HSAs: A Powerful Recruitment and Retention Tool
Health benefits packages have always been an important component of a job offer.
However, the benefits package offered at a new job has taken on new significance in recent years as health care costs have continued to climb, with no signs of stopping, and more and more of that cost is being shifted onto consumers. Benefits are now part of a competitive package that employees can use to their advantage recruitment and retention.
In a recent Further survey, when consumers were asked how important the benefits were in deciding to accept a job offer, 24% of employees said this was the most important factor, followed by 46% who reported it was very important. Added together, these high numbers indicate that job candidates are increasingly viewing benefits, including Health Savings Accounts (HSAs) as the most, or one of the most, important factors in accepting a new job.
In 2018 and 2019 surveys of employers, when Further asked how significant the following objectives were for offering health spending and savings accounts, employers reported a significant increase, year-over-year, for:
- employee retention (from 28% to 57%), and
- employee recruitment (from 22% to 50%).
Comparing the data from both employer and employee surveys show that both groups value benefits packages. Competitive benefits offerings, including those that feature HSAs as a way to pay for health care costs today, should increasingly be positioned as a competitive value-add.
One way to show a deeper level of commitment to employee health, and in turn employee retention, is to invest in it. How? By contributing funds to employees’ HSA accounts, either monthly or annually. In fact, 49% of employees polled said yes, their employer contributes funds each month to their HSA, and 41% polled said their employer contributes funds annually. This investment proves to employees that their health is valued, important, and supported in the workplace. It also encourages employees to contribute their own funds to their HSAs, increasing the money available to them to pay for health care costs both now and in the future.
For instance, one employer joined Further as a national group in January 2019, electing not to contribute funds to their employees’ HSAs. In 2020, the company made a change and contributed $400 annually per employee HSA. The result? Enrollment nearly doubled. These numbers speak for themselves.
It’s never too late to start investing in your employees’ health and wellness. Employers need to continue to see the benefits of HSA and continue (or even start, in some cases) leveraging HSAs as recruitment and retention tools, while simultaneously investing in these accounts to create healthier, happier employee populations.
