Employee Benefits Your Nonprofit Clients Should Consider in 2023
Nonprofit organizations count on dedicated employees and volunteers to successfully do the great work they set out to accomplish. And, just like many other industries, the nonprofit sector is struggling with the ongoing labor shortage and tighter-than-ever budgets.
To help attract top talent and reduce employee turnover, many organizations are offering more competitive employee benefits packages. But what benefits are most important and should be considered by nonprofits?
Group health insurance
At the very least, organizations should consider some type of basic group health insurance plan. If it’s affordable to do so, then other coverages such as prescription, dental and eye care can also be added. The fact is, employees see benefits such as health insurance as a very important value because it offers them rewards that go beyond their paycheck. More budget-friendly health benefits can include a co-paid health insurance plan where the employee contributes to the premium.
Paid time off
Even though paid time off (PTO) policies are not required by the Fair Labor Standards Act, they have become a highly valued employee benefit because it allows employees to take paid time off and use it any way they like — sick days, vacations, birthdays, personal days, etc. And while PTO costs an organization money on the front end, it should be viewed as a return on their investment, helping reduce employee stress and absenteeism, as well as increasing productivity from well-rested workers.
“Employees value the flexibility that PTO provides. It gives them the option of using paid time off when they most need it — whether to care for a sick child who can’t go to daycare or to take a vacation with the family at the beach.” (Source: The Balance)
Retirement benefits
Retirement benefits come in different types of programs. For nonprofits, however, more common retirement plans are the 403(b) and 457. Today’s 403(b) plans are specifically designed for universities, hospitals and religious organizations, allowing employees to have a percentage of their paychecks deposited into an account — pre-taxed. The 457 plan, while more common among state and local government agencies, is also used by qualifying nonprofits.
Incentives and rewards
Employee benefits can include incentives and rewards for things such as recognizing an accomplishment or achieving a goal. These types of benefits don’t always have to be in the form of a monetary reward. For example, organizations can offer a well-deserved employee an extra day of vacation, their birthday off, or even host a company party or outing.
Other employee benefits
Other types of employee benefits that are growing in popularity and can be a good option for nonprofits include:
- Remote work flexibility
- A four-day workweek
- Eyeglass and prescription discounts
- Continuing education allowances
- Life services such as financial counseling and help lines
- Access to organizational resources such as office equipment
Conclusion
Your nonprofit clients don’t need to go into debt or spend a lot of time putting together an attractive menu of employee benefits. In addition to fair compensation, creating a benefits package will generally require setting aside the time needed to determine the best options for the organization and its budget.
When speaking with your nonprofit clients, remind them that while employee benefits packages are a good way to attract new workers and retain your current staff, miscommunications and errors can happen. When issues regarding employees and the administration of benefit plans do arise, lawsuits against the organization may result. Discussing the importance of employee benefits insurance and social service professional liability insurance can help protect them from unexpected costs and financial instability.
About Charity First
The incredible services that nonprofits provide come with unique and complex risks that are part of their everyday work in serving the elderly, children and other vulnerable populations. It is why Charity First is committed to providing our retail partners across the country with best-in-class underwriting, consistent and responsive service, and risk management services that include workers’ compensation coverage and accident insurance for volunteers and participants. To learn more, please contact us at 800-352-2761 or marketing@charityfirst.com.