The right benefits program can help with recruiting and retention

As the construction industry continues to struggle to attract and keep talent, compensation is top of mind for many owners, HR professionals, and finance leaders. This includes not only wages, which are rising, but also the benefits a company provides.

There’s good reason for the focus.

While pay is primary, a recent survey by Aflac found that more than half of employees in all industries (53%) would consider accepting a job with less pay and better benefits.

Anecdotally, construction companies and contractors report employees leaving for just an extra dollar an hour. But clearly, there’s more to the equation when the cost and quality of benefits is added to the mix. Employees might not be leaving for that dollar; they could be chasing a lower medical plan deductible or a better 401(k) match.

One driver is likely out-of-pocket healthcare costs. In the same survey, Aflac found that 53% of construction employees say they wouldn’t be able to foot the bill for $1,000 in cost-sharing, compared to 50% of employees overall. Those in construction also have higher anxiety about their out-of-pocket healthcare costs than employees in general (57% versus 50%). That means that almost 6 out of every 10 employees on the jobsite are potentially stressed about the finances related to healthcare (assuming they’re covered by your healthcare plan).

Workers in construction are also paying more for their benefits than other employees. In its annual healthcare costs survey, Kaiser Family Foundation found that those in agriculture, mining, and construction contribute 23% to the cost of single coverage compared to 17% for all employees. For family coverage, the contribution rate is 34% versus 29%. So, before they even use their benefits, construction employees have seen a bigger bite out of their paychecks.

This just might be making the lure of better benefits even stronger for employees in the industry.

Given the need to continue to recruit younger people into the industry, it’s important to note that benefits are gaining in importance for Gen X. While 50% of Gen X employees indicated benefits were a must-have before the pandemic, in the latest MetLife benefits study that number had risen to 78%.

Employees across all industries don’t just want healthcare coverage. They also consider dental a must-have (73%) along with vision (70%). And three-quarters indicate that a 401(k) or other retirement plan is vital.

Sweetening the benefits pot isn’t just a matter of lowering deductibles and coinsurance or increasing the employer contribution to coverage. Benefits are expensive, and after several years of flat costs associated with delayed care during the pandemic, rates are again rising. You’ve got to consider and protect the bottom line.

The key to getting it right is finding the right partner.

That’s why Arcoro has teamed up with ABC Insurance Trust. The trust is a proven expert in employee benefits for construction, providing services exclusively for Associated Builders and Contractors (ABC) members for over 50 years. They offer access to members-only programs and plans for everything from major medical to retirement plans, helping companies design and fund competitive, cost-effective benefit programs.

In many cases, ABC Insurance Trust customers can save enough on their benefit program costs to fund an investment in the technology that supports better benefits administration or HR delivery.

Combining Arcoro’s HR technology with ABC Insurance Trust’s benefits programs and services is a smart move to help construction companies get the most out of their benefits investment.

The teams at Arcoro and ABC Insurance Trust know construction and understand the pressures and realities of the industry. They are teaming up to help companies work smarter to design, fund, and deliver the benefits programs that will help attract and retain great employees.

Want to learn more about Arcoro’s solutions for ABC members? Just click here.