Benefit packages are no longer an afterthought when it comes to employee compensation. Today’s workforce expects more than just traditional health insurance; they expect tools that will help their overall financial situation. And in today’s ever-competitive labor market, companies must understand this and offer benefits accordingly.
How do benefit programs factor into one’s comprehensive financial health?
Traditional health plans, insurance coverage, and retirement savings accounts are some of the most integral to building a solid financial picture. But there are several other ways to attract financially savvy candidates with your benefits package.
Meal plans
Everyone has to eat and the cost of eating away from home can be significant. In fact, the average American spends $2,746 a year on lunch.
Edenred’s Ticket Restaurant is a meal benefits program that gives employees a monthly meal allowance via a prepaid card. Not only does this relieve the financial burden associated with lunch, but it also makes employees feel valued and appreciated, often leading to higher productivity rates.
Commuter benefits allow employees to use pre-tax dollars towards commuting costs like public transit, rideshares, and qualified parking expenses. These funds employees spend can help reduce their federal taxable income. Currently, the IRS allows employees to spend up to $280 per month for commuter benefits.
Utilizing a commuter benefits account can save employees a lot of money in the long run. For example, someone who earns $55,000 per year and uses the maximum amount of commuter benefitstakes home approximately $1,500 more than someone with the same salary and commuting costs but doesn’t take advantage of a commuter benefits program.
On-demand pay
On-demand pay allows employees to access their wages immediately, rather than waiting for a traditional paycheck at the end of every two weeks.
On-demand pay directly impacts an employee’s ability to be in control of their financial well-being. According to the Federal Reserve, 40 percent of American workers would struggle
financially to cover $400 or more of unexpected expenses.
In the past, people had few choices when dealing with unexpected expenses. Many were forced to use payday advance services with high fees or high-interest credit cards. On-demand pay offers a better solution for unforeseen costs by giving employees real-time access to their earned wages.
Lifestyle Spending Accounts
Lifestyle Spending Accounts are wellness plans with various offerings that can be customized to your employees’ desires.
Employees can use Lifestyle Spending Accounts for health, general fitness, or well-being. Lifestyle Spending Accounts are very flexible and can be used for a variety of goods and services including athletic and camping equipment, entertainment, pet care, food and dining, continued education, and more.
Lifestyle Spending Accounts have a positive impact on both employees and employers. For employees, it is easy to participate in wellness programs and make smarter choices toward leading a healthier and happier lifestyle.
For employers, Lifestyle Spending Accounts help reduce healthcare costs and absenteeism, while increasing employee productivity, morale, and loyalty.
Staying healthy, wealthy, and wise
In a highly competitive labor market, employee benefits are helping companies stand apart from the competition. In addition, employee benefits can be an in-road into wealth building. Schedule a meeting today to ensure you’re offering the most competitive packages and that your employees are taking full advantage of them.
