Any business owner knows that providing employee benefits can be an essential part of attracting and retaining top talent, and help you grow your business. For prevailing wage contractors, offering benefits and staying compliant can be a bit complex and somewhat intimidating. What if there were options outside of major medical and retirement plans that seem a little less…scary? In this post, we’ll explore some ancillary benefits for employees that can utilize your fringe dollars effectively and help you dip your toe into offering benefits rather than fully diving in.

Life Insurance Benefits

Life insurance is a valuable benefit that gives employees peace of mind by ensuring that your employees will have support should unexpected events occur. For prevailing wage contractors, offering group life insurance policies can be a great way to use fringe dollars effectively. Group policies are often more affordable than individual plans, and employees can typically qualify without a medical exam. These benefits can take the form of a set amount of protection or can be life insurance that equates to an employee’s annual salary. By offering this benefit, contractors can show their dedication to their employees’ well-being while maximizing their fringe benefit dollars.

HRA Medical Plans

A Health Reimbursement Arrangement (HRA) is an employer-funded health plan that reimburses employees for medical expenses. This type of plan can be an excellent option for prevailing wage contractors since they can use the fringe dollars to cover the plan’s cost while also providing their employees with valuable health benefits. HRAs can also be customized to meet the specific needs of contractors and their employees. For example, contractors can set up different tiers of reimbursement based on the employee’s role within the company.

Paid Time Off

Another benefit that can help you allocate your fringe dollars effectively is paid time off. Paid time off can ease employees’ financial burden by providing time away from work without sacrificing wages. This benefit can be used for personal time for a vacation or time off following an illness or other unexpected event.  Offering PTO can help employees’ work-life balance, providing contractors with happy, healthy, and well-rested employees!

Supplemental Unemployment Plans

Supplemental Unemployment Plans (SUPs) can be an excellent benefit to your employees, particularly when uncertain times, such as inclement weather or natural disasters, can lead to unexpected layoffs. These plans can provide additional benefits such as employee training and support, wage supplements during seasonal downtime, and more. Just another opportunity for prevailing wage contractors to provide an added sense of security to their employees and offer a creative way to use fringe dollars that may not have been allocated for other types of benefits.

Finding the right way to allocate fringe dollars can be a daunting task for any prevailing wage contractor. Fortunately, offering benefits such as life insurance, paid time off, HRA medical plans, and supplemental unemployment plans can improve employee satisfaction, loyalty, and retention rates. Ultimately, taking care of your employees will help you succeed and grow your business in the long run. Whether exploring new employee benefits or looking for ways to consolidate your existing investments, it’s worth considering all available options.

Want to learn more? Contact the Beneco team to see if we can put together a plan that can maximize your fringe dollars, stay compliant, help you grow your business, and save you money!