The Environment of Employee Benefits
The Environment of Employee Benefits
The overall employee benefits spectrum is in a constant state of change. These changes are a result of new governmental regulations, rising costs of medical care and benefits, and new benefit options. In 2014, the Affordable Care Act was implemented and changed the scope of health care benefits as a whole. The ACA aims to reform national healthcare and give more people access to affordable healthcare. The overall goal of the act is to cover all people, regardless of their conditions or other factors that play a role in receiving a health care plan. The ACA has incentives and tax breaks on individual and small businesses. However, it greatly impacts large organizations in a sense that they are now required to cover all employees and provide documentation supporting it.
Employee benefits have become an expected and valuable part of the employees’ overall total compensation package. Benefits play an integral role when deciding to join or leave an organization. It serves as a powerful recruiting tool for employers looking to hire and keep the most talented workers in the competitive market place. Offering a competitive salary combined with benefits and perks has proven to promote improved work habits and reducing employee turnover. It also provides employees with a sense of job security and encourages them to remain within their organizations. As the price of health care services and coverage continues to increase, employers attempt to create benefits designs and strategies to help reduce costs. The paper explores aspects of the current environment of employee benefits and how employers are attempting to reduce health care costs.
The impact of a multi-generational workforce on benefit plans is significant. As the demographics of the workforce changes, employees’ motivations and expectations evolve. Demographics drive plan utilization, which in turn drives costs. More and more companies are electing to keep
The overall employee benefits spectrum is in a constant state of change. These changes are a result of new governmental regulations, rising costs of medical care and benefits, and new benefit options. In 2014, the Affordable Care Act was implemented and changed the scope of health care benefits as a whole. The ACA aims to reform national healthcare and give more people access to affordable healthcare. The overall goal of the act is to cover all people, regardless of their conditions or other factors that play a role in receiving a health care plan. The ACA has incentives and tax breaks on individual and small businesses. However, it greatly impacts large organizations in a sense that they are now required to cover all employees and provide documentation supporting it.
Employee benefits have become an expected and valuable part of the employees’ overall total compensation package. Benefits play an integral role when deciding to join or leave an organization. It serves as a powerful recruiting tool for employers looking to hire and keep the most talented workers in the competitive market place. Offering a competitive salary combined with benefits and perks has proven to promote improved work habits and reducing employee turnover. It also provides employees with a sense of job security and encourages them to remain within their organizations. As the price of health care services and coverage continues to increase, employers attempt to create benefits designs and strategies to help reduce costs. The paper explores aspects of the current environment of employee benefits and how employers are attempting to reduce health care costs.
The impact of a multi-generational workforce on benefit plans is significant. As the demographics of the workforce changes, employees’ motivations and expectations evolve. Demographics drive plan utilization, which in turn drives costs. More and more companies are electing to keep