Healthcare is one of the biggest line items in a nonprofit’s budget, but CFOs are often on the periphery of the decision-making process. However, making a well-rounded decision that focuses on both the budget and employee satisfaction requires that CFOs become more intimately involved in employee healthcare management, working closely with other key players such as the CEO and HR manager.
This is especially true when it comes to keeping employees healthy and engaged. News of late has focused on the need for organizations to go back to the basics of employee “perks,” focusing more energy on traditional core benefits like healthcare over “flashy” things like ping pong tables and snack bars. Doing so meets employees’ true needs and wants, and provides the “foundation” for a strong compensation package – ensuring the happiness and productivity of staff. And employee engagement directly correlates to recruitment and retention efforts, which can be a massive expense for nonprofits. This becomes a bigger issue knowing that nonprofits often experience higher rates of turnover than for-profit counterparts. As such, it becomes not a maybe but a must for CFOs to be intimately involved in employee health benefits purchasing.
Are you involved in your employee healthcare purchasing? Download our
CFO best practices guide to review best practices for the role of the
Chief Financial Officer in nonprofit employee healthcare purchasing:
