In early October 2015, our company, Liaison Technologies, announced that for the second consecutive year the organization would be paying 100 percent of health-care premiums for United States employees and their dependents. This includes medical, dental, and vision coverage, in addition to the 100 percent company-paid life and disability plans. Our research indicates that only 5 percent of organizations nationwide provide 100 percent premium coverage, putting Liaison in an exclusive group.
When we initially announced this health-care premium strategy in 2014, our employees gave us phenomenal applause and appreciative feedback. It was another big boost to our 300-plus U.S-based, full-time employees.
Why 100 Percent?
So what was the company motivation? Liaison historically has provided competitive annual merit increases, performance-based bonus/incentive plans, and a generous 401k company-match program to promote financial saving. We also have a culture that injects positive cross-functional collaboration and spirited, fun events—gamerooms, BBQs, parties, athletic competitions, free food, and the like.
We wanted a game changer—and differentiator—for our employees. Like most organizations, Liaison has a diverse mix of employees: a high percentage with significant tenure (many have been with the company since the early days 15 years ago), as well as a highly talented group of Millennials who are introducing new technology brilliance and ways of working. In total, we have a hard-working group of employees who have a positive passion for the organization. We wanted to give something back (something special) in return for these efforts and contributions.
With the cost of health care steadily increasing in the U.S., organizations typically pass along those increases to their employees, impacting their take-home pay, and many times, offsetting any merit increases received. Employees find themselves in a no-gain situation, perhaps making more in base salary, but then giving it back in health-care premiums. Employees also experience uncertainty regarding the out-of-pocket costs of their annual coverage. We found this model to be counterproductive to sustaining an energized business culture.
Additionally, 100 percent premium coverage for both employees and dependents extends well beyond the employee. Many employees have families that are the backbone that supports the hard work and hours invested to further grow a successful company. Whether a spouse, significant other, and/or child, these extended members frequently use our benefits and provide feedback to their Liaison family member. It’s heartwarming to hear stories of appreciation from employees and their family members who recognize the value this program brings.
There have been many research studies over the years highlighting the cost of turnover within organizations. Depending on the study, the cost can be anywhere from 50 percent to 100 percent-plus of the departing employee salary. Time to recruit, loss of productivity, and extra demands placed on remaining staff members are just a few of the attrition ramifications. There is no silver bullet to reduce turnover entirely, but company-paid health-care premiums promote a sincere positive reaction from employees, and, more importantly, convey the company’s respect and appreciation for its employees in a solid financial investment.
Part of the Overall Talent Brand
When you’re in the top 5 percent of companies nationwide, on any dimension, you’re offering something special. Our benefits strategy is an integral part of our overall talent brand, which reflects our ability to attract top talent in a highly competitive technology sector. Since the inception of the program, most candidates we interview have read about our offering via our Careers page, and mention it as a phenomenal component to our recruitment process.
Within the walls of company culture, every point of newness helps to establish heightened individual and team energy, enhanced spirit, and a deeper company affiliation. At Liaison, we want our employees to embrace the organization as their company, and not just a company. We want them to hang out at business events, kids’ programs, and community outings and eagerly promote our company to others. We want them to be proud of our firm! This is only achieved when employees feel the organization cares about them.
Company-paid healthcare premiums indeed make a positive impact. Employees express their sentiments through our annual employee appreciation survey, where our benefits get exceptionally high marks. More importantly, we hear it through regular dialogue with our employees in the hallways, in the breakroom, and in department feedback meetings. And that, in and of itself, makes it all worthwhile.
Mark Malis is vice president of Human Resources at Liaison Technologies, which provides integration and data management solutions to help customers unlock the power of a data-centric approach to their business. Liaison’s cloud-based approach breaks down the barriers between data silos to tap into the valuable information needed to make better decisions, faster. Founded in 2000, Liaison serves more than 7,000 customers in 46 countries, with offices in the United States, The Netherlands, Finland, Sweden, and the United Kingdom. For more information, visit www.liaison.com.
