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Mandatory Benefits and the Changing Cost Equation
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👷♂️ HR Trends: Mandatory Benefits and the Changing Cost Equation
Employers are now rethinking their approach to mandatory benefits as regulatory requirements expand and employees seek more personalized financial support. While traditional health, dental, and vision coverage remain essential, companies are facing mounting pressure to offer additional protections such as paid leave, retirement savings plans, and mental health resources. This shift is driven partly by compliance mandates and partly by market forces, as benefit offerings have become a deciding factor in employee retention.
🎧 HR Insights: Student Loan Assistance—A New Path to Attract and Retain Talent
As younger employees enter the workforce burdened by student debt, many employers are offering student loan repayment support as a key part of their compensation packages. This benefit is proving to be more than just a financial perk—it’s emerging as a competitive hiring and retention strategy.
In this episode of the Honest HR podcast, experts highlighted how even modest contributions toward student debt can increase employee satisfaction and reduce turnover. Some companies match employee payments, while others make direct contributions after a defined employment period. This helps organizations build loyalty and foster longer-term engagement, especially among millennial and Gen Z workers.
💡 HR Tips & Tricks
Tip of the Day: Once a quarter, ask team leads to submit one HR policy they'd change if they could. Review these as a group and use the feedback to identify friction points or gaps in your current policy structure.
Trick of the Day: Train supervisors to keep “one-minute HR logs”—short, private voice notes or written memos capturing real-time observations of employee performance, team issues, or conflicts. These can later help HR with performance reviews and investigations without relying on memory.
🧾 HR Case Files: Tipsy Collective’s Internal Dispute Highlights HR Oversight Risks
Hospitality group Tipsy Collective has filed a civil suit against its former directors and head of HR, accusing them of misconduct that resulted in millions of dollars in losses. The case involves alleged financial mismanagement, unauthorized salary increases, and a breakdown in internal controls. The company claims that poor governance, combined with a lack of documentation and oversight, allowed unethical practices to go unnoticed for years.
The head of HR is accused of failing to maintain accurate personnel records and enabling unjustified payouts. This case underlines the importance of having checks and balances in HR departments, especially where financial authorizations intersect with employee management.
Key Takeaways
Internal control gaps can expose HR departments to legal risk.
Regular audits of payroll and compensation processes are essential.
Clear documentation of HR decisions is a must, even in high-trust environments.
🧰 HR Toolbox
Stay equipped with the latest HR events and resources.
Resource of the Day
According to Mercer’s latest survey, US employers expect a third straight year of health cost growth in 2025. Large employers in particular are seeing double-digit increases in premiums and provider rates, driven by inflation, rising drug prices, and increased demand for care.
In response, many organizations are adjusting plan designs, narrowing networks, or increasing employee cost-sharing. There is also a renewed interest in virtual care and mental health services, both of which offer cost-effective alternatives to traditional in-person visits. However, experts caution against shifting too much of the burden to employees, especially as wage growth slows and financial stress rises.
Event of the Day
The NHRMA 2025 Conference and Tradeshow, scheduled for September 24–26 in Anchorage, Alaska, is expected to draw HR professionals from across the region. This year’s theme focuses on “Transforming the Future of Work,” with sessions exploring generative AI, inclusive leadership, labor relations, and mental health initiatives.
For event details and registration, visit the website.
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