Employers in American need to tap into the growing number of employees sacrificing pay for health & retirement plans. There are many reasons employees are shifting their concern from simple salary increases to better benefit plans. Understanding this shifting mentality can help employers find and keep valued employees.
The experts at Program Business states that employees increasingly find benefit packages with better benefits outweigh bonuses and pay raises. Americans seem more interested in improved security through retirement packages and quality health insurance than simply more money. Benefits packages have become important for businesses to maintain quality employees.
Not all employees want a comprehensive benefits package. Entry-level employees fresh out of college may not be as interested in some benefit options. On the other hand, older employees may feel the increasing need to have a variety of benefit options including life insurance and short-term disability insurance. A flexible benefits plan can help employers address the variety of employee needs.
Offering benefits to employees that meet or exceed their needs shows them that the company values their health and well-being. This helps build trust and keeps employees interested in staying for the long-term.
With the fluidity of the marketplace, retaining high-quality talent is paramount. Take advantage of employees sacrificing pay for health & retirement plans by giving them what they want.
Human resource departments handle a wide range of tasks that require in-depth knowledge and expertise. Many businesses lack the skill set necessary to perform those tasks and choose to contract HR duties to an outside company or individual. There are some factors you should consider to make the most out of HR outsourcing.
The Scope of Functions You Want to Outsource
Outsourcing HR functions allows you to concentrate on other aspects of your business. Before you start looking for a company to handle human resource tasks, decide which ones you are planning to keep in house and which ones require more time and effort than you can spare. The most common targets for outsourcing include:
- Employee benefits programs
- Workers’ compensation
- Risk management plans
The Risks Your Business Incurs Through HR Outsourcing
HR outsourcing is handled by professional employer organizations (PEOs). According to iSure insurance brokers, it is important to find a PEO that understands what you want to accomplish and works well with your organization to reducer risk. While most issues are related to privacy and information security, you may also observe a lack of employee satisfaction as they learn how to work within the new company’s system and processes.
Just like with any business decision, there are pros and cons to outsourcing HR services. You will need to decide if the benefits outweigh any risks for your particular situation.
Managing a workforce of any size carries exposure to legal claims made by employees. Employment liability claims can be based on a variety of issues such as a hostile working environment, unfair hiring practices, discrimination, and improper classification of job status. Discrimination is a particularly prevalent type of claim that employers need to be conscientious of.
It’s imperative for employers to adopt policies designed to promote fair and statutorily compliant employment practices. It’s especially important for employers to take active measures to ensure that policies are followed consistently. In addition, employers need to maintain comprehensive insurance coverage aimed at addressing claims related to employment practices liability.
Examples of Employment Liability Claims
Employment practices liability claims can take on many forms. The following are examples of actual claim scenarios from Axis Insurance Services:
- An employee claimed that derogatory remarks made on an online bulletin board resulted in defamation and emotional distress.
- An employee claimed that she was sexually harassed when coworkers said that she was having a sexual relationship with a colleague and asked her inappropriately sexual questions about her personal life.
- An employee was allegedly terminated for complaining about not being paid due overtime. A second employee discussed the situation with upper management and claimed that he was improperly terminated as a result.