20 Jun Tweaking Benefit Plans for Millennials
Organizations are now facing the realities of dealing with multiple generations in their workplaces, and adapting and tweaking benefits plans to accommodate newer workers has become a hot-button issue.
We’ve assembled some quick fixes to help your benefits plan cater to millennials.
Traditional, one-size-fits-all benefits plan where employees are offered a fixed suite of options with corresponding limits may not suit every employee. Flexibility has never been easier to inject into benefits – for companies of every size.
The path of least resistance to injecting flexibility into a benefits plan is still to add a health spending account or wellness account as an add-on to a traditional benefits plan.
Wellness accounts and Health Spending Accounts are basically benefits bank accounts for employees to use for specified items, but there is a lot of confusion out there amongst employees with respect to non-taxable health spending accounts and taxable wellness accounts. While CRA dictates what can be considered a non-taxable health spending account item, with wellness accounts, they sky is the limit!
Health Care Spending Accounts:
Health Spending Accounts are still the most common way of introducing flexibility. They can be used to pay for benefits like massage and chiropractic, and even dental and other co-insurance amounts.
The best part? Your contributions to these accounts don’t change unless you want them to – so your benefits spend in this area is fixed. If employees don’t use those benefit dollars, they never leave your bank account. Plus, the margin of administration expense is reduced significantly on each paid claim.
How much do you give? Employers are always asking how much a typical health spending account is. The truth is that the amounts companies give employees
Employees typically appreciate being able to access CRA-approved items that they many have otherwise have to have paid for with after-tax dollars.
Run a dog training business? Why not allow employees to claim amounts spent on veterinary bills, park passes, or mindfulness courses? Interested in seeing your employees get fit? Consider allowing fitness equipment, gym memberships, or classes.
Wellness accounts represent a way for you to articulate the type of workplace you want: your values, hopes for employees’ wellbeing, and that of their families.
Consider offering employees the ability to allocate a fixed dollar amount between the non-taxable Health Spending Account and taxable Wellness Account. For a 25-year-old without prescriptions or significant health care needs, they may appreciate the option to purchase a new set of skis or other expense.
While this annual allocation process can add complexity to your plan, a well-executed benefits communication strategy can deepen your relationship with employees by showing that you care about their wellbeing.
For information about Vital Partners’ Flexible Health Spending / Wellness Account platform, please visit Vital Partners – myHSA .
Employers of any size can now offer employees modular flexible benefit plans that would have previously been offered to very large organizations.
Modular flex plans can be ideal for employees and employers alike.
Employees can build a program that works for them (ranging from almost 100% health spending account to fully insured benefits for themselves and their families).
Employers enjoy being able to define how much they can afford to offer employees in the form of benefits dollars. With a longer rate guarantee than you would typically see and pooled claims experience, it can add stability to budget planning in the medium term.
Vital Partners specializes in health spending accounts, wellness accounts and flexible benefits. Please contact us today for ideas in this area.