As a Northern California staffing services firm, we know that with the rising cost of healthcare, many local employers are feeling the pinch. On one side, you want to be able to attract and retain top performers with a generous compensation package that includes insurance. On the other hand, those insurance costs are eating up more and more of your profits each year. What can you do? Here are some ideas to help you and your employees cope with this seemingly endless issue:

1. Take the “we’re in this together” approach.

Don’t just jack up the amount your employees need to contribute to their healthcare plans out of the blue, without communicating with your employees. If you need to increase contributions, explain exactly why. Demonstrate where the costs have been, where they are now, and where they are likely going in the future. Give them numbers, facts, and percentages so they understand how these costs are impacting the company’s finances and overall health.

2. Let your employees’ voices be heard.

Not every employee has the same concerns when it comes to healthcare. For instance, those with small children will have different needs than someone who is single with no kids. So before you switch plans, make sure you consult with your employees first. Depending on the size of your company, consult with each one or pull a representative cross section (singles, parents, seniors, etc.) in order learn about the issues and concerns they have when it comes to healthcare. Armed with this insight, you and your team will be able to better choose plans that best serve your company and the people who work there.

3. Take a different approach to sharing the cost.

For instance, rather than having each employee pay the same percentage of their premium each month, create a sliding scale where those with lower salaries pay a smaller percentage and those with higher salaries pay more. Those with the highest salaries could even pay 100% of their own premiums.

4. Create a wellness program.

According to the U.S. Center for Disease Control, chronic illnesses, such as heart disease, strokes, and diabetes, are among the most common, costly, and preventable of all health problems in the U.S. The key word being “preventable.” In fact, many times these illnesses are simply caused by poor choices, namely lack of physical activity, bad nutrition, tobacco use, and excessive alcohol consumption.

To combat chronic illness, create a wellness program at work. While you can’t ensure all of your employees are healthy all of the time, you can encourage participation in a wellness program. Studies have shown that wellness programs not only help you to cut down on your healthcare costs, but they also boost employee morale, camaraderie, and loyalty.

Benefits are a core part of compensation for employees. But, due to rising costs, the reality is that many organizations must implement changes in order to survive. When doing so, make sure you’re respectful and communicate openly and honestly so that your employees retain confidence in the company, rather than feeling like they’re being railroaded.

If you’d like additional help dealing with HR and staffing issues, please contact Pacific Staffing. Our Northern California staffing services firm can offer the insight and expertise to help you successfully manage your staffing & HR function.