Absolutely! You can divide your employee base into multiple classes or divisions, with different levels of coverage – and even waiting periods – for each of these classes.
Why would we want to do this?
Many companies have generations in their workforce with varying needs. And, the data tells us that usage patterns of benefits vary by age, health profile, family status and occupation.
Structuring your employee benefits plan to address the needs of specific employee groups offers considerable advantages to you as the employer, both financially for you and in terms of satisfaction levels for your employees.
How do we sort out the classifications?
Classifying employees will help you understand differing needs of diverse employee groups, as defined by you. Common differentiations used by many of our clients are:
- Hourly vs. salaried employees;
- Full-time vs. part-time employees; or
- Owners, vs management and staff.
Grouping employees based on commonalities helps employers better manage their plans. Our team will guide you through this process strategically to understand to help you understand employee demographics and the potential changing needs within the groups and claims patterns.
What are the other upsides?
Managing your employee benefits plan by classification can help you budget for your business, by spending your benefits dollars where they have the most impact at the lowest cost to you.
In addition, this strategy will also help you use your benefits plan as a talent attraction and retention tool for top talent.
Providing different classes of coverage, for instance based on experience or seniority, can help retain employees, boost their satisfaction and maintain productivity. Divisions based on skill level help make your business more competitive to recruit top talent.