Dive Brief:
- Hy-Vee and its subsidiary, Midwest Heritage, announced plans to offer a host of insurance benefits to the grocery chain’s 58,000 part-time workers.
- Under the plan, any part-time employee 19 years and older is eligible to sign up for a wide variety of insurance plans, which also covers spouses and dependents. Options include health, dental, short-term disability, vision, group life, accident, critical illness, individual life, auto, homeowners, rental, pet and more.
- A companywide survey found 80% of part-time employees considered benefits a plus when choosing where to work, according to a news release. Hy-Vee's new online system will help employees sort through the list of options, choosing the smartest, most affordable plans to meet their individual needs.
Dive Insight:
In today’s tight labor market, grocery stores are increasingly offering perks such as insurance, tuition reimbursement and paid vacation — even to part-time workers — to attract and keep loyal employees. Hy-Vee’s own research shows the chain’s clerks and other part-timers say company-sponsored benefits are important when choosing a job.
“Our people are the key to our success,” said Sheila Laing, Hy-Vee chief administrative officer and executive vice president, in the news release. “We developed the new part-time employee benefits program with the goal of giving Hy-Vee a competitive advantage in recruiting and retention efforts.”
Hy-Vee's “Smart Choices” online portal will help employees determine the best package of affordable group benefits to fit their individual needs. The benefits program offers affordable medical insurance options, for as little as $200 a month, the company says.
Despite the lower costs, part-time workers clocking in for 20 hours per week at an average of $10 an hour are likely to struggle covering a $200 monthly insurance premium, not to mention the high deductibles that often accompany low-cost medical benefits.
While Hy-Vee’s benefits package offers a wider variety of coverage options than the typical employer plan, it’s not the only grocery outlet hoping to entice part-time workers with such perks.
Costco, for example, offers part-time employees who average 20 hours a week a health plan, as well as a basic dental health care plan, PTMoney reports. Whole Foods, well known as a generous employer, offers all workers medical, dental and vision coverage after 400 hours of service, or about five months on the job for a part-time employee. They also can sign up for life and disability insurance, and have access to a flexible spending account. Wegmans, too, offers part-time workers medical insurance, a prescription plan and offers discounts to health clubs to its employees. And Trader Joe’s offers workers medical, dental and vision plans part-time workers at a low cost.
Hy-Vee does, however, have an advantage that other grocers do not. Midwest Heritage, a Hy-Vee company, is a $260 million full-service financial institution offering an array of products and services in banking, financial services and insurance. The subsidiary plans to market the new Hy-Vee benefit system to other businesses, allowing the Iowa-based company to balance the internal costs of the program with profits made through subsequent partnerships. So while the program may appeal to Hy-Vee employees and help boost morale, it also could boost the grocer’s bottom line.
With the U.S. unemployment rate hovering at about 4% and a growing trend across all industries to offer benefits to part-time workers, the move by Hy-Vee is likely to be among the first of many companies to create attractive packages to draw and retain employees while balancing their tight profit margins.