Date
April 17, 2024
Client
Hay’s Fulfillment
Category
Third Party Logistics
Employees
176
Overview
A third-party fulfillment center with 176 employees was struggling with the rising cost of medical insurance. Most of the workforce consisted of warehouse employees working physically demanding roles such as loading and unloading trucks, picking and packing items, and keeping the operation running around the clock. Leadership needed to get control of healthcare costs while also improving employee satisfaction and retention in an industry where turnover was high.
This is exactly the type of situation where Benni’s mix of consulting, cost-control strategies, and employee-focused benefits can deliver a sustainable solution.
Process and Challenge
The fulfillment center faced three key challenges: rising medical premiums straining the budget, high turnover among warehouse employees who lacked meaningful protections, and the logistical difficulty of reaching a workforce spread across three shifts in a 24/7 operation.
Benni’s approach would begin with designing a custom Individual Coverage Health Reimbursement Arrangement (ICHRA). Unlike traditional group health plans, an ICHRA allows the employer to set a predictable, fixed contribution toward employee health coverage while maintaining full ACA compliance. Employer contributions are tax-deductible, reimbursements are tax-free to employees, and the structure gives workers the freedom to select ACA-compliant plans that fit their individual needs. This immediately relieves budget pressure while improving affordability and choice for employees.
To strengthen the overall package, we would add voluntary and specialty benefits such as accident insurance, disability coverage, dental, vision, and Telehealth services. These offerings give employees financial protection for both everyday needs and unexpected events, helping them feel more secure in a physically demanding line of work.
Affordability would be further supported through a benefits bank of fifty dollars per employee, funded by the employer to offset the cost of voluntary benefits. While the dollar amount is modest, the symbolic impact is powerful employees see that leadership is investing directly in their well-being, which boosts morale and loyalty. In addition, Benni would secure free Telehealth coverage for all employees, giving warehouse staff convenient access to medical consultations without added cost especially valuable for those working late or overnight shifts.
Another crucial element is technology. The fulfillment center already had benefits software in place, and Benni’s products are built to integrate seamlessly. This means employees can access all of their benefits in one centralized platform, and HR avoids the burden of managing multiple systems or processes.
Finally, we would tackle the logistical challenge of a 24/7 workforce by delivering enrollment sessions across all three shifts. Employees on day, evening, and overnight schedules would all have equal opportunity to attend group education meetings and one-on-one benefits counseling. This inclusive approach ensures strong participation, improves understanding, and shows employees that their employer values every shift equally.
Summary
By switching to an ICHRA, the fulfillment center gained control of its healthcare costs while unlocking tax benefits that made the program more sustainable. Employer contributions became tax-deductible, reimbursements were tax-free to employees, and ACA compliance was ensured. This structure allowed the employer to save money while still providing meaningful support, and employees benefited from choice and affordability.
The addition of accident, disability, dental, vision, and Telehealth gave employees valuable protections, while the employer’s fifty-dollar benefits bank encouraged higher participation and created goodwill. Integrating seamlessly into the company’s existing benefits software kept the program easy to manage, and enrollment across all three shifts ensured every employee was included.
The result was an affordable, tax-advantaged, and employee-friendly benefits program that helped the fulfillment center compete for labor, reduce turnover, and build a stronger culture of care. With Benni’s white glove support, the employer gained more than just a benefits plan they gained a financial and retention strategy that worked for their entire 24/7 workforce.