Welcome to the July edition of HR Hot Topics! As we dive into the heart of summer, many organizations face a surge in time off requests. This month, Jodi Schafer explores essential employee benefits, focusing on time off policies and their impact on small businesses. With insights from the latest Society for Human Resource Management (SHRM) survey, his blog post aims to provide valuable information to help you manage these benefits effectively.
The Importance of Employee Benefits: Employee benefits are a critical aspect of job satisfaction and retention. In the workplace, understanding and implementing effective benefits can make a significant difference in employee morale and productivity. The SHRM survey offers a comprehensive overview of the benefits small employers (<99 employees)in the Midwest are providing.
Time Off Policies: Time off policies can vary widely among employers. Some prefer separate vacation and sick banks, while others opt for a combined PTO system. According to the SHRM survey, 98% of small employers offer a vacation bank, 95% provide a sick bank, and 75% have a combined PTO system. These policies allow employees to manage their time off flexibly, catering to their personal needs and ensuring a healthy work-life balance.
Leave Payout and Cash Out Programs: An interesting finding from the SHRM survey is the prevalence of leave payout programs. About 57% of employers offer a payout for unused leave at the end of employment, often tied to specific conditions like providing adequate notice and return of company property. Additionally, 20% of employers allow employees to cash out unused leave at the end of the year, providing financial flexibility for employees during expensive times like the holidays.
Leave Donation Programs: Compassionate leave donation programs are gaining traction, with 15% of employers implementing policies that allow employees to donate their leave to colleagues in need. This can be a lifesaver for employees facing unexpected personal crises, fostering a supportive and caring workplace culture.
Paid Leave Types: Small employers are also recognizing the importance of various types of paid leave. The SHRM survey indicates that about a third of small employers offer paid parental leave, and 88% provide paid bereavement leave. These benefits support employees during significant life events, contributing to their overall well-being.
Health, Dental, and Vision Insurance: While medical insurance remains a costly benefit, it’s crucial for attracting and retaining employees. The SHRM survey shows that 97% of small employers offer dental insurance, and 89% provide vision insurance. Additionally, 90% include mental health coverage, and 82% offer employee assistance programs, highlighting the growing emphasis on comprehensive employee health support.
Conclusion: As we navigate the complexities of employee benefits, it’s essential to stay informed and adapt to changing needs. With the addition of benefits expert Gin Gibson to our team, we are now better equipped to assist you in evaluating and optimizing your benefit programs. Summer might be the perfect time to review and enhance your offerings, ensuring a happier and more engaged workforce.
For detailed statistics and insights, refer to the SHRM data and tables provided to subscribers to our mailing list (you can subscribe in the link below). Stay tuned for more valuable HR insights next month!
