Benefits packages can play a key role in retaining top employees.
To attract, motivate and retain “A players,” law firms must tailor their benefits to society’s evolving demographics and lifestyles. Today’s employees expect more than the standard health care policy and retirement savings plan.
In fact, an attractive benefits package has been a key driver of growth at JVAM, which has expanded over the past three years from a nascent law firm with five attorneys to one with 16 attorneys in five Colorado locations. “We are trying to create a culture that's collaborative, professional, enjoyable and that recognizes everyone's effort and contribution,” says Jonathan Delk, the firm’s Chief Executive Officer (CEO). “Our benefits have helped us attract and retain top talent, by reflecting a culture that makes people feel cared for and important.”
The JVAM experience is just one example of a larger trend, as law firms retool their benefits to meet the needs of a new workforce. The goal is to attract, motivate and retain top quality staff. “It used to be that health insurance and a retirement savings plan were all an employer needed [to offer],” says Lauren Winans, CEO and Principal Consultant at Next Level Benefits. “Times have changed. Today’s younger employees want benefits that help them achieve work-life balance and prepare for the future.”
What’s driving the change? Two important forces are the ubiquity of two-income families and the need for intergenerational care. These have led to an increase in the prevalence of childcare subsidies, caregiver support and flexible time off. “The biggest trend I have seen recently is toward offering paid parental leave,” says Mark Stratton Berry, Senior Human Resource Specialist at Insperity.
Mental health coverage is also on the upswing, as younger people express a heightened awareness of the importance of psychological well-being. Employers, for their part, are starting to realize that stressed workers find it difficult to be fully engaged and are likely to have high absenteeism records. (For a comprehensive list of trending benefits, see the sidebar, The New World of Employee Benefits.)
Offering just the right benefits mix can enhance performance throughout the workplace, raising profitability. “Providing benefits helps keep your employees well, physically and mentally,” says Julie Stich, Vice President of Content at the International Foundation of Employee Benefit Plans (IFEBP). “And that means they will be more productive.”
Good intentions are one thing. Selecting the right providers is another. That’s particularly the case with mental health coverage. “Many employers believe they are offering psychological support benefits through their insurance carriers,” says Winans. “But the fact is that there are often insufficient counselors, therapists, psychologists and psychiatrists to help all of the people in need.”
“You need to make sure you're putting money and resources into reinforcing what makes life measurably better at work, and that means taking time to build a community and a team. I would say that’s as important — if not more important — than the dollars spent on benefits.”
Today’s Employee Assistance Plans (EAPs) often include mental health services, typically providing lists of nearby doctors, therapists and psychologists but leaving the employees to track down appropriate providers. That task can be nerve-wracking in itself, adding to employee stress. And the scarcity of available professionals means obtaining help can take a long time. In response, noted Winans, many companies are utilizing new technologies in the form of free counseling apps, and memberships in private services that provide help with meditation or with connecting to counselors at convenient times.
Employers may also sign up third-party intermediaries to proactively match employees with appropriate providers, saving considerable time and energy. These services often work with whatever insurance company the employee has and will even find free or low-cost services for people with no insurance. They may also follow-up to ensure that employees connect with therapists who are helpful and appropriate.
Every workforce is different. What employees want at one company may differ from what they want at another. “The benefits environment is not one-size-fits-all,” says Suzanne Haslam, Senior Vice President at Woodruff Sawyer. “Employers should inventory their demographics and customize their benefits plans appropriately.”
Haslam gives some examples:
No matter how diverse the benefit needs of the workforce, though, staff members need to feel that the firm is treating everyone equally. At JVAM, all the firm’s 25 employees — regardless of if they practice law or are legal support staff — enjoy the same benefits. These include 100% of the premiums for family medical, dental and vision. The firm also funds Health Savings Accounts (HSAs) up to the value dollar of the deductible. A plethora of other benefits include Flexible Spending Accounts (FSAs), long- and short-term disability, and life insurance at two times the value of each person’s salary.
The variety of possible benefits is extensive, and assembling the right package can incur serious costs. Employers can get the most bang for their buck by carefully selecting benefits that pull their weight. And that means going to end users for input.
“Often employers will think employees want one set of benefits when, in reality, they might be looking for something completely different,” says Kelsey Martin, Client Executive at OneDigital, a benefits consulting firm. “So it’s important to get everyone on the same page by starting a conversation to better understand what people are looking for.”
“The benefits environment is not one-size-fits-all. Employers should inventory their demographics and customize their benefits plans appropriately.”
Surveys, conducted every year or two, can help. Employees should be approached with a statement such as this: “Are the company’s offerings meeting your needs? If not, we want to hear about it so we can make our benefits program more meaningful. That will make it worth your while to work here, and also make it worth our while from a dollars and cents perspective. As an employer, we don’t want to spend money on benefits you’re not going to use.”
Designing an ideal benefits package is one thing. Funding it is another. Health coverage is expensive, and the dollars required to support physical wellness can hamper ambitions to extend coverage elsewhere.
“It’s hard to balance the need for benefits against limited resources,” says Winans. “The cost of health care goes up every year and tends to eat up the rest of the benefits budget. That makes it harder to offer a competitive retirement plan contribution rate, or a supplemental mental health program, or even give people more time off.”
One possible tool for reducing the benefits bill: so-called “voluntary benefits.” In these arrangements, employees can select from a menu of benefits that their employer does not normally offer. While the employee pays 100% of the bill, the premiums are reduced because the employer has arranged for a group policy. Among the benefits commonly found in the voluntary mix are insurance for life, supplemental disability, and auto and home.
Important as they are, benefits are only one piece in the employee satisfaction puzzle. If you’re not in a financial position to pick up more of the benefits cost, look inward to how you can improve the workplace for staff.
“You don’t retain people by just throwing dollars at another insurance or benefit package,” says Delk. “You need to make sure you're putting money and resources into reinforcing what makes life measurably better at work, and that means taking time to build a community and a team. I would say that’s as important — if not more important — than the dollars spent on benefits.”
Most employee benefits programs must include coverage for health care and retirement. But there’s a wide array of additional benefits in today’s marketplace. Employee surveys will reveal which of the following are most valued:
