The New Hospitality Benefit Solution
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About this webinar
It’s never been harder to be an HR leader in the hospitality field. Leaders like you are faced with numerous challenges these days—from staffing shortages to operational challenges to tight margins to inflation, turnover is one thing that hospitality companies simply cannot afford. In fact, the average annual turnover cost is $36,295, a 2024 Express Employment Professionals-Harris Poll survey found, and one in five businesses report costs exceeding $100,000.
If recruitment and retention is so intrinsically important to the hospitality industry, why are more hospitality companies not offering health benefits—a proven strategy to combat turnover and a long-held must-have for job seekers? Studies show that only about 35% of hotel and restaurant employers offer access to medical insurance, well under the national average of 69%.
Traditional group health insurance first and foremost is expensive, but there are more factors feeding into why group insurance isn’t a fit for the hospitality industry. When you have a variety of employee types—from servers to chefs to back of house to front of house to management—it’s hard to find benefits that work for everyone.
A new benefits solution, called an Individual Coverage HRA (ICHRA for short), allows HR leaders to reimburse employees for health insurance rather than buying it for them. No participation rate requirements, no taxes, no insurance rate hikes. Employees simply choose the best plan for their family. In short, ICHRA is an affordable, flexible benefits solution that solves for common challenges that the hospitality industry faces, including turnover.
For hospitality companies currently on a group health plan, ICHRA presents an off-ramp from traditional benefits and typically saves companies 30% right off the bat on their benefits spend. ICHRA reduces the amount of time businesses spend managing benefits. By shifting ownership of each policy to the employees, an HR team is no longer responsible for negotiating rates or resolving individual issues.
In this webinar, Amy Skinner, Direct of Content for Take Command, an HRA administrator, along with her colleague Leah Gibbs, Senior Account Executive, will explain how this new model works, how it benefits hospitality companies and solves for common pain points, and what the pros and cons are. They will also walk through real life client stories of hotels and restaurants who have transformed their benefits strategy with HRAs.
Key Takeaways:
- Learn how HRAs work and why they are a fit for the hospitality industry
- Understand how HRAs solve for recruitment and retention challenges and expand hiring pools
- Learn about the two different types of HRAs and which is right for your hospitality company
