Best Practices for RIA's Implementing Health and Welfare Benefit Programs

Estimated Time to Read: 2 minutes 30 seconds

Attracting and retaining talent in the RIA industry is fiercely competitive, as evidenced by the constant barrage of industry publications, conference panels and breakout sessions dedicated to the topic. For those that have gone through the hiring process lately, you know what I am talking about.

One essential strategy every RIA owner should employ is a comprehensive health and welfare benefit program. As an independent business owner, understanding how to effectively manage these programs can significantly impact your workforce's well-being and overall productivity. The challenge? You've likely never been tasked with putting a plan together and oftentimes you are unsure where to start.

At Sanctuary Wealth, we've partnered with dozens of independent advisory teams of all shapes and sizes to develop a Talent Strategy, and bring with us years of experience in all HR-related functions.

This blog post outlines our best practices for running health and welfare benefit programs and introduces you to a strategic option provided by tru Independence and Sanctuary through a MEWA.

Best Practices for Managing Health and Welfare Benefit Programs

• Assess Employee Needs: Conduct surveys or hold focus groups to understand what benefits your employees value most. Tailoring your offerings to meet these needs can increase satisfaction and engagement.
• Choose the Right Mix of Benefits: A balanced benefits package typically includes health insurance, dental and vision coverage, retirement plans, and wellness programs. Consider offering supplemental lines of coverage, or health savings accounts (HSAs) to provide employees with more control over their healthcare expenses.
• Communicate Clearly: Regularly communicate the details of your benefits programs to ensure employees understand their options. Use various channels, such as newsletters, meetings, and online resources, to keep information accessible and top of mind.
• Stay Compliant: Regularly review regulations and compliance requirements related to employee benefits with your Compliance Officer. Ensuring your programs comply with federal and state laws helps avoid penalties and fosters trust among your employees.
• Evaluate and Adjust: Periodically assess the effectiveness of your benefits programs. Solicit feedback from employees and make adjustments as necessary to meet their changing needs and preferences.
• Promote Wellness: Implement wellness initiatives that encourage healthy behaviors. Programs like fitness challenges, mental health support, and preventive care incentives can lead to a healthier workforce and reduced healthcare costs.

Understanding MEWAs: A Strategic Solution provided by tru and Sanctuary

A Multiple Employer Welfare Arrangement (MEWA) is a group health plan offered by multiple employers to provide health and welfare benefits to their employees. MEWAs allow small businesses to band together, pooling their resources to negotiate better rates and access to a wider range of benefits, which is how Sanctuary Wealth can provide their health and welfare benefits across the ecosystem of RIA’s within its network. Here are some advantages of MEWAs:

• Cost Savings: By joining a MEWA, businesses can benefit from economies of scale, potentially lowering premium costs.
• Increased Benefit Options: MEWAs often provide access to a broader range of health insurance plans and ancillary benefits, allowing employers to offer more attractive packages to their employees.
• Simplified Administration: MEWAs can help streamline administrative tasks associated with managing employee benefits, allowing you to focus on running your business. Sanctuary administers the MEWA on your behalf.
• Shared Risk: Pooling risks among multiple employers can lead to more stable premium rates, which is especially beneficial in the volatile healthcare market.

How tru and Sanctuary Help

Sanctuary specializes in administering their health and welfare benefits through a MEWA, offering you the support you need to effectively manage your health and welfare programs. Through our tru's new partnership, Sanctuary is able to provide their tailored solutions that align with your business goals and employee needs, ensuring you can focus on what you do best—growing your business.

Effective health and welfare benefit programs are crucial for the success of any independent business and is a key component of your Talent Strategy. And let's fact it, you didn't go independent to run become the HR and Benefits Officer. 

For more information on how we can assist you in learning more about Sanctuary’s health and welfare benefit option, please enroll for the webinar on October 1^st.