Innovative Benefits Help Win Talent War

INNOVATIVE NEW
BENEFITS THAT WILL HELP
YOUR COMPANY WIN THE
TALENT WAR
EXECUTIVE SUMMARY 2
WHAT MAKES BENEFITS COMPELLING 2
NEW FRONTIERS IN HEALTH AND WELLNESS 3
EDUCATION BENEFITS GET SMART 4
CORPORATE SOCIAL RESPONSIBILITY GOES HIGH TECH 6
H E L I O S W H I T E P A P E R S E R I E S

Helios White Paper | ©2014 All Rights Reserved. 2
EXECUTIVE SUMMARY
In order to retain and engage top talent, organizations need to look beyond traditional
benefits to find modern solutions that support and develop today’s workforce. This paper
will detail several innovative solutions or twists on old voluntary benefits that answer the
following mandates;
• Employers must think out-of-the-box now, in ways never before required, to attract
and retain top talent,
• Technology has had a dramatic impact on the way that benefits are delivered and
utilized,
• Employees seek simple, payroll-based financial planning that encompasses major life
events, and
• The definition of “best place to work,” is expanding beyond traditional measures of
pay and benefits.
Of all the benefits we discuss, special emphasis should be placed on education as these
benefits embody the new paradigm by providing the greatest impact. The most in
demand employees want to be developed through education benefits that work for them,
their families, and society. Like any good employee initiative, the benefits of supporting
education are symbiotic and self-reinforcing. In addition to contributing to the future
education of children, when employers invest in education and professional development
of employees, they improve the aptitude of their own personnel. The employee is rewarded
with skills and competencies that will benefit them throughout their career. And of course
society benefits from a better educated labor force. When you’ve reviewed our list of most
innovative benefits, the checklist we include at the end will help your company use the
information to formulate a winning benefits strategy that’s right for your organization.
WHAT MAKES BENEFITS COMPELLING
There is a war for top talent! As the global economy rebounds from the stagnating 2008
depression, an improving labor market is giving employees more leverage in the ongoing
competition for top professionals. Employers in a number of the leading industries are
acutely aware of this shift. Smart companies like Google, Facebook, Apple, and Netflix
are looking to redefine their employee value proposition through competitive voluntary
benefits and other perks to win the battle for the best talent in the marketplace. MetLife, a
national carrier for voluntary benefits, compiles annual data regarding benefit trends from
over 1,000 participants and their most recent report underlines the growing importance
of highly differentiated and personalized benefits. In 2012, 28% of respondents said that
benefits were an important factor in choosing their current employer. In 2013, that figure
had jumped to an astonishing 43%.1
Healthcare is just table stakes; more than half of
2012 2013
10%
30%
50%
28%
43%
In 2012, 28% of
respondents said
that benefits were an
important factor in
choosing their current
employer. In 2013, that
figure had jumped to an
astonishing 43%.

The benefits
of wellness
have become
institutionalized
with 62% of
employees stating
that wellness
programs are
successful at
improving health
and reducing risk.
all US private sector companies offer health insurance, so this is no longer a competitive
advantage to differentiate your company.2
Employers must think out-of-the-box now, in
ways never before required, to attract and retain top talent. And there is a clear mandate
for innovation in benefits. To win the war for talent, a company needs to use every
available asset and progressives benefits are a crucial weapon.
Let’s first define the criteria for what makes a benefit innovative. This generation
of professionals demand benefits that facilitate work/life integration, growth and
development, and that promote shared values. Technology has also had a dramatic impact
on the way that benefits are delivered and the latest and greatest innovations in voluntary
benefits use technology to great effect. As we already know, employees are looking
to benefits more than ever before as a way to differentiate between employers. So it’s
critical for companies who want to compete for in-demand skill sets to assess their current
offerings against competitors and industry benchmarks. Read on to learn about cutting-
edge benefits that can set your company apart from the pack.
NEW FRONTIERS IN HEALTH AND WELLNESS
Let’s start with a benefit we all know: wellness programs have gained mass popularity
over the past decade as employers respond to the rising cost of health care. According to
a 2013 study conducted on behalf of the Department of Labor, over 50% of US employers
offer some kind of wellness program, with the majority of those companies combining
risks assessments with interventions and incentives to encourage behavior modification.3
Tech companies have responded to the trend by offering a host of mobile or software
applications that aim to engage employees in their own wellness through personalization
and gamification. Washington, DC based Viget Labs has made a point of offering
competitive benefits to its staff of mostly Millennials but thought they could do more
than just offer a gym reimbursement to encourage a healthy, active lifestyle. CEO of Viget,
Brian Williams, explains that, “a gym membership wasn’t necessarily changing anyone’s
behavior.”4
So some of their Developers collaborated on an application that could track
whether colleagues actually used their membership. SpotsYou, their final product, started
as an internal project has now grown into something that Viget offers to other companies.
SpotMe [no connection] offers employers a similar application that can track employees
via check-ins on Foursquare™ and reward them with points for doing any kind of verified
physical activity. The points can ultimately earn rewards or cash prizes, which can then
be seamlessly deposited through the company’s payroll. SpotMe offers an exciting and
meaningful add on to traditional wellness programs and its applications are limitless.
Because the employer manages the types of activities tracked, the employer helps to drive

employee behavior, an important tenet in making wellness programs outcome based.5
That
SpotMe is compatible with most mobile devices and with employers’ payroll systems is
critical to its adoption and success, ensuring that technology keeps the barriers to use low.
The benefits of wellness have become institutionalized with 62% of employees stating
that wellness programs are successful at improving health and reducing risk. This figure,
recorded in a 2013 study funded by Principal Financial, rose 7 points in just two years!6
Thanks to the innovative technology used in products like SpotMe and SpotsYou, this trend
is sure to continue.
As healthcare costs have skyrocketed, companies large and small have sought new
tactics to control expensive specialist visits and emergency care without compromising
on service. Once again, technology has answered with several companies offering mobile
and web-based physician consultations – sort of an ultra-modern twist on the HMO nurse
line. These services are the ultimate in win-win; employers save on the expense of having
employees, spouses, and dependents visit a doctor’s office or ER and the employees get
fast, convenient service whenever and wherever they need it.7
Many large companies
have wrapped these virtual services into their self-insured plans as a strategy to manage
healthcare spend; one virtual consultation can cost as little as $50, a fraction of what a
doctor would charge for an office visit. Devin Schain, CEO of Access Health, reports that the
response to his company’s product has been so strong from employers and employees that
some companies have decided to offer the Access Health mobile service as a stand-alone
benefit.8
Experts estimate that of the 900 million visits that Americans make to the doctor’s
office annually, 50% could be accomplished remotely so we can expect to see that demand
for this type of benefit will only increase.9
EDUCATION BENEFITS GET SMART
If your company is looking for new ways to meet employee education and development
needs, a solution that facilitates college savings might be a good fit. Education benefits
and professional development have been proven to drive both employee retention and
business results. To understand the evolution of these benefits, let’s examine the history
and regulations that govern their use. Most HR Professionals are aware that IRS guidelines
allow companies to offer $5,250 tax free towards continuing education assistance or
reimbursement and this type of benefit is commonly offered. Employers may be less
familiar with Educational Savings Plans, commonly referred as 529s for their designated
place in the IRS tax code. Legislators created 529s over a decade ago to encourage middle
class American families to save for college; money invested in a 529 can grow tax-free
and can then be distributed for qualified education expenses at accredited academic
institutions. In its 2013 report on how Americans save for college, Sallie Mae reports that
… ”among those parents not
saving for college, 63 percent
say they would be motivated
to save via a 529 plan if
their employer offered one
with an automated payroll
deduction. The likelihood
of their opening a 529 plan
increases to 78 percent if
employers offer a matched
contribution.”

among those parents not saving for college, “63 percent say they would be motivated to
save via a 529 plan if their employer offered one with an automated payroll deduction.
The likelihood of their opening a 529 plan increases to 78 percent if employers offer a
matched contribution.”10
The rising cost of a college education and the ballooning student loan crisis has created
demand for employers to offer these savings vehicles as part of a benefits package in
the same way that employees have also demanded more options for retirement savings.
LEAF College Savings provides employers with a web-based benefit solution to this social
crisis, which offers two distinct advantages: employees can direct their payroll-based
contributions to any 529 plan in the U.S. and employers can provide a contribution match
similar to a 401(k). Employers can make automatic payroll deductions and the funds
are FDIC-insured while being distributed by LEAF to employees’ plans. The importance of
payroll integration is critical as nearly 60% of HR executives cite this as an important factor
when determining which voluntary benefits to offer.11
Furthermore, through LEAF’s product,
an employer can enable an employee to save for his or her continuing education as well
as that of his or her dependent. In as much as healthcare and traditional voluntary benefits
like 401(k) and life insurance are now baseline, employers need to find new ways of
meeting employees’ needs. By adding an education benefit, an employer provides simple
though comprehensive, payroll-based financial planning that encompasses all the major
life events of an employee and their respective families: healthcare, retirement planning,
life insurance, and now education savings.
Dun & Bradstreet Credibility Corp, a financial services company, matches employees’
contributions towards their 529 with company funds.12
This gesture makes a significant
statement about how the company values employees and also how the company supports
work/life balance since many employees still fund 529s on behalf of their children. Jeffrey
Stibel, Chairman and CEO of Dun & Bradstreet Credibility Corp, explained that, “One of the
biggest problems [Dun & Bradstreet Credibility Corp has] is finding talent. And it starts
with education […] Education is more important than retirement.”13
Big name companies
have long understood the inherent value of this kind of employee benefit, but regulation
and burdensome administration have limited utilization. Legg Mason, a global investment
management company, has offered US employees the ability to contribute to a 529 for
years but the plan they use is sponsored by the state of Colorado so employees in other
locations cannot benefit from the full tax advantage. Legg Mason Senior Executive John
Kennedy admits the, “difficulty in trying to balance multiple programs to fit in different
states,” but the simplicity offered by a product like LEAF’s takes away this barrier and
Healthcare Retirement
Planning
Life
Insurance
Planning
e
nce
College
Savings

makes implementing meaningful, accessible, and personalized education benefits easier
than ever before.14
Using LEAF, an employer can offer matching of employee funds put
towards education savings and can manage these contributions in a way that is both
compliant and streamlined.
Much like wellness plans, the rising popularity of 529s reflects national economic trends.
As so many are keenly aware, a college education has never been more expensive and
like healthcare, its cost has far outpaced inflation. In fact, the cost of a college education
has gone up 80% in just the past decade!15
In a similar vein, a college degree is far more
valuable today than it was 30 years ago. Just this year, the Federal Reserve Board of
San Francisco released a study showing that a college degree increases lifetime earning
potential by more than $800,000 as compared to those with only high school diplomas.16
Those companies willing to help employees save for education through direct contributions
or administration of funds differentiate themselves as employers of choice who are
investing in their employees and in society. Jamil Husain, CEO of Arlington, VA based
defense contractor Telophase Corporation, points out that offering strong education and
professional development benefits can be an important way to distinguish your company
when bidding on RFPs in the ever competitive federal contracting sector. While this sector
is littered with companies with strong technical acumen, the government has to rely
more and more on distinguishing potential industry partners that place a high value on
their employee welfare; key among which is the company’s demonstrable commitment
to the continuous training and education of their workforce.17
Despite the obvious value
of education benefits, the administration can be challenging and fraught with compliance
issues. To that end, a company, EdAssist offers a fully outsourced solution for managing
all forms of education benefits. But with startup costs of $40,000 to $50,000, their service
may not work for every company’s budget. Utilizing a platform like LEAF College Savings,
companies can now offer payroll deduction and matching to dependent plans and tax-
free matching (e.g. $1-for-$1 up to $5,250 annually) of continuing education funds for
employees who set up a 529 and contribute through LEAF’s web-based platform. LEAF’s
product lets employers provide a more equitable and easier to manage benefit while
encouraging employees to have a financial stake in their educational development,
improving outcomes and lowering overall program costs and burdens.
CORPORATE SOCIAL RESPONSIBILITY GOES HIGH TECH
The definition of “best place to work,” is expanding beyond traditional measures of pay
and benefits to encompass corporate social responsibility, commonly referred to as CSR. A
2014 report from America’s Charities indicates that 68% of employers recognize a desire
from employees to support volunteerism.18
While large employers like Microsoft or Boeing
Those companies
willing to help
employees save for
education through
direct contributions
or administration of
funds differentiate
themselves as
employers of choice
who are investing in
their employees and
in society.

are well-known for their generous charitable matches, even smaller organizations are
finding a way to make giving back a part of their culture. Canvas, a Reston, Virginia based
tech start up specializing in mobile applications, encourages employees to develop apps
for use in not-for-profits and even gives employees up to two weeks of paid volunteering
time to help organizations implement the company’s technology. Marketing Director Jason
Peck explains that Canvas’ “Ante Up” program, “reflects the CEO’s philosophy that you
don’t have to be a [huge company] to give back. You can still make an impact through
time, products, services, and passion.” Jason has participated in the program himself,
donating time to help a local film festival develop a mobile payment platform and says
that Canvas’ emphasis on social responsibility was a key factor in his decision to work for
the company.19
Like Jason, employees today expect to see a double bottom line by which
employers generate revenue and also have a positive social impact.
Intelsat, the leading worldwide provider of satellite services, also puts an emphasis on
philanthropy, supporting employee initiatives and donating in-kind services. Any Intelsat
office who forms a team of at least 10 employees can get company sponsorship for a
charity event of their choosing; this localized approach encourages participation since
employees can pick charities that are meaningful to them. One Intelsat office in Atlanta
formed a team to compete in a video game-a-thon to benefit Children’s Miracle Network,
demonstrating the intersection of employee interests and corporate philanthropy. Intelsat
has also supported the work of various non-profits, enabling their missions through
donated time and resources. For example, Intelsat donates free satellite bandwidth to
Mindset Network, a South African non-profit that provides community-based education
curriculum and content on healthcare concerns and other subjects. Intelsat’s corporate
support of these causes is extremely important and meaningful to employees and embodies
the concept of a double bottom line.20
In fact, many of the benefits highlighted above speak
to a platform of social responsibility and a paternalistic view of employee relations where
the employer is supporting many facets of an employee’s life outside of the workplace.
Overwhelming research supports the connection between rich, personalized benefits and
employee satisfaction so we expect to see employers continuing to emphasize and promote
excellent benefits as a way of recruiting and retaining their best performers.
While your company may not have the resources of Google or Dun & Bradstreet, you can
still be a top employer in your market. If you’re ready to see how your company’s benefits
measure up, follow these steps:
1. Talk to your HR executives and benefit broker to review relevant benchmarks. In
particular, you should look at what similar companies offer, with a focus on direct
competitors.

2. Survey your employees to find out what innovative benefits would matter to them.
Benefit surveys can be conducted as a part of attitude surveys or more informally, via
focus groups or questionnaires.
3. Determine relevant metrics to help measure the impact of any changes that you
make. Benefits cost per employee is a common metric to determine the relative
amount the company invests in benefits and will also help you measure return on
investment. For example, if you institute a wellness program, you should determine
the cost per employee to compare to the eventual savings.
4. Focus on benefits that are technology enabled or compatible with existing systems to
ease the burden of implementation and also encourage utilization.
Most importantly, make sure that you regularly revaluate your offerings to stay
competitive. Trends change to reflect market standards and employee demographics. To
keep your offerings cutting edge, make it a part of your overall recruitment and retention
strategy to review your benefits package at least once a year.
Most importantly,
make sure that you
regularly revaluate
your offerings to stay
competitive.

WORKS CITED
1) Krueger, Alyson. “How to Create a Benefits Plan that Appeals to the Young and Cool.”
Forbes. March 28, 2014.
2) The Henry J. Kaiser Family Foundation. “State Health Facts.” Percent of Private Sector
Establishments that Offer Health Insurance to Employees. May 6, 2014.
3) Caloyeras, John P., Christina Y. Huang, Dmitry Khodyakov, Hangsheng Lui, Soeren
Mattke, Victoria Shier, Kristin R. Van Busum. “Workplace Wellness Programs Study.”
Rand Corporation. 2013.
4) Williams, Brian. Personal Interview. May 16, 2014.
5) Wojcik, Joanne. “Large companies’ innovative benefits programs help midsize firms
expand offerings.” Business Insurance. December 29, 2013.
6) Hendrickson, Barb. “Increasing Employee Participation in Corporate Wellness
Programs.” Occupational Health & Safety. September 1, 2013.
7) Mannino, Barbara. “The New Voluntary Benefits Companies are Offering to Lure Top
Talent.” Fox Business. August 26, 2013.
8) Schain, Devin. Personal Interview. May 16, 2014.
9) Comstock, Jonah. “Five Reasons Virtual Doctors Visits Might Be Better Than In-Person
Ones.” Mobihealth News. May 8, 2013.
10) “How America Saves for College 2013.” Ipsos Public Affairs and Sallie Mae.
Washington, DC. 2013.
11) “Do Voluntary Benefits Programs Impact Employee Retention?” Ceridian. February 19,
2014.
12) Ellis, Blake. “The Latest Company Perk? A 529 Match.” CNN. December 7 2012.
13) Carrns, Ann. “A Company Match for College Savings.” New York Times. December 4,
2014.
14) Driebusch, Corrie. “Employer Help on a 529 College Savings Plan?” Wall Street Journal.
September 4, 2013.
15) Chang, David. “The Benefits of a 529 College Savings Plan.” Midweek. May 7, 2014.
16) Onink, Troy. “Federal Reserve: College Education Worth $830,000 More Than High
School Diploma.” Forbes. May 5, 2014.
17) Husain, Jamil. Personal Interview in reference to CFR 52.222-46 Evaluation of
Compensation for Professional Employees. May 22, 2014.
18) Freeman, Caryn. “Employer Charitable Endeavors Can Boost Efforts to Attract and
Retain Top Employees.” Bloomberg. May 5, 2014.
19) Peck, Jason. Personal Interview. May 14, 2014.
20) `Nerenberg, Sharyn and Sabrina Platt Schroff. Personal Interview. May 16, 2014.

Authors: Amy Gulati, GPHR & SPHR, Human Resource Business Partner, Helios HR, LLC.
Project Team: Rachel Butler, MA & PHR, Human Resource Business Partner, Helios HR, LLC. Connie Maniscalco, MPA
& SPHR, Practice Leader, Helios HR, LLC.
Editing: Rachel Butler, MA & PHR, Human Resource Business Partner, Helios HR, LLC. Connie Maniscalco, MPA &
SPHR, Practice Leader, Helios HR, LLC.
Design: Red Thinking LLC, www.redthinkingllc.com
Helios would like to extend a special thanks to the companies that allowed us to share their stories: Access Health
Group, Canvas Solutions, Inc, Intelsat, LEAF College Savings, SpotMe, Telophase Corporation, and Viget Labs.
This report is published by Helios HR, LLC. (Helios). All content is for information purposes only and is not to be
construed as guaranteed outcome.
©2014 Helios HR, LLC. All rights reserved.
For more information, please contact:
Helios HR
1925 Isaac Newton Square East, Suite 200, Reston, VA 20190
(703) 860-3882
www.helioshr.com
1925 Isaac Newton Square East, Suite 200, Reston, VA 20190
HeliosHR.com | Info@HeliosHR.com | 703.860.3882

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