Employer Profiles When Choosing Group Insurance Benefits
Filed Under (Group Insurance Benefits) by Group Health Insurance on 20-01-2009
Tags: employee benefits, employee health insurance, group health insurance, Group Insurance Benefits, small business health insurance, small group health insurance
Employer Profiles & Group Insurance Benefits
Recent research has shown that employers fall within four key profile types when it comes to choosing group insurance benefits. The research looked at how benefits are optimized and how each profile type maximized the return on the cost of these benefits.
The data gathered included employer attitude about the benefits they offered and how the costs of these benefits were funded.
Based on the results, the study determined that the four profile types are “Progressive” representing 32% of those polled, “Standard” representing 28% of those polled, “Flexible” representing 23% of those polled and “Traditional” representing 17% of those polled.
So, what are the characteristics of the four profile types?
The “Standard” employer understands the basics of health insurance and retirement plans, but does not believe in fully funding them themselves. They most often offer their employees access to group rates on a voluntary basis. This means that the employees pay the most working for a “Standard” employer.
The “Traditional” employer believes strongly in offering health insurance and retirement plans to their employees and usually funds these core benefits. They may also offer other benefits on a voluntary basis that the employees must pay for themselves, but they do not feel strongly about making available all of the benefits that fit the specific needs of their employees. Even when they do offer any additional voluntary benefits, they do not educate their employees about the details of these “extra” benefits since they lie outside of the basic benefits they believe in.
The “Flexible” employer is more aware of all of the group insurance benefits available. They look at what other companies in their line of business offer their employees so that the packages they offer are competitive. They strive to find a balance between offering choices to their employees and the costs to themselves and the employees. They are much better at explaining the benefits to their employees and helping their employees choose what benefits they want and need.
The “Progressive” employer believes that the richness and diversity of their benefits program provides a competitive advantage over other companies in their line of business. They focus on meeting the needs of their employees, and provide more benefits beyond basic health. They believe in offering benefits and programs that address work/life balance for their employees.
The research shows that the four employer types are not industry specific and not influenced by the size of the company.
It may be time for some employers to reconsider their beliefs about group insurance benefits. Offering a more comprehensive and modern benefit program can benefit the company by enticing better workers in their industry. Also, choosing to cultivate health and well being by implementing programs and benefits that help employees stay well, will ultimately have a positive impact on a company’s bottom line.
