Perhaps more than in any other industry, nonprofit organizations are strongly vested in keeping their employees happy, healthy, and productive. After all, nonprofits have some of the highest turnover rates in the US workforce, which can cost 20% (or more depending on the skillset being replaced) of total salary to replace. In addition, “on the ground” employees are often the lifeblood of an organization, deeply enmeshed in the communities being served. Losing a valued staff member can mean losing years of historical data, information, and relationships.
One of the most important ways a nonprofit can show investment and commitment to its employees is through a well-designed and affordable healthcare plan that takes into account the unique needs and wants of staff member. But often times this is easier said than done, especially in the face of restricted overhead budgets. However the advent of the ACA has brought about innovative alternatives to the status quo of traditional healthcare. More opportunities for self-funding are on the table, which allows nonprofits to save money, provide better benefits for employees, and have more control over how benefits are used and covered. But with so many new options, it can be difficult to know where to begin the process of determining the best approach for your organization.
In our opinion, the best place to start is with the very people who will use healthcare benefits – your employees. If you’re serious about looking in-depth at your current offerings and exploring options that may better serve your staff, opening up an honest dialog with your team and delving into what is working – and what is not – for them will provide you with valuable insight on your current healthcare plan. In turn, this information will give you the fodder you need to approach your board and your broker with how your current plan needs to evolve to better meet the needs of your staff. For detailed ideas of how to start an open and honest discussion with your employees, download our Best Practices For Engaging With Your Employees About Healthcare, which includes a sample survey that can be distributed to employees to better understand what they need from a healthcare plan.
The response you receive from both your board and your broker will be telling. If your board is resistant to change, you may need to find a different approach to win them over. But if your broker is resistant to the idea of change or brainstorming creative options, then you may need to find a new broker. At the end of the day, your relationship with your employees and their wellbeing should be the priority over your relationship with your broker, no matter how longstanding it is.
Learn about the best practices you should use to
effectively engage your employees by downloading our guide:
The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources believed to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose