Employee retention is a significant issue that employers in the fashion and apparel industry are facing today, and as businesses recover from impacts of the pandemic, labor shortages still threaten the progress. The apparel manufacturing industry is highly labor-intensive and attracting and retaining skilled workers is pivotal to the success of your organization.
Turnover directly affects production and productivity, so taking the steps to minimize this proactively results in improvements of productivity, reduction of recruitment costs and the overall impact on your bottom-line. The right combination of voluntary benefits can differentiate fashion and apparel companies in their struggle to attract and retain talent long-term.
At the same time, while employers are working hard to manage rising health care costs, offering voluntary benefit solutions is a win-win strategy for employers and their employees. A customized voluntary benefits program offers employees the choice they want and helps them close coverage gaps, without impacting your bottom line. Historically, ancillary benefits have provided companies with a cost-effective and personalized suite of products. In today’s environment, where employees and their families are likely to incur more out-of-pocket expenses, voluntary benefits serve as a means to empower the employee.
Some traditional advantages of voluntary benefits seem more obvious, such as the following:
• Attracting and retaining top quality employees;
• Protecting the financial health, wellness and security of your employees;
• Adding benefits to your employee benefits program without adding to your costs;
• Helping you address the rising costs of major medical health insurance.
Funded by the employer or not, voluntary benefits have value to workers in this highly competitive labor market. Here are some options to consider:
• Supplemental health: Employees are often stretched to cover out-of-pocket medical costs. Supplemental health coverage pays benefits to members directly for treatments related to injuries, the costs of hospitalization or a critical condition that is covered.
• Accident insurance: If an employee or the employee’s family members suffer an accident away from the jobsite, accident insurance helps pay for treatment for injuries. This coverage can help to reduce workers’ compensation claims, as the funds enable employees to pay for their own or their family’s treatment (rather than delaying it) if they are hurt.
• Digital benefits wallets: Easy access to benefits doesn’t just help employee wellness but boosts engagement. So-called digital “wallets” are a representation of benefits details, with a “card” for every offering on a smartphone. These cards can help workers access everything from 24/7 telemedicine to mental health and caregiver support services and discounts for prescription drugs.
• Legal services benefits: Group legal plans ensure access to professional legal help for everything from traffic tickets and small claims to landlord and immigration issues. These benefits are good for employers on multiple fronts beyond recruitment — additionally they help reduce presenteeism and absenteeism.
• Early wage access: These programs give employees access to earnings that have accrued between paychecks. Early wage access can be an attractive option for food and beverage workers to help avoid predatory lending and other practices that can hurt their finances.
Offering voluntary benefits can help to manage the labor gap in your organization as well as attract long-term staff. Work with your insurance advisor to offer a strategic and competitive benefits package.
Frank DeLucia currently serves as senior vice president of Hub International Northeast, a leading full-service global insurance brokerage. Frank can be reached by phone at (212)338-2395 or at frank.delucia@hubinternational.com. For more information on Hub, visit hubinternational.com.
