Article

How helping employees reach financial stability will help your restaurant

Helping employees achieve financial stability by educating them on the public benefits already available not only helps improve the quality of their lives, but also give your restaurant a competitive advantage and a way to save money on insurance and turnover costs in the long run.

June 26, 2015

By Benjamin Geyerhahn,  CEO of BeneStream

The restaurant industry has been making headlines with its debates over raising the federal minimum wage, and neither side seems to be making much progress.

Amid the debate, the focus seems to have shifted from the public benefits recipients themselves. But as a restaurant owner, you don’t need to wait for lawmakers to sort out these issues to start solidifying your employees’ and your own financial state.

You can help your employees achieve financial stability by educating them on the public benefits already available to them, many of which they might not know about. In doing so, you’ll not only help improve the quality of your employees’ lives, but also give your restaurant a competitive advantage, while saving money on insurance and turnover costs in the long run.

Why Public Benefits Are a Win-Win for Employers and Staff

The public benefits system in the U.S. is complex, to put it mildly. It includes dozens of programs that serve various groups of people. Applications can be tedious and time-consuming, qualifications usually vary from state to state, and not all programs are publicized well. As a result, most individuals either don’t know about the programs that are available to them or don’t have the time to sign up for each benefit. And for immigrants or people who don’t speak English as a first language, the hardships are only compounded.

Yet, these programs can be hugely beneficial to low-income individuals and families. They can help your employees achieve economic stability; make necessities such as food, rent, utilities, and childcare more affordable; secure medical coverage for individuals and families; and even lift some families out of poverty. Best of all, most people who qualify for one benefit also qualify for many, if not all.

And if you facilitate employee education and enrollment programs in your restaurant, you could see significant ROI, including increased employee retention, higher productivity, lower turnover costs, improved attendance, and increased employee loyalty.

If employees have access to services that stabilize their lives, they’re less likely to miss work due to childcare or transportation issues. And if they know their workplace cares about them and their families, they’ll push themselves to work harder and stick around longer.

Get Educated on the Available Programs

The first step to helping your employees get assistance is educating them on the available services. Be aware that programs and qualifications can vary depending on state, income, family size, and immigration status, so you’ll need to do some research on the full list of programs available in your area. Here are a few of the major benefits available:

1. The Supplemental Nutrition Assistance Program: Commonly known as food stamps, this program offers families monthly assistance purchasing food. In 2014, the average monthly benefit was $256.98.

2. The Low Income Home Energy Assistance Program:This helps eligible families pay for a portion of their home energy costs. Benefits vary depending on state, household income, and household size. The program also runs on a first-come, first-served basis, which means benefits can run out — even for eligible families — so don’t miss this deadline. Enrollees can expect to receive anywhere from $100 to $2,000 each year.

3. Medicaid and the Children’s Health Insurance Program:These extremely low-cost health insurance programs cover a comprehensive set of benefits for individuals and families. Most plans include vision, dental, and nonemergency transportation and offer small co-pays, low or no monthly premiums, and no deductibles. Medicaid is available to eligible employees, even if they have access to coverage through an employer.

4. The Special Supplemental Nutrition Program for Women, Infants, and Children:This program provides food, formula, and nutrition assistance to pregnant and postpartum women and children up to 5 years old.

5. The Earned Income Tax Credit:This is a refundable tax credit for working families.

6. The Child Care and Development Block Grant:This grant helps families pay for childcare through subsidized payments to providers. It’s also worth researching the Child and Dependent Care Credit, which employees can claim on their federal income tax returns.

Consult External Resources to Simplify Enrollment

The application process for these benefits is complex, but a third-party enroller can help your employees navigate the process, get signed up for every benefit they’re eligible for, and ensure they never miss a deadline.

Hiring an outside consultant can also be a rewarding investment for you. Medicaid enrollment alone will save you money on the cost of your business’s health insurance, and if you help these employees access public benefits, you’ll be able to pay your employees more than your competitors without having to spend that money yourself.

You should also stay educated on local and national assistance programs so you can always offer the most accurate information to your employees. Organizations, such as the Henry J. Kaiser Family Foundation and the Center on Budget and Policy Priorities, and state websites are great educational resources. You could also consider gathering materials or attending training sessions at local nonprofits.

Don’t Wait to Reap the Benefits

Without public benefits, many of these families would have to choose between food, rent, and other bills. Programs such as Medicaid and food stamps allow your employees to meet more of their regular costs.

Instead of focusing on the vitriolic debates surrounding the role of public benefits in our country, consider all you can do to help your low-income employees gain control of their lives.

Most restaurant owners want the best for their employees. Equipping them with the assistance they need is a cost-effective way to do what’s right for employees while saving money. Employees will feel loyal, and you’ll have greater employee retention if you give employees access to services that are guaranteed to improve their lives.

Do you have public benefits assistance already in place at your business? How else do you help your employees improve their quality of life?

Benjamin Geyerhahn is an experienced entrepreneur, a health care policy expert, and a member of New York Governor Andrew Cuomo’s Health Benefit Exchange Regional Advisory Committee. He is the founder and CEO of BeneStream, which uses a combination of technology and a multilingual call center to guide employers and employees through the Medicaid enrollment process.