Rethinking Your Employee Benefits Strategy for 2023? Consider These 3 Key Questions

Rethinking Your Employee Benefits Strategy for 2023? Consider These 3 Key Questions

In the past, if you provided health insurance and retirement options, your benefits were considered competitive. Now, the pressure is on employers to supply more diverse options.

Employee-friendly startups keep getting more creative with their benefits packages, and the federal government, states and localities are mandating more employee benefits than ever. To stay competitive, consider asking yourself the following questions as you rethink your benefits strategy for 2023.

1. Are your employee benefits inflation-proof?

Employers are becoming increasingly concerned about inflation’s impact on their employees, especially as the U.S economy faces the very real prospect of an upcoming recession. Now is the time to strategically invest in benefits that will help your employees thrive financially, such as:

  • Wellness spending accounts — These after-tax accounts are completely funded by employers and allow employees to allocate money for benefits and expenses they want and need.
  • Emergency savings accounts — Some employers offer after-tax contributions to employee 401(k) or depository institution accounts. These contributions can be matched or fixed.
  • Paid time off conversion — Consider giving employees more flexibility in how they use their paid time off by converting unused hours into cash.

By acting now to implement benefits solutions to address inflation’s impact on your employees you can maximize retention and help employees feel confident in their financial wellbeing.

2. Are you protecting your bottom line?

Many employers’ budgets are shrinking due to the current economic downturn, and you may have fewer resources to allocate to employee benefits at a time when employee expectations remain high. To protect your bottom line while meeting your workforce’s needs, take all your benefits options into account. Keep the following considerations in mind as you strive to reduce your benefits spend:

  • Fully insured versus self-insured plans
  • Preferred provider organizations (PPOs)
  • Health maintenance organizations (HMOs)
  • Point-of-service (POS) and high-deductible health plans (HDHP)
  • Health savings accounts (HSAs)
  • Health flexible spending accounts (FSAs)

Thinking outside the box will allow you to better provide employees with cost-effective, comprehensive benefits packages that won’t break your budget.

3. Are you prepared to maintain compliance in 2023?

Maintaining compliance is key to benefits success, but it’s easier said than done. To get prepared, ask yourself the following questions as you gear up for the coming year:

  • If you're an applicable large employer under the Affordable Care Act, do you have an efficient system for administering the requirements of the Act?
  • Are you familiar with the various types of employee leave that some states require, such as paid sick leave, family leave, jury duty leave, voting leave, bereavement leave and domestic violence leave?
  • Do your employees work in a state or locality that mandates leave? If so, is the time off paid or unpaid?
  • Do you know about the new federal laws designed to relax 401(k) standards?
  • Did you know that a number of states, including Illinois, Oregon, California and Connecticut, now require that employers offer a qualified retirement savings plan? Employers without such plans must participate in their state's auto-enrollment, payroll-deduction Roth IRA program.

If you answered “no” to any of the above questions, you may want to check out our annual compliance webinar, Employer Legislative Update: The Year in Review & What’s to Come in 2023.

While the answers to these questions can kick off your benefits planning for 2023, they’re just the tip of the iceberg. For more in-depth guidance as you navigate annual planning, connect with our team of experts at CBIZ Employee Benefits.

Rethinking Your Employee Benefits Strategy for 2023? Consider These 3 Key Questions https://www.cbiz.com/Portals/0/Images/Hero-FinancialMgt.jpg?ver=UnsSit70b_R8NwVSE8-21Q%3d%3dIn the past, if you provided health insurance and retirement options, your benefits were considered competitive. Now, the pressure is on employers to supply more diverse options. 2022-11-04T17:00:00-05:00In the past, if you provided health insurance and retirement options, your benefits were considered competitive. Now, the pressure is on employers to supply more diverse options.Employee ManagementEmployee BenefitsYes