle resident to quality, as long as they work in the city.

• Washington, D.C.: DC law requires all D.C. companies, including non-profits, with 20 or more employees to offer commuter benefits for transit costs.

If your organization falls within one of the above locations, you’re legally required to offer a commuter benefit program of some sort. Local ordinances and laws are continually changing, so it’s a good idea to check the employment laws in your area on a regular basis for updates.

What Doe an Ideal Commuter Benefits Program Offer?

It’s up to employers to design a commuter benefits program to meet the needs of their employees and the company. Ideally, the program will offer coverage for the various types of commuting options and payment types necessary for all employees. It will also offer an online platform that provides ease of use and flexibility for both employees and employers—for employees to enroll, update enrollment options, and receive payment or expense reimbursement and for employers to manage and administer the program. Many employers opt to work with a benefits broker and a third-party administrator that offer expertise and the knowledge necessary to provide a well-rounded commuter program.

What Types of Commutes Are Covered?

Any of the following commuting options can qualify for a commuter benefits program based on the employer’s preferences:

Carpools:

• Ridesharing (i.e., Lyft, Uber)

• Vanpool

Transit Riders:

• Bus

• Ferry

• Light Rail

• Subway

• Train

• Trolley

• Water Taxi

Drivers:

• Garages

• Meters

• Parking Expenses

• Parking Lots

Bicycles:

• Bicycle riding can also be part of a commuter benefit program. Employees can receive up to $20 per month in benefits to cover the cost of repairs and equipment. However, employers do not receive a monetary benefit for offering bicycle commuter benefits.

What’s the Best Way to Implement a Commuting Program?

Below are some steps to help your business launch its own employee commuter benefits program.

• Assess your employee population. You’ll want to determine how your employees currently get to and from work to determine the best options to cover and how to issue the benefit. It’s also a good idea to survey employees to identify transportation options they might consider if offered commuting benefits.

• Identify the right benefit level and options to provide. It’s common to offer a benefit up to the IRS limit, though how you choose to offer the benefit will vary based on your business needs and bottom line.

• Launch the program. Once you have the program plan outlined and set, it’s time to launch. Communication is key to encouraging employees to enroll. Email, in-person and virtual meetings, posters, handouts, and so on are all viable marketing options to get the word out about the program.

• Frequently engage employees. Get in front of employees on a regular basis to remind them about the program and to encourage them to make any updates to their benefits as permitted based on their needs.

Why Work with an Employee Benefits Broker?

Employee benefits brokers have access to expertise and providers for the many employee benefits needs your company might have. When it comes to commuter benefits, a reputable employment broker can support you in assessing your employee population, identifying benefit options, determining the best administration options and companies to support your program, and ensuring you’re meeting any necessary legal requirements for your area. Or, if you’re looking to make a change to your current program, a benefits broker can help you identify other options and make the transition to another provider as seamless as possible.

At KBI, our team of experts is here to support you with your commuter benefits needs, as well as any other type of employee benefits or insurance needs you might have. Contact us today for more information.

An Employer’s Guide to Affordable Care Act (ACA) Compliance

Tue, 23 Aug 2022 21:48:31 GMT

The Affordable Care Act (ACA) of 2010 provides healthcare coverage for millions of Americans who might not have been eligible for affordable healthcare before the Act took effect. As of 2021, approximately 31 million Americans are enrolled in healthcare programs through the Marketplace, with nearly 155 million nonelderly people accessing ACA-covered plans through their employers.

Benefits of the Affordable Care Act (ACA)

The benefits of the ACA are far-reaching for employers, employees, and communities. Also referred to as Obamacare, the ACA has been life-changing for many Americans, specifically those with pre-existing conditions, lower incomes, and the previously uninsured.

Here are 10 benefits the ACA offers:

1. No pre-existing condition clause: The ACA eliminates pre-existing condition clauses from covered health plans. As a result, millions of Americans with pre-existing conditions no longer face discrimination and have access to the healthcare they need to treat their pre-existing condition.

2. Expansion of Medicaid: The Medicaid expansion under the ACA, which 36 states and Washington D.C. have adopted, has helped millions of lower-income individuals throughout the country access higher quality healthcare.

3. More Americans are now insured: With the ACA, 20 million Americans that didn’t have access to healthcare now do—meaning 20 million fewer uninsured Americans are walking around. The uninsured rate hit 9% in 2016, which was an all-time low.

4. Fairer treatment of women: Under the ACA, women can no longer be charged more than men for insurance. They are also guaranteed coverage for essential healthcare services related to women’s health.

5. More affordable healthcare: The ACA made healthcare more affordable. Individuals who meet a certain income threshold receive financial assistance for their healthcare through the marketplace exchanges. In 2019, 87% of marketplace enrollees were offered some level of financial support and tax breaks for premiums.

6. Improved access to drug coverage: Drug coverage was expanded under the ACA by requiring all marketplace plans to cover at least one drug per drug class. With the Medicaid expansion, the Medicaid Drug Rebate Program provided low-income Americans access to generic and brand-name drugs while lowering the cost for taxpayers.

7. Greater access to coverage for children and young adults: Young adults can stay on their parent’s insurance until they turn 26.

8. Enhanced protections for the disabled: Before the ACA went into effect, policies would functionally uninsure individuals after they hit arbitrary lifetime and annual coverage limits. The ACA prevents this from occurring—insurers cannot set coverage limits, deny coverage, or raise prices for disabilities and pre-existing conditions.

9. Costs lowered for seniors on Medicare: Seniors have access to no-cost preventative services, like wellness visits and cancer screenings, and have saved more than $20 billion on prescription drugs since the ACA passed.

10. Benefits extend to rural communities: Those living in rural communities are more likely to be covered by Medicaid, including close to 50% of all rural children. The Medicaid expansion has provided sustainability for rural community health care systems.

In addition, the ACA requires substance use disorder (SUD) treatment to be coded as an essential health benefit. Given that rural areas were hit hard with opioid abuse, this requirement has a direct impact on these communities. Without the SUD requirement, just 1 in 3 individuals would have had access to SUD treatment in the individual market.

Finally, the Health Care Trust Fund set up by the ACA provides federal grants to Federally Qualified Health Centers (FQHCs) for comprehensive primary care. Those living in rural areas and underserved communities rely on community centers that qualify as FQHCs.

ACA Benefits for Employers

Even though administration and compliance with ACA can be cumbersome for employers, it brings many positives. Employees are generally happier with the ACA-required provisions, such as the pre-existing condition clause and access to a lengthy list of necessary healthcare items at no cost. Also, as more people have access to quality healthcare, they can remain healthier and be proactive in taking care of their wellbeing, which supports ongoing productivity at work.

Complying with the Affordable Care Act

Entities with 50 or more employees must abide by the ACA rules. There is an extensive compliance checklist employers need to stay on top of to avoid penalties and fees. According to the Society for Human Resource Management (SHRM), there are seven steps an organization should take to ensure ACA compliance, each of which are described briefly below.

Step 1. Evaluate Grandfathered Group Health Plan Status

Grandfathered plans in existence as of March 23, 2010, that have covered at least one individual don’t have to abide by certain ACA rules. Companies need to evaluate their grandfathered plans to determine if they still fall under grandfathered status. If any changes occurred to the plan that might increase or reduce enrollees’ benefits, it might no longer be eligible for grandfathered status.

Step 2. Review Plan Documents to Ensure They Align with the ACA and Identify Required Changes to Plan Benefits

Some key areas of focus when reviewing your plan documents:

• Ensure any waiting period for an employee to become eligible for benefits does not exceed 90 days.

• Confirm that, for essential health benefits, no annual dollar limits apply.

• Validate that no pre-existing condition clauses are present

Step 3. Assess Tax-Favored Arrangements

Organizations offering FSAs, cafeteria plans, and HRAs must confirm that each program complies with ACA requirements.

Step 4. Send Required Notifications to Employees and Their Dependents

There are three notices employers must send to employees and their dependents, which are:

• Summary of Benefits and Coverage (SBC): The carrier or plan administrator is often on-point to send this notice. If that’s the case, the employer is responsible for monitoring the process.

• Notice of Plan Changes: Any material changes must be communicated to employees.

• Health Insurance Exchange Notice: A notice needs to go to employees within 14 days of their start date, indicating they have access to health insurance through the marketplace and might be eligible for financial support through the exchange.

Step 5: Abide by “Pay or Play” Responsibilities

Some large employers are subject to the ACA employer “pay or play” requirement, referred to as the employer shared responsibility requirement. This typically applies to qualifying large employers with 50 or more full-time employees and full-time equivalents.

Because the laws around “pay or play” are extensive and complex, it’s advised that organizations consult a reputable benefits expert and knowledgeable employment lawyer to adhere to full compliance and reduce the risk of penalties and unnecessary fees.

Step 6: Adhere to Information Reporting Requirements for Form 1094 and Form 1095

Forms 1094 and 1095 determine an organization’s compliance with the ACA’s “pay or play” requirements. Entities offering coverage for the calendar year 2022 are required to report in early 2023.

Step 7: Additional Action Items

For continued ACA compliance, the following items need to be addressed:

• Preventive Services Coverage: Guidelines sometimes change, so continue to monitor those for preventative services to ensure you’re in compliance. For example, new services that are approved should be on your list of approved services.

• High Earners Medicare Tax: Additional Medicare Tax of 0.9% should be withheld from an employee who is paid more than $200,000 annually.

• Medical Loss Ratio (MLR) Rebate: If your insurance carrier issues an insurance rebate, distribute the rebates by September 30 of each year to policyholders. You’ll need to determine how you plan to issue the rebate based on policyholders—as a cash payment or as a premium holiday applied to future participant contributions. You can also use the rebate towards future benefit enhancements. Often, the insurer will issue the rebates, and the employer will issue a notification giving employees a heads-up about the rebate. Rebates issued are relatively small--$5 to $10.

• Form W-2 Reporting: The cost of health coverage for the employee needs to be reported on their W-2, which should be issued by January 31.

• Section 1557 Nondiscrimination Testing: Any entity that receives federal financial assistance when administering any health activity or program must comply with the final rule implementing ACA Section 1557. Section 1557 of the ACA prohibits discrimination based on color, sex, race, national origin, disability, or age.

• Patient-Centered Outcomes Research Institute (PCORI) Fees: Employers are sometimes subject to pay fees to fund the Patient-Centered Outcomes Research Institute (PCORI), depending on the type of self-insured plan the employer has. Form 720 is used to report and pay fees and is due by July 31 of each year.

A Benefits Broker Can Help You Maintain ACA Compliance

Though ACA compliance requirements are extensive and complicated, you don’t have to go it alone. A benefits broker that specializes in healthcare benefit plans, including those covered by the ACA, can support you in navigating reporting and notification requirements to ensure you avoid penalties and fees for lack of compliance.

At KBI, our team of experts can help you navigate the complexities of ACA compliance, so you don’t need to concern yourself with being out of compliance. We work with an extensive network of experts, including employment lawyers, to ensure we have the bases covered for your needs. Contact us today for more information.

Flexible Spending Account Benefits for Employers

Wed, 17 Aug 2022 16:01:11 GMT

It’s common for employers to offer a Healthcare Flexible Spending Account to their employees. FSAs typically accompany most employer-sponsored health insurance plans, with the exception of a High Deductible Health Plan (HDHP), which is usually accompanied by a Health Savings Account (HSA). Below outlines what an FSA is, how they’re used, and the benefits they offer to both employers and employees.

What Is a Flexible Spending Account (FSA)?

An FSA, or flexible spending account, is a tax-advantaged benefit offered by many employers. With an FSA, employees can put pre-tax money aside to cover qualifying health-related expenses. Depending on the type of FSA used, qualified expenses include medical, vision, dental, and childcare expenses.

What Are Flexible Spending Account Benefits for Employers?

An FSA allows employers that offer this benefit to save the combined Medicare and Social Security tax rate of 7.65% on the value of FSA employee contributions. Additionally, employees can save between 15% to 40% on taxes when electing to contribute to an FSA. The list of qualified expenses is extensive for employees to receive reimbursement on a pre-tax basis.

How Can Employers Offer FSAs to Employees?

Employers typically offer FSAs as part of a cafeteria plan under IRS Section 125. This is because FSAs are often funded through an employee’s pre-tax salary deductions. Employees are only allowed to use pre-tax dollars to contribute to benefits offered by their employers, like dental, health, and disability insurance premiums, if the plan is a Section 125 plan.

Employers need to have a written plan document for employees and employers to take advantage of the tax savings under the plan. FSA provisions may be added to plan documents that already exist for employer-sponsored benefits that employees contribute to. The FSA summary plan document must include:

• A summary description of benefits

• The maximum contribution amounts

• The manner of contributions

• Eligibility and election rules

• Uniform coverage rule

• The plan year outlined

• Provisions regarding carryover or a grace period

Most employers opt to work with a third-party or external administrator to process employee reimbursements. However, with a plan document in place, employers can choose to self-administer FSA benefits.

What Kinds of FSAs Are Available?

There are three FSA options employers can offer their employees. The options include:

Healthcare FSAs: Health FSAs can be used to cover qualified healthcare expenses, including insurance deductibles, coinsurance, co-payments, prescriptions, vision expenses, and dental expenses for employees and their dependents and spouses.

Limited Purpose FSAs: A Limited Purpose FSA is available for those who elect to have a Health Savings Account (HSA). Designed to work in conjunction with an HSA, a Limited Purpose FSA covers qualified vision and dental expenses. Where employees are not eligible to make contributions to both an HSA and FSA, they are eligible to make HSA contributions while having a Limited Purpose FSA.

Dependent Care FSAs (DCAPs): Dependent Care FSAs help employees who are parents or legal guardians cover dependent childcare costs while they’re at school or work. They are commonly used to pay for childcare-related expenses for those under 13 years of age. Dependent Care FSAs can also be used to help employees pay for expenses related to adult dependents they care for and share the same primary place of residence for over six months of the year. Adult dependents are those who are not mentally or physically capable of caring for themselves.

What Are Possible FSA Issues to Consider?

There are important considerations for both the employer and employee to bear in mind when offering and utilizing an FSA.

Qualified Expenses

Only qualified expenses are eligible for reimbursement under an FSA. The IRS identifies qualified expenses each year, and FSA administrators should be well educated in these matters. Many employees covered by an FSA don’t realize that supplies, like thermometers, are covered expenses.

Examples of other covered expenses include:

• Medical supplies

• Diagnostic devices

• First aid kits

• Hearing aids

• Insulin and blood sugar test kits

• Bandages

• Ambulance services

• Artificial limbs

• Braille books and magazines

• Breast pumps and supplies

• Birth control

• Service animals, including grooming costs and food

• Transportation to and from medical services

• Capital expenses for medically related addition to home

Employee Retirement Income Security Act (ERISA) Requirements

Health FSAs are subject to the Employee Retirement Income Security Act (ERISA). As a result, proper administration is necessary, which requires operational compliance and required documentation.

Nondiscrimination Testing

Nondiscrimination testing for cafeteria plans should be conducted to evaluate Section 125 Plans. Additional testing is mandated for health FSAs and Dependent Care FSAs.

Use It or Lose It Policy

FSAs have a “use it or lose it” clause. If an employee does not use the money they’ve contributed to their FSA by the end of the plan year, they lose the money contributed. It’s a good idea for employers to provide employees with a reminder about the clause and encourage them to get the proper documentation submitted to the plan administrator by the due date for the plan year.

Employers can also offer a grace period of as much as 2.5 months after the year-end plan date to use the funds remaining in their FSA. Claims can be submitted for both the plan year and grace period. All FSAs are eligible for a grace period.

For Health FSAs, employers can allow a carryover or grace period. Plan participants can roll over $570 from the previous plan year into the next, and the $570 is not included in the IRS maximum amount that can be contributed.

Uniform Coverage Rule

According to the uniform coverage rule, healthcare FSAs are 100% funded at the start of the plan year. If an employee terminates their employment prior to the end of the plan year and their contributions have not yet equaled what they’ve used from their FSA, the employer cannot deduct additional funds from the employee’s final paychecks to make up the difference.

Maximum Contribution

As a benefit offered under a Section 125 Plan, the IRS regulates the plan and sets the maximum contribution permitted for an FSA. Employers can set the maximum contribution limits below the IRS’s threshold.

Plan Year Determination

Most employers choose an FSA plan year that aligns with the group health fiscal year or plan year. It makes the administration more straightforward for the organization and employees to do so.

What Health Insurance Plans do FSA’s Accompany?

In SHRM’s 2021 Annual Employee Benefits Survey , the most commonly offered health plans were:

• Point of Service (POS) Plan

• HDHPs without HSAs

• Health Maintenance Organization (HMOs) Plans

• High-Deductible Health Plans (HDHPs) with Health Savings Accounts (HSAs)

• Preferred Provider Organization (PPO) Plans

All of these plan types, with the exception of the HDHP, are typically offered in conjunction with an FSA.

What Alternative Health Spending Accounts Are Available?

Depending on the health insurance plan offered, as well as other factors, such as the business’s budget, there are other types of health spending accounts a business might choose to offer. Two main types are the Health Savings Account (HSA), mentioned earlier, and a Health Reimbursement Account (HRA).

Health Savings Account (HSA)

As previously mentioned, HDHPs are typically accompanied by an HSA instead of an FSA. Unlike with an FSA, employers can choose to contribute to an employee’s HSA, which can help offset the high deductible that comes with an HDHP. An HSA operates similarly to an FSA when it comes to the types of qualified expenses and expense reimbursement under the plan. However, an HSA also operates as a savings plan that can draw interest and, when the right criteria are met, can be rolled over to a qualified retirement plan. Also, once money is deposited into an HSA, it remains with the employee, even if the employee terminates employment with the company. In other words, there is no “use it or lose it clause” with an HSA. The IRS sets the maximum contribution limits for an HSA.

Health Reimbursement Account (HRA)

For small businesses that might have difficulty affording a standard health insurance plan is to provide a Health Reimbursement Account (HRA) option to employees. An HRA is a tax-advantaged health benefit for employees to receive reimbursement for allowable expenses and medical premiums.

It’s up to employers regarding how much they contribute annually to an employee’s HRA. There are also different types of HRAs employers can offer as defined by the IRS. Employers can choose from a Vision or Dental HRA, Group Coverage HRA, Excepted Benefit HRA, Qualified Small Employer HRS (QSEHRA), Retiree Health Reimbursement Arrangement (RHRA), and Individual Coverage HRA (ICHRA).

How Can You Get Support to Identify the Best FSA Options?

If you’re in the process of evaluating your current FSA, considering switching to a new plan administrator for your FSA, or you’re starting from scratch to identify the right FSA for your business, a benefits broker can help. Not only can a reputable employee benefits broker support you in identifying a solid FSA for your organization, but they can also help you identify the best benefits across the board to offer to your employees.

KBI has years of experience helping businesses of all sizes and industries determine the best employee benefits, including FSAs, for their specific organization and budget. Contact us today to discuss your benefits needs.

HR Compliance Calendar: Deadlines You Should Know

Tue, 09 Aug 2022 20:07:41 GMT

HR compliance is a vital aspect of any business. Issuing notices and submitting reports are common aspects of remaining current and in compliance with Federal laws to avoid penalties and fees.

HR Compliance Calendar: Deadlines You Should Know

Below are common HR Compliance deadlines to add to your compliance checklist, followed by some best practices for incorporating an HR Compliance Calendar into your workflow.

January HR Compliance Checklist

• January 31 - 1095-B Form Distributions: Form 1095-B is used to verify the kind of health insurance employees and their dependents have and the prior year’s coverage period.

• January 31 – 1095-C Form Distributions: According to the Affordable Care Act, employers who meet specific criteria must provide health insurance options to qualifying full-time employees. Form 1095-C is an annual statement that businesses can send to their employees to indicate they are eligible for health insurance coverage and the available insurance options.

• January 31 - 1099-Misc Form Distributions: 1099 MISC forms must be issued for employers who have paid miscellaneous income, such as rent or payments to attorneys.

• January 31 - Annual Form 940: For those that did not pay FUTA (Federal Unemployment Tax Act) taxes when they were due, an Annual Form 940 must be prepared.

• January 31 - Quarterly Forms 941: Form 941 shows social security, Medicare, and income taxes withheld from employee paychecks.

• January 31 - Quarterly 720 (Q4): Form 720 is required for a business that is subject to excise tax.

• January 31 - W-2 Distributions: W2 forms must be issued to every employee to report the employee’s annual wages and taxes withheld.

February HR Compliance Checklist

• February 1 - 1099-NEC Form: The 1099-NEC (non-employee compensation) Form must be issued to freelancers and contractors that meet the IRS threshold to report their income and if any taxes were withheld.

• February 1 - OSHA Form 300A Posting: Most employers with 10 or more full-time employees are required to keep a log of reportable illnesses and injuries. OSHA Form 300A highlights all reportable illnesses and injuries that happen during work. The employer record also includes the time and location of where they happened.

• February 8 - 1099-MISC (Box 8 and 10 Checked): Form 1099-MISC needs to be issued by this date to all, with only Box 8 and Box 10 checked.

• February 10 - Annual Form 940 Due: Annual Form 940 is due by this date if quarterly FUTA taxes were paid on time.

• February 28 - Affordable Care Act (ACA) Forms 1094-C and 1095-C Paper Filing: Forms 1094-C and 1095-C are required according to the ACA and, when paper filing, are due on this date.

March HR Compliance Checklist

• March 1 – 8809 Form Paper Filing Deadline: Form 8809 is due on this date when paper filing. It is used to request an extension to file Federal tax forms, including the W-2, W-2G, 1094-C, and 1042-S.

• March 1 - HIPAA Breach Employee Notification: The HIPAA Breach Employee Notification is required for entities and their associates covered by HIPAA. The HIPAA Breach Employee Notification rule requires notification from the entity or business associate after a breach of data pertaining to PHI (protected health information).

• March 1 - M-1 Form: Form M-1 is where entities report information related to a multiple employer welfare arrangement (MEWA) and entities claiming exception (ECE).

• March 2 - Creditable Coverage Disclosure to the Centers for Medicare & Medicaid Services (CMS): Employers that offer calendar year plans that cover prescription drugs for Medicare Part D eligible people need to report to CMS if the self-administered drug prescription coverage is “creditable prescription drug coverage” or not.

• March 2 - OSHA Form 300A: OSHA Form 300A must be electronically submitted by this date.

• March 8 - Form 1065 (for Partnerships) Tax Return: The 1065 Form is the Federal Tax Return highlighting Partnership Income. Form 1065 is used to report credits, deductions, losses, and profits from a business partnership.

• March 8 - Form 1120-S (for S-Corporations) Tax Returns: The 1120-S Form is the Federal Income Tax Return for S Corporations used to report dividends, losses, and income of S Corp shareholders.

• March 31 - EEO-1 Filing and Reporting Deadline: All private employers with 100 or more employees and Federal contractors with 50 or more employees that meet specific criteria are required to adhere to EEO-1 annual data collection and reporting. Required information includes demographic data, such as job category, race, and sex.

• March 31 - Form 1094-C and 1095-C E-Filing: Forms 1094-C and 1095-C are due on this date if e-filing.

• March 31 - Form 8809 E-filing Deadline: Form 8809 is due on this date when e-filing.

April HR Compliance Checklist

• April 15 - 7004 Form: Form 7004 requests a six-month automatic extension to file specific business information, income tax, and other types of returns.

• April 15 - 8928 Form: Form 8928 is an employer self-report for compliance failures related to COBRA administration.

• April 30 - Quarterly 941 & 720 Forms: Q1 Forms 941 and 720 are due on this date.

• April 30 - Summary Plan Description (SPD): Employers are required to issue an SPD to plan participants enrolled in any Employee Retirement Income Security Act of 1974 (ERISA) covered health benefits insurance and retirement plans.

• April 15 - Tax Day: April 15 is the day when Federal personal and C Corporation income tax returns are due to be e-filed or post-marked.

May HR Compliance Checklist

• May 15 - Non-Profit Tax Returns and Form 990: Annual Form 990 shows yearly activities for entities with income tax exemption status.

June HR Compliance Checklist

There are no key HR compliance dates in June.

July HR Compliance Checklist

• July 31 - Compliance Check: This is an ideal time to review the HR compliance checklist and required benefits notices, and then make a plan to issue what’s required.

• July 31 - Forms 5500 and 5558: Form 5500 reports an entity’s information regarding its 401(k)-calendar year plan’s operation, financial status, and investments to make sure such plans are complying with government regulations. Form 5558 allows entities to request a 2.5-month extension to file employee plan returns.

August HR Compliance Checklist

There are no key HR compliance dates in August.

September HR Compliance Checklist

• September 30 – Summary Annual Report (SAR): A SAR must be issued to participants of ERISA-covered plans. The SAR summarizes Form 5500 found in ERISA plan documents.

October HR Compliance Checklist

• October 3 - Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) Notice: QSEHRA notices are required for January 1 (of the next year) for effective health cost reimbursement plans offered by Small Business (SMB) employers.

• October 3 - Retiree Drug Subsidy (RDS) Application to CMS: For plans effective January 1 (of the next year), the RDS is one option out of many offered under Medicare. The RDS allows employers to aid retirees eligible for Medicare to obtain more advantageous prescription drug coverage.

• October 14 - Medicare Part D Notice of Creditable Coverage: The Medicare Part D Notice of Credible Coverage must be delivered to participants of the plan by this date.

• October 31 - Quarterly Form 941 & 720: Q3 Forms 941 and 720 are due on this date.

November HR Compliance Checklist

• November 1 – FSA Receipt Employee Reminder: For employees with an FSA that have out-of-pocket expenses, they need to submit receipts for reimbursement of such expenses by a certain date based on the employer’s plan details. Employers should send employees a reminder to provide their FSA-eligible expenses and required documentation to the plan administrator by the applicable deadline.

December HR Compliance Checklist

• December 31- Nondiscrimination Testing: Employers should complete nondiscrimination testing for their FSA, 125 Premium Only Plans (POP), and 401(k) plans by this date.

• December 31 - Employee Handbook and Policy Review: December is generally an ideal month to provide employees with employment-related documents to review, including the Employee Handbook and HR policies.

• December 31 - Distribute Holiday Calendar for Following Year: December is also an ideal month to issue employees the calendar of paid holidays for the following year.

How to Create and Maintain an HR Compliance Calendar

1. Make it as simple and focused as possible. Create a calendar with pertinent deadlines that appear clean and easy to read. Information that describes the deadlines should be reserved for the documents outlining pertinent details, like requirements, processes, and deadlines, about the task.

2. Ensure those who need access do. It can be easiest to give everyone in HR or who has interaction with any of the items on the HR Compliance Calendar access to it. This helps to reduce requests for access and allows everyone to be on the same page.

3. Identify the proper owner of each item with a backup owner. Each item on the calendar should have an identified owner and at least one backup owner in the event that someone is out when deadlines are approaching or due.

4. Review and update the calendar regularly. Requirements change, as well as deadlines. You also want to make sure you don’t miss any critical deadlines. As such, review your calendar regularly—at least once a month at the beginning of each month.

Being organized when it comes to HR compliance can make your job, as well as your team’s job, a lot easier and less stressful. Use the above deadlines and tips as a starting place to create your HR Compliance Checklist and Calendar. And be sure to check your local and state laws to add requirements specific to the areas where you do business or have employees are also covered.

Tips For Building an Effective Employee Benefits Communication Strategy

Tue, 02 Aug 2022 21:31:51 GMT

According to the Society of Human Resource Management (SHRM), U.S. employers spend close to 40% of payroll on benefits, indicating that employers need to maximize their benefits package value. As such, organizations must approach benefits communication strategically to maximize access, enrollment, and utilization by the workforce.

Companies get that it’s vital for their employees to understand the benefits they provide. However, few employers believe their employees do understand and appreciate the benefits offered to them, Consider these statistics:

• In a June 2009 survey by Colonial Life, 92% of U.S. employers agree that employees appreciating and understanding their benefits is important However, only 19% believe their employees truly have a decent understanding of them.

• Close to 5% of employers think that, regarding benefits, their employees know nothing at all about them.

Tips For Building an Effective Employee Benefits Communication Strategy

There is a clear difference between what organizations believe they are getting related to benefits communication and what they desire. Fortunately, it is possible to consider some strategic options to create a benefits communication plan for your needs. The next section covers 9 factors to consider that influence your benefits communication strategy.

What Are the Factors that Influence Benefits Communication?

Factors that influence benefits communication include:

• Company Demographics

• Life Stages

• Internal Resource Availability

• Existing Communication Channels

• Geographic Location

• Technology

• Employee Schedules

• Benefits Plan Changes

• Year-Round Hiring, Termination, and Changes

Company Demographics

There are currently 5 generations in the workforce: Generation Z, Millennials, Generation X, Baby Boomers, and Traditionalists. There is only a handful of Traditionalists remaining, and Baby Boomers are at an age where they are choosing to retire and exit the workforce. By 2030, all Baby Boomers will be 65 or older.

Generation X is at a point where they are taking care of children and aging parents, and some Millennials fall into that bucket, as well. Millennials currently outnumber Baby Boomers and Generation Xers in the workforce, and Generation Z are the newest members of the workforce. Millennials and Generation Z are technology-driven more so than any other generation.

Further, according to the U.S. Bureau of Labor Statistics , the number of women in the workforce continues to grow, and Hispanics are expected to reach 35.9 million by 2030 compared to 29 million in 2020.

The various demographics within your organization highlight the need for not only adapting benefits packages to match your demographics but to ensure you’re communicating your benefits in a way that fully infiltrates a diverse workforce.

Life Stages

There were 72.4% of women and 93.5% of men in the workforce with children under 18 years old in March 2019. That also means there are 27.6% of women and 6.5% of men in the workforce without children. Other employees are newly married, seasoned in their marriage without children, or married with children, whereas others are single and divorced or single and never married.

The point here is that it’s important to know what stage your employees are at in life. Are they newly promoted? Newly married? Straight out of college? Ready to retire?

The benefits needs of employees differ based on their stage in life. A solid communication strategy makes accommodations for these differences.

Internal Resource Availability

You need to consider how many resources you have internally within your HR department to support benefits administration and communications. To ensure employees receive communications that are effective and at the level they need to be, will you need to invest in external resources to manage and support communications or another aspect of the benefits process to support HR?

Existing Communication Channels

What channels do you use to communicate news and updates in your organization? For example:

• Do you have a regular company newsletter? Who receives it?

• Do you post news regularly on your company intranet? Internet? Website? How often?

• Do you have regular employee meetings? Department meetings? Virtual meetings?

Having several touch points to communicate about benefits is ideal, and including spouses is also ideal. At least one touchpoint should be in-person.

Geographic Location

Benefits communication is impacted by how your workforce is dispersed. If you have a hybrid work environment, how you communicate with remote employees might differ compared to how you communicate with those in the office. It’s essential to ensure the needs are being met for all employees, regardless of location, and that communications are provided to all employees effectively with a personal touch.

Companies that have employees that speak a variety of native languages, as many global workforces do, also face the challenge of determining which languages to use to disseminate benefits information. What is the best way to facilitate benefits communications under these different scenarios?

Technology

What technological mediums does your organization use to support communication? For example:

• Do you have an intranet? Internet?

• Does the entire workforce have access to a computer?

• Are online content options, like blogs, SMS messaging, videos, and podcasts used?

Using several types of technology to disseminate information can be a good approach. However, it should not be a substitute for face-to-face meetings and interactions regarding benefits.

Employee Schedules

Taking employee schedules into account upfront will help alleviate any barriers a variety of schedules might cause to your communication plan. The following types of questions should be considered:

• What are your business hours?

• When do your employees work?

• Do you have employees on rotating or different schedules?

• Do any employees work remotely or telecommute?

Benefit Plan Changes

What changes have been made to your benefits plans compared to last year? Any changes should be clearly communicated to employees so they can make the most informed decision during open enrollment or when signing up as a new hire or newly qualified employee.

Also, if your company just moved to a consumer-directed health care plan or a high-deductible health plan (HDHP) with a health savings account (HSA), it’s crucial to ensure employees know how to get the most out of such plans to keep their medical costs as low as possible.

Year-Round Hiring, Termination, and Changes

New hires come on board and retirees leave organizations at varying times of the year. There are sometimes changes that occur to benefits plans out of cycle, as well, and the needs of employees can also shift throughout the year—employees have babies, get divorced, get married, become extensively ill, and so on. These types of circumstances make it necessary to communicate about benefits year-round and allow employees to make updates as needed when possible.

What Is Necessary to Develop a Benefits Communication Plan?

Now that you’ve considered the variables that can impact a benefits communication strategy, the next step is to develop a communication plan. Some organizations choose to keep the benefits communication plan in-house, while others lean on their insurance enrollment firms and voluntary benefits providers to support the communication process. Some organizations charge for such services, and others include it as part of the benefits partnership and enrollment.

Your employee benefits insurance broker can also support you in developing a communication plan and identifying the right benefits communication partner. To evaluate a carrier, the following criteria should be used:

Customizable Communication

Communication materials for benefits are essentially marketing materials that should be high-quality, appealing, and easy to understand for the employee. Employee-friendly benefits communications include highlighting benefit changes, how benefits work together, how to make wise decisions, and how much the benefits will cost.

Strong Partnerships

Those within the organization that support employee benefits, like the HR team, need to be able to work well and closely with the enrollment group. It’s vital that the vendors used are viewed as an extension of HR, and it’s best for companies to use a consultative approach when working with benefits providers.

Technology Capabilities

Enrollment needs to be as straightforward and easy as possible for your employees, thus, the technology used should offer automation and ease of use for employees’ enrollment. Enrollment technology should also offer the level of control and reporting required by HR and the ability to enroll employees at multiple locations and offices.

KBI = Your Employee Benefits Communication Planning Experts

Benefits impact productivity, morale, and job satisfaction. Robust benefits packages are expected by employees today, and benefits communication allows employers to follow through on their responsibility of ensuring their workforce understands the benefits available to them.

KBI has decades of experience working with organizations of all sizes to develop benefits packages for their employees, which includes developing a strategic benefits communication plan. If you’re in need of developing an effective benefits communication plan that works for your employee population based on demographics, life stages, employee schedules, employee locations, available technology, existing communication channels, and more. KBI can help.

Our team of experts can work with you from start to finish when it comes to designing your benefits platform, or we can come in to focus primarily on your communications plan to make sure you have the right resources and support you need for a successful rollout and implementation. With the right communication plan implemented, you can increase your benefits enrollment success, as well as your benefits utilization

Employee Advocacy: What Is It, and What Are the Benefits?

Wed, 27 Jul 2022 13:43:58 GMT

It’s common for people to think of brand advocates as those external to a company, such as social media influencers and promotional organizations. However, your own employees are often the ones you can rely on the most to promote your company. After all, employees know your organization inside and out, from processes and procedures to your values, mission, and vision. They also know about your organizational initiatives ranging from diversity, equity and inclusion to community involvement and employee growth and development opportunities. As a result, employees can lend a unique and valid voice to promote and support your brand.

Online employee advocacy grew 191% between 2014 and 2018, with more than 50% of company managers realizing its benefits. Still, only 33% of organizations have a defined program, with only about 1 in 10 organizations having a defined, comprehensive social media advocacy program.

Read on to learn more about employee advocacy programs , why they’re beneficial for companies to adopt, and steps to help you implement one.

What Is Employee Advocacy?

Employee advocacy occurs when the individuals that work for the company promote it and its brand. It allows employees to:

• Share positive experiences and an inside look related to their work life

• Promote organizational promotions and messaging

• Recommend company services and products as experts within the business

When we discuss employee advocacy in this post, we are primarily referring to online social media employee advocacy. Social media advocacy is the most common means of implementing helpful programs within organizations today.

How Can Employees become Advocates?

Employees can become advocates for the company in different ways. Two of the most common ways are through social media and brand merchandise.

Social Media Employee Advocacy

As mentioned, when we think of employee advocacy programs today, we most commonly think of social media programs within organizations. Most employees are on social media, making it a great tool to support the program. It’s also one of the easiest and quickest way to reach a diverse and large audience with a relatively low ROI.

Social media employee advocacy is when employees post and share company content on their personal social media pages or accounts. Facebook, LinkedIn, Instagram, Twitter, TikTok, and YouTube are examples of social accounts where employees might share company content.

Company Merchandise

Company merchandise and swag pre-date social media advocacy but are still viable ways employees can become brand advocates. Branded company items are also popular with many employees, from company t-shirts and sweatshirts to branded pens and stickers. As part of a social media advocacy program, images of company merch and swag can be shared, as well as images of employees using or wearing branded items.

What Are the Benefits of Employee Advocacy?

Employee advocacy not only supports the company, but the employees, as well. It provides benefits across several departments, including:

• An increase in brand reach and positivity for the recruiting and staffing department

• Improved morale for the human resources department

• An expanded network of leads for the sales department

• Increased brand awareness and marketing support for the marketing department

Additional Benefits for Employees

Employees can greatly benefit from employee advocacy programs that are well-organized and implemented. Four common benefits include:

• It provides employees with opportunities to network. Posting content on social media platforms increases an employee’s engagement and networking opportunities online.

• It builds their professional profile and thought-leadership status. Various types of content can be shared to support employee advocacy. In addition to branded content, industry and company articles and insights can also be shared. When employees post and comment on such content, it builds their professional reputation and thought-leadership status in the field. Research by Edelman and LinkedIn highlights that decision makers are significantly impacted by the perception of thought-leadership within an organization.

• It can enhance their skillset. Many employees, especially of older demographics, aren’t necessarily comfortable using certain technologies and social media. Building in training for your employee advocacy program that teaches the best approach to post and use social media, as well as how to create content for social, helps to enhance their skillset.

• It keeps employees informed. When your organization provides content and links for employees to use for social media, it not only gives them the opportunity to share content, but also helps them remain informed about what’s going on within the company and industry.

Additional Benefits for the Company and Brand

There are numerous benefits for the company and brand when they have a solid employee advocacy program, with five of the most common ones listed below.

• It enhances lead quality. Individuals naturally gravitate towards organizations that have a positive reputation. Also, as more employees post about your business, the more familiar and knowledgeable others will become with it, making them more likely to purchase from or want to work for your business.

• It increases employee engagement which leads to increased productivity. Employees that are engaged lead to innovation, which then leads to increased productivity. Research shared by PostBeyond shows that organizations with high employee engagement have a 202% performance advantage over those with unengaged employees.

• It improves brand reach and awareness. Employee advocacy provides an opportunity to organically grow your brand. The research shared by PostBeyond suggests company branded messages offer a 561% reach when shared by employees vs. branded channels.

• You have the ability to maintain consistency and control over messaging. With an employee advocacy program, you can ensure that your core messaging and branding are maintained by providing employees with specific content to post. You can also provide guidelines on how employees can provide an individual touch or perspective to specific components.

• It can provide cost savings. When businesses rely on their employees to advocate for the company, it can reduce the amount of money invested in advertising and marketing companies.

What are the Types of Content Companies Can Use for an Advocacy Program?

There are several types of content that companies can create for their employees to post and share. Examples include:

• Instagram and Facebook images

• Funny memes

• Blog article links

• LinkedIn article links

• Links to industry news

• Links to company news

• Links to company press releases

• Online videos

• Individual employee awards and recognition

• Company awards and recognition

• Photos from company events

• Links to blogs and articles by employees/thought-leaders within the company

• Special brand promotions

• Special company events, including online and live events

• Infographs

• Links and posts about current job openings

• Customer testimonials and reviews

• Employee testimonials and reviews

How Can an Organization Launch an Employee Advocacy Program?

Below are some essential steps to consider when launching your employee advocacy program.

Establish a mission and vision. As with any company program, it’s important to establish its mission and vision. A mission and vision outline an organization's “why” and overall goals to help people want to get behind it.

Create KPIs. You want to establish key performance indicators (KPIs) to determine what is or isn’t working for your advocacy program. Common KPIs for an employee advocacy program include:

• Active employee participation rate

• Top employee contributors

• Adoption rate by employees

• Organic social reach

• Increase in fans or followers

• Increase in likes

• Non-employee engagement rate, including comments and shares

• Lead generation

• Employee referrals

• Non-employee referrals

Provide incentives. Incentivizing your program can encourage employee participation. Company recognition was the most effective way to incentivize an employee advocacy program according to a study by Social Media Today . Providing money is another option.

Offer training. Providing training is important for a couple of reasons. One, you want employees to understand what is and is not appropriate to post, as well as how to personalize posts. Two, for those that aren’t astute in using social media effectively, training will provide the tools for them to do so, which means more engagement for your business.

Encourage post-personalization. PostBeyond’s Customer Employee Advocacy Benchmark Report shows that posts with personalized content generate 64% more engagement than posts that aren’t personalized. Therefore, when you provide content for your employees to post, also encourage them to authentically personalize the posts.

Continually communicate and encourage involvement. Instead of training your employees once and communicating only at the launch of the program, continually communicate and share information. Communications will remind employees about the program, can keep them informed of changes and updates, and provides reminders on how to be efficient and effective when participating.

Communication is also important when it comes to sharing how well the program is performing and acknowledging employees for participation.

Employee Advocacy Programs = Mutual Benefits for Employers and Their Employees

Employee advocacy programs are a valid option that benefits both the employees and the company when it comes to engagement and increasing brand reach and awareness. Sprout Social shares some examples of organizations that have successfully implemented advocacy programs that might just inspire ideas for your own!

How The Hybrid Workplace Has Changed Employee Benefits

Wed, 20 Jul 2022 15:00:00 GMT

Post-COVID, the hybrid workplace has become much more commonplace for many reasons. Some organizations appreciate the cost-savings of reducing office space overhead, which can be as much as $18,000 per employee , according to one study. Others appreciate that employees want flexibility at work , with 80% of employees expecting to work a minimum of three days per week remotely and 92% expecting to work at least one day per week remotely. Further, 59% of candidates are more likely to choose a job that offers remote work compared to jobs that don’t, and flexible and remote working arrangements are one of the top three benefits desired by employees outside of insurance-related benefits.

How The Hybrid Workplace Has Changed Employee Benefits

With a hybrid work environment being the new norm, employers have to make the shift to ensure their benefit platforms meet the demands of hybrid and remote work—the benefits that are important to employees for the new norm are sometimes different than those that were important prior to COVID, and employers need to ensure they’re compliant in the areas in which their employees both work and live when remote work is an option.

These trends mean employers might need to add new benefits and make adjustments to current benefits. Three areas of focus employers need to assess as it relates to the benefits of a hybrid work environment include:

• Home office requirements

• Health insurance

• Dependent care support

Home Office Requirements

Now that more employees will be working remotely at least half of the time for the long-term, employers need to consider offering subsidies and support for a home office setup. An employer might opt to offer a flat sum per month to cover office expenses, such as high-speed internet and a landline, as well as a lump sum payment that provides the employee with the means to set up a home office with the proper office furniture and equipment. If a general lump sum payment or home office subsidy isn’t offered, then the following benefits should be considered for an employee who works from home permanently or part of the time:

• Internet subsidy and hotspot

• Ergonomic setup

• Network hardware

• Cellphone subsidy

Internet Subsidy and Hotspot

Employer-subsidized internet supports the employee in having the proper high-speed internet to work remotely and attend meetings. Additionally, covering the cost of a hotspot can support business continuity in the event of a power outage or other circumstances that might interrupt home internet service.

Ergonomic Setup

Though employers are not required to provide employees with ergonomic furniture, OSHA (Occupational Safety and Health Administration) does require employers to keep the workplace free and safe from ergonomic hazards. As such, it behooves employers to offer remote workers an ergonomic setup, including a chair that helps to prevent back, neck, and other body strains or injuries. Aside from offering employees the necessary setup to work comfortably, providing an ergonomic setup can help to reduce absences, worker’s compensation claims, and turnover rates.

Network Hardware

Employers should provide employees with the necessary computer hardware to do their jobs effectively. A work computer is a given. Additional considerations include a landline, printer, headset, and web camera.

Cellphone Subsidy

If employees are using their personal cell phones for work-related activities, employers should consider offering a cellphone subsidy to help employees cover their cellphone-related costs. The other option is to provide a cellphone solely used for work purposes, though many employees prefer not to have to deal with two separate cellphones.

Health Insurance Requirements

COVID has shifted many employees’ perspectives concerning health benefits. It’s essential for employers to understand what those perspectives are, so they can ensure they do their best to alleviate any concerns to help retain their workforce. Employers should consider:

• Insurance options based on employee location

• Portable insurance options

• Mental health benefits

• Telehealthcare

Insurance Options Based on Employee Location

With a partly remote workforce, employers need to ensure that their benefit plans work for employees in the various locations in which they live. It’s great to have healthcare, but if you don’t have a network of providers nearby, it can make utilizing the plan difficult. There are also local and state laws that dictate employee benefits, so employers need to be sure they are abiding by such laws in the areas they have employees.

Portable Insurance Options

Employees like to know that at least some of their benefits are portable should their employment be terminated voluntarily or involuntarily. Though it’s not necessarily a benefit to the employer to offer portable benefits, it can help to attract and retain talent when it matters to them.

Offering a health savings account (HSA) not only allows employees to pay for qualifying medical expenses on a pre-tax basis, but it’s also a benefit that is portable should the employee leave the organization. If you offer a high deductible health plan (HDHP), then it’s possible and common to offer an HSA with it. Life insurance and disability insurance are two additional benefits that many employers offer that can be made portable should the employee’s employment end with the company.

Mental Health Benefits

Mental health benefits were already becoming more popular prior to the pandemic. Now, post-pandemic, they are more important than ever. Individuals commonly needed mental health support during the pandemic, and mental health disorders, including anxiety, post-traumatic stress disorder (PTSD), and depression, continue to be on the rise.

Offering mental health benefits supports employees with their overall wellbeing and helps to reduce absences, improves productivity, and reduces turnover rates for employers. It’s vital for organizations to consider the big picture when it comes to benefits and ensure they are offering the right level and type of mental health benefits as part of their benefits package.

Telehealth Care

Similar to mental health benefits, telehealth benefits were on the rise pre-COVID. For those that hadn’t yet covered it, many health insurance companies expanded their coverage to include telehealth visits during COVID. This was necessary to ensure people still received the care they needed during lockdown or quarantine. As a result, telehealth and telemedicine became a convenience that many employees enjoy and want to continue receiving.

Telehealth provides convenience to see a provider from anywhere and at a time that works for a variety of schedules, the ability to be seen sooner than if you had to go in person, and a lower cost option than going to an emergency care clinic. It also minimizes exposure to germs at the local doctor’s office or clinic.

Telemedicine is available for several types of specialties, including psychiatry, dermatology, and general practice. As an employer, it’s important to find a health insurance plan that allows for telemedicine visits and, when possible, offers a telemed platform.

Dependent Care Benefits

Adequate dependent care is necessary whether employees are in the office or working from home. The Harvard Business Review indicates that inadequate childcare costs employers $13 billion a year in lost productivity and working parents $37 billion a year in lost income, based on pre-pandemic data. When parents are forced to choose between taking care of their children or working, it reduces the total workforce headcount and the level of take-home pay for families.

And children are not the only dependents employees need to worry about. An AARP study showed that 48 million Americans care for an adult friend or relative. Oftentimes, this care requires unpaid leave and costs over $7,000 per year in out-of-pocket expenses for the caregiver to help pay for expenses like home modifications, mortgage or rent payments, and medical care for the dependent. When employees are forced to adjust their schedules or take time off to care for adult dependents, it reduces their annual income by over $10,000.

Offering dependent care benefits to care for both children and adult dependents can go a long way in attracting and retaining talent, including:

• Paid family leave

• Backup childcare

• Dependent care FSAs and HSAs

Paid Family Leave

Though FMLA leave helps to protect an individual’s job when needing to take leave to care for a dependent, it does not guarantee that the leave is paid. Paid family leave allows employees flexibility to take care of dependents while still bringing in an income. It reduces overall stress for the worker and allows employers to maintain a productive workforce.

Backup Childcare

Backup childcare, including in-home childcare when the employee is working from home, is a benefit some companies are beginning to offer working parents. It provides peace of mind for parents since it covers them if their regular childcare becomes unavailable for some reason.

Dependent Care FSAs and HSAs

Dependent care flexible spending accounts (FSAs) and HSAs are valuable benefits to employees since they allow them to save money on qualifying dependent care medical expenses. Similar to an employee’s FSA or HSA, expenses are covered on a pre-tax basis for the dependent care versions.

Benefits Brokers Can Help Navigate the Hybrid Work Environment and Employee Benefits

If you’re considering how to best support your workforce in a hybrid environment, a benefits broker might be able to help. Benefits brokers that specialize in employee benefits understand the ins and outs of the various hybrid work models and the types of employee benefits that work well in these environments. They also understand the need to abide by various local, state, and federal employment laws pertaining to benefits and can guide you to ensure you’re in compliance.

You don’t need to go it alone. At KBI, our team of employee benefits brokers are here to help. Don’t hesitate to contact us today for your hybrid work environment benefit needs.

Employee Benefits Compliance Toolkit

Mon, 18 Jul 2022 15:24:11 GMT

Qualifying employers offering certain group benefits to their employees are required to comply with various legal requirements. These requirements include numerous types of notifications, disclosures, and reporting. Below is a list of items that every employee benefits compliance toolkit should include for business compliance on a federal level.

Note: In some instances, state and local laws might require additional notifications, disclosures, and reporting to be met, so it’s essential to check with your legal and benefits administration team to ensure you’re fully compliant on all levels—federal, state, and local.

Required Notifications and Disclosures

Children’s Health Insurance Program (CHIP) Reauthorization Act Notice

Employers that offer group health plans in states where CHIP is offered must notify employees of the potential for premium assistance under CHIP or Medicaid for health coverage for the employee of their dependents. Such notifications are required at enrollment and yearly.

Consolidated Omnibus Budget Reconciliation Act (COBRA) Notices

Organizations with at least 20 employees with a sponsored group health plan must provide written notice of COBRA continuation coverage rights to qualifying employees and their spouses. The written notice must be proved in plain language that is easy to understand within 90 days of coverage initiation.

A COBRA notice must also be sent within 14 days of a qualifying event to terminate benefits, such as employment termination, and to inform participants of their COBRA rights and the importance of notifying the employer when a qualifying event, such as a divorce, occurs. Additional COBRA notices are required and often handled by the COBRA administrator, such as when a participant loses eligibility or is late on payments.

Family Medical Leave Act (FMLA) Notices

The FMLA requires various notices and disclosures to employees. First, a general notice must be displayed where employees and applicants can easily view it. A written eligibility rights and responsibilities notice must be provided to employees who request FMLA leave. Finally, a designation notice needs to be provided to the employee, informing them if the leave requested is designated as FMLA leave.

FMLA forms can be accessed on the DOL’s FMLA Forms page.

Grandfather Plan Notice

Those offering a grandfathered plan must provide participants periodically with a special grandfather notice outlining plan benefits. Fewer and fewer employers offer grandfathered plans, with the likelihood that they’ll eventually phase out altogether.

Health Insurance Portability and Accountability Act (HIPAA) Certificate of Creditable Coverage

A plan participant or beneficiary is entitled to request a HIPAA certificate of credible coverage under an earlier medical plan to reduce the time a current plan can impose preexisting condition exclusions. The insurer or plan sponsor issues such certificates, which are required for any employer offering medical coverage.

HIPAA Privacy Policies and Practices

Written privacy policies and procedures must be provided to participants by health plans as it relates to protected health information (PHI). Some of the information outlined in a HIPAA notice includes:

• Permitted uses and disclosures

• Designation of privacy official and contact

• Authorization requirements

• Privacy safeguards

• Complaints filing procedure

• Prohibition of retaliation

• Waiver of rights

• Documentation and record retention processes

HIPAA Security Policies and Practices

Benefit plans that store or transmit PHI need to establish written policies related to the transmission and maintenance of PHI.

Healthcare Reform – Employee Notice of Exchange

Employers subject to the Fair Labor Standards Act (FLSA) must provide all current employees and new hires with information about health insurance exchanges outlined by the health care reform law. In addition to other information related to the Exchange, the notice highlights how employees can access the Exchange and receive a premium tax credit or a cost-sharing reduction if the employer’s plan doesn’t meet minimum ACA requirements.

Medical Child Support Order Receipt and Determination Letters

Employers that offer medical coverage need to have written procedures for processing and determining Medical Child Support Order qualifications. Employers must respond to such notices within 20 business days of the notice’s date.

Medicare Part D Notice of Creditable Coverage

If a group health plan provides prescription drug coverage to individuals that qualify for Medicare Part D coverage, the plan must issue a disclosure notice to Medicare Part D qualified participants, including those that apply for coverage.

Mental Health Parity and Addiction Equity Act (MHPAEA) Notice

Group health plans with more than 50 employees that offer mental health and substance use disorder benefits must provide an MHPAEA notice. The MHPAEA requires such group health plans to offer the same level of benefit and care for mental health and substance use disorders as they do for general medical or surgical benefits.

Newborns’ and Mothers’ Health Protection Act

If maternity or newborn coverage is provided, a notification is required that states that a stay for a standard delivery is not less than 48 hours and for a cesarean section is not less than 96 hours.

Notice of Patent Protections and Selection of Providers

All plan administrators and issuers of medical insurance must provide guidance on patient protections and the selection of providers when the summary plan description (SPD) is issued to plan participants. The guidance on patient protections and selection of providers relates to one’s choice of a health care professional and emergency services benefits.

Notice of Special Enrollment Rights

Plan administrators are required to notify eligible plan participants of enrollments rights, including what qualifies as a special event for enrollment outside of open enrollment, like adoptions, birth, and initiation of employment.

Summary of Benefits & Coverage (SBC)

Upon application for coverage or renewal of medical insurance, a summary of benefits and coverage (SBC) must be provided to plan participants and beneficiaries. Participants and beneficiaries must also be provided a 60-day notice of any material changes made to a plan mid-year. Third-party administrators and insurance providers typically create the SBC, which is then distributed by employers.

Summary of Material Modification

Any material modification or SPD information update must be provided to plan participants. Employers need to provide such notifications within 210 days following the end of the plan year that the modification or update is enacted.

Summary of Material Reduction Notice

Information regarding a material reduction in plan benefits must be provided to participants no later than 60-days following the enactment of the reduction. The following are examples of reductions that typically require notification:

• Reduction in service area covered by an HMO (health maintenance organization)

• Benefit elimination that was formally payable under the plan

• Increase in copayments, deductibles, or coinsurance

• Reduction in benefit payout amount for services

• New requirements or conditions for coverage added to the plan.

Summary Plan Description (SPD)

All ERISA-covered benefit plans must provide an SPD to participants and beneficiaries outlining their rights and obligations. Medical, vision, dental, life, FSA, disability, and HSA plans are examples of possible ERISA-covered plans that would require an SPD.

An SPD must include:

• Plan name

• Employer or sponsor name

• Employee Identification Number (EIN)

• Plan type

• Plan administrator’s name

• Administration type

• Address

• Phone number

• Name of contact for legal processes

• Plan year

• Eligibility requirements

• Benefit descriptions

• Claims processes

• Contributions and funding information

• ERISA rights statement

Women’s Health Act Notice

Employers that offer surgical and medical mastectomy benefits under their medical plans must notify plan participants that they offer them. Such communications are required at enrollment and yearly.

Required Reporting

ACA Reporting

Employers that qualify as applicable large employers (ALEs)—they had 50 or more full-time equivalent (FTE) employees in the previous year—need to provide a Form 1095-C to any employee that was full-time for at least one month. The forms must be issued by January 31, with a 1094-C transmittal sent to the IRS by February 28.

Information ALEs should track and collect in an HRIS or benefits tracking system for ACA reporting includes:

• Employee names

• Employee social security numbers

• Employee contact information, including address and telephone number

• The month coverage was offered to each employee

• The month the employee became eligible for coverage

• Lowest cost of employee monthly premium for self only

• Spouse and dependent names, social security numbers, and date of birth (DOB)

Form 5500

Form 5500 is required for group plans with 100 or more participants. The form must be submitted to the Department of Labor’s Employee Benefits Security Administration (EBSA) by day seven following the end of the plan year. Welfare and fringe benefit plans with less than 100 participants that are fully insured, unfunded, or a combination are not required to file Form 5500.

Summary Annual Report (SAR)

The SAR is required for those that must file a Form 5500. It summarizes Form 5500 and includes a statement about a participant’s right to receive a copy of the plan’s annual report.

W-2 Reporting

Per the Health Care Reform, employers with 250 or more W-2 forms in the year prior must disclose the aggregate cost of employer-sponsored health coverage on an employee’s W-2 form. The goal of this required reporting is to inform employees about the cost of their health coverage.

Seek Out Employee Benefits Experts for Support

In short, there are numerous laws pertaining to employment benefits that employers need to know and understand. These laws dictate important notifications and communications required to be issued to plan participants, as well as government reporting requirements. To fully appreciate what is necessary, each employer needs to review laws as it pertains to their unique circumstances, such as their particular benefits plans, participant and employee headcount, and business type. A legal employee benefits expert is a wise investment, as being out of compliance can be very costly to an organization as it relates to fines and court costs.

If you’re seeking support to ensure you have all the parameters covered for your employee benefits compliance toolkit, KBI’s team of experts can help. We have a team of resources to point you in the right direction to ensure you have your legal compliance checklist covered. Contact us today for more information.

What Are Information Systems in Human Resource Management?

Fri, 17 Jun 2022 13:42:00 GMT

Organizations need a system that helps track employee data, from their demographic and contact information to their payroll data, years of service, and organizational structure. Information systems in human resource management that track HR data are referred to as an HRIS, or Human Resources Information System. They are also sometimes referred to as Human Resources Management Systems, or an HRMS, Human Capital Management Systems, or an HCM, and HRIS systems.

What Are Benefits of Information Systems in Human Resource Management?

Utilizing an HRIS offers several benefits for an organization. In addition to providing a centralized location to house employee data, as well as making the data easily accessible, an HRIS assists organizations with the following:

Compliance . HRIS systems allow organizations to more easily ensure they are complying with labor and employment laws, such as equal employment (EEO) laws, benefits requirements, overtime, and payroll, as well as industry-specific requirements, such as renewing necessary certifications.
Record Keeping . If you don’t have recordkeeping, then you don’t have an HRIS. HRIS systems allow organizations to maintain records for necessary data about employees. HRIS systems include emergency contact data, benefits options, employment status, home addresses, mailing addresses, performance data, and much more, as discussed throughout this piece.
Self-Service HR . It can save HR a lot of time by allowing employees to manage aspects of their employment data and recordkeeping, including benefits administration, initializing timekeeping requests, address changes, and beneficiary updates. Employees often appreciate having some autonomy in this respect, as well.
Increased Efficiency . Having employment data stored in a centralized location provides efficiencies throughout the organization. Allowing for key functions within one system, such as time-tracking and performance management, also increases efficiencies. Finally, allowing employees to manage aspects of their own data through self-service HR can improve efficiencies.
HR and Business Strategy . HRIS systems allow for the tracking of essential data necessary to support business and HR strategies. Such data can advance organizational and department-specific initiatives.
Greater Functionality . More than 25% of businesses implement HRIS systems with the main goal of gaining greater functionality. HRIS allows organizations to streamline administrative processes so HR can focus more on strategy.

How Can an HRIS System Be Used?

HRIS systems are essentially an HR software package that either runs on the company’s technical infrastructure or is cloud-based. In today’s world, it’s common for HRIS systems to be cloud-based, which makes them easier to update when needed. Over the past five years, 98% of organizations were considering a cloud-based HRIS, with 70% only considering a cloud-based option.

Companies of all sizes and types utilize an HRIS to help them manage their human capital and provide a centralized location to house employee data.

An HRIS investment should add more value to a company than simply storing HR data and reporting. Ideally, an HRIS system will be robust and encompass end-to-end human resources management, including talent acquisition, learning and development, performance management, succession planning, and more.

HRIS Functionality

Many of the following functions can be managed with a standalone HRIS system that focuses primarily on that function. Ideally, however, an HRIS will support all of the functions an organization handles to streamline processes and increase efficiencies.

Payroll . During the hiring and onboarding process, payroll-specific data can be entered into the HRIS to support payroll processing, including W-2 information, salary, and overtime status. Time and attendance data also ties into the payroll aspect of an HRIS for benefit and time accruals and to accurately calculate pay based on absences.
Applicant Tracking System (ATS) . One of the biggest parts of a recruiting budget goes to applicant tracking systems. A functional ATS supports the entire recruiting and candidate life cycle, from the job posting and the application process to background screenings and onboarding. As part of the HRIS system, the ATS not only provides key hiring data, such as time-to-hire, but can also tie into other key organizational statistics, such as retention data. An ATS can also directly tie into payroll administration when a candidate is onboarded and hired.
Benefits Administration . Benefits administration is a high-priority function in human resource departments. From open enrollment to administering new enrollees throughout the year due to qualifying events and reporting, benefits administration in an HRIS today is typically an employee self-service model that allows employees to select benefits and track utilization.
Time Keeping . Fortunately, companies no longer need to administer time management manually. HRIS systems allow for time and attendance tracking, so employees can clock in, clock out, and track time as appropriate. Time and attendance help to ensure compliance with labor laws, such as the Fair Labor Standards Act (FLSA), that dictates overtime requirements. It is also possible to quickly identify issues or timekeeping trends, such as excessive absences and tardiness.
Performance Management . Annual performance reviews, as well as periodic reviews, discipline, and performance ratings, tie into performance management. HRIS systems can support organizations in administering and managing this aspect of people management.
Training and Development . Standalone systems that support training and development are often referred to as Learning Management Systems or an LMS. The training and development component of an HRIS allows organizations to track qualifications, skills, course completion, certifications, and required training for employees. When required training is utilized in this component, it allows for reminders, deadlines, and tracking of what employees have or have not completed.
Succession Planning . Organizations need to develop a pipeline of talent to replace key roles in the organization. The process of determining key roles and identifying replacements is called succession planning, and HRIS systems can support companies with this process.
Reporting & Analytics . Modern HRIS systems often have pre-determined reports and automated HR reports for data on absences and leave accruals, employee turnover, performance ratings, hiring statistics, and more. Analytics provide insights into the data reported.
Employee Self-Service . Employee self-services allow managers and employees to direct and manage data pertaining to their teams or themselves, respectively. Entering a leave request by an employee for management approval is an example of employee self-service, as well as managers entering performance ratings for their teams.

What Talent Resources Best Support an HRIS?

Many organizations with a small HR team where members wear several hats might have an HR Generalist or Benefits Specialist oversee the HRIS system. In smaller organizations, it’s common for everyone in HR to operate the HRIS and serve as an HRIS specialist. Different functions are commonly responsible for their specific aspect of the HRIS, such as recruiting overseeing the ATS, benefits overseeing benefits administration, payroll overseeing payroll and aspects of compensation, and so on.

The best situation is when a company has the resources available for a dedicated HRIS Analyst or an HRIS Specialist, or both, that focuses solely on the HRIS for the organization. A specialist typically implements and maintains an organization’s HRIS. An analyst generally provides HRIS support, including resolving and researching issues and problems and acting as a liaison between necessary departments, such as finance, payroll, and benefits. Analysts focus on the employee experience and policies related to the HRIS.

It’s possible to achieve an HRIS certification from independent companies that offer HRIS training programs, which can be beneficial. Software companies that offer an HRIS will typically also provide training to support the software implementation process. Such companies generally offer ongoing technical support, sometimes for an additional cost, when you acquire their software license.

How Much Does an HRIS Cost?

According to research by SoftwarePath , the average budget for HRIS software is $12,625 per user. This breaks down to about $210 per user per month.

What Are Some HRIS Options?

The following organizations offer HRIS software for businesses of various sizes and are commonly used by mid-size and larger organizations. Software suite options include most, if not all, of the HR functions listed above.

Ceridian : Top five consideration for many companies as a global system offering payroll, benefits, human resources, workforce management, and talent management capabilities.
Oracle : Another top five consideration that offers a cloud-based system with workforce rewards, work-life solutions, talent management, and workforce management modules.
Sage People : Geared towards mid-size organizations and falls in the top five as a consideration for many companies.
SAP : Best known as a robust Enterprise Resource System (ERP), its HRIS functions include SAP SuccessFactors and are used most extensively by larger organizations.
Ultimate Software : Ranked as one of the most innovative growth companies by Forbes , it offers a single system for talent management, payroll, compensation, and more.
Workday : As a well-known HRIS, it falls within the top five for many companies considering an HRIS and focuses on medium and large-sized organizations.

The following HRIS systems work well for small and medium-sized businesses and, in some instances, larger organizations, depending on the needs.

ADP : Offers flexible HR solutions and works well for fast-growing businesses with a goal to go global.
BambooHR : A top five option for both small to large-sized businesses that offer performance, employee management, and more.
Cornerstone : One of the largest providers for small and mid-sized businesses that offer suites for e-learning, performance management, recruiting, and more.
Paychex : Good for solopreneurs and offers a customizable system that can be added to as HRIS needs to expand.
Paycor : Provides all-in-one HR software, so it works well for businesses that don’t need externally integrated solutions.
Rippling : Offers robust integrations and application support in onboarding.

What Are the Steps to Implement an HRIS?

It takes an average of 15 weeks for organizations, from small to large, to select an HRIS system. Here are seven steps to help you launch your own HRIS system.

Strategize . First, you’ll want to clarify what your needs are. Some questions to consider during this stage:
What are your overall goals?
Ideally, what functions do you want to incorporate into your HRIS? Will you focus on one function, like talent acquisition or payroll, or several?
Do you need integrations with current software, or are you looking for a system that encompasses all functions?
Research . In this stage, you’ll research what your options are to meet your needs and answer the question: What HRIS systems are available that cater to your company’s size and the functions you’d like to incorporate? Once you’ve identified some possible options, it’s time to reach out to companies and start a dialogue that leads to clarity on items like functionalities, integrations, training, and costs. Take your time in deciding, as you want to trust that you’re implementing the best option for your organization.
Design . After you’ve selected a provider, it’s time to partner with them to begin designing and building out the system, so it aligns with your needs. In this stage, you’ll need to identify your user groups and map out workflows and processes, as well as the technical and functional requirements for the HRIS infrastructure and security .
Configure and Test . You’ll need a core team to test the system and provide feedback during this phase.
Communicate and Train . A communication plan and a training program to train your team of users are necessary before you go live.
Launch . Once the proper training and resources are in place, it’s time to go live and deploy your HRIS.
Maintain and Assess . You’ll want to track progress, utilization, effectiveness regularly, and user feedback to address challenges and implement necessary improvements over time.

If you’re a business researching information systems in human resource management, these steps can guide you to selecting and implementing your own. The HRIS system options above are a great place to begin your research.

KBI Benefits Can Give Guidance

At KBI, we work with all types of businesses and individuals from all walks of life to ensure they have peace of mind with the right benefits and protection for their employees and families, respectively. We're here to help you secure high limit disability insurance and other types of disability insurance based on your needs and budget.

Sources:

1. https://fitsmallbusiness.com/best-hris-hrms-software-for-small-business/

2. https://www.forbes.com/growth-companies/list/

3. https://www.aihr.com/blog/human-resources-information-system-hris/

4. https://softwarepath.com/guides/hris-report

MLR Rebates: How Employers Should Handle Them

Thu, 09 Jun 2022 15:30:07 GMT

Health insurance benefits are one of the top benefits employees prefer, and they are also one of the most common benefits employers offer to their employees. If you’re an employer providing health insurance, you’re likely familiar with MLR rebate checks. So why are they important, and what do you do if you receive one as an organization?

Insurance carriers began issuing MLR rebate checks in 2011, thanks to health care reform laws. Each year, insurance carriers must meet certain MLR (medical loss ratio) thresholds. Fully insured group health plans are subject to MLR requirements, whereas self-insured or self-funded medical benefit plans are not.

For every premium dollar a carrier collects for a major medical plan, it should spend 85 cents on medical activities and care to improve healthcare quality in the large group market and 80 cents on the same in the small group market. When these thresholds are not met, employer rebates are available in the form of a premium check or credit.

Why Are MLR Rebate Checks Issued?

Just about over 10 years ago, the ACA (Affordable Care Act) issued new rules that require health insurance issuers to disclose the amount of medical plan premiums spent on marketing, administration, and insurance company profit versus quality improvement initiatives and paying claims. Insurers in the large group market must verify: (1) an 85% or greater loss ratio or (2) that 85% of premiums are spent on claims. Insurers in the small group market must verify at least an 80% loss ratio.

Each insurance company providing health insurance plans must report its prior-year MLR data to the U.S. Department of Health and Human Services (HHS) by July 31. If the appropriate loss ratio is not met, policyholders must issue premium rebates by September 30.

What Is the Purpose behind the MLR Provision?

The health care reform law MLR provision is meant to ensure that insurance carriers are using a minimum percent of health insurance premiums to pay claims. The provision limits the amount health insurance companies can allocate and spend on profits and administrative expenses.

What Counts as Costs that Improve Health Care Quality?

General types of costs that count as expenses to improve health care quality include amounts insurance carriers spend on items like:

Wellness coaching and health assessments to reach measurable health improvement or manage a health condition.
Hospital discharge planning developed to decrease hospital readmissions.
Activities and resources to reduce medical errors and improve safety.
Programs created to support individuals managing chronic and serious health conditions, like heart disease, cancer, and diabetes.

When Are MLR Rebates Issued?

For 2022, carriers are required to issue MLR checks by September 30. If a carrier doesn’t pay the rebate on time, they have to pay the enrolled interest on the total rebate amount at 10% annually or the current Federal Reserve Board rate, whichever is higher. The interest begins accruing from the payment due date.

What Does a Company Do when They Receive an MLR Rebate Check?

If an insurance carrier has not met their minimum required thresholds, rebates are available to enrollees. The rules regarding rebates are complex and should be carefully reviewed with ERISA Advisory Council.

MLR checks raise several questions for employers, including:

How much of the rebate must be distributed to plan participants?
What are the options to distribute the participants’ share?
What are the tax consequences of the different distribution options available?
What communications should be shared with participants about the rebate?

How Much Will the Rebate Check Be and in What Form?

MLRs are determined on a state basis by market segment, meaning carriers determine them based on individual, small group, or large group segments per state. They do not disaggregate by the type of plan, like HMO, PPO, or HDHP, or by the policyholder. The carrier is responsible for letting you know the amount.

Rebates to an enrollee that are less than $20 per subscriber do not need to be issued by the carrier. The amount is dropped to $5 per subscriber if the carrier pays the rebate to the subscriber directly. The minimum payment rule only applies to carriers and not to employers refunding the amounts to plan participants.

Carriers can issue rebates in premium credit, a lump-sum reimbursement to the account used to pay the premium, like a debit or credit card, a lump-sum payment, or a premium holiday where state laws permit it.

How Much of the Rebate Must Be Distributed to Plan Participants?

Any amount of the rebate check issued to the employer that is attributed to employee contributions must be issued to the employee. Employers must also ensure the tax consequences are handled under such circumstances.

The Department of Labor (DOL) requires insurers to return the total rebate for the roup directly to the plan sponsor. From there, the employer, or plan sponsor, is required to treat the portion of the rebate attributable to participant contributions as “plan assets.” According to ERISA, plan assets must be used for the exclusive benefit of the plan participants.

There is not a set formula for employers to use to determine the amounts to issue, though suggestions are typically provided to support employers in making a determination on the amount. If plan participants made no contributions to the plan and the employer covered the entire cost, then the employer would not need to issue any contribution to the employee.

When both the plan sponsor and the participants make contributions towards the cost of coverage, which is the most common scenario, then the employer has to determine how much to allocate to plan participants. To do so, employers must determine the total participant contributions for the MLR rebate year. Then, the percentage of total plan premiums paid to the carrier due to contributions from participants should be calculated, which includes payroll deductions and other premiums paid, like premiums paid during FMLA or for COBRA. The ratio is then applied to the rebate to calculate the amount to be treated as plan assets.

If a plan offers multiple benefit options under separate policies, the participants and beneficiaries covered under the specific policy the rebate applies to should receive their portion of the rebate. Regarding former plan participants, the DOL guidance states: If an employer finds that the cost of distributing shares of a rebate to former participants approximates the amount of the proceeds, the fiduciary may properly decide to allocate the proceeds to current participants only…

What Are the Options to Distribute the Participants’ Share?

When determining a distribution allocation process to utilize, the DOL states: In deciding on an allocation method, the plan fiduciary may properly weigh the costs to the plan and the ultimate plan benefit, as well as the competing interests of participants or classes of participants, provided such method is reasonable, fair and objective.

Three common options to distribute participants’ shares of the rebate include:

Issuing a cash payment to the participant.
Applying the rebate as a premium holiday or reduction of future participant contributions.
Applying the rebate toward benefit enhancement costs.

What Are the Tax Consequences of the Different Distribution Options Available?

According to the IRS, for participants who made pre-tax contributions to a plan and received a rebate portion in the form of a premium holiday or cash payment, the rebate must be treated as taxable income. If the contributions were made on an after-tax basis, then the rebate is not taxable.

For additional information on the tax consequences of MLR rebates, the IRS has an FAQ page .

What Communications Should Be Shared with Participants about the Rebate?

The carrier must provide policyholders and enrollees for the MLR reporting year a communication at the time a rebate is issued. Employers are not required to notify plan participants of the rebate, though they might choose to send a communication prior to or following the carrier sending their notification to keep plan participants informed of what to expect. This can help avoid the need to field questions about the carrier’s notification, as well.

Where Can You Get Support to Navigate MLR Rebates Questions and Options?

The IRS and DOL offer helpful content on their web pages to answer questions regarding MLR rebates. Though these resources are helpful to support employers in navigating MLR rebate checks, it’s still a complex and confusing topic for many. Determining how to calculate the portion of plan assets, who should receive the rebate, and how they should receive it requires thoughtful consideration to identify the best approach. You also want to ensure you’re meeting ERISA requirements and legal requirements based on federal, state, and local legislation.

An insurance broker can support you in answering the many questions found above regarding MLR rebate checks. By working with an expert broker, you can have peace of mind knowing you’re taking the best approach for your organization and plan participants while also accessing the support you need so you don’t have to go it alone.

The team at KBI is available to offer our expertise related to MLR rebates. Contact us today for more information.

KBI Brokerage Firm Works with Hundreds of Disability Carriers

What Do Disability Insurance Policies Usually Cover?

Fri, 03 Jun 2022 16:55:19 GMT

More than 1 billion people are estimated to have a disability worldwide, with up to 190 million aged 15 years and over having a disability linked to significant difficulties in functioning. In the United States alone, one in four adults lives with a disability impacting their ability to function. Also, 1 in 4 of today’s 20-year-olds are projected to become disabled before retirement. When a disability occurs that prevents someone from working for the short or long-term, it can have a significant impact on an individual’s and family’s financial wellbeing, especially since research suggests that 70% of Americans live paycheck to paycheck.

What’s the Purpose of Disability Insurance?

Disability insurance provides income replacement if an individual should incur an illness or injury that renders them unable to work for a specified period of time. The most common types of disability insurance are short-term and long-term.

Types of Disability Insurance

There are two basic kinds of disability insurance plans: short-term disability (STD) and long-term disability (LTD). Both are similar in that they replace a percentage of an individual’s wages, typically ranging from 50% to 80%, for a specified period as defined by the plan. Disability payments can be used towards any type of living expense that traditional income would go towards, including bills, mortgage payments, food, and gas, and can even be used towards a savings plan. Even though both types of insurance are income replacement plans with similar features, they are purchased separately and work differently in when and how long they pay out, partly because short-term disabilities and long-term disabilities are defined differently, and each type has different needs.

Short-Term Disability (STD)

Disabilities are often temporary, keeping an individual from working for less than a year. In these cases, short-term disability can kick in and replace income for shorter duration illnesses and injuries. Short-term disability plans typically replace income from 3 to 12 months. They are generally purchased through a group plan offered by an employer. In some instances, the plans may be mandatory due to local regulations with the employer covering the cost, and in other instances, the benefit might be offered as a voluntary benefit, where the employee covers the entire cost or shares the cost with the employer.

Long-Term Disability (LTD)

Some types of disability are long-lasting, severe, and sometimes permanent. Long-term disability insurance helps people in those situations replace their income for a longer period of time. LTD payments can last for years and sometimes through until retirement, if needed, depending on the plan design. LTD can sometimes be purchased through a group plan from an employer, though it is commonly purchased as an individual insurance policy. High-income earning professionals and business owners often purchase LTD to ensure their family’s lifestyle can continue should the unfortunate event of a disability occur.

Features of a Disability Plan

As with any insurance plan, a disability insurance plan has certain components outlined within the policy. STD and LTD plans have five items that outline your cost, benefit amount and length, and circumstances to qualify.

Premium: The amount the individual or employer pays each month to keep the policy and coverage in effect.
Benefit: The payout amount the disabled policyholder receives monthly if qualified as disabled and not able to work. The benefit is typically a percentage of the annual salary. A group STD plan benefit is taxable to the employee, whereas most LTD individual policies are not unless paid for with pre-tax dollars.
Benefit Period: The maximum length of time a benefit will payout. STD benefits typically pay out for less than a year. LTD benefits typically payout for a minimum period of two years and as long as 10 or more years through to retirement, based on the plan design.
Elimination Period: Also referred to as the waiting period, this is the amount of time a recipient must wait before benefits begin to pay out. It’s typically two weeks for STD and three to six months or more for LTD.
Disability Definition: Every plan outlines what is defined as a disability for benefits to payout. More is covered on the various definitions of disability in the following section.

Definitions of a Disability

Though there is a fairly straightforward definition of what a disability is around the world—an illness or injury that limits one’s ability to function and do normal day-to-day activities—when it comes to disability insurance, there are various definitions of a disability that dictates if and how much a policy will pay out.

When it comes to short-term disability, since the benefits only last for a few months, the definition of a disability is fairly straightforward. If you are not capable of performing the substantial duties of your current occupation due to injury or illness, you generally qualify for coverage. However, long-term disability plans need to consider what truly defines a disability since the plan can pay out for years to come.

Own Occupation vs. Any Occupation

If a disability, illness, or injury prevents you from doing work at your own occupation, though it doesn’t prevent you from doing all types of work, then an own occupation definition policy likely wouldn’t cover you. Own occupation coverage provides benefits if you cannot work at your profession, specifically. For example, if you’re a business owner that has worked hard to build a business or a surgeon that uses their hands to operate, you might need extensive coverage since a disability that prevented you to work at your primary occupation could have a significant impact on your earning potential. An own occupation policy offers the most risk mitigation in such scenarios.

Any occupation coverage only pays out if you are deemed disabled due to an injury or illness that prevents you from working in any occupation. In other words, if you can be retrained to do other types of work outside of your traditional profession, then an any occupation policy likely wouldn’t pay out benefits.

Modified Own-Occupations

If you can’t work in your regular profession but are able and willing to work in another capacity, and you choose to do so, then your disability benefit payout would cease based on the modified own-occupation definition. However, if you choose not to work in another capacity, then it would continue.

True Own-Occupation

If you can’t work in your regular profession but are able and willing to work in another capacity, the true own-occupation definition allows you to continue receiving your full benefit payment for the benefit period while holding down a different kind of job.

Two-Year Modified Own-Occupation

An individual receives two years of modified own occupation benefits under this definition. After two years is up, if you’re still disabled, the coverage converts to an any-occupation definition, meaning the payout continues if the person is unable to work in any occupation due to illness or injury.

Two-Year True Own-Occupation

An individual receives two years of true own occupation benefits under this definition. After two years is up, the coverage converts to a modified own-occupation definition for the rest of the benefit period.

Partial and Total Disabilities

Some people can continue to work at some capacity, though only partially at the level of responsibility they were able to previously due to a disability. An LTD policy’s partial disability feature will pay a reduced percentage of benefit when one is disabled in a way that it limits their ability to work but doesn’t result in total disability.

Where disability policies generally have an elimination period, many disability policies have a presumptive disability feature in the event of a total disability from loss of sight in both eyes, speech, hearing, or the use of at least two limbs. The presumptive disability feature eliminates the waiting period for these types of disabilities and begins paying out immediately. A catastrophic disability (CAT) rider is also an optional feature of many long-term disability plans to increase the amount of disability benefits for such circumstances.

Permanent and Temporary Disabilities

STD plans can take effect and fill in the gap until LTD plans take effect in cases of permanent disabilities. Having a short-term plan can help lower long-term plan premiums because long-term plans with a longer waiting period tend to have a lower premium.

STD and LTD plans can both apply to temporary disabilities, as well. STD plans are intended to pay out for less than a year and stop paying out when the individual is able to return to work following a temporary disability. Some temporary disabilities might last for longer than a year due to the necessary recovery period, such as following a major stroke or accident, so after any STD benefits have run out, LTD plans could kick in following the elimination period to provide benefits until the individual is able to return to work.

Maternity and Pregnancy Benefits

Though giving birth isn’t a disability, it does require individuals to be out of work for recovery. Some short-term disability plans offer maternity benefits lasting for up to six weeks after a natural birth and for up to eight weeks following a C-section.

In cases of pregnancy complications leading to a disability, the illness or injury would be covered under the traditional definitions of the plan and could also qualify under a long-term disability plan depending on the length of the disability.

Mental Illness Disability Exclusions

Many disability plans have exclusions for certain types of mental illnesses as pre-existing conditions. In instances where one is being treated for certain mental illnesses at the time a policy is acquired, the illness will likely be excluded as a pre-existing condition.

Disability Coverage Riders

Many carriers offer riders customizable long-term disability plans. Common riders include:

A cost-of-living adjustment (COLA) that allows for an increase in benefits to allow for inflation while receiving benefits.
Student loan protection that offers extra disability income to cover student loan payments.
Retirement protection which replaces retirement contributions someone would have made to a defined contribution plan while totally disabled.

How Can You Secure Disability Insurance?

There are a lot of carries of disability insurance available for plan considerations. An expert broker can help you or your organization identify the best options available, with the best variables and pricing to meet your needs and budget. A reputable broker, like those at KBI, can take the guesswork out of reading the fine print, identifying gaps, making sure you understand the various components available, like riders, and ensure you have the best plan options from which to choose. Let us help you begin your disability search today.

KBI Brokerage Firm Works with Hundreds of Disability Carriers

What is High Limit Disability Insurance and Who Qualifies for It?

Fri, 27 May 2022 14:52:07 GMT

Nearly 25% of adults live with a disability that impacts their ability to function. It is also projected that 1 in 4 of today's 20-year-olds will become disabled before retirement. When you consider these statistics and the fact that 7 in 10 Americans live paycheck to paycheck , it is clear there is a need for disability insurance to support financial security when that disability prevents individuals from working.

Long-term disability (LTD) insurance ensures individuals are taken care of in the event of a serious illness or injury. Most organizations offer group LTD insurance with a 60% salary replacement and a maximum payout of $10,000 to $25,000 per month.

Individual disability insurance (IDI) also provides coverage for individuals that do not have access to or would like additional coverage above group LTD insurance. IDI is subject to similar limits as group LTD. These limits can be a problem for very high earners, leading to less than 60% of their pre-disability salary, which leaves them exposed.

Why Are Group Long Term Disability Plans a Problem for High Earners?

Group LTD and IDI plans include participation and issue limits that leave highly compensated individuals at risk should they incur a disability.

Group Long-Term Disability (LTD)

The typical coverage level of group long-term disability plans is 60% of an employee's earnings up to a predefined monthly maximum. The calculation is based on pre-disability earnings.

Let's say a group LTD plan for executives has a $12,500 monthly maximum benefit. If an employee earns $250,000 per year, they will receive the maximum monthly benefit (($250,000 X 60%) / 12 months = $12,500). Anyone earning less than $250,000 would also receive the maximum benefit. On the flip side, anyone earning more than $250,000 per year would receive a lower percentage of disability income since the maximum monthly amount allowed is $12,500.

Individual Disability Insurance (IDI)

People often purchase IDI in conjunction with group LTD plans to offer protection above the group LTD insurance plan. IDI may also be purchased by individuals who do not have access to group LTD plans. Coverage and cost of IDI vary greatly between carries based on factors such as the scope of coverage, the participant's age, health, occupation, and more.

An IDI addition does provide additional coverage for very high-income earners. However, there are still limits on how much policy issuers will write IDI and group LTD insurance, leaving very high-income earners lacking protection.

With the monthly limit amounts set by these policies, highly compensated professionals end up receiving a benefit amount that's much lower than 60% of their income, resulting in reverse discrimination. The higher the professional's income, the lower the percentage of their income protected in the unfortunate event of an illness or injury resulting in a disability.

Fortunately, high limit disability insurance (HLDI) is available to help fill in the gaps and protect high-income earners.

Professional Exclusions

Traditional group LDT and IDI can also be a problem for people whose occupations, medical histories, and hobbies make them unacceptable risks. When deemed an unacceptable risk, these individuals cannot secure disability insurance. For those with very high incomes, HLDI might be an option.

What Is a High Limit Disability Insurance Plan?

Since individual disability and group long-term disability plans don't provide the coverage needed for very high-income earners, there has been a growth in the High Limit Disability Insurance (HLDI) market. HLDI policies are non-traditional policies written in addition to existing group and individual disability coverage to support very highly compensated professionals.

HLDI policies fill in the gaps where individual long-term and group long-term disability plans end and offer the amount of coverage the policyholder needs. HLDI plans are available for individuals whose incomes go well into the seven-figure range.

How Does a High Limit Disability Insurance Plan Work?

High Limit Disability Insurance is designed to retain individual disability payouts at 65% of income regardless of income level. Such plans are typically offered on top of current coverage and offer anywhere from $2,000 to $200,000 per month. They usually protect your total income and not just your base salary.

Own Occupation vs. Any Occupation Definition

HLDI plans used the "own occupation" definition vs. the "any occupation" definition for disability benefits coverage. Own occupation means that if you cannot perform the essential duties required of your occupation, you'll receive your benefit payment, even if you can work in a different operation. The traditional "any occupation" definition for disability coverage means that if you cannot work at your own occupation but can perform other work, it will not payout. The "own occupation" definition is important for those who have spent years building a business or specialized skills.

What Types of High Limit Disability Insurance Are There?

Most HLDI options provide a tremendous amount of leverage for a meager premium, making them ideal for high-income earners. As outlined below, high limit disability insurance plans are available in different forms.

Lump-Sum Benefits Available

HLDI plans can be written to provide a lump sum benefit payout on top of the additional monthly payout in the event of disability. Lump-sum payments can be paid once the monthly benefit period has ceased or immediately upon disability. Payouts in a lump sum can exceed $50 million depending on the policy and benefit those who don't have much liquid cash available. Their assets are primarily tied up in illiquid investments, like real estate.

Employer-Paid, Group, Individual, or Voluntary

There are various types of HLDI plans available. Employers can offer HLDI plans as an employer-paid benefit or an employee-paid voluntary benefit designed for a specific class of high-income earners, like executives. Group plans can come with the benefits of discounts, limited to no medical underwriting, and complete portability if the individual leave the group plan. Individual plans are also available as Key Person protection, Buy-Sell agreements, and personal use.

What Are Other Types of Disability Insurance Available?

In addition to long-term disability and high-income disability insurance, employers often offer their employees short-term disability and DI retirement benefits.

Short-Term Disability

The key difference between traditional short-term disability and long-term disability insurance is the length of time one receives benefits if unable to work due to a serious illness or injury. Short-term disability typically covers someone for 3 to 6 months following their inability to work. Long-term disability can pay anywhere from 5 to 20 years or even until retirement age, depending on the plan design.

Short and long-term disability insurance payout a certain percentage of your base income—short-term disability sometimes pays out more, up to 70%, than long-term disability does, though not always. Both types of insurance have an elimination period, which is required before benefits kick in. For short-term disability, benefits typically take effect within weeks after a qualifying disability. Long-term disability has a more extended elimination period, generally around three months or 90 days.

DI Retirement

DI Retirement is not disability insurance, per se, though it is a disability-related type of benefit. DI retirement benefits allow employees to continue saving for retirement if they have a qualifying disability.

How Can You Find the Right High Limit Disability Plan?

Many options are available if you're self-employed, own a business, or work for a company seeking to offer HLDI. A benefits broker can prove invaluable in helping you identify the best plan for your circumstances.

Working with a benefits broker can support you in assessing, researching, and selecting the right insurance plans. Expert and reputable brokers:

Help you assess your current workforce demographics and insurance needs
Identify where you have gaps in policies
Research the types of programs available to you, along with highlighting the fine print and exclusions
Identify the most cost-effective carriers to meet your needs while keeping your budget in mind
Receive broker discounts they can pass on to you as the purchaser
Can serve as your one-stop-shop for all your employer benefits and insurance needs
Allow you to forge a long-term partnership for future insurance adjustments and needs so you don't feel like you're starting over again and again

KBI Brokerage Firm Works with Hundreds of Disability Carriers

Sources:

https://broadreachbenefits.com/disability-benefits/high-limit-disability-insurance/

https://www.exceptionalriskadvisors.com/professions/executives-entrepreneurs.htm

https://www.piu.org/communicators/an-introduction-to-high-limit-disability-insurance

https://internationaldisociety.org/TypesofDisability_Insurance

https://www.cdc.gov/ncbddd/disabilityandhealth/infographic-disability-impacts-all.html

https://disabilitycanhappen.org/overview/

What Is the FERS Basic Benefit Plan?

Fri, 20 May 2022 15:15:03 GMT

It’s never too early for individuals to begin planning for retirement, and the earlier, the better. Retirement benefits vary based on whether someone is employed by the government or a private business. Private and non-profit businesses frequently offer 401(k) defined contribution plans as part of their retirement benefits, with a few still offering pension plans. Employees of private and non-profit organizations also have access to social security benefits set up through the federal government.

For federal employees, retirement benefits are offered as part of the Federal Employees Retirement System (FERS). FERS was created by Congress in 1986 and became effective on January 1, 1987. Federal employees receive retirement benefits that consist of three components:

Social Security
Thrift Savings Plan (TSP)
Basic Benefit (also referred to as a Pension or Annuity)

Social Security is what most are familiar with and what U.S. citizens will receive upon retirement. A certain amount is taken out of employees’ paychecks until retirement, at which time they can begin drawing Social Security, assuming certain criteria are met.

Thrift Savings Plans (TSP) are defined contribution plans for federal employees. Employees contribute to the TSP. An agency or service can also contribute to a TSP if the employee is eligible to receive agency or service contributions.

If a federal employee chooses to leave a federal employer, their TSP and Social Security go with them. However, the FERS Basic Benefit Plan remains with the agency until the employee retires.

What Is the FERS Basic Benefit Plan?

Federal employees have access to the FERS Basic Benefit plan that allows them or their agencies to contribute a portion of the employee’s pay into a plan that will payout in the form of a monthly pension upon retirement. Receiving benefits is contingent upon the employee meeting specific requirements under the plan’s provisions for participation.

How Much Is Contributed to the FERS Basic Benefit Plan?

Like Social Security benefits that most U.S. citizens will receive, the Basic Benefit Plan is an income stream for federal employees guaranteed upon retirement if requirements for the plan have been met. The level of benefits is based on the federal employee’s age, salary, and length of credible service.

One part of the Basic Benefit Plan is funded by the agency, and the other is funded by the employee. The amount the employee contributes is based on their hire date.

For an employee hired between January 1, 1987 and December 31, 2012, a total of 7% of their base salary would be deducted, with 6.2% going towards Social Security and 0.8% going towards the FERS Basic Benefit Plan.
For those hired between January 1, 2013 and December 31, 2013, a total of 9.3% of their base salary would be deducted, with 6.2% going towards Social Security and 3.1% going towards the FERS Basic Benefit Plan.
For those hired after January 1, 2014, a total of 10.6% of their base salary would be deducted, with 6.2% going towards Social Security and 4.4% going towards the FERS Basic Benefit Plan.

As people continue to live longer lives with the advancement of medical support, the FERS Basic Benefit Plan contribution is adjusted by Congress.

Is the FERS Basic Benefit Plan a Pension or an Annuity?

A FERS Basic Benefit Plan is sometimes referred to as a pension and other times as an annuity.

A pension is a retirement benefit that you can only receive from an employer. With a pension, employees work for a certain period of time for an employer, and the employer agrees to pay them a retirement benefit for the rest of their lives once they retire.

An annuity can come from an employer but doesn’t always. For example, several insurance companies sell annuities, and you don’t have to work for them to purchase them.

Based on these definitions, a FERS Basic Benefit Plan is easier explained as a pension plan vs. an annuity when attempting to clarify retirement benefits. However, the OPM website frequently refers to the benefit calculation as an “annuity.”

How Is the FERS Pension Benefit Calculated?

The hire date of a federal employee only indicates how much they will contribute to the FERS Basic Benefit Plan. It does not indicate how much their benefits will be upon retirement.

An employee’s FERS Basic Benefit is calculated by multiplying the average pay of the “high 3”, the length of credible service, and a factor of typically 1% of credible service.

FERS Basic Benefit Calculation

(The “High 3” Average X Length of Credible Service X Multiplier)/12 = Monthly Annuity Payment

The “High 3” Average

The average of the “high 3” is the average of the highest basic pay from 36 consecutive months of employment before retirement. The “high 3” could be the last three years of employment, or it can be another consecutive 36 months of employment—the determining factor is the highest base pay average of any given 36 months. Basic pay does not include cash awards, military pay, bonuses, holiday pay, overtime pay, or travel pay.

Length of Credible Service

Length of credible service is calculated by adding the number of years, months, and days of civilian service, unused sick leave, and military leave. The total is then rounded down to the nearest month. For example, if someone has 21 years, 9 months, and 20 days of credible service, their credible service total would be 21 years and 9 months, or 21.75 years.

Multiplier/Percentage

The percentage generally used to calculate the FERS Pension amount is 1% of credible service. There are some exceptions to this rule:

When a federal employee retires after the age of 62 with a minimum 20 years of credible service, the percentage used increases to 1.1%.
Exceptions exist for law enforcement officers, firefighters, nuclear materials couriers, supreme court police, air traffic controllers, capitol police, and congressional employees or congress members or a combination of the two.
A different percentage is used for disability computation.
Exceptions exist for those that transferred into the FERS.

Details regarding these exemptions can be found on the OPM website .

Example Calculations

Suppose Jim retires at age 60 with 33 years and 10 months of credible service. His high-3 average is $55,000.55. Since he isn’t yet age 62, his percentage multiplier is 1%.

Monthly FERS Benefit: (33.30 X 1% X $55,000.55) / 12 = $1,526.40

Suppose Julia retires at age 62 with 33 years and 10 months of service. Her high-3 average is $55,000.55. Since she is age 62 with 20 years of credible service, her percentage multiplier is 1.1%.

Monthly FERS Benefit: (33.30 X 1.1% X $55,000.55) / 12 = $1,678.89

How Do Survivor Benefits Impact FERS Benefit Calculations?

For married federal employees, their FERS Pension is reduced for survivor benefits. Survivor benefits can be waived or reduced if the spouse consents to a portion that is less than the full survivor annuity.

If the total survivor benefit elected equals 50% of the employee’s benefit, the employee’s pension is reduced by 10%. If the total survivor benefit elected equals 25%, the employee’s pension is reduced by 5%.

Do FERS Benefits Include Cost of Living Adjustments?

FERS Benefit Plan payments are increased for cost-of-living adjustments based on the following:

If the retiree is over age the age of 62
If the retiree retired under the special provisions for firefighters, air traffic controllers, or law enforcement personnel
If the benefit payment includes a potion computed under the Civil Service Retirement System (CSRS) rules.
If one retired on disability, with the exception of when the retiree is receiving a disability annuity based on 60% of their high-3 average salary.

How Does One Vest in the FERS Pension?

To vest in the FERS Basic Benefit Pension, a federal employee needs to have 5 years of creditable service. Those younger than the minimum retirement age that retire with at least 5 years of service need to either postpone or defer the pension.

Postponing FERS retirement means one can resume their Federal Employee Health Benefits (FEHB) at the time they start their pension, assuming they were eligible to maintain FEHM at the time they separated from service.

Deferring FERS retirement means one can start their PERS pension back up later but they cannot resume their FEHB coverage.

For those with at least 5 years of creditable service that choose to no longer work for the federal government, if they keep their FERS Basic Benefit contribution within the FERS, their benefit can be grandfathered into the current vesting schedule if they decide to return to work as a federal employee in the future.

How Can I Learn More About FERS Benefits?

Retirement benefits can be challenging to understand. Still, planning for retirement is a critical aspect of life for all types of employees. As retirement benefits specialists, KBI can offer guidance on the types of retirement benefits available and how they work. We are here to help you navigate the nuances of the various benefit plans available.

Don’t hesitate to contact us for more information.

What Happens to Unused FSA Funds?

Fri, 13 May 2022 15:54:19 GMT

Healthcare is a standard employee benefit offered by employers. Most employers also offer a Flexible Spending Account (FSA) to accompany major medical insurance plans. An FSA is a health savings account to which employees and employers can contribute funds that workers can apply towards covered out-of-pocket medical expenses.

FSA funds are deducted from an employee’s paycheck and are not subject to payroll or income taxes. As a tax-advantaged account, FSAs help employees save money on medical expenses. The different types of FSAs include a health FSA, dependent care FSA, adoption FSA, and limited-purpose FSA.

For more personalized assistance, speak with a KBI agent today .

How Much Can Employees and Employers Contribute to a Health FSA?

The Internal Revenue Service (IRS) increased the annual FSA contribution limit by $100 for 2022, making the maximum contribution amount $2,850 for an employee. If an employee is married to a spouse, the spouse can also contribute up to $2,850 to a health FSA.

Employers can contribute to a health FSA, as well. Employers can match up to $500, regardless of if the employee contributes to the health FSA. Beginning at $501, an employer can only make a dollar-for-dollar match to an employee contribution.

How Can FSA Funds Be Used?

The IRS defines what eligible medical expenses are that can be covered by FSA funds. Examples of covered medical expenses include:

Medical supplies
Co-pays
Deductibles
Diagnostic devices
First aid kits
Eye exams
Hearing aids
Some OTC medications prescribed by a physician
Prescription medications
Insulin and blood sugar test kits
Thermometers
Bandages
Acupuncture
Chiropractic care
Substance abuse inpatient treatment
Ambulance services
Artificial limbs
Braille books and magazines
Breast pumps and supplies
Dental treatment
Eye surgery
Birth control
Mental health counseling
Service animals, including grooming costs and food
Transportation to and from medical services
Christian Science practitioner
Electronic body scan
Capital expenses for medically related addition to home
Special home fees for intellectually and developmentally disabled
Laboratory fees

Can Dependent Care Expenses be Reimbursed?

Yes, qualifying dependent care expenses incurred by the employee are eligible for reimbursement with FSA funds. Similar types of expenses can be reimbursed as outlined in the previous section.

Why Do FSA Funds Go Unused?

FSA funds go unused when employees don’t incur enough expenses that align with the amount they contributed to their FSA. Funds might also go unused when employees don’t submit receipts in time for the end-of-year deadline for reimbursement. Poor planning is another reason FSA funds go unused—if an employee overestimates the amount of funds they’ll need to cover expected medical expenses for the year, it results in having an FSA balance at year-end.

Some employees don’t realize they can use FSA funds for qualifying expenses such as medical supplies, like thermometers and bandages, which could help them deplete their account. With that said, however, employees can’t use FSA funds to stockpile supplies—they can only purchase what would typically be used within the plan year.

What Happens to Unused FSA Funds?

The IRS provides employers with two options to offer employees for unused FSA funds. The employer can provide a two-and-a-half-month grace period during which the employee can use the funds and get reimbursed for qualifying medical expenses. The second option is to allow the employee to roll over up to $570 of unused funds into the following plan year without limiting their contribution level for that plan year. The latter option can have implications for an employer that offers a high deductible health plan (HDHP) with a health savings account (HSA) since carryover FSA funds limit HSA contributions.

An employer can offer the carryover option or the grace period but not both. With the carryover option, an employee that has $1450 remaining in their FSA at the end of the plan year can carry over $550 and will forfeit the remaining $900. With the grace period option, the employee would have two and a half months following the end of the plan year to use the $1450. Whatever is not used within the grace period would be forfeited.

Employers can choose to keep unused FSA funds. They can also choose to apply the forfeited funds to administrative costs from the plan year or credit the leftover FSA funds to employees’ FSAs the following year, as long as Internal Revenue Code Section 125 is not violated and the credit has nothing to do with employees’ claims experiences.

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What Are Pandemic Relief Grace Periods and Legislation?

As part of COVID-19 relief, FSA funds were provided carryover options and extensions, as outlined in the Consolidated Appropriations Act, 2021 which was signed into law at the end of 2020, and IRS Notice 2021-15 which was issued in February 2021. As summarized by the Society for Human Resource Management (SHRM), the stated legislation addressed how employers could:

Allow participants in health care or dependent care FSAs to carry over unused balances from a plan year ending in 2020 to a plan year ending in 2021, and to carry over unused balances from a plan year ending in 2021 to a plan year ending in 2022. In other words, employees could roll over 100% of their FSA unused funds. An employer could choose to provide either, or neither, of these carryover extensions.
Extend the 2.5 months grace period to 12 months for spending unused FSA funds for plan years ending in 2020 or 2021.
Allow departing employees and employees who stopped participating in a health FSA plan during 2020 or 2021 to continue to be reimbursed from unused balances through the end of the plan year in which their participation ended, including any extended grace periods.

These extensions and changes only go through the end of 2022.

Are There Different Rules for Dependent Care FSA Funds?

A dependent care FSA is a tax-advantaged account to help workers pay for a dependent’s covered out-of-pocket medical expenses. Under normal circumstances, the rollover and grace period revisions only apply to health FSA plans. However, COVID-10 relief legislation allowed employers to opt to extend dependent care FSA claims for a dependent that “aged out” of qualifying for reimbursement due to turning 13. The age was temporarily raised to 14 for dependent care FSA funds that went unspent at the end of the 2020 plan year.

The total contribution amount for those married filing jointly is $5,000 and for those married filing separately, it’s $2,500. However, as part of COVID-19 relief, the $2,500 limit was raised to $5,250 for married couples filing separately through 2022.

Adoption FSAs are also available, so prospective parents can set pre-tax dollars aside to help pay for expenses associated with adopting a child. Limited purpose FSAs can accompany an HSA and only cover dental and vision expenses.

How Can Employees Be Sure to Use their FSA Funds?

To support employees in using their FSA funds, employers can remind employees that the list of reimbursable expenses is robust. The IRS publishes an extensive list of qualifying FSA expenses annually.

Employees can also look at their medical expenses for the last few years, as well as the total amount used in their previous year's FSAs, and use those amounts as a benchmark for how much to contribute for the next plan year.

How Do Employees Enroll in FSAs and Get Reimbursed?

Employees can join their employer’s FSA during open enrollment, at the time an employer offers a new FSA, as a newly hired employee, and during a qualifying life event, such as a marriage or birth of a child. At the time of enrollment, the employee has to choose how much they want to contribute for the year, and that amount is averaged out based on the number of pay periods in the year. The funds are then deducted from the employee’s paycheck.

An employee can “borrow” against funds that are not yet contributed to the FSA if they need to pay for a qualifying expense. For example, let’s say you contributed $2000 for the plan year to your FSA, and so far, $1000 has been taken from your paychecks. You then have a medical expense of $1,500. You will be able to use your FSA funds to cover that $1,500, even though that total amount has not yet been withdrawn from your pay.

If an employee is terminated prior to completing their FSA contribution and they’ve used funds that are more than they contributed, the company is left eating the expense.

Once the employee is enrolled, they can pay out of pocket and then submit receipts for reimbursement or use an FSA debit card, after which, receipts still need to be submitted to verify purchases.

KBI Can Help You Select and Manage an FSA

Benefits of offering an FSA include providing a comprehensive benefits package to attract and retain employees , reducing employers’ contribution to FICA and payroll taxes, and writing off some of the plan’s administrative costs for the business.

KBI’s team of brokers can work with your organization to determine the best FSA options for your business. We can also assist in determining if the FSA year-end rollover or grace period options are best for your workforce—or maybe it’s neither.

Other employee benefits we specialize in include medical, worker’s compensation, disability, dental, vision, and more, so we can serve as your one-stop shop for employee benefits design, implementation, and assessment. We’re here to forge a relationship with you for the long-term as your trusted employee benefits brokerage firm.

What is a Limited Benefit Health Insurance Plan?

Fri, 06 May 2022 18:17:31 GMT

Medical benefits are a requirement in today’s post-COVID world. Employees and candidates expect their employers to offer a comprehensive benefits platform, including major medical insurance. Employers are also seeking ways to remain competitive to attract and retain top talent. One benefit some employers are now offering or considering offering in addition to major medical is access to limited health plans. In SHRM’s 2021 Annual Employee Benefit Survey , many employers surveyed expanded their supplemental health insurance benefits—including limited health plans like critical illness, hospital indemnity, intensive care, and long-term care insurance.

What Is a Limited Health Insurance Plan?

Limited-benefit plans are limited health plans with more restricted and significantly lower benefit levels than major medical insurance. With the lower benefit levels and restrictions, the premiums are also lower than major medical insurance.

Depending on the state where they are being sold, limited plans can be referred to as mandate-light, bare-bones, mandate-free, minimum benefit, limited benefit, flexible benefit, and so on.

What Are the Benefits of a Limited Health Plan?

Limited health plans can be beneficial for those who feel they need additional coverage that goes beyond their traditional health insurance plans. Though they are not intended to be a replacement for major medical health insurance, limited plans can be a good supplement to some major medical plans, such as those with a high deductible.

Some plans with a high deductible, specifically HDHPs (high deductible health plans), offer comprehensive coverage, though the standard copay aspect of the plan does not kick in for any services outside of preventative care until the deductible is met. To qualify as an HDHP, the deductible must be at least $1,400/individual and $2,800/family. Some plans have deductibles as high as $3,000 per individual. That is a lot of up-front out-of-pocket expense for the average household. A limited health plan can help offset the deductible in some instances, depending on what the limited plan covers.

Though not intended as a replacement for major health insurance, limited plans can still provide at least some level of financial coverage for those without major medical. Limited plans work well for individuals that need temporary stop-gap coverage until their major medical insurance goes into effect.

Limited health plans might be a good option for those who:

Recently got laid off
Are in-between jobs
Frequently travel out of network for benefits and have higher costs than if they remained in-network
Are leaving their parent’s health insurance
Missed open enrollment for an Affordable Care Act (ACA) plan through the health marketplace
Recently lost their medical coverage
Are self-employed without access to group coverage
Cannot currently afford major medical coverage
Need financial support to offset high deductibles and out-of-pocket expenses
Don’t have a health savings account or emergency fund to help offset out-of-pocket medical expenses

How Do Limited Medical Insurance Plans Work?

Limited health benefit plans provide capped coverage for a range of common accidents and illnesses. The insurer generally reimburses the plan participant after they pay for the covered medical expense. With limited plans, there are no copayments, coinsurance, or deductible considerations, nor requirements for in-network services, clinics, or doctors. The reimbursement rates are negotiated upfront at the time of enrollment.

Pricing of limited plans varies based on the amount of coverage, the extent of coverage, family medical history, and the age, health, and sex of the plan participant.

Limited plans can help pay for:

Hospitalization
Diagnostic tests
Routine exams and office visits
Emergency room visits
Prescriptions

Plans can pay as little as $50 for a medical service up to hundreds of thousands for a critical illness or major accident. Policy exceptions occur for limited plans as they do for any insurance type, so it’s important for enrollees to clarify what is and is not covered before purchasing a plan.

What Are the Different Types of Limited Health Insurance Plans?

Common limited benefit plans include fixed indemnity plans, critical illness plans, disease-only plans, accident-only plans, accidental death and dismemberment, and hospital cash policies.

Fixed Indemnity Plans

Fixed indemnity plans pay a set amount for a medical service, regardless of what the total cost of the service is. For example, an indemnity plan might pay $100 for an office visit or $3,500 per day in the hospital. These plans typically cover a limited number of visits or days.

Critical Illness Plans

Critical illness plans pay a set amount if the plan participant is diagnosed with one of the multiple covered illnesses or medical conditions, such as a stroke, heartache, coronary bypass, or organ transplant. For example, the plan might pay $10,000 or $15,000 for a stroke or heart attack. Critical illness plans are popular because direct payment can be used for a variety of expenses related to the illness, including travel to and from visits.

Disease-Only Plans

Disease-only plans pay a set amount if the plan participant is diagnosed with the disease the plan covers. For example, the plan might pay $10,000 to $30,000 for cancer.

Accident-Only Plans

Accident-only plans reimburse the participant for expenses covered or pay a defined amount to the participant in the case of an accident. The amount might vary based on the injury. For example, it might pay $50 for a concussion and $10,000 to $20,000 for a coma.

Accidental Death and Dismemberment

Accidental death and dismemberment plans pay a set amount when the participant loses hearing, eyesight, speech, or the use of a limb or dies in an accident.

Hospital Cash Plans

Hospital cash insurance policies provide a fixed sum payment to the enrollee for each day of hospitalization that goes beyond 24-hours.

Group Supplementary Plans

Group supplementary limited plans cover a group of medically-related incidents, including accidents, cancer, hospitalization, dismemberment, and so on.

Are Limited Plans Regulated by the Affordable Care Act?

Limited plans are not regulated by the Affordable Care Act (ACA). The Affordable Care Act requires major medical plans to offer 10 essential benefits with no annual or lifetime maximum and preventative care services at no cost. The ACA also prevents major medical plans from excluding pre-existing conditions.

The 10 essential benefits required by the ACA include:

Hospitalization
Ambulatory services
Emergency services
Maternity and newborn care
Services to treat mental health and substance abuse disorders
Prescription drugs
Lab tests
Preventive services, including things like recommended vaccines, obesity screening and counseling, contraception, blood pressure screening, colorectal cancer screening, tobacco use counseling and interventions, breast cancer screening, and breastfeeding counseling.
Pediatric services for children, including dental and vision care
Rehabilitative and habilitative services

Common major medical insurance plan types include:

Preferred Provider Organization (PPO) Plans
High-Deductible Health Plans (HDHPs) with and without Health Savings Accounts (HSAs)
Health Maintenance Organization (HMOs) Plans
Point of Service (POS) Plans

Who Offers Limited Health Plans?

Many large insurance companies offer limited medical insurance plans in the United States. For example, Anthem, United Healthcare Group, and Kaiser Foundation offer limited plans.

Insurance brokers also work with providers of limited health plans to help individuals and organizations to make the best choices for their needs.

Why Work with a Broker to Select Your Limited Plans?

There are concerns that some organizations and individuals are taking advantage of insurance buyers. Telemarketing and online lead-generating websites are being used to sell limited insurance plans masked as major medical plans. Others are bundling limited plans together, so they appear to be comprehensive plans, even though they are not. Limited plans, even when bundled, do not provide catastrophic coverage or standard first-dollar coverage for benefits like major medical plans do. The Federal Trade Commission (FTC) has stepped in and taken action to put a stop to deceptive practices utilized to sell limited plans, though the risks of the average person being deceived online and by telemarketers when purchasing health insurance still exist.

To alleviate the risks associated with purchasing limited plans online, it’s a good idea to work with a reputable insurance broker. Working with a reputable broker can help ensure you are getting accurately represented plan options to fit your needs and budget. A broker can walk you through your options, as well as any fine print that outlines limitations and exclusions.

You Can Trust KBI to Be Your Limited Benefit Health Insurance Broker

At KBI, we have access to numerous health insurance carriers for all types of insurance, including major medical, dental, vision, and limited health insurance plans. We understand purchasing insurance can be a confusing and time-consuming process. Our team will take the time to work with you and assess your needs to make sure you have the right limited benefit health insurance plans for your business, family, or employees. Whatever your needs are, we have you covered and are here to forge a long-term partnership with you for your insurance needs today and in the future.

Sources:

https://www.healthinsurance.org/glossary/limited-benefit-plan/

https://www.commonwealthfund.org/blog/2021/limited-plans-minimal-coverage-are-being-sold-primary-coverage-leaving-consumers-risk#:~:text=There%20are%20several%20types%20of,such%20as%20employer%20health%20plans.

http://www.statecoverage.org/coveragestrategies/limitedbenefit_plans

https://www.commonwealthfund.org/blog/2021/limited-plans-minimal-coverage-are-being-sold-primary-coverage-leaving-consumers-risk

https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/shrm-benefits-survey-finds-renewed-focus-on-employee-wellbeing.aspx

Student Loan Repayment Benefits Explained

Fri, 29 Apr 2022 14:44:31 GMT

The total amount of student loan debt in the U.S. has exponentially increased in the last few years, with 47 million owing more than a total of $1.7 trillion in student loans. Currently, 70% of college graduates enter the workforce with an average of $40,000 in student loan debt. At that rate, an additional $1 trillion in U.S. student loan debt is expected to be added by 2028.

Millennials share most of the current student loan debt burden, with close to two-thirds of millennials having a minimum of $10,000 in student debt and over a third of them with greater than $30,000 in debt. Moreover, it’s estimated that many workers will still be paying off over $30,000 in student debt in 20 years. As a result, younger workers are putting off life milestones, like buying a home, getting married, and having children, until later in life, hoping that they’ll be able to pay down and zero out their debt.

Employees Want Student Loan Repayment Benefits from Employers

With so many workers plagued with student loan debt, it’s becoming a sought-after benefit that sets employers apart from others. As reported by MetLife , 28% of Generation Y and 36% of Generation Z reported student debt assistance as a must-have benefit from employers. Even the older generations in the workforce (14% of Gen X and 5% of Boomers) consider student debt assistance a worthwhile employer benefit. The 2015 American Student Assistance survey showed that 76% of respondents would likely select an organization that offered a student loan assistance benefit program. Further, 86% of younger workers indicated they’d commit to an organization for five years if the company helped them pay off their student loans.

The percentage of employers offering student loan repayment programs doubled from 4 to 8% in 2020, though that number is still low. SHRM expects the number to increase now that employers can offer the benefit as a tax exemption, but as of now, it remains a relatively untapped way that employers can set themselves apart from the competition to attract and attain top talent.

Student Loan Repayment Benefits Explained

The next sections address the following commonly asked questions:

What are student loan repayment programs?
What are the benefits of offering a student loan repayment program?
How can programs be structured and funded?
What’s the best approach to developing a student loan repayment program?

There is also a list of tips for creating a student loan repayment benefits program close to the end of the article.

What Are Student Loan Repayment Programs?

As the name implies, student loan repayment programs are a benefit that helps employees pay down their student loan debt. The programs are becoming increasingly popular for employees entering the workforce with student loan debt, as well as for those that have been carrying around debt for quite some time—more than a decade in many cases. It’s a benefit that is also becoming more attractive for employers to offer as a cost-effective benefit that helps companies attract and hire top-tier talent faster and keep them around for longer.

What Are the Benefits of Offering a Student Loan Repayment Program?

The Consolidated Appropriations Act of 2021 passed by Congress allows employers to make tax-free contributions of up to $5,250 annually to help employees pay down their student debt, and the payments don’t need to be included as taxable income to the employee.

The tax-exemption benefit was set to expire as part of the CARES Act in 2020. However, a five-year extension was granted by Congress through the end of 2025. As a result, it’s expected for the tax-advantaged contribution permissibility to remain permanent.

In addition to the tax exemption benefit for employers, student loan paydown benefits make it possible to hire and retain top talent. They can also help diversify an employer’s workforce and pipeline of talent.

Some research suggests that 20 to 30% of the employee population participate in available employer student loan repayment programs. According to the Society for Human Resource Management (SHRM), that number is expected to increase to 40%, with the tax-free aspect now in effect.

Along with the tax-free benefit for employees, having less debt and more disposable income helps to decrease the stress that can come with financial burdens and struggles. Less stress equates to an increase in well-being, which leads to improved productivity. It also leads to a more engaged workforce.

How Can Programs Be Structured and Funded?

Employers can opt to contribute as little or as much as they’d like within the annual IRS limit if they want it to remain tax-free and exempt to help employees pay their student loan payments. On one end, employers offer a contribution of $25 to $50 per month. On the other end, employers pay the maximum of $436.50 per month to meet the $5,250 annual maximum allowed.

The employer contribution can be structured differently between employers, with the two most common being a fixed and a tiered payment plan. These options hold true for the most part regardless of geographic location, industry, and company size.

A fixed payment contribution is the same amount per month provided to employees across the board. A tiered payment contribution offers contributions based on tenure. With a tenured program, the employee contribution starts out at a certain amount and increases each following year of employment until the cap is reached.

Many employers have also gotten created to provide solutions to their employees’ student debt woes. Some employer programs allow workers to transfer PTO time to pay down student debt, match 401k contributions with student loan repayments, and offer refinancing programs for student loans.

Many employers redirect existing benefits budgets to fund the student loan repayment program. Employers can redirect funds from other programs, like a tuition reimbursement program, without additional cost with the tax-exemption aspect.

What’s the Best Approach to Developing a Student Loan Repayment Program?

Fortunately, to support the evolving needs and demands of the workforce, it’s becoming easier for employers to secure student debt repayment benefit platforms for their workforce. To develop a student loan program to fit the needs of your employees, you want to assess the demographics of your organization and gain insight into what percentage of the population as a whole and broken down by identifying factors are interested in such a program. From there, you can begin to develop a program that works for your organization as a whole.

It’s often wise to work with a benefits broker to help you identify the best resources to work with for any benefit program you’re considering. An advantage to doing so is that it allows you to have a one-stop shop for all of your benefit needs and determine where synergies can be created between your current and future benefit offerings, including between student loan repayment benefit programs and your other programs, like tuition reimbursement and savings plans.

Various financial institutions, like Fidelity , and student loan assistant benefit providers, like Goodly , partner with companies to offer loan repayment programs, and a reputable broker, like BKI, can ensure you know what to ask and look for when working with such providers.

Tips to Creating a Student Loan Repayment Benefits Program

Whether you’re working with a broker or choose to do it yourself, here are some additional tips to help you develop a successful student loan repayment program:

Determine the monthly contributions you want to offer. You can offer as little as $25 to $50 per month or more. Even smaller amounts can help employees pay off hundreds of dollars in student loan debt over time.
Determine the maximum amount, or cap, you’re willing to contribute to each employee. You can stick to the $5,250 tax-free amount or go with a lower number. You can also offer a higher amount, with the understanding that anything over the $5,250 will be taxable income.
Identify who will be eligible to receive the benefit. Though it’s generally wise to apply nondiscrimination principles across all benefit offerings, the nondiscrimination rule does not apply to employer student loan repayment programs as it does to other benefits, like retirement plans and health insurance.
Identify the parameters of receiving the benefit. For example, will there be a work commitment agreement required of participants.
Be clear on the tax law associated with the benefit. The tax-free amount for employees and the tax exemption for employers is capped at $5,250. Anything provided over that amount would be considered taxable income for the employee and exempt from the tax exemption benefit to employers.
Determine how you will administer the program. Will you keep it in-house or work with a third-party vendor? Who will be responsible for overseeing the program?
Review the program annually, as you would with any other benefit.

Offering an affordable student loan repayment program for employees is doable for organizations across the board, from major Fortune 500 companies to small businesses with fewer than 50 employees. It’s also a benefit that can attract talent and keep them around for years to come.

For more information and support in deciding if this type of program is right for your company, please don’t hesitate to contact the team at KBI.

References:

https://www.benefitnews.com/opinion/5-faqs-about-student-loan-repayment-benefits

https://www.metlife.com/content/dam/metlifecom/us/ebts/pdf/MetLife-Employee-Benefit-Trends-Study-2020.pdf

https://www.paycor.com/resource-center/articles/employer-student-loan-repayment-program-5-tips/#:~:text=Student%20loan%20repayment%20programs%3A%20now,127%20of%20the%20IRS%20code .

https://file.asa.org/wp-content/uploads/2019/01/28203317/Life-Delayed-2015.pdf

https://newsroom.fidelity.com/press-releases/news-details/2017/Fidelity-Launches-New-Program-for-Employers-to-Help-Workers-Pay-Off-Student-Debt/default.aspx

What Are the 7 Types of Insurance Everyone Needs?

Fri, 22 Apr 2022 16:42:42 GMT

Indeed, insurance might not be the most exciting topic for individuals to discuss. However, it's a necessary one for them to consider. When individuals forgo purchasing insurance, it can have a life-altering impact should the needs arise where they wished they'd purchased it. Insurance helps reduce the financial burden related to maintaining health and well-being and mitigating costs associated with accidents, liability, and death.

Outlined below are seven common types of insurance for small businesses to offer individuals and families that come to them for their insurance needs.

It can be confusing and daunting to determine which benefits your company needs to offer to stay competitive. If that's you, consider reaching out to our expert employee benefits consulting team .

1. Health Insurance

Health insurance mitigates costs for illness, injuries, and accidents. It's not uncommon for medical expenses from a catastrophic event or chronic illness to be so great that it leads many to declare bankruptcy. Even standard medical costs and doctor visits are costly and difficult for many to afford. Two in five adults report having had difficulty paying for health care , with over 60% indicating medical costs as a source of stress.

Most employers offer some level of health insurance to employees, typically sharing the cost of coverage. Private insurance can be costly, though affordable plans and tax breaks are available through the federal and state marketplaces . Though the most common health insurance people think of is medical insurance, dental and vision insurance are also health-related benefits that fall under the health insurance category.

There are several types of medical insurance available. The most common are preferred provider organization (PPO) plans, health maintenance organization (HMO) plans, and high deductible health plans (HDHPs).

Health Maintenance Organization (HMO) Plans

HMO plans are co-pay plans that typically require participants to select a primary care physician (PPC). HMOs have a deductible that needs to be met before coinsurance takes effect for most expenses and comes with an out-of-pocket maximum. HMOs only cover expenses related to in-network providers.

Flexible spending accounts (FSA) are typically offered alongside traditional co-pay plans. An FSA is a taxed advantaged plan that can be used to pay for qualifying medical expenses. The IRS sets annual contribution limits.

Preferred Provider Organization (PPO) Plans

PPO plans are co-pay plans that are very similar to HMO plans. The key difference is that they will cover out-of-network provider expenses, whereas an HMO will not. In-network provider expenses are covered to a greater degree than out-of-network expenses.

High Deductible Health Plans (HDHPs)

HDHP insurance comes with a high deductible, as the name implies. For a plan to qualify as an HDHP, a deductible has to be $1350 or higher for an individual and $2700 for a family. Employees typically need to meet the deductible of an HDHP before the co-sharing aspect of the insurance comes into play. Like a PPO and HMO plan, common services covered included lab tests, office visits, and prescriptions. Some HDHP insurance will cover out-of-network costs at a lower degree than in-network costs, and some will not cover out-of-network costs at all.

To help offset the up-front cost of high deductibles, HDHPs are often accompanied by a health spending account (HSA). An HSA works like an FSA as a tax-advantaged spending account to cover qualified medical expenses. Unlike FSAs, HSAs allow employers to contribute to the plan and do not have a "lose it or lose it" clause. Once the money is deposited in an HSA, it is the employees to keep, even if they do not remain employed with the company.

Dental and Vision Insurance

Dental and vision insurance are much less costly compared to medical insurance. Standard dental insurance typically covers two check-ups per year, cleanings and x-rays at 100%, and a portion of other services, like fillings and crowns. Standard vision insurance covers annual check-ups and a part of necessary eye care prescriptions, like glasses and contacts.

Like medical insurance, dental and vision insurance often have a deductible, and in-network providers are covered to a higher degree than out-of-network providers.

2. Disability Insurance

There are two main types of disability insurance—short-term disability and long-term disability. Short-term disability insurance generally lasts from three to six months, depending on the plan design, and it typically pays up to 60% of the employee's base pay.

Long-term disability kicks in after short-term disability when the disability insurance is offered through a company that provides both. Regardless, long-term disability commences after a specific period following an injury or illness's onset. Long-term disability pays an individual for two to ten years and can last longer, depending on the plan design.

Similar to other insurances, there are a lot of nuances that come with disability coverage. For example, some insurances pay out if you are disabled and unable to perform at your regular occupation. On the other hand, other insurances might not pay out unless it's determined that you cannot work at all.

3. Life Insurance

There are several types of life insurance plans available. Term life insurance is the most basic type of plan, and it's also the least expensive. Term life insurance pays out if the plan participant dies within the time frame outlined in the policy. For example, if someone purchased a $250,000 15-year term policy and dies within 15 years, the policy will pay the heirs $250,000 tax-free. Permanent life insurance will pay out at any point in time should death occur, as long as the participant continues paying the premiums. It's a standard requirement to pass a medical exam or medically related questions to qualify for life insurance.

Purchasing life insurance should be given thoughtful consideration based on an individual's specific circumstances. For example, those with children who are minors might need a higher level of coverage that will cover the cost of raising the children in the unfortunate death of their parents.

Many employers offer a certain level of life insurance for free to their employees, and employees can then purchase additional coverage for a relatively low cost. However, in most instances, the insurance only covers the employee while employed with the organization.

4. Long-Term Care Insurance

Long-term care insurance is beneficial for peace of mind if individuals need to be in short or long-term nursing care. A high level of coverage might be necessary for those that don’t have assets outside of the policy to pay for the nursing care.

This type of insurance can be very costly. Purchasing it through an employer is typically the most cost-effective alternative, though many companies don’t offer long-term care insurance. Hybrid policies, like those that allow you to share a policy between spouses, are available at a lower cost.

5. Automobile Insurance

Anyone who currently or has ever owned a car is already aware that automobile insurance is required by law. It's also one of the most crucial insurance coverages one can have. The National Safety Council reports over 42,000 people were killed in motor vehicle accidents in 2020. In 2019, 4.4 million individuals were in accidents severe enough to require medical attention. Even less serious accidents and fender benders can set someone back hundreds to thousands of dollars in repair costs.

Automobile coverage pays out when the covered participant experiences a wreck—both for their damages and the other party's damages when determined the participant is at fault. Depending on the coverage level, it will also pay for damages to a vehicle due to hail, a rock hitting a window, and other types of damage. Certain car insurance levels are required by law according to the state in which one lives, and lenders require an individual to have insurance that at least covers the vehicle loan amount.

6. Homeowners and Renters Insurance

A home is not a small or insignificant purchase. In reality, it's likely the largest purchase a person will ever make. As such, it's vital to protect it—not only so someone doesn't lose the money they have in it, but also so they can rebuild in the unfortunate event that they need to. Homeowners insurance pays for partial damage to a home or the complete destruction of it. It covers the cost of the structure, the damaged or lost contents within it, and the money needed to rent a home while the one covered is being rebuilt or repaired. The three basic levels of homeowners coverage are actual cash value, extended replacement cost or value, and replacement cost.

It's important to read the fine print and limitations of homeowners policies. If the house is in a flood zone, additional coverage will need to be purchased for the home that solely covers loss and damage due to flooding. Standard homeowners policies also do not cover damage caused by earthquakes, neglect, and termites, nor does it cover replacement costs for valuables, like artwork and jewelry.

Renters also need insurance. Renters are not held liable or responsible for structural or property damage. However, they still want to protect the content of the home in the event of theft or damage due to flooding, fire, or other reasons. The level of coverage will ideally equate to the amount it would take to replace one's belongings fully.

7. Liability Insurance

Liability insurance is often included or can be purchased as an extension to homeowner's insurance. Liability insurance covers accidents others might have while in the plan participant's home. For example, if a guest trips and falls somewhere in the home, the homeowner could be found liable and be responsible for the guest's medical bills. Liability insurance helps to cover those costs. Some plans provide coverage outside of the home, as well.

KBI Can Help You Navigate Insurance Needs

Protecting one's self and family with insurance is essential for financial security and peace of mind. KBI's team of brokers are experts in the many types of insurance for small businesses, large organizations, and individuals alike.

With decades of experience behind us, our team can help you navigate the many nuances of insurance to determine the best plans and pricing to fit the needs and budget of your client base. From there, we will assist you in securing the rights plans for your business. Contact us today for more information.

What Types of Insurance Do You Need for Your Small Business?

Fri, 15 Apr 2022 21:32:46 GMT

We often get asked about the types of insurance necessary for small businesses to have. It’s a valid consideration, given that small businesses can lose millions of dollars out of pocket due to lawsuits and damages without the right types and level of insurance coverage. Business insurance provides protection for a wide range of unexpected accidents and events to mitigate potential damages and losses .

The types of insurance important for small businesses depend, in part, on the company size, industry and number of employees. Still, there are some insurance policies that are necessary for small businesses to have, regardless of your business type. Some of the most common types of insurance for small businesses include:

General liability insurance
Product liability insurance
Professional liability insurance
Commercial property insurance
Commercial auto insurance
Hired and non-owned auto insurance
Commercial umbrella insurance
Business owner’s policy
Employers’ liability insurance
Hazard Insurance
Cybersecurity insurance
Business interruption insurance
Construction liability insurance
Builder’s risk insurance
Tools & equipment insurance
Worker’s compensation insurance
Unemployment insurance

Read on to learn more about what each insurance provides so you can protect your small business.

GENERAL LIABILITY INSURANCE

General liability insurance protects businesses from claims of bodily injury or property damage caused by your business. For example, if someone trips entering your restaurant, this type of coverage can help pay for their qualifying medical expenses. General liability insurance can also protect you from claims of advertising errors and reputational harm.

PRODUCT LIABILITY INSURANCE

Business owners can also purchase product liability insurance that protects them against claims that their product caused bodily injury or property damage.

PROFESSIONAL LIABILITY INSURANCE

Virtually any business can benefit from professional liability insurance. Also referred to as errors and omissions (E&O) insurance, professional liability insurance covers you if a client sues because of an oversight or mistake made in your business's professional services.

COMMERCIAL PROPERTY INSURANCE

Commercial property insurance protects your equipment and rented or owned buildings. For example, if someone breaks into your building and steals equipment, this type of insurance can help cover the replacement costs.

COMMERCIAL AUTO INSURANCE

Businesses that own vehicles must carry commercial auto insurance. Auto insurance covers injuries and damages if you or your employees get into an accident in a company vehicle. The state in which your business operates sets the minimum coverage required.

HIRED AND NON-OWNED AUTO INSURANCE

Companies sometimes request employees to use their personal vehicles for business purposes, aside from driving to and from work, which increases auto liability claim risks. Hired and non-owned auto insurance cover such claims for businesses that utilize rented, leased, or personal vehicles for business purposes.

COMMERCIAL UMBRELLA INSURANCE

Commercial umbrella insurance extends the coverage limits of certain business insurances policies. Commercial umbrella insurance kicks in and helps cover the cost differential if a claim cost exceeds your business policy’s limits.

BUSINESS OWNER’S POLICY (BOP)

Business owners’ policies are very popular. These policies, also referred to as BOP, streamline the insurance buying process by combining business income insurance, commercial property insurance, and general liability insurance into one.

EMPLOYERS’ LIABILITY INSURANCE

Employers’ liability insurance is also referred to as employment practices liability insurance. It protects your business from employment-related claims, such as sexual harassment, discrimination, and wrongful termination.

HAZARD INSURANCE

Hazard insurance for small businesses helps to protect against your equipment and building. It protects against both rented and owned property.

CYBERSECURITY INSURANCE

In today’s world, cybersecurity insurance is a must for businesses to have. According to the Identity Theft Resource Center (ITRC), in 2015, there were 780 breaches with 177,866,236 records exposed, with government, private business, educational, financial, military and healthcare organizations impacted. In the H1 2020 Cyber Insurance Claims Report that followed October 2020 onward, there was a 100% increase between 2019 and Q1 2020 in the severity level of ransomware attacks. There was also a 67% upward tick in email attacks. The 2019 Cost of a Data Breach Report showed that $3.92 million was the average cost of a data breach globally in 2019, up 1.5% from 2018 and 12% from 2014.

Cybersecurity insurance protects businesses against network outages, data breaches and more due to cyber events. There are several types of cybersecurity insurance available for businesses, including:

Network security and cyber extortion/ransomware coverage
Breach response coverage
Errors and omissions cyber insurance
Professional liability cyber coverage
Data breach and privacy crisis management
Network business interruption coverage
Media liability coverage
Fiduciary liability

BUSINESS INTERRUPTION INSURANCE

Business interruption insurance, also referred to as business income insurance, can replace lost income if you can’t conduct business as usual due to qualifying reasons, such as a fire, theft, or natural disaster. Items covered include temporary facilities, payroll expenses, profits, fixed costs, business taxes, loan payments, commission and training, and more.

Business interruption insurance generally covers a period of 30 days for closure due to physical damages and can be extended to 365 days using an endorsement. Some policies include a waiting period of 48 to 72 hours before the coverage commences.

CONSTRUCTION LIABILITY INSURANCE

Construction liability insurance is vital for any construction or contractor business to protect against claims of negligence, lawsuits, and losses. Most policies protect projects against fire, collapse, explosion, and other damage.

General construction liability insurance also helps to cover claims of property damage, bodily injury, and negligence and assists with legal costs associated with such risks.

Construction liability insurance generally covers:

Damages to the commercial space being rented
Lawsuits claiming slander, libel, false advertising, and copyright infringement
Injury caused by someone working for your business
Injury experienced by someone on the business’s property
Property damage caused by you or your employees or contractors

BUILDER’S RISK INSURANCE

Builder’s risk insurance is ideal for contracting businesses working on projects. This type of policy is a temporary policy that covers the contractor throughout the construction process by mitigating risks for buildings and structures while they're under construction. It also covers materials, the property related to the construction of the structure or building, and contractor equipment.

Typically, the level of builder’s risk insurance purchased covers the total estimated value of the completed structure or building. Loss or damage due to the following are generally covered:

Weather events, such as heavy wind and hail damage
Fire
Theft
Vandalism
Mechanical breakdowns
Explosions
Vehicles running into the structure or building

TOOLS & EQUIPMENT INSURANCE

If you’re a contractor or builder that works at different locations, you might consider adding equipment coverage insurance to your general liability insurance. It helps cover repair and replacement costs for all of your equipment, from compressors and welders to wrenches and screwdrivers.

WORKER’S COMPENSATION INSURANCE

Work-related accidents and illnesses can happen on the job. Workers’ compensation insurance covers employees who become ill due to their work or are injured. This type of insurance covers a worker’s medical bills and lost wages due to a job-related illness or injury.

Most states require organizations with employees to carry workers’ compensation insurance. The state in which your business is located and does business drives the level of required coverage.

UNEMPLOYMENT INSURANCE

All employers are required to pay unemployment insurance. Unemployment insurance requirements are set by the state in which you are located and conduct business.

TIPS FOR SECURING SMALL BUSINESS INSURANCE

To help you secure business insurance for your organization:

Assess your needs and identify current gaps. Consider the potential risks you face and ensure you have the right coverage across the board.
Do your homework. Conduct research on the policies available to you, as well as pricing. Be sure to review the fine print and any exclusions for any policy you’re reviewing.
Work with an insurance broker. A reputable and experienced business insurance broker takes the guesswork out of the insurance buying process. They can guide you to identify and assess your gaps and needs, so you can trust you’re making an informed and educated decision.

KBI BROKERAGE FIRM SUPPORTS VARIOUS TYPES OF INSURANCE FOR SMALL BUSINESS

Your business operations can continue without facing financial ruin if you have the appropriate business insurance coverage. It’s also vital that you have the right insurance types and levels for your specific business and industry.

KBI has worked with all types of businesses in a variety of industries to support their insurance needs. We also have relationships with numerous insurance organizations that offer the myriad of business insurances available to support your organization. We will work with you to ensure your risks are adequately assessed and covered to the full extent possible. Our team will take the guesswork out of purchasing business insurance and tailor offerings to meet your specific needs and budget.

If you have questions about the many types of business insurance available and what would work best for your business, we are here to help. Please don’t hesitate to contact us to see how we can support you and your business in securing the necessary insurance to best mitigate business risks.

By Chris Freitas

What Are the Most Important Benefits for Millennials?

Fri, 08 Apr 2022 21:54:44 GMT

In a four-generation workforce that includes baby boomers, Generation X, millennials, and Generation Z, millennials are considered the largest and most influential group in the labor market today. By 2025, they are anticipated to make up nearly 75% of the workforce.

Also referred to as Generation Y, millennials are often painted as a uniquely lazy, privileged, and entitled-acting group of employees. However, research indicates that millennials are similar to other generations and put in longer hours than any other generation, averaging more than 40 hours per week .

It’s also a common stereotype that millennials desire fun perks over standard benefits, like medical insurance. However, millennials are very practical in nature and desire similar benefits compared to other generations, including healthcare, advancement opportunities, a fair wage, and job stability. And, like every generation that came before them, the employee benefits package is a significant consideration when contemplating job offers.

Standard benefits that matter across all generations, including millennials, are:

Affordable health insurance
Paid time off
Financial assistance
Work-life balance
401k and retirement planning

Regarding financial assistance, student debt loan assistance is the preference for millennials. In addition to the above benefits, the following employer offerings are also important to millennials:

Opportunities for advancement and growth
Team collaboration
Mental health benefits

Read on for more insights regarding the millennial workforce and employer benefit specifics to help you attract and retain the candidates and employees that make up this generation.

DEFINING MILLENNIALS

Millennials were born between 1981 and 1995 and, as previously stated, currently make up the majority of the workforce . As is the case with any generation, the benefit needs of millennials have changed from the time they entered the workforce until now. As they’ve gotten older, with many now reaching and surpassing the age of 30, they desire affordable healthcare and financial assistance as much as paid time off.

As employers attempting to recruit millennials, it’s helpful to appreciate that millennials are emotionally driven employees, and when you tap into their emotions, they’re more likely to be loyal to the company and brand. Millennials are also more likely to accept peer-driven advice more than expert-driven advice, and they value digital accessibility to information. When advertising information about your company and benefits platform, these traits should be kept in mind, including how you communicate and share the information.

EMPLOYEE BENEFITS FOR MILLENNIALS

AFFORDABLE HEALTH CARE

As with most employees from other generations, health insurance matters to millennials. Many millennials are uninsured due to the cost of medical insurance. One in five millennials can’t afford routine medical expenses, like doctor’s visits and prescriptions. Another 26% have difficulty paying for such routine expenses. Therefore, employers that offer to pay at least a portion of health insurance for millennials will stand out as an option.

Health care insurance options to offer include standard medical insurance and dental and vision insurance. Offering a Flexible Spending Account (FSA) or Health Savings Account (HSA) is also common among employers. These accounts are popular since they provide a tax-advantaged way to cover out-of-pocket approved health-related expenses, including healthcare premiums, physical therapy, medications, and more.

Many employers are also offering supplemental health insurance options, like intensive care, critical illness, long-term care, and hospital indemnity insurance. Additional health-related benefits many companies offer include on-site health clinics, free flu and COVID vaccine shots, gym memberships, weight loss programs, on-site gyms, nutrition programs, stress management programs, and meditation rooms.

STUDENT LOAN DEBT REPAYMENT

An organization that offers student loan debt repayment benefits makes them a highly desirable employer for millennials and is a way to attract and retain top-tier talent. Of the more than $1.2 trillion in student loan debt belonging to Americans, millennials share most of the burden. Nearly two-thirds of millennials have a minimum of $10,000 in student loan debt, and more than a third over $30,000. Moreover, it’s projected that many will still be paying off debt of more than $30,000 in 20 years. As a result, millennials have put off some common aspects of life, such as getting married, having children, and buying a home, until their debt is hopefully paid down or zeroed out.

Various financial institutions, like Fidelity , partner with companies to offer loan repayment programs. In a 2015 American Student Assistance survey, 76% of respondents indicated they’d likely choose a company that offered a student loan assistance program.

WORK-LIFE BALANCE

Before COVID, millennials appreciated work-life balance. With COVID, work-life balance has become an expectation vs. just another desirable benefit. Employers more than ever appreciate that helping employees maintain their well-being, which includes reducing stress, benefits both the employee and the company. Less stress and improved health lead to increased productivity and morale.

Options employers offer to promote work-life balance include telecommuting, remote work, flexible work schedules, paid time off, paid holidays, personal holidays, sick leave, vacation, mental health days, childcare leave, parental leave, maternity leave, and work from home days. It’s also vital that employers walk the talk—it’s not good enough to offer work-life balance benefits, they need to be followed through with encouragement to use them. Employees need to feel they can utilize the benefits without backlash or being looked down upon.

OPPORTUNITIES FOR ADVANCEMENT AND GROWTH

In Gallup’s How Millennials Want to Work and Live report, 87% of millennials indicated that job development was important, and 59% said that career growth was a critical factor they looked for when searching for jobs. Millennials even rank career advancement opportunities higher than salary for why they may be looking for a new job.

Offering mentorship programs, career coaches, training opportunities, a clear employee development plan, and regular performance discussions are advancement and growth options to garner the attention of millennials.

TEAM COLLABORATION

Cut-throat work environments are far from desirable for millennials. Instead, they want to work for organizations that promote and offer work team collaboration, inclusiveness, and diversity. An Intelligence Group study indicates that 88% of millennials want a collaborative work culture over a competitive one.

Since millennials appreciate tech-savviness from their employers, companies that promote technology to support team interaction and collaboration will catch a millennial's attention. Think Slack , Google docs, Team chats, project sharing applications, and internal social media platforms. Having face-to-face team meetings and get-togethers outside of work where the employees have the opportunity to interact with one another will also promote the collaborative team environment millennials prefer.

MENTAL HEALTH BENEFITS

Though mental health benefits are technically a health-related benefit, employers' need for it as a benefit warrants it having its own category. Depression and anxiety were already costly conditions for employees and employers pre-COVID. Unfortunately, thanks to COVID, mental health challenges are on the rise and projected to worsen in the near future. Further, depression rates are higher for millennials than for any other generation. Stress, burnout, and isolation are part of the reason, and COVID exasperated the problem.

Fortunately, employers offering easier access to mental health benefits are rising. Employers can consider supporting their workforce include access to mental health professionals on-site or at a local clinic, free telehealth sessions, expanded mental health benefits as part of the standard medical insurance options, and expanded employee assistant program (EAP) mental health benefits.

401(K) OR RETIREMENT PLAN

Millennials are at a point where stability and planning for their retirement matter. Based on a Sofi survey , 57% of millennials indicated they’d feel less stressed if their employer offered financial wellness benefits. Providing a 401(k) with an employer match is an attractive option for millennials, and offering an annual discretionary contribution will sweeten the deal even more. In the mentioned Sofi survey, respondents ranked receiving employer contributions to their 401(k) as having the second most impact on their personal financial situation.

Additional financial management benefits you can consider for millennials include financial planning sessions, deposits to an emergency fund, debt reduction coaching, and discount programs.

ASSESSING EMPLOYEE BENEFITS FOR MILLENNIALS AND OTHER GENERATIONS

Employee benefits are a top consideration when millennials are reviewing job offers. Health benefits, paid time off, a 401k or retirement plan, mental health support, the opportunity for advancement, and work-life balance are just a few of the benefits millennial employees appreciate receiving. What’s essential is that you’re showcasing these types of benefits if you offer them, and in cases that you don’t, seek opportunities to secure them when possible.

If you're in the process of reviewing your current employee benefits plans to better support and include millennials, KBI can help. We have decades of experience working with companies to support their employee benefit platform needs for all generations. Our tools and resources walk you through each step of the process, from evaluating and assessing to researching and purchasing benefits to meet your organization’s needs, legal requirements, and budget.

We look forward to working with you to forge a long-term partnership, so you have a trusted employee benefits resource team by your side—as needed, as well as throughout the year that goes beyond securing new benefits and open enrollment.

What Are the Advantages of Offering Employee Benefits?

Fri, 01 Apr 2022 21:44:27 GMT

Offering a robust portfolio of employee benefits can come at a cost—but in today’s labor market, the cost of not offering employee benefits is becoming too much to bear. It’s a delicate art figuring out the perfect balance between offering a competitive suite of employee benefits, including health insurance and other ancillary lines of coverage, while still keeping an eye on the bottom line.

WHY BENEFITS MATTER

Amidst the Great Resignation, which saw 41 million Americans voluntarily quit their jobs in 2021 and another 4.3 million quit in January 2022, it’s never been more important than now to evaluate your benefits offerings. According to Willis Towers Watson’s 2022 Global Benefits Attitudes Survey, 44% are “job-seekers” or those who are looking for a job or plan to soon.

The survey, which polled 9,658 U.S. employees from large and midsize private employers in December 2021 and January 2022, found that 56% of job-seekers said that pay was a top reason they’d leave their current role for a new one. Behind compensation, health benefits were the second-most important factor driving employees surveyed to find a new role.

What’s more, according to an Aflac survey, within 12 months of starting a new role, 49% of employees will look for another job if they aren’t satisfied with the benefits package. What this illustrates is that employee benefits are no longer a nice-to-have perk but rather a core component of a condition of employment.

THE BENEFIT OF BENEFITS

Beyond being an essential tool to remain competitive in today’s tight labor market, there are other advantages to offering employee benefits, including boosts in employee retention, engagement and morale, productivity, and tax benefits.

BENEFITS AND EMPLOYEE RETENTION

In an effort to combat high levels of turnover, employers across the country are re-evaluating their benefits offerings to ensure they’re competitive in today’s market. This can work to your advantage if you’re not able to necessarily pay more outright to boost employee salaries, which are at an all-time high due to the tight labor market. If an employer offers a robust, comprehensive benefits package at an affordable price to employees, they may be more likely to overlook potentially lower pay than market values in the inflated market in exchange for better or more benefits. As an added boost, happy, loyal employees are more likely to ask their friends to come work with them, which can help your attraction efforts as well.

BENEFITS AND EMPLOYEE ENGAGEMENT AND MORALE

An engaged employee is one that is happy and proud of their work, and they’re more likely to spread the word about how great their role and the company they work for is. Engaged employees are also less likely to leave the company for another role, which is a huge concern amidst the Great Resignation. One of the ways that you can boost morale and employee engagement is through your benefits program.

Consider conducting an annual engagement survey to find out, in addition to the levels of employee engagement at your company, what benefits employees want and how valuable your current offerings are. For example, some of the most desired employee benefits in 2022, according to a Ramsey Solutions survey , include health insurance, retirement benefits, dental insurance, vision insurance, life insurance, PTO, employee assistance programs, and emotional/mental health support.

Depending on the demographics of your workforce, these stats may or may not hold true, which is why it’s so crucial to have your employee base give feedback on your benefits programs to find out what’s most important to them. In doing so, you’ll also make them feel like they’re being heard and cared for, which does wonders for boosting engagement and overall morale at work.

BENEFITS AND INCREASED PRODUCTIVITY

Offering a suite of comprehensive employee benefits can help ensure your employees remain healthy. Health insurance and other benefits focused on well-being, such as mental health benefits and gym membership allowances or discounts, can help employees prioritize their mental and physical well-being. Splitting the cost of such important benefits with employees can help remove the financial burden of seeking care and prioritizing exercise, which is proven to be a mood-booster. When employees can get the care that they need at a lower cost, they’re more likely to go to the doctor when they’re sick and seek support for mental health concerns. All of this translates to happier and healthier employees, which means they’re more likely to be productive and present when they’re working. Plus, healthier employees tend to take fewer sick days, which translates to more ROI on your end.

BENEFITS AND TAX ADVANTAGES

There are a handful of tax-advantaged employee benefits that you may be able to offer and take advantage of. Employees and employers can reap the rewards of such tax-advantaged accounts. Be sure to work with a licensed insurance agent to fully understand the tax implications of offerings benefits, as this list is for informational purposes only and the benefits highlighted may not be applicable for your company:

Health insurance
Retirement contributions
Tuition reimbursement
Student loan repayment assistance
Cafeteria plans
Childcare reimbursement
Life insurance
Medical spending accounts (e.g., HSAs, FSAs, HRAs, etc.)

There may be additional tax-advantaged benefits that your company can offer that aren’t listed above. The above list captures some of the most common that may be available.

PUTTING IT ALL TOGETHER

Employees look to their employers not only for a paycheck, but also for benefits. In today’s market, where employees could leave your company and likely find a higher-paying role, it’s imperative that you leverage all possible solutions to remain competitive, and attract and retain top talent. Offering top-notch employee benefits is an investment you need to make in order to stay ahead and keep current employees happy.

HOW TO KNOW WHAT BENEFITS TO ADD

While offering high-quality, affordable health benefits and voluntary benefits like dental, vision, and retirement benefits, are always appreciated by employees, you may be wondering what other types of benefits to offer. After all, unless your employees are utilizing the benefits you offer, the point of offering benefits altogether may seem moot.

To figure out what benefits your employees want, you’ll need to leverage benchmarking information. You can look to what other companies in your industry are offering, but you should also gather feedback from employees to learn what they think of your current offerings, what could be improved upon, and what should be added. Conducting a regular employee benefits survey will give you insight into such thoughts, which can help you tailor your future benefits plans accordingly, ensuring that you’re investing your resources in the most effective benefits.

OFFERING EMPLOYEE BENEFITS ON A BUDGET

If you’re a small or midsized business, figuring out the balance between offering competitive benefits while also preserving your bottom line can be tough. This is especially true considering the fact that health benefits continue to rise in cost, and, unlike in the past where cost-shifting strategies like raising plan deductibles or designing plans where employees contribute more were the answer, employees are aware of their benefits and carefully review plan details. Considering alternative plan funding arrangements, like self-funded or level-funded health plans, could help you manage your health care costs, depending on your company design.

Beyond this, there are plenty of ways to offer competitive employee benefits on a budget. Ancillary lines of coverage are typically cost-effective ways to build out your benefits offerings, as employees highly value employer-sponsored voluntary benefits like dental and vision plans. In addition, consider evaluating whether your company is able to allow remote or hybrid work or flexible working hours, as those are perks employees are looking for in today’s market and are potentially low-cost ways you can attract and retain top talent.

DON’T UNDERESTIMATE THE BENEFIT OF EMPLOYEE BENEFITS

There’s never been a more pivotal time for you to overhaul your outlook on employee benefits in today's market. Instead of being a nice-to-have addition to employment, in some cases, employee benefits are the deciding factor in whether an employee stays or leaves your company. With millions of Americans leaving their jobs each month for something better and brighter, you need to do what you can to retain your top talent. In the same vein, you’ll want to do what you can to attract top talent.

Outside of offering higher pay, which isn’t always an option for positions and businesses, offering competitive benefits packages can help you weather the storm of the Great Resignation. Beyond this perk, the advantages of providing benefits are far-reaching and include boosting productivity, engagement, and morale, as well as providing tax advantages.

Navigating the complexities of employee benefits, including knowing what to offer, how to best structure plans, and complying with applicable regulations and tax rules, can be difficult. That’s why we’re here to help. The team at KBI Benefits is here to answer any and all questions you may have regarding employee benefits. We can also help you realize the true value of a competitive, comprehensive benefits package, and take it one step further to help you add offerings to your portfolio. Contact us today to learn more.

How to Change Your Insurance Employee Benefits Broker with Ease

Fri, 25 Mar 2022 21:31:39 GMT

You might be thinking that you need to change insurance employee benefits brokers for a number of reasons—you’re concerned with the quality of service, you realize you’re not getting the best value, you met a broker or brokerage firm you trust more, you don’t like your current broker, and so on. Even if you’re considering it, however, you might avoid it because you think it’s too difficult. The reality is that if you think you need to change brokers, there is reason to consider it. And, if you do decide it is in your best interest to do so, changing brokers isn’t as difficult as you think.

INSURANCE BROKER CONSIDERATIONS

Securing the right level and type of insurance takes time and resources. Each employer has a unique set of risks and employee population, so there is no such thing as a “one-size-fits-all” policy, regardless of the type of policy you’re considering.

If you’re considering switching insurance brokers, it’s good to start with a checklist of what you want in a broker. Not all insurance brokers are the same, so you want to ensure you’re working with an insurance broker or firm you feel comfortable with.

To identify the right broker for you, consider the following tips:

Research and Ask for References and Referrals. References and referrals offer information about the quality of service you’ll receive, as well as insights into the type of service provided. Google and Yelp are good places to start for online reviews. You can also ask brokers for references from individuals and businesses with similar needs to yours. Ask family and friends for referrals to support your search.

Seek Accessibility to All of the Coverage Types and Levels That You Need. It’s best to go with an insurance broker that can cover all of your employee benefits needs. That way, you’ll save time and effort going back and forth between brokers and minimize the risk of purchasing unnecessary insurance.

Look for Specialized Expertise, Qualifications, and Associations. Insurance brokers must be licensed by the states in which they offer services, so you must work with an up-to-date and current broker on licensure requirements. For employee benefits brokers, you also want to ensure they have the qualifications and training in that specific area to best support you and your business.

Consider Overall Fit and Cost. Cost is an obvious consideration for businesses to ensure they remain profitable, and you want to work with a broker that offers options that fit your budget. However, overall fit is just as important, if not more so, as cost when deciding on an insurance broker. Are you comfortable with and trust them? Do they offer the insurance you need? Do you feel you can create a long-term working relationship with them? Are they easy to work with and accessible?

Seek Personalized Guidance. Each business is unique and has specific needs and requirements regarding employee benefits. As a result, a reputable insurance broker will take the time to understand your needs and offer options for your specific scenario.

Consider Long-term Relationship Support. You’ll likely need to update and revise current policies and add new policies in the future as your business needs evolve. You want to work with a broker you feel you can forge a long-term partnership with as a result. Doing so means you won’t have to familiarize yourself with a new broker every time you need to make a change in the future, saving you time and resources.

Appreciate that Employee Benefits is a Specialized Niche. Consideration for employee benefits platforms is highly specialized. If you need employee benefits options for your workforce, look for a broker specializing in all types of employee benefits insurance, including health, disability, life, and worker’s compensation insurance. In addition, laws frequently change when it comes to employee benefit requirements, so a specialized insurance broker can ensure you remain compliant.

Consider Transparency Regarding Fees. Insurance brokers should be upfront and transparent about the fees and commissions they charge. Be wary if you aren’t offered full disclosure on the terms of payment and fees.

Seek Stability. Once you have a shortlist of employee benefit insurance broker considerations, ask to see their financials, while also conducting your own research on the firm’s history. It’s critical to work with a stable company that won’t go bankrupt after you choose to work with them.

HOW TO CHANGE YOUR BENEFITS BROKER

The following are common myths when it comes to changing benefits brokers:

Switching brokers is complicated
If I change brokers, I’ll have to change my insurance carriers or benefit plans
I have to wait for the right time of year to switch employee benefit brokers

However, these myths are not accurate. If you want to switch brokers:

Complete a Broker of Record (BOR) form. The broker you would like to transition to can help you with this step.
Once you submit a BOR, you do NOT need to change your benefits or carriers. The BOR simply removes your current broker from your account and provides the new broker of record the ability to represent your organization and manage your employee benefit programs.
You can switch your broker at any time without it impacting your current carriers or benefits. You don’t need to wait for the beginning of your plan year or renewal period.

The one exception to switching brokers is if you are working with a Professional Employer Organization (PEO). If you are working with a PEO, then the process to change broker will require more than a BOR form. Your PEO manages more than just your benefits—they are typically responsible for payroll, business taxes, and other services defined without your agreement.

You will need to take action to leave your PEO if you want to switch employee benefits brokers, though if you do leave your PEO, you also retain responsibility for the other services, like payroll and business taxes, that your PEO previously managed. A knowledgeable employee benefits broker can support you in navigating the process of leaving a PEO to help you determine if it makes sense to do so, including the appropriate timing and considerations.

KBI OFFERS FULL-SERVICE EMPLOYEE BENEFIT PLATFORM SUPPORT

The insurance world might feel complex and overwhelming. Fortunately, if you’re working with the right insurance broker, it need not be. Working with the right insurance broker can be a considerable stress-reducer that also provides peace of mind to you and the business. Therefore, it’s essential to be with an employee benefits broker you trust and feel comfortable with. Otherwise, you risk missing out on savings opportunities and the best options for your business that a positive relationship can bring.

At KBI, we’ve had the privilege of working with businesses of all types and sizes to build trust and forge long-term relationships to support employee benefit implementation through the years. We specialize in a variety of insurance types and coverage levels and do our best to take the pain out of the decision process, so you can focus on taking care of the business. We would love the opportunity to get to know you to develop an employee benefits strategy and plan for your short and long-term requirements.

Average Enterprise Business Benefits Package Options

Fri, 25 Mar 2022 21:22:09 GMT

Regardless of the type and size, every enterprise with employees must determine the best benefits options for its workforce. However, the task of determining how to offer the right benefits and perks to retain your best employees without forgoing profits is not an easy one for most businesses to balance.

Still, hitting the right formula is key, even in the midst of rising health care costs and a challenging economic front. We are also in a job market that tips a bit more in favor of employees and candidates, making it even more vital than ever to offer a solid benefits package to retain top talent and compete effectively.

CURRENT STATISTICS AND TRENDS PROVIDE VALUABLE INSIGHTS

To determine which benefits to offer, enterprises need to consider what is most important to their employees. By doing so, you can determine what benefits to consider while also eliminating current benefits that are not important to or being utilized by employees.

Consider doing an in-house survey to get a pulse on what your employees desire most. The following stats also speak to what employees currently value in the marketplace, which points primarily to flexible schedules, paid time off and leave, healthcare, and mental health benefits.

When considering a job offer, 88% of individuals indicate they would accept a job with lower pay and better benefits than a job with higher pay and less benefits.
Close to 4 in 5 (79%) employees want new or additional benefits over a pay increase.
Individuals would take an 8% pay cut to work for an organization that offered alternative and flexible work schedules .
The three benefits that matter most to employees outside of insurance-related benefits are paid time off, flexible working arrangements, and parental leave
30% of individuals reported leaving a job because they didn’t have the option for flexible work options, and 16% said they were currently looking for a new job because of a lack of flexibility.
80% of employees would be more loyal to their employer if they had flexible work options.
Health-related benefits have consistently been the number one benefit of importance to employees year after year.
Mental health challenges , in general, are expected to continually rise due to COVID.

EMPLOYERS ARE LISTENING TO THEIR EMPLOYEES’ REQUESTS

Employers are listing to what employees need and want. According to the Society for Human Resource Management (SHRM) 2020 Employee Benefits Report, the top six benefits employers viewed as most important include:

Health care – 90%
Leave – 83%
Flexible work arrangements – 83%
Family-friendly benefits – 76%
Wellness benefits – 62%
Retirement benefits – 55%

Further, the top five most expanded benefits by employers were:

Employee options for telework arrangements – 78%
Telemedicine services – 43%
Childcare leave – 39%
Adult family care leave – 27%
Mental health services – 25%

ENTERPRISE BUSINESS BENEFITS PACKAGE OPTIONS

Using the above statistics as a guideline for enterprise businesses, a benefits package to retain and attract talent should include the following voluntary and ancillary benefit options:

Health Insurance: Medical, Dental, Vision, and Health Spending Account
Mental Health Benefits
Retirement 401(k)
Flexible Working Arrangements
Paid Time Off
Life Insurance
Disability Insurance: Short-term and Long-term

HEALTH INSURANCE

Some 79 million Americans find it challenging to cover their medical expenses , so it’s no wonder health insurance is of utmost importance to employees. Medical, dental, and vision insurance fall under the health-related insurance bracket, as do health spending accounts.

Commonly offered medical plans include point-of-service (POS) plans, high deductible health plans (HDHP), health maintenance organization (HMO) plans and preferred provider organization (PPO) plans. Many employers offer more than one type of plan to employees with varying premium costs.

Vision and dental insurance are standard benefits most employers offer and are expected by employees. Fortunately, they are relatively low-cost for the employer to offer and for employees to contribute to.

Different types of health savings accounts include an FSA, HSA, and HRA. Each offers a tax-advantaged way to pay for qualifying health-related expenses. The IRS sets contribution limits and qualifying expenses.

FSAs allow for employees to pay for qualified medical expenses tax-free up to the annual limit set by the IRS.
A Health Savings Account (HSA) typically accompanies most HDHPs. Unlike an FSA, employers can contribute to an HSA and often choose to do so to help offset the cost of the high deductible for employees.
An HRA works much like an HSA, except that it is completely employer-funded. An HRA is often used by employers that don’t have the means to offer a traditional or HDHP medical insurance benefit.

Finally, supplemental health insurance has gained popularity, with many businesses expanding their supplemental health benefits in 2020. This is partly due to the needs of a post-COVID workforce. Commonly offered supplemental health benefits include:

Critical illness
Intensive care
Hospital indemnity
Long-term care insurance

MENTAL HEALTH BENEFITS

Since mental health challenges have gained more exposure in recent times, and with the increased need due to COVID, employers are offering expanded mental health benefits beyond the traditional Employee Assistance Program (EAP) with a mental health component. Some mental health options to consider as part of a benefits package include:

Free telehealth sessions
Direct access to mental health clinicians at the place of work
Access to mental health clinicians at a local clinic
Providing resources that support mental health, including meditation rooms and apps

RETIREMENT PLAN 401(K)

Close to half of Americans don’t save enough to retire comfortably and only a third of millennials—the generation that makes up the largest portion of today’s workforce—have begun saving for retirement . Offering financial planning and retirement resources is necessary to remain competitive and give employees peace of mind. The most common retirement benefit is a 401(k) defined contribution plan, or similar, with an employee match that vests at some point in the future.

A benefit of offering a 401(k) is the tax advantages offered to employers. Three possible tax benefits include:

Claiming a tax credit of up to $500 annually for the first three years of the plan
Certain administrative fees might be tax-deductible business expenses
If employer contributions fall under 25% of the total compensation paid or accrued during the plan year to eligible employee plan participants, they are exempt from certain state, federal, and payroll taxes.

FLEXIBLE AND REMOTE WORKING OPTIONS

Aside from the fact that employees are asking for it, research indicates that employee burnout accounts for up to 50% of annual turnover . As a result, it’s important to offer employees time off and flexibility to get their jobs done. Further, some research indicates that remote work can significantly increase employee productivity.

A positive for employers choosing to offer flexible working arrangements is that, in most cases, it does not cost the company’s bottom line from a tangible cost perspective. Flexible schedule options enterprises frequently offer include:

Hybrid Telecommuting (i.e., part-time in the office and part-time working from home)
Flexible workday start and end times
Remote Work (fully working from home)
Compressed Workweeks (i.e., 4X10, 4X9 and ½ day Fridays, etc.)

VACATION AND PAID TIME OFF

As previously discussed, employees want more time off, and COVID has made the need for time off to care for loved ones even more critical for many. To meet the requests of employees asking for more paid time off, many organizations offer several of the following paid leave options:

Emergency leave
Parental leave
Mental health days
Maternity Leave
Paid Holidays
Personal Holidays
Volunteer Pay
Bereavement Pay
Paid Time Off (PTO)
Sick Leave
Vacation
Personal Leave

LIFE INSURANCE AND DISABILITY INSURANCE

Life and disability insurance are common benefit offerings that create peace of mind for many employees, especially those with families. Most employers offer a standard level of life insurance for free, with employees having the option to purchase more coverage.

The two types of disability insurance are short-term disability (STD) and long-term disability (LTD). STD pays an employee a percentage of their base pay if needed and, depending on the plan, typically lasts between three and six months. LTD pays an employee a percentage of their base pay if needed beyond the STD timeframe, and, depending on the plan, payment can continue for a period of two to ten years or longer.

ADDITIONAL BENEFIT OPTIONS FOR ENTERPRISE BUSINESSES

Additional benefits and perks you might consider offering as an enterprise business include:

Wellness incentives
Student loan repayment benefits
Identify theft protection
Pet-friendly benefits
Tuition reimbursement

ADVANTAGES OF WORKING WITH A BENEFITS BROKER

Determining the best benefits for your enterprise doesn’t need to be overly complicated when you have benefits experts by your side. Whether you’ve already determined which benefits you want to offer and need some guidance to identify the best plans, or you’re just starting the benefit update or design process, a benefits broker can help by providing the following benefits and advantages:

You save time and money on research.
Your needs are the priority.
The selection process is simplified.
You can trust you’ll meet any legal requirements.
You get competitive plans and pricing options.
You’re never in it alone.

At KBI, we’ve been supporting enterprise benefits for decades. We are here to forge a long-term relationship to support your benefits needs. We look forward to assisting you with your benefits package design.

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Key Ways an HRIS Streamlines Benefits Administration

Beyond Benefits: More Perks of Using an HRIS

Ready to Modernize Your Benefits Administration?

HMO vs. PPO – Which Plan Should My Business Offer

What is an HMO Plan?

HMO Networks and Costs

Role of the Primary Care Physician (PCP)

Pros and Cons of HMO Plans

What is a PPO Plan?

PPO Plan Features and Costs

Making the Right Choice for Your Business

Partner with Experts Who Understand Employee Benefits

401(k) Survey Questions to Gauge Employee Satisfaction

1. Do Employees Know What They’re Enrolling In?

2. The Employer’s Role: Are Contributions and Match Clear?

3. How Does the Plan Stack Up?

4. Is It Easy to Get Started?

5. Are Employees Saving Enough — and Do They Know It?

6. Are Employees Informed About Opportunities?

7. Withdrawal Rules: Are Employees Aware of the Rules and Penalties?

8. Plan Consolidation: Are Employees Managing Multiple Accounts?

Final Thoughts

The “Actively at Work” Clause in Insurance Policies: What It Means for Employers

What does “actively at work” mean?

Why Employers Should Share This Info with Employees

Legal Guidance from KBI Benefits

OCIP vs. Builder's Risk Insurance - Which is Right for Your Construction Project?

What is Builder’s Risk Insurance?

What Does It Cover?

What’s Not Covered?

Who Needs It?

What Affects the Cost?

The Bottom Line: Better Benefits, Smarter Spending