Some leaders wonder what types of employee benefits packages should be offered in nonprofit organizations. In many cases, the problem is not only what, but at what expense and how do you prioritize?
There are some scenarios in which nonprofit organizations are evaluating the options that they have in this regard. Keep in mind that there are several ways to go about this process, and it’s important to understand your options.
Today, we will give you the 101 on the value of offering great employee benefits in your nonprofit.
The importance of benefits for your employees
If you are running a nonprofit organization, it makes perfect sense that your organization aims to provide the best possible work environment for all employees. A nonprofit's core focus is to help, uplift, and support people when they are in need.
Your employees are the heart of your organization, and you want to make sure that you can keep them as happy as possible. If you have a talented workforce, you want to do everything you can to keep them with you, and this is a good way to contribute to that cause.
You have to consider several things before you choose your provider. Some of the main things to keep in mind include the objectives of the nonprofit and the budget. These are all factors that will play a major role in how you decide to approach this process.
The direct purchase option
This is not usually ideal unless you are planning to pay for insurance for each employee individually. There is no option to purchase this type of plan in bulk. This is often the least viable option in most cases where you are looking to get insurance for several employees. Not to mention the administrative nightmare of it all.
The Small Business Health Options Program (SHOP)
If you have less than 50 employees that work full time, you can be eligible for this program. The best thing about this plan is that it has now been expanded to as many as 100 FTE in several states.
The broker option
If you are not eligible for the program, you can always go directly to a broker, and they will help you find the best possible insurance options based on your needs and budget. This is the most traditional option.
The PEO option
The professional Employer Organization service is ideal for any organization looking to delegate the protocols related to the payroll, benefits, assistance, and compliance of their business. You can also find that many PEOs will provide heavy negotiating power to the equation to help you acquire the best plans at the best rates.
Consider introducing affordable perks in your nonprofit
If you want to ensure that your nonprofit has a welcoming environment, you can always get creative with affordable perks for your employees. For example, you could offer free snacks on casual Friday or even free snacks for every lunch break if you feel that you can afford this type of approach.
You could also offer onsite health services from a healthcare professional that can visit the business once or twice a month for general checkups. You could have a professional yoga instructor provide relaxing yoga sessions for your entire workforce on a specific day of the week.
What are the most commonly requested company benefits?
Before you decide to start giving benefits to your employees, it’s a good idea to consider which ones are most likely to be expected. The number one request in most cases is health insurance, which is closely followed by paid time off and performance bonuses.
Outside of that, some employees seem to prefer being paid for their sick days, but this is not as commonly expected or requested as the benefits we mentioned above. With that said, the types of benefits that some employees will request also depend on the kind of organization you are running.
The ACA and healthcare benefits
The Affordable Care Act has no requirements regarding the offer of healthcare benefits for smaller organizations (under 50 employees). The good news is that you are rewarded for doing so by being considered for eligibility to get small business health care tax credit.
If you have less than 25 full-time employees and pay less than $50k per employee, you will be eligible for this tax credit. In case you are not aware of the parameters. An FTE, or full-time employee, works 30 hours or more every week or a total of 130 hours monthly or more.
In case you have more than 50 full-time employees do, you will be subject to a mandate called the Employer Mandate. This means you could be required to offer minimum value health coverage, or you would alternatively end up paying the penalty.
If you choose to give your employees the minimum value health coverage, you need to be aware of the specific federal government standards to meet.
Some of the required employer benefits include:
· Pre-existing conditions
· Cap removal for lifetime benefits
· Workers compensation
· Family and medical leave
· Paid sick leave
Choosing the best benefits provider
These are just some ideas that you could consider, but there are plenty of ways to make this work. Just be creative and think of perks that fit your work environment.
Seek professional advice
Sometimes you may feel that this is going to be a process that will take too much of your time on research. If this is the case, you could benefit from choosing a company that offers to look into this for you, and this is going to help you make an informed decision based on what is available.
Sometimes the best route to make sure that something works to your benefit is to invest in helpful and experienced service.
Final thoughts
The decision of giving your nonprofit organization employee benefits is one that is always going to have a positive effect. It’s important to remember that happy employees who feel secure in their position will be working hard to ensure that they are doing their job with optimal efficiency.
For a first-class Benefits experience that will help you find the best solution for your needs, let's schedule some time to talk today.
About The Mission HR
The Mission HR is a leading partner in the PEO, HR, payroll, and benefits outsourcing marketplace. We provide a valuable service for small and medium-sized organizations and government contractors, serving as a trusted partner in integrated human resource (HR) compliance, risk management, employee benefits, employment practices liability insurance (EPLI), and payroll processing.