For many businesses, hiring seasonal employees is a common strategy. In industries with peak demands during certain times of the year, such as hospitality, retail, and agriculture, bringing on temporary help may be the best way to manage workloads. When it comes to offering group benefits, however, employers may wonder what makes sense for a workforce that is not permanent.
Although group benefits are effective for attracting and retaining long-term employees, they can also play an important role in seasonal hiring strategies. You can balance costs, compliance, and employee satisfaction with the right approach.
Why Group Benefits Are Important for Seasonal Employees
Seasonal employees typically work for six months or less and begin their employment periods at approximately the same time every year. Although not on your team year-round, they still want to feel secure and valued. Even modest options can help show these workers they are part of the team. Offering group benefits to seasonal employees can benefit your business in several ways, including:
- Attracting stronger candidates: Seasonal employees are more likely to choose employers who provide perks beyond wages.
- Boosting retention and loyalty: Workers who feel supported are more likely to return for consecutive seasons. This can save you the time and expense of continually rehiring.
- Enhancing brand reputation: Employers that treat their seasonal staff well often build better reputations in the community, with a potential for full-time recruits.
Benefits to Consider for Seasonal Workers
Strike a balance between cost and value by tailoring benefits to your workforce and budget. If full health insurance is not required or are not practical for seasonal employees, you have other options for meaningful benefits, including the following:
- Limited-duration health plans: These short-term plans can provide coverage during the employment period with no long-term commitment.
- Supplemental insurance: Benefits such as dental, vision, and hospital indemnity insurance can be affordable ways to support employees.
- Wellness programs: Gym membership discounts, telehealth access, and employee assistance programs can boost morale among seasonal workers.
- Voluntary benefits: A no-cost solution for employers is to offer workers the option to buy into group plans at their own expense.
- Retirement plans: Participation in a 401(k) plan can be particularly attractive for returning workers.
Cost Management Strategies
Cost is one of the main challenges in providing group benefits to seasonal staff. Consider these strategies for managing expenses while offering support:
- Offer a group benefits package for seasonal employees that is scaled down from the package offered to permanent staff.
- Work with insurance carriers who specialize in flexible products designed for industries with temporary staffing needs.
- Give employees the option of contributing to certain benefits without the company taking full financial responsibility.
- Focus on small perks, such as employee discounts and wellness stipends for a cost-effective way to inspire loyalty.
ACA Compliance for Seasonal Employees
Under the Affordable Care Act (ACA), certain employers are required to offer health insurance to employees. Seasonal workers are treated differently from permanent workers. ACA compliance can be complicated, and our experienced agents understand the nuances. Our agents at Safe Harbor Financial Services can help you determine the requirements for your seasonal hires under current laws. Call us today at (949) 973-4322.