The Baldwin Group Introduces 2024 Government Contractor Client Benefits Benchmarking Overview
This report is designed specifically for companies working in the GovCon space to help them better understand where their employee benefits stand in relation to the marketplace, their workforce, and related compensation and benefits expenditures and how these intersect with one another.
Employee care and well-being have emerged as a critical element of HR strategies. Employers have made significant investments in attracting and retaining talent, including increasing salaries and expanding benefits, showing their commitment to supporting their staff, both at work and outside of work. This is especially important in the world of government contractors due to the fierce competition for top talent and the low unemployment rate.
In collaboration with the
“Employee benefits, in particular healthcare, is commonly the second largest expense that federal contractors have next to payroll,” said
Highlights from Baldwin’s 2024 GovCon Client Benefits Benchmarking Overview include:
- Demonstrating care has become the top reason employers invest in benefits, up from the third most important reason in 2022 (after increasing productivity and rewarding employees for COVID-19 efforts).
- Although employees may say that compensation is the most significant factor to them, it holds equal importance as other elements in terms of driving employee care. Compensation was the only extrinsic driver that ranked among the top 15 derived drivers of care.
- As economic hardships persist, employees are increasingly focused on the affordability of their benefits. In fact, 72% of employees consider the affordability of employer-provided benefits as a crucial factor in their organization's display of care towards employees.
-
With the implementation of Secure Act 2.0 on
January 1st, 2024 , which allows employers to provide matching contributions based on their employee’s student loan repayments, the GovCon COE anticipates student loan benefits to grow in popularity. Along those same lines, the number of employers providing student loan assistance has nearly doubled over the last few years, with reported assistance amounts ranging from$1,000 to$12,000 per year. - Despite cost-containment efforts, inflation and increasing utilization pushed up renewal rates for health insurance premiums this year. As doctor visits and medical treatments continue to rise from lower pandemic levels, higher rates are expected through the 2026 plan year.
- 401K - a typical client will at first establish a 401K/retirement plan as a savings vehicle only, then evolve to a Safe Harbor matching style plan. Finally, they will move to a discretionary match and vesting schedule as they grow larger.
To view more trends as well as benefit program and retirement plan benchmarking examples, download our full pdf here.
DISCLOSURE:
This communication is for informational purposes only and does not purport to be a complete statement of all material facts related to any company, industry or security mentioned. The information provided while not guaranteed to accuracy or completeness has been obtained from third parties and is believed to be reliable. The opinions expressed reflect our judgment now and are subject to change without notice and may or may not be updated.
Investment advisory and asset management services are offered by investment adviser representatives (IARs) through
ABOUT
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Baldwin’s expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address Baldwin’s future operating, financial or business performance or Baldwin’s strategies or expectations. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “outlook” or “continue,” or the negative of these terms or other comparable terminology. Forward-looking statements are based on management’s current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements.
Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, those described under the caption “Risk Factors” in Baldwin’s Annual Report on Form 10-K for the year ended
src="https://cts.businesswire.com/ct/CT?id=bwnewssty=20240522253186r1sid=acqr8distro=nxlang=en" style="width:0;height:0" />
View source version on businesswire.com: https://www.businesswire.com/news/home/20240522253186/en/
MEDIA RELATIONS
(630) 561-5907 | [email protected]
INVESTOR RELATIONS
(813) 259-8032 | [email protected]
Source:
Clearspeed Appoints Insurance Industry Veteran Kim Garland to Advisory Board as Client Growth Accelerates Globally
N.Y. A.G. James Applauds Decision Protecting Health Insurance Coverage for Abortion Care
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News