Employee Benefits Issues and Solutions
How to align the security needs of employees with the profitability needs of employers.
Both, employee benefits issues and solutions are there by design, as employee benefits can and should be a valuable alignment tool, but most employers administer them as a necessary evil. The programs can range from group life insurance to group health insurance and even encompass diverse voluntary benefits geared to your employee demographics.
We use our proprietary Employee Benefits Analysis and Review—understanding that business owners have no intention of becoming benefits experts and human resources departments are generally swamped by the demands of providers, regulators, and employees. EBAR will help you determine your alignment objectives, develop the benefits alternatives to meet those objectives, analyze providers for cost and service efficiencies, and guide the implementation of each plan. We will then review the benefits plan annually to determine from a claims analysis if the plan is maintaining its financial integrity.
How to align personal finance with corporate finance for your management team.
Long-term success depends on the effectiveness and longevity of the management team. Aligning personal financial success with the financial success of the company is essential to recruiting, motivating, and retaining the most effective management team. However, highly compensated employees have become a target for increasing tax revenues and face higher income tax rates and higher restrictions on tax-advantage savings.
Employers are forced to respond, and mega-corporations use stock and nonqualified compensations strategies as alignment tools. Unfortunately, mid-market and small businesses are not in a position to share ownership and resist administration burdens. That leaves increased salary, bonuses, and perks—all of which deplete cash flow so important to smaller companies.
Providing after-tax, tax-deferred asset accumulation and stock ownership opportunities can now be implemented and managed with turnkey programs and outsourcing strategies. In addition, institutional life insurance owned by corporations has evolved into an even more highly effective funding and cost recovery tool for these programs.
These programs are designed for entrepreneurial companies with dynamic cultures as well as mature companies challenged to expand into new areas—both need more effective ways to them compete for and retain talented leaders and innovators.