The New Kind of Benefits to Make Every Age of Employee Happy
We’re at a generational crossroads in a lot of our workplaces. As the new generation of millennial employees flood into the workplace, many older folks are gearing up for their swift exit into retirement..
But there’s only one problem: the younger and older generations don’t really want the same things when it comes to benefits and work perks. What’s an employer to do?
Benefits Aren’t Going Away
Despite the financial challenges businesses face with workplace benefits, few see them disappearing all together. In fact, over half of employers (51%) surveyed by Benefits Canada agreed workplace benefits were only going to get MORE generous by 2039. And a whopping 81% think attracting and retaining employees will require offering extra benefit options that are viewed as perks.
What Older Employees Want
Many older employees have become happy with their traditional-style benefit plans. With that sunny horizon of retirement just a few years away, anything to help ease that transition is appreciated. Not to mention, older folks generally use critical-illness insurance, prescription meds, and retirement-savings plans more than young folks.
What Younger Employees Want
Young people today are hardly focused on saving for retirement while their still in debt-paying mode. One of the most attractive benefits for millennials is assistance in paying off school debt or mortgages. Younger folks also appreciate more preventative health care measures offered through workplace wellness programs.
The Solution? Make Things Flexible.
More employers are starting to offer flexible benefit solutions and Health Care Spending Accounts (HSCAs). With these options, the employee gets to choose the type of coverage they want and it can end up saving an employer money through tax breaks and smarter allocation of resources. A majority of employers believe HCSAs and other flexible benefit plans will become more popular in the next 20 years.
Flexibility also means you can reward employee loyalty with a bigger slice of the benefits pie. More years spent with your business can mean more money to spend on health, insurance and retirement-related perks. This way, some of your older employees can get the full range of benefits they need, while younger employees can still stay happy with their gym membership and twice-yearly dental check-ups.
Of course, continuing to offer the traditional style of benefits may be part of remaining flexible. For many older employees, nothing’s broke, so nothing needs fixing. The important thing is giving employees a voice and a choice for their benefits. By remaining flexible, you remain open to making everyone happy!
Anyone in the Guelph Chamber of Commerice can take advantage of a great HSCA plan straight from the Chamber Plan.
More perks of Heath Care Spending Accounts:
- A powerful tool in your employee benefit design
- Adds cost certainty – employers only pay for the claim costs incurred plus applicable taxes
- Adds flexibility to your employee benefits – your employees have different health needs and priorities; an HSA provides employees more choice and flexibility
- More coverage – any expense that qualifies as a medical expense under the Canadian Income Tax Act can qualify for coverage under an HSA
- Enhances existing health and dental coverage – employees can use their HSA to pay for deductibles, co-insurance, or amounts above any coverage limits
Reach out to us today to learn more about implementing this in your workplace!