The “Ace” in your benefit plan
Did you ever play the card game “Pass the Ace” as a child? You get one card and three chances to NOT be left with the Ace at the end of the hand. Those who get the ace too often are bumped from the game until only one remains.
It’s not a bad metaphor for a benefit plan when it comes to coordinating coverage. Many times, an employer will not see the value of adding coverage because there is the assumption that the majority of the staff have spousal coverage and therefore, there is no need to duplicate the offering. This notion is false because:
· Spousal coverage is only applicable to health and dental (perhaps a health spending account).
· What happens to single employees?
· The need for life and disability insurance—the protection of employee income when they cannot work is overlooked.
· Spouses can choose to coordinate coverage, which means:
· They can participate in both plan offerings for broader coverage.
· They can choose one plan over the other and “waive” health and dental in one plan.
This notion ends up costing employers more when it translates into employees moving on to another employer WITH a benefit package because they need this coverage. And as we know, the loss of one employee typically costs an employer 2.5x that lost worker’s salary to replace them.
In the “Pass the Ace” card game, it’s the person with the King that stops the round and wins the hand. Still, you don’t need the King, just the best cards to win the game.
When considering a benefit package, consider it from a best practices point of view:
· Corporate budget
· Tax advantage
· Compensation alignment
· Culture endorsement
· Employee engagement
· Increased productivity
· Emotional wellbeing
· Talent retention
In this frame of mind, you will build a winning hand.
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