Changes in healthcare are prompting many small business owners to rethink the role of employee benefits like health insurance at their companies. According to PricewaterhouseCoopers, health insurance premiums are expected to rise by 6 percent in 2020, which can weigh heavily on your bottom line. Below, we explored some of the top health insurance trends that will impact small businesses and how you can adapt in the ever-changing benefits landscape.
Department of Labor Issues Final Rule on Association Retirement Plans: What it Means for Small Business OwnersSeptember 16, 2019 2:04 PM
Retirement plans are one of the most valuable employee benefits offered by organizations today. According to the Society for Human Resource Management (SHRM), the vast majority of workers say having a retirement plan is critical to their overall job satisfaction. Perhaps that’s why this benefit is such a deal breaker for job hunters and one of the main reasons why so many workers stay with their current employers.
It can be challenging for small businesses, however, to manage the administrative costs and compliance requirements associated with offering retirement savings plans. Only 53 percent of small-to-mid-sized businesses offer a retirement plan, with approximately 38 million private-sector employees without access to one through their employers.
The good news is that may be about to change. In July 2019, the Department of Labor (DOL) clarified the definition of “employer” within the Employee Retirement Income Security Act (ERISA) in sponsoring a multiple employer contribution pension plan. In establishing the ‘final rule', which goes into effect Sept. 30, 2019, the DOL has made it easier and more cost-effective for small businesses to offer retirement plans to employees through Association Retirement Plans (ARPs).
It’s easy to recognize certain milestones, but it’s not as simple to think ahead and avoid growing pains. Reaching the 50-employee threshold is a momentous occasion, but it also means that it’s time to consider some potential changes. Aside from taking the right steps to make sure your company is compliant with federal and state laws – don’t worry, we cover compliance considerations in another post – here are five ways to prepare your business for growth.
In the past, business owners in Michigan had the option of whether they wanted to offer paid sick leave for their employees. However, Michigan adopted the Earned Sick Time Act (ESTA) Sept. 5, 2018, making it the 11th state to have a mandatory paid sick leave law in effect. Within a few months, the state’s legislature amended the bill, adopting the Paid Medical Leave Act (PMLA) as a modified version of the initial act that will go into effect starting March of 2019.
With all the changes in Michigan’s paid sick leave laws, it’s time for business owners in the state to take stock of exactly what the PMLA requires of them, if they should reevaluate their paid leave policies, and what they need to do to be compliant with the new law.
Happiness can be very lucrative for a business. Unfortunately, unhappy employees can hurt bottom line and make it harder for businesses to grow. Employee morale can be affected by a number of factors, including work conditions, coworkers, and personal matters, but regardless of the reason, disengaged workers can lead to future issues for business owners.
Are you a business owner looking for additional ways to compensate and retain your key employees? There are several options that are mutually beneficial for employees and businesses.
I’m going to preface this blog with the fact that I was born and raised in Ohio and am therefore an Ohio State fan. I was on ESPN’s website the other day and came across a story about the “school up north” and their Head Coach Jim Harbaugh getting additional compensation in the form of a life insurance loan.
The story caught my attention because you don’t see articles like this too often, especially when you are looking to read about sports. The fact is, it is commonplace in the corporate world for businesses to offer additional benefits to key executives and/or employees. The agreement that the University of Michigan and Jim Harbaugh have entered into is called a split-dollar life insurance arrangement. These types of arrangements can be a win-win for the employer and employee.
Photo by Eric Upchurch via Wikimedia Commons.
Paid time-off policies allow employees to miss time without causing as many problems for your business. With a good PTO policy in place, your company can allow for the occasional illness or prepare for vacation requests without having to worry.
With today’s challenging economy, employees are often finding themselves searching for a better paying job. A recent survey states that 47 percent of top-performers are looking for jobs. That statistic could be earth shattering for any business. "Whenever there’s a shift in talent, it’s the ones you want to keep that leave first."
Little do they know, they may be making more than they think. Employees typically only see their take home pay and not the cost of the additional benefits you as the employer are offering.
As an employer, it is imperative to make sure your staff feels valued. A great way to accomplish this is to show employees everything they are being offered besides what they put in the bank. By presenting your employees with these facts, it will encourage them to stick around. Turnover rates can not only bring morale down, it is also a huge cost to you. With costs like unemployment taxes, job ad placements, background checks, training, and administrative costs during the process, it could cost you thousands of dollars each time an employee quits.
Next to salary, employee benefits are a key asset to attract and retain talented workers. While most companies offer standard health, 401(k) and other supplemental benefits, there are some non-traditional benefits that can set you apart from the competition and help you sign the best and brightest to your staff.
When an employee calls to say they woke up feeling like death warmed over, do you have to tell them to drag their butt to work because your company doesn’t have a Sick Time Policy? Or when you receive vacation requests, do you have to think twice about how to track it because your Time Off Policy is so complex? Unfortunately, many would answer yes to these questions because of inefficient Paid Time Off (PTO) Policies.