Top Employee Benefits for 2015

INNOVATIVE NEW

BENEFITS THAT WILL HELP

YOUR COMPANY WIN THE

TALENT WAR

EXECUTIVE SUMMARY 2

WHAT MAKES BENEFITS COMPELLING 2

NEW FRONTIERS IN HEALTH AND WELLNESS 3

EDUCATION BENEFITS GET SMART 4

CORPORATE SOCIAL RESPONSIBILITY GOES HIGH TECH 6

H E L I O S W H I T E P A P E R S E R I E S

Helios White Paper | ©2014 All Rights Reserved. 2

EXECUTIVE SUMMARYIn order to retain and engage top talent, organizations need to look beyond traditional

benefits to find modern solutions that support and develop today’s workforce. This paper

will detail several innovative solutions or twists on old voluntary benefits that answer the

following mandates;

• Employers must think out-of-the-box now, in ways never before required, to attract

and retain top talent,

• Technology has had a dramatic impact on the way that benefits are delivered and

utilized,

• Employees seek simple, payroll-based financial planning that encompasses major life

events, and

• The definition of “best place to work,” is expanding beyond traditional measures of

pay and benefits.

Of all the benefits we discuss, special emphasis should be placed on education as these

benefits embody the new paradigm by providing the greatest impact. The most in

demand employees want to be developed through education benefits that work for them,

their families, and society. Like any good employee initiative, the benefits of supporting

education are symbiotic and self-reinforcing. In addition to contributing to the future

education of children, when employers invest in education and professional development

of employees, they improve the aptitude of their own personnel. The employee is rewarded

with skills and competencies that will benefit them throughout their career. And of course

society benefits from a better educated labor force. When you’ve reviewed our list of most

innovative benefits, the checklist we include at the end will help your company use the

information to formulate a winning benefits strategy that’s right for your organization.

WHAT MAKES BENEFITS COMPELLINGThere is a war for top talent! As the global economy rebounds from the stagnating 2008

depression, an improving labor market is giving employees more leverage in the ongoing

competition for top professionals. Employers in a number of the leading industries are

acutely aware of this shift. Smart companies like Google, Facebook, Apple, and Netflix

are looking to redefine their employee value proposition through competitive voluntary

benefits and other perks to win the battle for the best talent in the marketplace. MetLife, a

national carrier for voluntary benefits, compiles annual data regarding benefit trends from

over 1,000 participants and their most recent report underlines the growing importance

of highly differentiated and personalized benefits. In 2012, 28% of respondents said that

benefits were an important factor in choosing their current employer. In 2013, that figure

had jumped to an astonishing 43%.1 Healthcare is just table stakes; more than half of

2012 2013

10%

30%

50%

28%

43%

In 2012, 28% of respondents said that benefits were an important factor in choosing their current employer. In 2013, that figure had jumped to an astonishing 43%.


The benefits of wellness

have become institutionalized

with 62% of employees stating

that wellness programs are successful at

improving health and reducing risk.

all US private sector companies offer health insurance, so this is no longer a competitive

advantage to differentiate your company.2 Employers must think out-of-the-box now, in

ways never before required, to attract and retain top talent. And there is a clear mandate

for innovation in benefits. To win the war for talent, a company needs to use every

available asset and progressives benefits are a crucial weapon.

Let’s first define the criteria for what makes a benefit innovative. This generation

of professionals demand benefits that facilitate work/life integration, growth and

development, and that promote shared values. Technology has also had a dramatic impact

on the way that benefits are delivered and the latest and greatest innovations in voluntary

benefits use technology to great effect. As we already know, employees are looking

to benefits more than ever before as a way to differentiate between employers. So it’s

critical for companies who want to compete for in-demand skill sets to assess their current

offerings against competitors and industry benchmarks. Read on to learn about cutting-

edge benefits that can set your company apart from the pack.

NEW FRONTIERS IN HEALTH AND WELLNESSLet’s start with a benefit we all know: wellness programs have gained mass popularity

over the past decade as employers respond to the rising cost of health care. According to

a 2013 study conducted on behalf of the Department of Labor, over 50% of US employers

offer some kind of wellness program, with the majority of those companies combining

risks assessments with interventions and incentives to encourage behavior modification.3

Tech companies have responded to the trend by offering a host of mobile or software

applications that aim to engage employees in their own wellness through personalization

and gamification. Washington, DC based Viget Labs has made a point of offering

competitive benefits to its staff of mostly Millennials but thought they could do more

than just offer a gym reimbursement to encourage a healthy, active lifestyle. CEO of Viget,

Brian Williams, explains that, “a gym membership wasn’t necessarily changing anyone’s

behavior.”4 So some of their Developers collaborated on an application that could track

whether colleagues actually used their membership. SpotsYou, their final product, started

as an internal project has now grown into something that Viget offers to other companies.

SpotMe [no connection] offers employers a similar application that can track employees

via check-ins on Foursquare™ and reward them with points for doing any kind of verified

physical activity. The points can ultimately earn rewards or cash prizes, which can then

be seamlessly deposited through the company’s payroll. SpotMe offers an exciting and

meaningful add on to traditional wellness programs and its applications are limitless.

Because the employer manages the types of activities tracked, the employer helps to drive


employee behavior, an important tenet in making wellness programs outcome based.5 That

SpotMe is compatible with most mobile devices and with employers’ payroll systems is

critical to its adoption and success, ensuring that technology keeps the barriers to use low.

The benefits of wellness have become institutionalized with 62% of employees stating

that wellness programs are successful at improving health and reducing risk. This figure,

recorded in a 2013 study funded by Principal Financial, rose 7 points in just two years!6

Thanks to the innovative technology used in products like SpotMe and SpotsYou, this trend

is sure to continue.

As healthcare costs have skyrocketed, companies large and small have sought new

tactics to control expensive specialist visits and emergency care without compromising

on service. Once again, technology has answered with several companies offering mobile

and web-based physician consultations – sort of an ultra-modern twist on the HMO nurse

line. These services are the ultimate in win-win; employers save on the expense of having

employees, spouses, and dependents visit a doctor’s office or ER and the employees get

fast, convenient service whenever and wherever they need it.7 Many large companies

have wrapped these virtual services into their self-insured plans as a strategy to manage

healthcare spend; one virtual consultation can cost as little as $50, a fraction of what a

doctor would charge for an office visit. Devin Schain, CEO of Access Health, reports that the

response to his company’s product has been so strong from employers and employees that

some companies have decided to offer the Access Health mobile service as a stand-alone

benefit.8 Experts estimate that of the 900 million visits that Americans make to the doctor’s

office annually, 50% could be accomplished remotely so we can expect to see that demand

for this type of benefit will only increase.9

EDUCATION BENEFITS GET SMARTIf your company is looking for new ways to meet employee education and development

needs, a solution that facilitates college savings might be a good fit. Education benefits

and professional development have been proven to drive both employee retention and

business results. To understand the evolution of these benefits, let’s examine the history

and regulations that govern their use. Most HR Professionals are aware that IRS guidelines

allow companies to offer $5,250 tax free towards continuing education assistance or

reimbursement and this type of benefit is commonly offered. Employers may be less

familiar with Educational Savings Plans, commonly referred as 529s for their designated

place in the IRS tax code. Legislators created 529s over a decade ago to encourage middle

class American families to save for college; money invested in a 529 can grow tax-free

and can then be distributed for qualified education expenses at accredited academic

institutions. In its 2013 report on how Americans save for college, Sallie Mae reports that

… ”among those parents not

saving for college, 63 percent

say they would be motivated

to save via a 529 plan if

their employer offered one

with an automated payroll

deduction. The likelihood

of their opening a 529 plan

increases to 78 percent if

employers offer a matched

contribution.”


among those parents not saving for college, “63 percent say they would be motivated to

save via a 529 plan if their employer offered one with an automated payroll deduction.

The likelihood of their opening a 529 plan increases to 78 percent if employers offer a

matched contribution.”10

The rising cost of a college education and the ballooning student loan crisis has created

demand for employers to offer these savings vehicles as part of a benefits package in

the same way that employees have also demanded more options for retirement savings.

LEAF College Savings provides employers with a web-based benefit solution to this social

crisis, which offers two distinct advantages: employees can direct their payroll-based

contributions to any 529 plan in the U.S. and employers can provide a contribution match

similar to a 401(k). Employers can make automatic payroll deductions and the funds

are FDIC-insured while being distributed by LEAF to employees’ plans. The importance of

payroll integration is critical as nearly 60% of HR executives cite this as an important factor

when determining which voluntary benefits to offer.11 Furthermore, through LEAF’s product,

an employer can enable an employee to save for his or her continuing education as well

as that of his or her dependent. In as much as healthcare and traditional voluntary benefits

like 401(k) and life insurance are now baseline, employers need to find new ways of

meeting employees’ needs. By adding an education benefit, an employer provides simple

though comprehensive, payroll-based financial planning that encompasses all the major

life events of an employee and their respective families: healthcare, retirement planning,

life insurance, and now education savings.

Dun & Bradstreet Credibility Corp, a financial services company, matches employees’

contributions towards their 529 with company funds.12 This gesture makes a significant

statement about how the company values employees and also how the company supports

work/life balance since many employees still fund 529s on behalf of their children. Jeffrey

Stibel, Chairman and CEO of Dun & Bradstreet Credibility Corp, explained that, “One of the

biggest problems [Dun & Bradstreet Credibility Corp has] is finding talent. And it starts

with education […] Education is more important than retirement.”13 Big name companies

have long understood the inherent value of this kind of employee benefit, but regulation

and burdensome administration have limited utilization. Legg Mason, a global investment

management company, has offered US employees the ability to contribute to a 529 for

years but the plan they use is sponsored by the state of Colorado so employees in other

locations cannot benefit from the full tax advantage. Legg Mason Senior Executive John

Kennedy admits the, “difficulty in trying to balance multiple programs to fit in different

states,” but the simplicity offered by a product like LEAF’s takes away this barrier and

Healthcare RetirementPlanning

LifeInsurance

Planning

ence College

Savings


makes implementing meaningful, accessible, and personalized education benefits easier

than ever before.14 Using LEAF, an employer can offer matching of employee funds put

towards education savings and can manage these contributions in a way that is both

compliant and streamlined.

Much like wellness plans, the rising popularity of 529s reflects national economic trends.

As so many are keenly aware, a college education has never been more expensive and

like healthcare, its cost has far outpaced inflation. In fact, the cost of a college education

has gone up 80% in just the past decade!15 In a similar vein, a college degree is far more

valuable today than it was 30 years ago. Just this year, the Federal Reserve Board of

San Francisco released a study showing that a college degree increases lifetime earning

potential by more than $800,000 as compared to those with only high school diplomas.16

Those companies willing to help employees save for education through direct contributions

or administration of funds differentiate themselves as employers of choice who are

investing in their employees and in society. Jamil Husain, CEO of Arlington, VA based

defense contractor Telophase Corporation, points out that offering strong education and

professional development benefits can be an important way to distinguish your company

when bidding on RFPs in the ever competitive federal contracting sector. While this sector

is littered with companies with strong technical acumen, the government has to rely

more and more on distinguishing potential industry partners that place a high value on

their employee welfare; key among which is the company’s demonstrable commitment

to the continuous training and education of their workforce.17 Despite the obvious value

of education benefits, the administration can be challenging and fraught with compliance

issues. To that end, a company, EdAssist offers a fully outsourced solution for managing

all forms of education benefits. But with startup costs of $40,000 to $50,000, their service

may not work for every company’s budget. Utilizing a platform like LEAF College Savings,

companies can now offer payroll deduction and matching to dependent plans and tax-

free matching (e.g. $1-for-$1 up to $5,250 annually) of continuing education funds for

employees who set up a 529 and contribute through LEAF’s web-based platform. LEAF’s

product lets employers provide a more equitable and easier to manage benefit while

encouraging employees to have a financial stake in their educational development,

improving outcomes and lowering overall program costs and burdens.

CORPORATE SOCIAL RESPONSIBILITY GOES HIGH TECH The definition of “best place to work,” is expanding beyond traditional measures of pay

and benefits to encompass corporate social responsibility, commonly referred to as CSR. A

2014 report from America’s Charities indicates that 68% of employers recognize a desire

from employees to support volunteerism.18 While large employers like Microsoft or Boeing

Those companies willing to help

employees save for education through

direct contributions or administration of funds differentiate

themselves as employers of choice who are investing in their employees and

in society.


are well-known for their generous charitable matches, even smaller organizations are

finding a way to make giving back a part of their culture. Canvas, a Reston, Virginia based

tech start up specializing in mobile applications, encourages employees to develop apps

for use in not-for-profits and even gives employees up to two weeks of paid volunteering

time to help organizations implement the company’s technology. Marketing Director Jason

Peck explains that Canvas’ “Ante Up” program, “reflects the CEO’s philosophy that you

don’t have to be a [huge company] to give back. You can still make an impact through

time, products, services, and passion.” Jason has participated in the program himself,

donating time to help a local film festival develop a mobile payment platform and says

that Canvas’ emphasis on social responsibility was a key factor in his decision to work for

the company.19 Like Jason, employees today expect to see a double bottom line by which

employers generate revenue and also have a positive social impact.

Intelsat, the leading worldwide provider of satellite services, also puts an emphasis on

philanthropy, supporting employee initiatives and donating in-kind services. Any Intelsat

office who forms a team of at least 10 employees can get company sponsorship for a

charity event of their choosing; this localized approach encourages participation since

employees can pick charities that are meaningful to them. One Intelsat office in Atlanta

formed a team to compete in a video game-a-thon to benefit Children’s Miracle Network,

demonstrating the intersection of employee interests and corporate philanthropy. Intelsat

has also supported the work of various non-profits, enabling their missions through

donated time and resources. For example, Intelsat donates free satellite bandwidth to

Mindset Network, a South African non-profit that provides community-based education

curriculum and content on healthcare concerns and other subjects. Intelsat’s corporate

support of these causes is extremely important and meaningful to employees and embodies

the concept of a double bottom line.20 In fact, many of the benefits highlighted above speak

to a platform of social responsibility and a paternalistic view of employee relations where

the employer is supporting many facets of an employee’s life outside of the workplace.

Overwhelming research supports the connection between rich, personalized benefits and

employee satisfaction so we expect to see employers continuing to emphasize and promote

excellent benefits as a way of recruiting and retaining their best performers.

While your company may not have the resources of Google or Dun & Bradstreet, you can

still be a top employer in your market. If you’re ready to see how your company’s benefits

measure up, follow these steps:

1. Talk to your HR executives and benefit broker to review relevant benchmarks. In

particular, you should look at what similar companies offer, with a focus on direct

competitors.


2. Survey your employees to find out what innovative benefits would matter to them.

Benefit surveys can be conducted as a part of attitude surveys or more informally, via

focus groups or questionnaires.

3. Determine relevant metrics to help measure the impact of any changes that you

make. Benefits cost per employee is a common metric to determine the relative

amount the company invests in benefits and will also help you measure return on

investment. For example, if you institute a wellness program, you should determine

the cost per employee to compare to the eventual savings.

4. Focus on benefits that are technology enabled or compatible with existing systems to

ease the burden of implementation and also encourage utilization.

Most importantly, make sure that you regularly revaluate your offerings to stay

competitive. Trends change to reflect market standards and employee demographics. To

keep your offerings cutting edge, make it a part of your overall recruitment and retention

strategy to review your benefits package at least once a year.

Most importantly, make sure that you regularly revaluate your offerings to stay competitive.


WORKS CITED

1) Krueger, Alyson. “How to Create a Benefits Plan that Appeals to the Young and Cool.”

Forbes. March 28, 2014.

2) The Henry J. Kaiser Family Foundation. “State Health Facts.” Percent of Private Sector

Establishments that Offer Health Insurance to Employees. May 6, 2014.

3) Caloyeras, John P., Christina Y. Huang, Dmitry Khodyakov, Hangsheng Lui, Soeren

Mattke, Victoria Shier, Kristin R. Van Busum. “Workplace Wellness Programs Study.”

Rand Corporation. 2013.

4) Williams, Brian. Personal Interview. May 16, 2014.

5) Wojcik, Joanne. “Large companies’ innovative benefits programs help midsize firms

expand offerings.” Business Insurance. December 29, 2013.

6) Hendrickson, Barb. “Increasing Employee Participation in Corporate Wellness

Programs.” Occupational Health & Safety. September 1, 2013.

7) Mannino, Barbara. “The New Voluntary Benefits Companies are Offering to Lure Top

Talent.” Fox Business. August 26, 2013.

8) Schain, Devin. Personal Interview. May 16, 2014.

9) Comstock, Jonah. “Five Reasons Virtual Doctors Visits Might Be Better Than In-Person

Ones.” Mobihealth News. May 8, 2013.

10) “How America Saves for College 2013.” Ipsos Public Affairs and Sallie Mae.

Washington, DC. 2013.

11) “Do Voluntary Benefits Programs Impact Employee Retention?” Ceridian. February 19,

2014.

12) Ellis, Blake. “The Latest Company Perk? A 529 Match.” CNN. December 7 2012.

13) Carrns, Ann. “A Company Match for College Savings.” New York Times. December 4,

2014.

14) Driebusch, Corrie. “Employer Help on a 529 College Savings Plan?” Wall Street Journal.

September 4, 2013.

15) Chang, David. “The Benefits of a 529 College Savings Plan.” Midweek. May 7, 2014.

16) Onink, Troy. “Federal Reserve: College Education Worth $830,000 More Than High

School Diploma.” Forbes. May 5, 2014.

17) Husain, Jamil. Personal Interview in reference to CFR 52.222-46 Evaluation of

Compensation for Professional Employees. May 22, 2014.

18) Freeman, Caryn. “Employer Charitable Endeavors Can Boost Efforts to Attract and

Retain Top Employees.” Bloomberg. May 5, 2014.

19) Peck, Jason. Personal Interview. May 14, 2014.

20) `Nerenberg, Sharyn and Sabrina Platt Schroff. Personal Interview. May 16, 2014.


Authors: Amy Gulati, GPHR & SPHR, Human Resource Business Partner, Helios HR, LLC.

Project Team: Rachel Butler, MA & PHR, Human Resource Business Partner, Helios HR, LLC. Connie Maniscalco, MPA

& SPHR, Practice Leader, Helios HR, LLC.

Editing: Rachel Butler, MA & PHR, Human Resource Business Partner, Helios HR, LLC. Connie Maniscalco, MPA &

SPHR, Practice Leader, Helios HR, LLC.

Design: Red Thinking LLC, www.redthinkingllc.com

Helios would like to extend a special thanks to the companies that allowed us to share their stories: Access Health

Group, Canvas Solutions, Inc, Intelsat, LEAF College Savings, SpotMe, Telophase Corporation, and Viget Labs.

This report is published by Helios HR, LLC. (Helios). All content is for information purposes only and is not to be

construed as guaranteed outcome.

©2014 Helios HR, LLC. All rights reserved.

For more information, please contact:

Helios HR

1925 Isaac Newton Square East, Suite 200, Reston, VA 20190

(703) 860-3882

www.helioshr.com

1925 Isaac Newton Square East, Suite 200, Reston, VA 20190

HeliosHR.com | [email protected] | 703.860.3882

Top Employee Benefits for 2015

Education

education benefits

innovative benefits

traditional benefits

society benefits

personalized benefits

benefits compellingthere

innovative new benefits

competitive voluntary