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November 14, 2022

Employee retention is a serious issue that employers in the hospitality and food service industry are facing today and as businesses recover from impacts of the pandemic, labor shortages still threaten the progress. According to the Bureau of Labor Statistics, the industry has an annual turnover rate of 73.6%1, much higher than any other industry. 

As the hospitality industry focuses on overcoming labor shortages ahead of the holiday season, many are turning to employee benefits as a strategic incentive to attract and retain talent. According to a recent survey by Joblist2, a job search website, 38% of hospitality workers had no intention of returning to the industry, citing a desire for higher wages and more benefits than the industry can support. About 45% said they wanted higher wages and 29% wanted better benefits.

For employers in all industries, however, rising health care costs have unfortunately been a common trend during employee benefit plan renewals this year. This is largely due to several factors from the start of the pandemic and beyond.

According to another recent study, major employers, where rates are set individually by carriers, expect their health care costs to jump 6% next year, compared to the average 5% increase they are experiencing this year.3

In today’s market, restaurants, and all other employers within the hospitality industry must utilize creative solutions to mitigate the rising costs of healthcare, while still providing employees with competitive benefits offerings. This includes:

1. Individual Coverage Health Reimbursement Agreements (ICHRA)

The ICHRA allows employers of all sizes to reimburse their employees for health insurance premiums and medical expenses tax-free. With ICHRA, employers set the allowance and employees choose an individual state plan that fits their needs.

Benefits include cost-effective renewals (individual plans don’t increase much from year to year), there are no minimum participation requirements, and employees have a platform to help them enroll.

2. Make Sure Plan Design Is The Best

The need to create an experience that your employees will value in and out of the workplace is a win-win. Using HUB’s personality analysis tool is a powerful approach to designing and delivering employee benefits. It uses a comprehensive understanding of your employees’ true priorities to develop a truly customized benefits plan that improves the quality of the employee-employer experience and helps you stay ahead of the competition for talent.

3. Explore a Professional Employer Organization (PEO)

A PEO helps manage a company’s HR operations. The PEO handles payroll, provides employee benefits, HR technology and compliance.

For smaller employers, PEOs underwrite health insurance and if the demographics are favorable, can save significant premium dollars. For businesses without the right HR infrastructure and/or employees in different states, a PEO is ideal for helping with state-by-state complexities around mandates and taxes.

4. Voluntary Benefits 

Offering voluntary benefits can help manage workforce gaps in the hospitality industry and attract long-term staff. Whether employer-sponsored or not, voluntary benefits have value for workers in this highly competitive job market. Here are some options to consider:

It’s also very important for employees to be aware of all of their health care options, as those over 65 may find it more affordable to look into Medicare and purchase a supplemental plan instead of taking out employer-provided coverage.

Above all, shop at the market. Working with an experienced insurance advisor gives you the opportunity to check out markets that might not otherwise be available to you.

What are the 3 strategies used to promote health?

The basic strategies for health promotion identified in the Ottawa Charter were: advocate (encourage factors that promote health), enable (enable all people to achieve health equity) and mediate (engage across sectors).

What are some strategies to promote health? Health Promotion International identifies five key areas of action for health promotion:

  • Redirect health services. …
  • Create a supportive environment. …
  • Develop personal skills. …
  • Strengthen community action. …
  • Building a healthy public policy.

What are the 3 key strategies of the Ottawa Charter for health promotion? It includes five key areas of action in health promotion (building sound public policy, creating a supportive environment for health, strengthening community engagement for health, developing personal skills and reorienting health services) and three core HP strategies (to enable, intervene and advocate) .

What are the 3 strategies for health promotion?

The small circle stands for three basic strategies for health promotion, “enabling, intervening and advocating”.

What are the 3 principles of the Ottawa Charter? A stable ecosystem. Sustainable resources. Social justice and equity.

What are management strategies in healthcare?

Strategic management in healthcare is the process of defining the future of your organization, setting goals that will move you toward that future, and determining the major projects you will undertake to achieve those goals. It also includes maintaining the focus of this strategy over a period of three to five years.

What is an example of strategic planning in healthcare? For example, if providers develop a forward-looking strategy based on an expected nursing shortage in the coming years and that shortage is less severe than expected, a flexible strategy would include a plan to reallocate resources to other areas.

What are the 5 types of strategic management? The five types of strategic management, listed from simplest to most complex, are linear, adaptive, interpretive, expressive, and transcendent. These five types of strategic management represent a continuum of organizational focus and performance.

What are the 4 management strategies? The four phases of strategic management are design, implementation, evaluation and change.

What are the management of strategies?

Strategic management is the continuous planning, monitoring, analysis and evaluation of all the needs that an organization needs to achieve its goals. Changes in the business environment will require organizations to constantly evaluate their strategies for success.

What are the three management strategies? Strategic management involves 3 steps: planning, implementation and monitoring.

What is strategic management and examples? Strategic management requires setting goals for the company, analyzing the actions of competitors, reviewing the internal structure of the organization, evaluating current strategies, and confirming that the strategies are being implemented throughout the company. Strategic management can be prescriptive or descriptive.

What are the 4 mandatory benefits for an employee?

Statutory benefits, also known as mandatory benefits, are rights that employers are required by law to provide to their employees. Common examples include benefits such as paid annual leave, parental leave, worker’s compensation insurance, and paid sick leave.