The Workers’ Benefits Menu Debate
Health insurance for Fido? Emergency roadside assistance? Help with your divorce? Employers are increasingly willing to subsidize these and other nontraditional benefits to keep workers happy. According to a recent survey by Hewitt Associates, a management consulting firm, companies are expanding their portfolio of perks, buying services in bulk and passing them on to employees at a discount of 20% to 50%.
MAURA E. MONTELLANO spoke with several workers about this new business trend and about other benefits or services they would like to see companies offer.
LAURA SKOKANDIC
41, real estate appraiser, Diamond Bar
My company offers a variety of benefits, but I don’t use any of them. I take cash instead because I am on my husband’s benefits plan. So he covers me and we get a little extra money each month.
I would like to see companies offer investment counseling. We have a deferred compensation plan and there are different options with it, but the information you get about the risks is limited. If they wanted to spring for financial advice, that would be a worthwhile benefit. Offering alcohol and drug treatment for family members as well as employees also would be good.
It’s probably better for them to spend more and focus more on the basic benefits like medical and dental before they start adding other things.
BRIAN GRANVILLE
30, law clerk, Los Angeles
I would definitely be interested in benefits like car financing and Internet access. People spend a lot of time looking for these services, either on their own time or even company time, so why not bring it to the employee? This ends up being good for the employer because employees are more productive and happier. As long as it’s not mandatory to choose any of these services it’s a good thing. The more choices employees have, the more information they have, the more empowered they feel. People want to feel that their company is interested in them and their needs.
Offering diverse benefits is probably good for small businesses because they can’t offer what big companies do. So instead of a bonus at the end of the year, they can offer special discounts for a variety of services throughout the year. Anything having to do with the necessities of life--any kind of insurance, transportation, rebates on mileage, Internet access--is good business.
Employers should also work closer with the health insurance companies in providing better information about the types of plans they offer.
PAUL ROHSKOTHEN
24, personal financial analyst, West Covina
I would rather be financially compensated. Instead of having the money taken out of my check and going into something I don’t necessarily need, I would rather have it and decide where to put it, whether it be my 401K or some other investment. I prefer to be in control of my money.
Although some of the benefits are pretty sensible, like roadside assistance, Internet access and loans, others are frivolous.
Instead, I would like to see more companies offer programs for employees to learn how to become debt-free and on track to financial independence. A lot of people are heavily in debt and don’t know their way out. Employees are less stressed out and far more productive when they are financially sound. The company would look like a hero for bringing in that kind of service. Companies should offer counseling for families, for couples both married or common-law. They could offer counseling for substance abuse as well.
When it comes to health insurance, there should be more information and education offered by the employer. Employees are too often left to their own devices with one-hour sessions and a packet of paperwork.
Legal services, for privacy reasons, should be kept out of the workplace. What if you are going through a divorce or custody battle or suing someone, maybe even your employer?
TERRILINE CLEVELAND
34, administrative asssistant, Rancho Dominguez
I think there is a certain array of added benefits that could be useful but some are overkill--like pet insurance. I think offering legal services is a wonderful concept.
Company-sponsored child-care facilities and elderly care are good ideas. Employees end up taking a lot of time off because they lack adequate child care. It could either be at the workplace or at another site, but ideally having it closer is better. Parents wouldn’t have to worry if they are running late because their child would be in capable hands just a few floors down.
Instead of less-essential services, I would prefer that a company offer a credit union that already has benefits like home and auto loans.
Personally, I’d rather be financially compensated. Working class people would prefer to have a few extra dollars in their pocket than to pay into a benefits package they might not use.
