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  • As a small business owner, it’s difficult to find the right balance between a competitive benefits package and your budget. Fortunately, offering voluntary disability insurance is one way to support employees without breaking the bank.

    In 2020, the Bureau of Labor Statistics (BLS) found that short-term disability (STD) was available to only 40% of civilian workers, while long-term disability (LTD) was only available to 35%. While most employees don’t have disability insurance, it does create an opportunity for employers.

    Do you want to stand out from competitors and provide employees with a way to protect their income? Offering short and long-term disability insurance is a more cost-effective way to recruit and retain top talent. Read more about how voluntary disability insurance works and the benefits of providing your employees with this benefit.

    What Is Short-Term And Long-Term Disability Insurance?

    Short-term and long-term disability insurance helps answer the difficult question, “How much do I pay an employee who has suffered from an illness or injury after they’ve exhausted their sick leave?”

    Short-term disability benefits are calculated as a percentage of weekly wages (up to 60% or 2/3 of weekly income) and usually have a maximum benefit of $1,500 to $2,000 weekly. It pays an employee a portion of their salary in situations when they experience a non-job-related illness, injury, or medical issue that stops them from working for a limited time. Long-term disability is similar, but provides financial benefits over longer periods of time.

    What’s The Difference Between Short-Term And Long-Term Disability?

    Short-term and long-term disability follow the same calculation: employees receive up to 60% or 2/3 of their weekly income. The main difference between STD and LTD is the waiting period and how long it lasts. LTD’s waiting period can take anywhere between three to six months, and coverage typically doesn’t last any longer than three years.

    How Much Does Disability Insurance Cost?

    In 2022, the BLS reported that, on average, hourly costs per hour worked for STD was $0.08, while LTD was $0.05. Those hourly costs are a notable decrease from years past, making disability insurance more cost-effective than before. These estimates allow employers to estimate how much offering voluntary disability insurance will cost their business.

    For example, let’s calculate the estimated disability insurance costs for a full-time worker. Someone working 40 hours per week for 52 weeks will work an estimated 2,080 total hours in a year. We can use these hours to determine a potential annual cost for STD, LTD, and a combination of both benefits:

    • STD = 2,080 hours x $0.08 per hour = $166.40 annually
    • LTD = $2,080 hours x $0.05 per hour = $104 annually
    • STD and LTD combined = $270.40 annually

    This is an estimate for one full-time employee, so you’ll need to do the math to calculate costs for your entire eligible workforce. For that equation, you can use a total annual hour estimate for any employees eligible for voluntary disability insurance. The resulting number will give you an idea of how much this benefit would cost your business.

    A woman with an injured arm signing up for voluntary disability insurance.

    Does Offering Voluntary Disability Insurance Benefit Small Businesses?

    While voluntary disability insurance is an additional expense, that extra money is a good investment. There are plenty of ways that offering voluntary disability insurance benefits employers, such as attracting new employees, enhancing current employee loyalty, and helping employees return to work.

    Attract new employees

    STD and LTD fall under “voluntary disability insurance” because only California, Hawaii, New Jersey, New York, and Rhode Island require that employers offer STD and LTD by law. However, MetLife’s annual report on workplace trends found that 51% of employees see disability insurance as a must-have. That desire for disability benefits means that offering STD and LTD can help you attract more talented employees than before.

    Enhance current employee loyalty

    Employees like working for places that support their overall wellbeing. The Council for Disability Awareness (CDA) reported that 62% of employers care that their jobs offer them more financial security through their benefits package. In addition, the CDA reported that 64% of employees would be more loyal to their current employer if they had benefit choices. An extra show of support can help keep your employees happy, which means they’re more likely to stay and be productive.

    Additionally, an Aflac study revealed that 59% of individuals working at small companies are willing to accept slightly lower pay with better benefits. If you’re brainstorming how to keep employees engaged without increasing wages, offering STD and LTD might be an option. Since the average cost per full-time employee is $270.40 a year, it might be more cost-effective to offer employees disability insurance versus increasing wages.

    Help employees return to work

    Poor employee retention hurts your business’ bottom line. If an employee ends up out of work because of a disability, they may leave for a job that offers them insurance in case of a future issue. Replacing lost workers is quite an expense when the Society of Human Resource Management (SHRM) reports that the average cost to hire a new employee is $4,638.

    Certain disability insurance options offer rehabilitative programs to help employees heal sooner. When an employee prematurely returns to work with an unhealed injury, they won’t be as productive or may create additional issues. These programs can help workers heal properly and get back to full strength more quickly.

    GMS Offers Comprehensive Supplemental Benefits

    Supplemental benefits are a strategic tool that help you keep and attract valuable employees. The need for competitive benefits is why GMS partners with small businesses to manage their benefits administration.

    GMS partners with credible health insurance companies to provide you and your team with supplemental benefits that can complement a traditional group health plan. Contact GMS today if you’re looking for PEO experts to help you find the best and most affordable supplemental insurance plans for your employees.

  • Assembly Bill (AB) 152 would extend California’s COVID-19 supplemental paid sick leave (SPSL) to December 31st, 2022. The California SPSL law is set to expire on September 30th, 2022, if Governor Gavin Newsom does not sign the bill. The law provides qualified full-time California employees with up to 80 hours of SPSL when they cannot work for the following reasons related to COVID-19:

    You are caring for yourself: 

    • Subject to a quarantine or isolation period
    • Advised by a healthcare provider to quarantine 
    • Experiencing COVID-19-related symptoms and seeking a medical diagnosis

    You are caring for a family member:

    • Child whose school or place of care is closed or otherwise unavailable for reasons related to COVID-19 on the premises
    • A family member who has COVID-19 or who is subject to a quarantine or isolation period

    Vaccine-related – you or a family member are: 

    • Attending an appointment to receive a vaccine
    • Recovering from symptoms of a vaccine

    How AB 152 Could Help Small Businesses

    If AB 152 is approved, it will establish the California Small Business and Nonprofit COVID-19 Relief Grant Program within the Governor’s Office of Business and Economic Development (GO-Biz). GO-Biz serves as the State of California’s leader for job growth, economic development, and business assistance efforts. The program would provide small businesses and nonprofit organizations grants up to $50,000 but “no more than the actual costs incurred for” SPSL between January 1st, 2022, and December 31st, 2022.

    In addition, employers would not be obligated to provide additional COVID-19 SPSL to employees who have already used their allotment for 2022. Employers should evaluate whether SPSL obligations pertain to their employees and whether they qualify for the small-business grant relief.

    GMS Is Here For Additional Support 

    While rules and regulations are constantly changing for small business owners, GMS experts are here to set you at ease. Our team partners with small business owners to take on the HR administrative burdens that shouldn’t stop you from growing your business. We will keep you up-to-date on rules and regulations vital to your business. In addition, we provide small businesses with benefits outsourcing services that allow your business to offer competitive, cost-effective benefits. Contact us today.

  • Governor Henry McMaster signed Bill S. 11 at the state house on August 25th. The bill allows employees in the state of South Carolina paid family leave for the birth of a child, adoption of a child, and fostering of a child. This follows McMaster’s call for a family leave bill in March 2020. 

    The paid family leave bill includes: 

    Birth of a child

    • Six weeks of paid leave for the employee who gives birth
    • Two weeks of paid leave for the employee who does not give birth but is a new parent

    Adoption of a child

    • Six weeks of paid leave for state employees who are the primary caregivers of the child
    • Two weeks of paid leave for the employee who is not primarily responsible for the care of the child

    Fostering a child

    • Two weeks of leave for employees who foster

    This bill will go into effect on October 1st, 2022. This bill helps families and helps the state retain its best employees with an additional benefit. 

    Benefits Administration Outsourcing With GMS

    As a business owner, it’s crucial to keep and attract quality employees so you can continue to grow your business. However, offering a quality benefits program is becoming increasingly expensive. Implementing benefits within your business can be a timely process. At GMS, our benefits outsourcing services allow your business to provide competitive, cost-effective benefits while you focus on growing your business. Learn how GMS can help you with added bills and ever-changing laws and regulations. Contact us today.

  • Many businesses have been forced to adapt to new working conditions due to the COVID-19 pandemic. As a result, many workers maintain a hybrid or remote work schedule. With the rise of remote employment, the focus has shifted to developing clear communication. This is vital to employers being able to communicate and meet the needs of their employees. Another major concern for employees stems from rising inflation and talk of an upcoming recession. This is the time when employees look to their employers for guidance. Let them know you care during the open-enrollment period by developing a plan that fits everyone’s needs.

    Communication Means Success

    As open enrollment is approaching, the need for effective and open communication is the biggest asset employers can implement. It’s imperative that employees have access to all information about each plan and can ask questions about it. Employees want to communicate with their employers. As the open enrollment period begins, they will be looking for guidance. Developing an open line of communication will create a happy, healthy, and productive workforce.

    Virtual communication is not likely to change anytime in the future. Even as businesses welcome their employees to return to in-person positions, virtual communication is here to stay. At the click of a button, employees can access their information when and where they need it. This will allow employees to understand their benefit plan offerings. When there is easier access to learning, employees will be more likely to take advantage of the offerings provided.

    GMS Steps In

    Many employers question which benefits their employees want to see during the open enrollment period. GMS can help you develop a plan that is right for your employees, along with creating a personalized experience working with a benefits account manager. Finding a plan that fits your business during open enrollment can be overwhelming. Let GMS simplify the process every step of the way, easing the line of communication with your employees. Contact us today to learn more.

  • California passed a program known as CalSaver in 2016, which stated that employers who don’t sponsor an employee-retirement plan must participate in a state-run retirement program. CalSavers is a retirement savings program for private sector workers whose employers do not offer a retirement plan. It gives employers an easy way to help their employees save for retirement without employer fees, no fiduciary liability, and minimal employer responsibilities.

    If you’re an employer who sponsors or participates in a retirement plan, including a 401(k) or pension plan, you are not required to participate in CalSavers. Eligible employers are defined as a “person or entity engaged in a business, industry, profession, trade, or another enterprise in the state, excluding specified federal, state, and local governmental entities, with five or more employees and that satisfies certain requirements to establish or participate in a payroll deposit retirement savings arrangement.”

    What The New Plan Means

    Governor Gavin Newsom recently signed Senate Bill (SB) 1126, expanding the definition of an eligible employee. Expanding eligibility will reduce complexity for employers and expand access to CalSavers to small businesses with one to four employees currently not covered. Ultimately, this bill will improve employee recruitment and retention across California. In addition, it’s estimated that SB 1126 will expand access to CalSavers to approximately three-quarters of a million California workers.

    A payroll deposit savings arrangement is required for employers with five or more employees that do not offer a retirement savings plan within 36 months of the board opening the program for enrollment. In addition, all eligible employers with one or more employees would need a payroll deposit savings arrangement by December 31st, 2025, if they don’t provide a retirement savings program.

    GMS Is Here To Help!

    Implementing a 401(k) retirement plan will help attract and retain great employees. It shows employees they are critical to your company’s success by rewarding them for their hard work. So, how does a PEO help you? PEOs such as GMS can leverage group buying power to reduce plan costs for small businesses and take on the fiduciary burden to ensure you remain compliant with your 401(k). GMS can help you set up fully customizable retirement savings plans that make your company more attractive to quality employees. Contact us today to learn more.

  • The Business Group on Health released its annual survey, which dictated that cancer is now the biggest driver of employer health costs. This annual survey examines large employers’ strategies around benefit design, cost management, and other healthcare strategies. This year, 13% of employers who partook in the survey said they had seen a significant increase in late-stage cancers among their employees. The survey was completed by 135 large employers covering more than 18 million lives within the U.S.

    The top three conditions that are fueling health care costs include:

    1. Cancer
    2. Musculoskeletal conditions 
    3. Cardiovascular disease

    Why Cancer Is Now The Top Driver 

    After analyzing the results from the survey, cancer is now the top driver of employer health care costs, most likely due to COVID-19 increasing delays in care and preventive services. Between 2019 and 2020, there was no increase in health care costs. As a result, there was an 8.2% spike in 2021.

    In 2022, employers expect to cover 82% of their workers’ health costs. This number has risen from 80% in the previous year. Employers are more reluctant to shift costs onto employees due to rising healthcare costs. Now, employers are considering alternative reforms, including advanced primary care and centers of excellence. A center of excellence is a program within a healthcare institution assembled to supply an exceptionally high concentration of expertise and related resources centered on a particular area of medicine, delivering associated care in a comprehensive, interdisciplinary fashion to afford the best patient outcomes possible.

    Additionally, employers are focusing more on policy efforts to lower healthcare and prescription drug costs. Prescription drugs accounted for 21% of employer health costs in 2021. More than half of that percentage was just for specialty medications. Employers are more concerned than ever about the increase in prescription drug costs.

    What Will You Do As A Business Owner? 

    While this new survey dictates that cancer is now the top driver in health care costs and prescription drugs are on the rise, as an employer, how will you protect your employees and your business? When you partner with GMS, you gain access to a GMS’ Rx specialist in addition to HR, benefits, payroll, and risk management expertise. Your Rx specialist will aid in searching for the most competitive prices on any prescription costs to save both you and your employees time and money. We offer flexibility, control of premiums, access to data and networks, and overall options that you can’t find elsewhere. Allow your employees to get the healthcare they need. Contact us today.

  • President Joe Biden announced a three-part plan to provide additional breathing room to America’s working families as they continue to recover from the effects of the COVID-19 pandemic. In his announcement, he shared that the federal government would cancel up to $20,000 of federal student loans for millions of individuals.

    More specifically, those earning less than $125,000 annually will receive $10,000 off their student loan debt. In addition, individuals who received Pell grants will have $20,000 in student debt removed. Federal Pell Grants are typically awarded only to undergraduate students with exceptional financial needs who have not earned a bachelor’s, graduate, or professional degree. However, not everyone with debt will qualify for student loan debt relief.

    What You Can Do As A Business Owner

    As an employer, your employees are your biggest asset. Without them, your business would not be able to grow. Alongside the most common employee benefits, including health insurance and retirement plans, providing student loan relief helps companies to attract and retain employees. A survey by the Employee Benefit Research Institute displayed that 17 percent of employers currently offer student loan debt assistance. In addition, 31 percent of employers plan to provide student load debt assistance in the future.

    However, many business owners are finding ways to lower costs, and cutting benefits has been one of them. There are additional steps you can take as an employer to provide your employees with student debt relief, including the following:

    • Offering student loan payment counseling
    • Third-party low-interest or interest-free educational loans
    • Debt consolidation 
    • Refinancing services
    • Tax-advantaged repayment support

    What Next?

    While President Biden’s student loan repayment announcement leaves you with questions and concerns as a business owner, GMS is here to put you at ease. If you’re a business owner considering offering your employees additional student loan relief, our benefits department has you covered. We work with you to provide your employees with the benefits they need. Don’t let the ever-changing rules and regulations keep you up at night. Contact us to learn more.

  • During the COVID-19 pandemic, many employers increased their mental health and well-being benefits. Heading into 2023, many employers are poised to continue offering these benefits. However, for many Americans, this can still be challenging to implement.

    Why Implement Coverage

    When healthcare plans offer a wide selection of in-network providers, mental health support becomes more accessible and affordable. Easy access to voluntary benefits lets your employees know they are supported. Survey results released in August by America’s Health Insurance Plans (AHIP), a health insurers’ trade association, shared:

    • All respondents provided some telehealth coverage for mental health services
    • The number of in-network behavioral health providers grew by 48% in three years
    • 89% of health plans are actively recruiting health care providers
    • The number of providers eligible to prescribe medication-assisted therapy (MAT) for substance disorders has grown 114 percent over three years

    “More than half of Americans, nearly 180 million, have employer-provided coverage for their health care needs – which offers an essential path to accessing much-needed mental health support,” stated AHIP.

    Access To Care

    Many therapists prefer to remain out of network, allowing them to receive direct payment from their patients. This limits those with lower incomes from receiving the care they need. Other therapists may only allow a certain number of clients that are unable to pay out of pocket. When it comes to improving access to care, one way to do it is through telehealth. Virtual appointments give patients more options while reducing the cost to practitioners.

    GMS’ Support

    There is a significant payoff when you alleviate the burdens of accessing mental health and wellness services. Employees feel a sense of validation through quality benefit offerings. You and your team can benefit from a streamlined approach when you partner with GMS. Telemedicine is just one way to enhance the employee experience by supporting their mental wellness goals. Learn how to get started today!

  • Employees’ needs have changed since the pandemic in 2020. Alongside the pandemic, there’s currently a tight labor market, hybrid work options are becoming increasingly popular, and benefits packages are being reviewed. Continue reading to learn what additional actions employers may take before open enrollment.

    Mental Health Benefits

    As an employer, it’s vital to understand that mental health support at work is no longer a perk; it’s a must-have resource for employees. A survey showed that 42% of employees with access to mental health benefits in the workplace say they’re more likely to stay at their job. In addition, 44% of employees who don’t have access to mental health benefits felt unsupported by their employers. Employers can enhance mental health benefits by expanding services offered through employee assistance programs and providing many other resources.

    Employee Financial Wellness

    Due to a tight labor market and fear of a recession, financial well-being programs have become increasingly popular. Researchers show that 69% of workers are stressed about their finances, with 72% of individuals worrying about their personal finances at work. Companies have begun launching financial wellness programs for their employees to support getting their finances back on track.

    In addition, financial stress results in a 34% increase in absenteeism and tardiness. Employees who worry about money miss almost twice as many days per year compared to colleagues who don’t have the financial stress. As an employer, if you can take away some of your employees’ financial worries out of the equation, you’re one step closer to a healthier and happier workforce.

    Medical Travel Benefits 

    When the Supreme Court announced its abortion decision, Dobbs vs. Jackson Women’s Health Organization, businesses started offering their employees travel benefits should an employee need an abortion. Another 16% of employers plan to provide abortion travel benefits in 2023, while 21% consider offering this benefit to employees. Learn more about what actions employers are taking to ensure their employees feel heard by clicking here.

    What Actions Will You Take? 

    As a business owner, it’s crucial to keep and attract quality employees to continue growing your business. Offering a quality benefits package is one of the best ways to retain and hire top talent. However, the only problem is that providing a quality benefits program often becomes increasingly more expensive and time-consuming. Be proactive and prepare yourself for open enrollment by partnering with GMS. Contact us today.

  • As an employer, type 2 diabetes impacts more than just employees who are either at risk or live with the chronic condition. According to the Society for Human Resource Management, type 2 diabetes costs U.S. employers more than $20 billion a year from unplanned time off from work alone. Add in the impact that additional claims have on group health insurance premiums and the effects of diabetes can ramp up your group health costs.

    Healthier employees make for a happier, more productive workforce, which is why more businesses are investing in diabetes management programs. Keep reading to learn how these programs work and why they can mutually benefit both employers and employees.

    What Is A Diabetes Management Program?

    A diabetes management program provides individuals with the information, skills, and resources they need to manage type 2 diabetes, prediabetes, or other related conditions. These programs are designed to assist those dealing with diabetes, blood pressure, and other health issues.

    Diabetes management programs can assist employees in a variety of ways. While some programs are tied to a certain period of time, others provide ongoing assistance to help individuals develop a healthier lifestyle and make meaningful changes in their lives. Each plan can differ, but a comprehensive diabetes management program can include the following elements.

    Health coaching

    Access to these types of programs means that employees have certified diabetes educators that they can turn to for help. Diabetes management coaches are clinically-trained health professionals who offer feedback and encouragement at every step. These coaches are regularly available through an online live chat, giving employees the help they need to prevent and manage their condition.

    Personalized diabetes management education

    In addition to professional assistance, programs also give employees the tools to learn more about diabetes care on their own time. People can go on their computer or a mobile app to access learning tools such as special articles, quizzes, and infographics. They can also use these online communities for healthy food recipes, special workouts, and other resources for ongoing diabetes care.

    Online tracking and monitoring tools

    Diabetes management programs make it easy for employees to set goals and track their own personalized health programs. Users can work with coaches to identify specific targets, whether they want to lose weight, lower blood pressure, or maintain certain blood sugar levels recommended for diabetes prevention. All this information is tracked online, meaning employees can follow their progress on their phones and set up reminders for their custom health care plan.

    Health forecasting and insights

    It’s not always easy to manage your diabetes, especially when navigating sudden dips in glucose levels and other challenges. Modern technology allows diabetes management programs to provide predictive insights for glucose and blood pressure. Employees with diabetes can simply use blood sugar readings to estimate future glucose levels and be proactive about their health.

    An employee pricking his finger to test his blood sugar during his diabetes management program.

    What Are The Benefits Of Offering A Diabetes Management Program?

    While employees can certainly feel the benefits of a diabetes management program, there are plenty of advantages for businesses as well.

    Healthier, more productive employees

    Simply put, healthier employees are more productive employees. According to the Centers for Disease Control, U.S. businesses lose a total of $26.9 billion each year just from reduced workplace productivity caused by diabetes. Taking measures to improve employees’ health can help employees feel better on the job, ultimately improving their focus and productivity.

    Reduced absenteeism

    Health issues can lead to a lot of lost work days. SHRM found that full-time employees with diabetes missed an extra 5.5 work days each year, while part-time workers missed 4.3 extra days on average. Utilizing a diabetes program can help address the health issues that lead to that additional absenteeism.

    Morale

    Offering employees a diabetes management program does more than just help them with their health. It also shows that employers care about their well-being. According to Zippia, 80% of employees say they enjoy their work when their employers take an active role in their wellness. In addition, 85% of those workers say they intend to stay at their jobs.

    Embrace Diabetic Management At Your Business

    Nearly 10% of Americans have type 2 diabetes, and more than a third are at high risk of developing this chronic condition. Odds are, your business is being impacted by the effects of diabetes, whether your employees know they have diabetes or not.

    That’s why GMS helps businesses address their employees’ health through quality benefits such as diabetes management programs. We’ve partnered with One Drop to give employers access to all the tools and professional support needed to help their workers live healthier lives. Contact GMS today to learn more about our diabetes management program and other benefits administration outsourcing services.