Job Design: Is it time to rethink your approach? Learn more in this article...

Job Design: Is It Time to Rethink Your Approach?

EDITOR’S NOTE: This is the last article in a 4-part series sponsored by Unit4. The series outlines a new approach to talent strategy for people-centric organizations. This final post looks at why and how employers should rethink job design.


 

As we close this series about how employers can reinvent their talent strategy for the future of work, we turn our attention to one of the most important ways to attract and engage the people your organization needs to succeed. Namely, we’re looking at why this is the right time to revisit your approach to job design.

For most of the past 100 years, employers have used the same techniques to scope job vacancies, write job descriptions, and hire employees to fill roles. But these classic job design methods aren’t particularly efficient or effective.

In fact, only about 50% of interviewed candidates who receive a job offer actually become employees. Plus, the talent acquisition process, itself, is expensive. This means the perceived cost of a “bad hire” is so steep that decision-makers often become paralyzed. And that inaction forces organizations to offset costs by relying too heavily on long tenure.

It’s not an ideal solution by any measure. But focusing on the 4th talent strategy pillar can help you address these issues. How? Read on…

Reworking Job Design: Where to Start

Employers can no longer afford to ignore the need to address ever-changing talent rosters. Average employee tenure is decreasing, even as demand for future-ready skills is increasing. This means leaders must fundamentally rethink the way they structure jobs.

Here’s a good starting point: Design new roles based on the assumption that whomever your hire will stay onboard for 2-4 years. Then work backward from there.

In this game plan, onboarding and robust initial training are especially important, so you can ensure faster time-to-value from new hires. In addition, jobs designed with shorter tenure in mind will benefit from being supported by onboarding and “bedding in” processes that are much more tightly controlled.

This means that skills mapping, employee learning, and professional development will need to become a more prominent part of the HR function, along with talent pipeline development. It also means that the skills you expect to develop in employees should become central to the benefits you offer candidates.

Reframe Benefits for Shorter Job Cycles

In addition to packaging skills as benefits, you’ll need to reorient benefits so they’re compatible with shorter terms of service. Rewards for time-in-role or time with the company are relics that don’t make sense in today’s workplace. They need to be replaced.

For better results, focus on performance-based incentives for contributions to specific projects and programs with more clearly defined targets and expectations.

What Does This Look Like? An Example

One way to illustrate this new approach to job design is through the rise of the contractor. This increasingly popular option is a way to tap into skilled talent on a temporary basis. It helps employers find and deploy people more quickly, while simultaneously reducing operational overhead and risk.

At the same time, contractors benefit from more options in today’s predominantly hybrid working environment. They also benefit from a faster learning curve that comes from working on a more diverse portfolio of projects over time.

Reliance on contractors has increased dramatically—but not at the same rate in every region. For example, in the U.K., contractor usage has grown by about a third since the 2008 financial crash. By comparison, in the U.S., it has surged by the same proportion since only 2020.

Nevertheless, the shift to a contingent workforce shows no sign of diminishing. And many organizations still struggle to find permanent employees in today’s tight labor market. So the advantages of hiring contractors make project-oriented hiring a highly attractive option.

Repackaging Jobs to Attract Top Talent

In your job descriptions, do you still use this kind of phrase?

“The successful candidate must be willing to…”

If so, prepare to leave that kind of thinking behind. Instead, think in terms of asking this question:

“How do you want to work for us?”

In other words, you’ll need to let new hires determine some of the terms of their engagement with you. This makes sense because it encourages deeper ownership of the role’s success. Besides, if you’re designing jobs around shorter “tours of duty” with specific goals and objectives, why not configure these positions so they can be performed on a contract or project basis?

This model offers multiple benefits:

  • You can more accurately assess jobs and redefine them so they deliver the most value to your organization.
  • You’ll be better prepared to tap into a much larger talent pool. (After all, the huge increase in today’s contractors is coming from somewhere. That “somewhere” is the rapidly growing segment of the working population currently seeking greater flexibility in how they market and sell their skills.)

Where to Find Help

This blog series may be over, but your job restructuring journey is just beginning. For an in-depth view of our insights into this and other future-minded strategies for people-centered organizations, download our white paper:

Rebuilding Talent Strategy: Finding and Retaining People in a Changing World.

Also, as you consider technologies needed as the backbone of a reimagined talent strategy, we invite you to take a closer look at our ERP and HCM suite of solutions. These advanced platforms can provide the advantage your business needs to stay at the forefront in the future of work.

For example, you’ll be better equipped to:

  • Audit and map workforce skills
  • Target and deliver timely, relevant learning and development programs
  • Take the pulse of workforce engagement
  • Increase pay equity and transparency
  • Provide people with seamless connections to colleagues and resources in hybrid work settings.

In combination, these capabilities can help you build sustainable business value, going forward. To learn more about how Unit4 solutions can make a difference for your organization, book a demo here.

 


Related Reading

For other articles in this series, check the following links:

Part 1:  Reimagine Talent Strategy: Make Development a Core Part of Your Business

Part 2:  Commit to Careers

Part 3:  Engage in the Employee

 

Hybrid

How the Era of Hybrid Work Impacts Employee Travel, Spending, and the Workplace Experience

Sponsored by: SAP Concur

The next chapter of the future of work – hybrid work—is underway as businesses return to the physical office in some capacity while honoring employee flexibility to work from home. Hybrid work is new territory, and there’s more to consider than desk assignments. 

With employees working from different locations on any given day, there’s a need to reconsider the processes and policies that govern day-to-day work. Especially when it comes to employee spending. 

Here’s what is important to know about employee spend – through travel and expenses – in the era of hybrid work, and how it impacts the workplace experience.

Work From Anywhere Business Trips

Business travel took new shapes during the pandemic. While many organizations paused formal travel programs, some employees took personal trips with a business component. For example, the “work from vacation home” trend. Workers took advantage of remote work settings by taking trips with long stays. All they needed was Wi-Fi and a charging station, and they could work from Hawaii for a month. 

The flexibility to mix work and personal trips is likely to stick and become an expected aspect of workplace benefits. A recent SAP Concur survey of 1,000 U.S. business travelers found that nearly half of business travelers perceive “bleisure” travel – taking personal time off while on a business trip – as a standard workplace benefit. 

The hybrid workplace is likely to travel as well. Business travelers say that common workspaces during a business trip have included a café or coffee shop (70%), lobby (64%), waiting room (57%), and poolside (31%). Employees are now used to working from the couch or their bed. It makes sense that they’re more accustomed to non-traditional workspaces during business trips as well. Now, they’ll appreciate the flexibility to choose alternative lodging accommodations or casual business meeting spaces. 

As a side note, more than a third of business travelers (39%) have reported working from a restroom. But we’re not anticipating the start of porcelain cafes. 

Bumps in Hybrid Spend Processes

The hybrid work environment calls for adapted spend management processes. Not only are employees spending on new expense categories, like home office equipment, but the associated processes used to manage spending have typically relied on workers being in the office. Now, they’re conducting business from waiting rooms or restrooms, and without proper infrastructures, errors are likely to occur. 

An SAP Concur survey of 100 U.S. finance managers and 1,000 U.S. business travelers found that nearly all finance managers (98%) have seen an increase in non-compliant expenses during the past year. Though most (53%) believe those expenses stem from unclear policies, employees admit to being a bit more mischievous. Nearly two-thirds of business travelers admit to intentionally trying to get reimbursed for personal expenses. In fact, nearly all (89%) have submitted at least one travel expense in the past year that might have violated their company’s travel policies. On average, $3,397 of questionable expenses.

What could be motivating employees to skirt policies? In the past year, 86% of business travelers have reported that their company has been delayed in reimbursing their business expenses at least once. Nearly all agree this impacts their personal finances. Many people have been challenged by rising costs from inflation. As a result, late expense reimbursements that create added stress for workers are an issue.  

The Digital Office

One aspect of work provides consistency: the digital office. No matter where employees are, they’re plugged into digital infrastructures that enable them to do their best work. Travel and expense management solutions should fit within this framework and enable workers to make purchases, on the go, simply. 

Learn how to support and adapt to the future of travel and expense management in our eBook.

The Great Resignation

The Great Resignation – When Employees Woke Up

2021 turned out to be a year that introduced many new terms into the common vocabulary. One of the most popular terms – The Great Resignation.

  • Pandemic
  • Hybrid Work
  • Non-Fungible Token – and many more 

For the human resource professional, none turned out to be as life-changing as “The Great Resignation”, at least, on the professional front. 

Sure, for HR teams, the pandemic caused a lot of strife. Re-engineering of processes that support the hire to retire Lifecycle of employees, was the need of the hour. Supporting colleagues as the threatening environment led to mental health issues, was equally, if not more, important. Amidst all of this, however, what ended up taking precedence was hiring. Fueled by the aforementioned wave of resignations that corporates witnessed. But, why did The Great Resignation happen? 

Let’s try and understand this by recounting the sequence of events that occurred starting in early 2021.

The Great Resignation – Why?

When the pandemic initially started digging in deeply across the world leading to lockdowns (or curfews or variations, thereof), the expectation was that hiring would stall. That companies facing a business impact would control operational costs by laying off or redeploying their staff. Unsure about the way the economy would play out, most organizations tended to err on the side of caution. Consumers were, after all, expected to become conservative and cautious in their approach.

What happened, however, was quite unexpected. For the most part, consumers changed their behavior while making their purchases. The growing e-commerce world became the gateway to personal happiness in a much bigger way. Unable to visit farmer’s markets and malls, shoppers filled up their e-carts. Clicking away on their screens, keeping the economy going. Restricted from dining at their favorite hangouts, people ordered in, making full use of services like UberEats.

Unexpected Revenue Shifts

Other than in industries like travel and hospitality, executives in most other sectors were pleasantly surprised to see that the dive in revenues and profits was not as sharp as expected. In many cases including technology and healthcare, there was a rise! 

As swiftly as the revenue graphs had sloped downwards, they turned upwards and started reaching new highs! Further waves of the pandemic led to additional learning over the course of the following months. This experiential learning enabled policymakers to change their approach when it came to managing their economies.

At the start of the pandemic, many governments across the world had locked down their entire nations. In more recent times, the preferred approach has been to try and create containment zones whenever there seems to be a fresh outbreak of the virus. This new mechanism of fighting the spread of this disease is extremely beneficial for the world of business. It prevents a complete stop of the production cycle.

So, what has been the benefit of this new reality for our workforce?

The Destruction of Boundaries

For the first time ever in many industries, “human capital” is truly free from the shackles of the physical office space. The past twenty-odd months have shown us that work can continue seamlessly even when carried out remotely. All it needs to keep these running smoothly is an evolution in work practices.

Even in organizations that are in the manufacturing or product space, there are enough roles that can be played off-premises. An additional benefit is the “remote interview”. Candidates can be interviewed virtually (literally and figuratively) at the drop of a hat. No more juggling personal schedules or taking a leave of absence from the current job. Just thirty minutes sculpted out during the day.

The Rise of Digital

A huge reason for the world being able to come out largely unscathed (relative to what was anticipated at the start) is the fact that technology has advanced to a level where the element of distance has been negated. Exploding technologies have been brought into mainstream facilities like video conferencing, showcasing tech-enabled shifts in the way business work is now conducted.

The digital landscape also propelled learning across walls. Aspirational professionals, ranging from fresh graduates to experienced C-suite executives, used this opportunity to pick up new skills and dig deeper into chosen fields of work.

The Availability of Choice

One of the major (positive) side-effects of the pandemic has been the self-awareness that many have gained. This self-realization has encouraged many to decide the operating rules for themselves. From flexibility in terms of work location to flexibility in terms of work hours, workers are looking at customizing the kind of work commitments they make, much like the way they choose to personalize their Subway® sandwich. The talent-hungry corporate world had chosen to play ball – creating work models that suit varied types of individuals. With a shift from ‘pay-for-time’ to ‘pay-for-output’, employees balance their work and personal life, in a more controlled way, putting themselves in the driver’s seat.

Conclusion

In essence, 2021 can be clearly proclaimed to be the year when workers woke up and The Great Resignation started. Truth is that not all may have awakened out of choice. Some amongst us might have been jolted awake by the rude interruption of the dreaded virus, as they found themselves retrenched or having had to leave their work to take care of an ailing family member. But, the end result is the same. It seems, as we get further into 2022, that professionals are indeed awake and about enjoying their days in the sun! What a time to be working!

 

recruitment marketing strategy

How Recruitment Marketing Strategy Can Improve Candidate Experience

How vital is candidate experience to a company’s recruitment marketing strategy? Look no further than a Talent Board study that listed the top three reasons candidates end the application process: disrespect of time (37 percent), poor recruiter rapport (32 percent), and length of the hiring process (29 percent).

Those numbers point to how pivotal creating a positive candidate experience is in attracting qualified, top-tier applicants. Candidates these days can be highly selective, exiting the talent funnel at the first sign of trouble. A customized, memorable experience keeps companies competitive and their talent pipelines brimming. Candidate experience should be a critical element of marketing your company and strengthening brand perception.

The candidate experience in recruiting should provide a picture of not only the duties and responsibilities of a role but also the culture, mission, and values of an organization. It should answer common questions: “What happens after I apply?” “When will I hear back?” “How many steps are involved in the hiring process?” It should set expectations and provide a realistic preview of how candidates move from one phase to the next in the hiring process.

A thoughtful, transparent, and candidate-friendly application experience can be a valuable part of any company’s marketing strategy. Finding the tools and tactics to round that approach into form is essential.

Creating a Positive Candidate Experience With Marketing

Even when you think you’ve perfected your candidate experience, perception doesn’t always match reality. A PricewaterhouseCoopers study found that 49 percent of candidates in high-demand fields turn down job offers due to a poor experience as an applicant.

Employing the right recruitment marketing strategies ensures everyone knows what to expect from the start. These tactics reduce any uncertainty or confusion during the critical stages of the candidate journey where talent can easily be lost. The right candidate marketing strategies also allow you to showcase why someone should choose your organization over other options.

You always want to build a foundation of trust with candidates. That’s what happens when you focus your marketing efforts on candidate experience. You develop a bond with those “right fit” candidates as they learn who you are as a business and why your company is the right fit for them.

How to Improve the Candidate Experience During Recruitment

Given all of this information, it’s natural to wonder how you can go about creating a positive candidate experience that will resonate with top-notch talent. Here are six places to start.

1. Spotlight the process in a variety of ways.

Not everyone consumes information the same way. And with that comes the need to vary the delivery format of essential information during the hiring process.

Besides telling candidates what to expect—both in the recruitment process and while on the job—consider incorporating educational content such as blog posts, infographics, and videos into your recruitment marketing strategy. A human-interest piece from an applicant’s perspective can also help pique the interest of potential hires and create a more marketable candidate experience.

Our company regularly features this type of content in our digital ads and on social media, educating while driving talent to our website.

2. Keep communication consistent during the process.

Clear and regular communication is essential to creating a positive candidate experience. As often as possible, keep talent informed on all subsequent steps and provide a rough estimate of the timing.

Let candidates currently in the queue know when to expect a response and consider communicating all pertinent information across different mediums. Email is an obvious choice, but you might also employ automated messaging, chatbots, and text messaging to be even more responsive while supporting the variety of communication preferences modern candidates have.

Many companies now use automated communication platforms, 24/7 live chat support, and help desk ticketing systems to meet the urgency people often feel during the application process.

3. Humanize the experience.

As the world gets more automated, it’s easy to lose that human element in our day-to-day interactions. Even when talent prefers to handle everything digitally, there are still opportunities for warmth and humanity within the candidate experience during recruitment.

Automation and other recruitment technology shouldn’t be reserved for only rare occasions, though. You can’t beat the speed and immediacy it affords your candidate engagement activities. But you still must ensure all messaging and visuals support your brand and effectively convey the culture candidates will be joining while building a relationship with your candidates. Each touchpoint is an opportunity to strengthen the foundation.

4. Leverage testimonials.

People trust people more than brands. If employee testimonials aren’t already part of your recruitment marketing strategy, you’re missing an opportunity to connect with job seekers on a more impactful level.

Share employee experiences with candidates, connect them with people on the floor, and never forget to capture feedback on the entire recruitment process to improve your candidate engagement strategies continually. You’ll never be able to spot any gaps if you fail to ask for this valuable feedback.

5. Customize the candidate journey.

Candidates are consumers. And like consumers, they want customized experiences during the recruitment process.

Make sure you have a solid candidate engagement platform. This allows you to tailor the experience to suit each person’s preferences. At the very least, choose recruitment technology that offers candidates a choice in the type and frequency of communication on job applications as well as career opportunities that fit specific criteria. The move will help in personalizing interactions and creating a positive candidate experience.

6. Align the candidate and employee experience.

The candidate experience should be a window into the employee experience. If one falls short, you’re doing a disservice to all parties involved—including your business.

Make sure talent truly experiences what it would be like to be an employee. We go as far as providing virtual reality job previews for many of our positions. This ensures candidates feel confident they know what to expect on day one. Conversely, make sure the employee experience matches all the pomp and circumstance of the candidate experience in the recruitment process.

Otherwise, people won’t stay. They’ll likely also spread the word, damaging your reputation with other potential recruits. Own all facets of your business and see it through from start to finish.

The importance of candidate engagement can’t be overstated. It requires time and attention to get it right. Even then, you might miss the mark a time or two. As long as you set clear expectations early in the process, stay in regular contact with candidates, and never lose the human side of your organization, you’re moving in the right direction.

workplace safety

A New Era of Workplace Safety: Prioritizing Psychosocial Health

For too long, the workplace has been viewed as a mystical place where we bring a version of ourselves that is unbreakable. It’s a version of ourselves that powers through every obstacle, even if it takes a toll on our health. Sadly, it’s a version that is essentially unsustainable. How often have we seen an employee get lauded for “going above and beyond,” even when we know that what we’re saying is just code for working through illness. Or forsaking personal commitment? Or working well beyond reasonable and safe hours?

That attitude–celebrating the workaholic, to put it bluntly–is an example of how the conversation around mental health has been too narrow. It’s especially been too narrow when discussing mental health in the workplace. Also, until now, occupational health and safety management was focused almost exclusively on physical safety rather than psychological health. That changed this past summer. An international standard was issued in June to provide a structural framework to help businesses manage psychological health and well-being in the workplace.

In essence, the ISO 45003 Psychological Health and Safety at Work guidelines have two goals:

  1. Lay out global standards for organizations to create and administer an environment where the psychosocial well-being of employees is as clearly defined and cared for as their physical safety
  2. Offer a helpful baseline for HR professionals across industries to evaluate how effectively their organizations are providing a psychosocially healthy atmosphere, without the need for in-house specialists with deep expertise in mental health

For HR and training leaders, it’s important to recognize:

  • Three common mental health and wellness issues that organizations face
  • How the new standards for workplace safety could lead to a more psychosocially healthy work environment

1. A Stigmatized or Nonexistent Support System

The pandemic highlighted the lack of supportive environments for employee mental health at an organizational level. It also shed light on unsustainable and unfair workloads and untimely or ineffective recognition practices. Because of these issues, employees have very little time during the workday and very few, if any, tools to take care of themselves psychologically or emotionally. In a 2021 survey that covered 46 countries, 89 percent of respondents said their work-life was worsening. Eighty-five percent said their well-being had declined, and 56 percent said their job demands had increased.

A strategy for change: Discussing mental health openly at work starts with a clear organizational strategy. You need to create an environment of psychological safety. That means a workplace where employees feel comfortable being themselves and discussing emotional and mental concerns. The ISO guidelines go a step further. They ask top leaders to remember the important role they play in supporting these conversations. They also ask leadership to set a culture of protection from reprisal or judgment for employees who speak up.

2. A Diverse Workforce Has Diverse Mental Wellness Needs

More than nine out of 10 respondents in a 2021 survey felt that mental health should be a focus within the company culture, up from 86 percent in 2019. The increase shouldn’t be surprising when you consider that between 2019 and 2021, mental health was cited as an increasingly prevalent reason that employees left their jobs. Overall, 84 percent of respondents felt that at least one workplace factor negatively impacted their mental health. Further, the problem is most acute among Millennials and Gen Z.

The numbers were disproportionately higher among younger workers and members of underrepresented groups. Women, minority groups, remote workers (in some organizations), and the younger generation joining the workforce are all prone to feeling excluded from blanket policies and run-of-the-mill pledges of inclusion.

A strategy for change: Sure, companies have increased investment in employee mental health over the last decade. The global mental wellness industry grew nearly twice as fast as the global economy from 2015–2017 alone. But the quality and reach of these programs are what matters. ISO guidelines call out the need for organizations to consider the diversity of the workforce and the needs of particular groups around a psychosocially healthy workplace.

3. Burnout Remains Pervasive and Prevention Is the Best Cure

Meet the new mantra, same as the old mantra: Prevention is the best medicine. Yu Tse Heng, a researcher who uncovers ways to humanize workplaces, puts it this way: “It starts with employers, to protect employees from becoming resource-depleted in the first place. And it’s also on the employer to provide the resources necessary to support employees’ mental health.” The employee’s responsibility, meanwhile, is to try and understand where their burnout stems from and to craft a way to get out of it.

Even pre-pandemic, the results of implementing mental health programs at work spoke for themselves. In a 2019 study conducted by Deloitte and the Australian Institute of Health & Safety, the ROI for workplace mental health programs yielded $1.62 for every dollar invested. That’s just in one year. For companies with programs that had been implemented over three years, the median ROI was $2.18 for every dollar spent.

A strategy for change: Self-reflection and self-care are crucial to recovering from or preventing burnout. But the ISO reiterates the importance of employers implementing and maintaining support systems in the workplace for burnout prevention. For example, having trained personnel on staff who can take charge of these programs further mitigates the risk of psychosocial damage.

A Significant Opportunity for Organizations Ready for Change

As mental health and workplace safety become increasingly important and open subjects, employers are at a crossroads. Traditional solutions just won’t cut it. A vacation does not erase the dread of returning to a draining work environment. In fact, American workers last year left an average of 33 percent of their allocated paid time off on the table. At the same time, they reported a 49-minute increase in the average workday.

Organizations seeking a transformative solution to employee mental well-being should consider activating the new ISO guidelines. They present an opportunity for companies to take a fresh look at:

  • How they view employee mental health
  • The role their leadership is playing to change the company culture around mental health
  • The effectiveness of their mental health strategy for today’s changing workforce

As with everything around workplace safety, you can be superficial with fixes and apply Band-Aids to mask the issues. Or you can choose to step up and transform how you approach workplace mental health.

employer healthcare benefits

Employer Healthcare Benefits and the ‘Great Resignation’

According to the U.S. Department of Labor, 11.5 million workers quit their jobs between April and June of this year, and that trend isn’t likely to end soon. A Microsoft survey found that 41 percent of people are considering making a similar move.

This mass exodus, referred to by many as the “Great Resignation,” came as a result of the pandemic. In fact, 74 percent of those surveyed by LinkedIn cited the pandemic as their reason for moving on. During the shutdown, people had a chance to really contemplate their current work situations. Stress and burnout were also contributing factors, but many workers appeared most concerned with their employer’s response to the coronavirus and the financial risks and ramifications (e.g., frozen merit increases, holds on promotions, potential layoffs).

None of this should be a surprise. Even under “normal” circumstances, people leave their employers for many of the same reasons. Burnout is the number one contributing factor, followed by lack of opportunities and low pay. People have also come to enjoy the flexibility of remote work. Returning to the office and working a set schedule is far less appealing, as evidenced by the prediction that freelancers could make up more than 50 percent of the workforce by 2027.

Employer healthcare benefits: a potential solution for the Great Resignation

Some industries have been harder hit by the Great Resignation than others. Leisure and hospitality are still struggling with attracting and retaining talented employees, losing more than 740,000 people in April alone. In the retail sector, nearly 650,000 people quit that same month. Nursing saw an 18.7 percent turnover rate in 2020.

Many businesses have responded by raising wages and offering hiring bonuses of up to $1,000, but financial incentives haven’t been enough. A Korn Ferry survey found that 94 percent of retailers can’t find talent to fill empty roles. Part of this could be due to the prospect of long hours spent in positions that involve interacting with the public, which still feels daunting and dangerous for many; the coronavirus still poses a severe threat to people’s health.

Another part of the equation is insufficient employer healthcare benefits packages. According to the 2019 Kaiser Family Foundation Health Benefits Survey, just 50 percent of small businesses (fewer than 200 employees) offer health coverage to employees. And with more than 40 percent of the private workforce employed by such establishments, that’s a lot of people personally insured, underinsured, or uninsured. The Great Resignation is compounding the issue. More than 60 percent of the workforce receives health benefits through their employers. When someone leaves without another job, they lose their employer-sponsored health insurance and aren’t eligible for unemployment insurance, creating a gap in health insurance coverage between jobs.

The key to attracting and retaining talented employees could be as simple as offering employer healthcare benefits. It can be a huge differentiator by increasing job satisfaction, employee loyalty, and productivity.

Employer-sponsored health insurance options

Despite the benefits, finding room in the budget for employer-sponsored health insurance can be difficult for many small businesses. While deductibles and premiums may be on the rise, it is still worth the effort to explore your options. Many retail and services workers are now taking entry-level positions in offices and warehouses with lower wages because of the benefits, career development, and upward mobility they offer.

Here’s what to consider when building your employer healthcare benefits plan.

1. Supplement a high-deductible health plan with virtual primary care.

A complimentary virtual primary care plan can be a good supplement for businesses that cannot afford full employer-sponsored health insurance. Virtual care plans can reduce out-of-pocket costs associated with deductibles, copays, and prescriptions.

2. Include a health savings account with high-deductible plans.

Health savings accounts provide many advantages for employees. The funds are available to pay for medical expenses, which puts the individual in control of when and how to use the money. Want to pay a deductible? Go ahead. Need to refill a prescription? Feel free. But the contributions come out before taxes, lowering taxable income. Many plans also earn tax-free interest, and any unused funds can be rolled over for the next year.

3. Base premiums and deductibles on employee income.

Basing premiums and deductibles on employee income doesn’t always work for smaller businesses, as the difference in wages isn’t usually extreme. For midsize and larger employers, however, it can be a helpful tool in attracting and retaining talented employees. Perhaps pay 80 percent of premiums for workers making less than $60,000 a year while also offering lower annual deductibles.

4. Offer an independent virtual primary care plan when insurance isn’t an option.

Telehealth plans can help employees access the care they need. Look for comprehensive solutions like virtual primary care, which allow employees to see the same primary care physician regularly and manage chronic conditions with ongoing treatment plans. These plans also provide access to annual virtual wellness exams—including routine labs—as well as virtual urgent care and behavioral therapy.

The reasons people seek other employment opportunities will vary, even after the pandemic. Finding ways to address the most common causes of talent loss should help, but it’s also important to provide people with the perks and benefits they seek—one of which will always be employer-sponsored health insurance.