The needs and expectations of modern workers have changed considerably over the years. For businesses, this has meant a shift from traditional recruitment efforts to looking for more unique ways to attract and keep new employees.
One of the most commonly used ways to achieve this is by incorporating comprehensive benefits into employee compensation packages. Taking this approach helps to send a clear message to current employees and potential job candidates that the business values its staff enough to invest in both their physical and financial security.
However, as a business owner, it can be difficult to know where to start with this process. Below, we’ve put together a basic guide for navigating and establishing employee benefits.
The Value Proposition of Employee Benefits
Salary is a big part of attracting qualified talent to your business, but it’s not the only thing. If you think about it from a job candidate’s perspective, choosing a new employer is a big decision. These individuals trust and invest in your business just as much as you do in them.
By offering a comprehensive benefits package to all your employees, you help individuals to get a better understanding of the business’s core values, specifically how they relate to each team member. Benefits offerings give employees the financial assistance they need to live happier, healthier lives. They can also include practical company perks that help businesses stand out from others, making their decision to stay with an employer long-term much easier.
Customizing Benefits Offering to Your Business
The important thing to remember about benefits packages is that they don’t need to be templated the same way as other organizations. Instead, there are a few things you should do to make sure the benefits you offer are customized to your business and its employees:
Understanding Employee Needs
To make sure the benefits you offer really resonate with your team, it’s important to understand what they’re looking for. Ask them directly before establishing your packages. Anonymous surveys are a great way to do this, or you could even make the discussion an agenda item on your next one-on-one or group team chat.
Take note of the different opinions provided, the age range of your employees, family situations, and their life stages. All of this information can help you identify the benefit options that will make the most impact.
Budgeting and Financial Planning
Benefit options can be a significant investment for the business. Because of this, it’s important that you establish a realistic budget based on your organization’s current and projected financial situation.
The good news is that there are plenty of different cost-effective benefits options to choose from. By working with a benefits broker, you can source multiple carriers at once while finding options that fit your budget.
Common Benefit Categories
Health and Wellness
One of the most common benefits that businesses offer to employees is healthcare coverage. This can be a broad range of coverage, including access to medical, dental, and vision insurance to help employees counter larger out-of-pocket expenses by paying monthly premiums ahead of time.
In addition to traditional healthcare options, many businesses also include wellness programs and mental health resource access. Some businesses go a step further by offering free gym memberships, on-site yoga classes, Employee Assistance Programs (EAPs), or even Flexible Spending Accounts (FSAs) that provide coverage for more elective health and wellness expenses.
Financial Security
In addition to the physical security that health and wellness benefits can offer, employers can also help employees better secure their financial future. Retirement savings plans like 401(k) plans are a popular way to achieve this.
401(k)s are designed to allow employees to put a portion of their paychecks into a long-term savings plan. Employers can then choose to match a portion of all these investments up until the point the employee retires. Life insurance and disability insurance plans are another option employers can explore. These help to provide a financial safety net for employees in the event of a tragic event that leaves them unable to work and provide for their families.
Work-Life Balance
It’s important to remember that your employees have a life outside of work. Helping your staff achieve a better work-life balance is a “benefit” in itself.
Some of the benefit options you can provide in this area include offering more paid time off (PTO), flexible scheduling arrangements like remote or hybrid work, or reduced working days to give employees more time with their families.
How to Implement Benefit Programs Effectively
Once you have defined a benefits format that works for your business, it’s important to make sure you have the right systems and processes in place to help you streamline administration and make sure your employees get full value from their packages.
Here are a few basic steps you can follow to achieve this:
- Choosing a reputable benefits technology partner – When establishing a new benefits package, it’s important to look for ways to simplify HR administration. Choosing a qualified benefits technology partner can help you put in place the systems and solutions you need to automate tasks such as employee enrollment, benefits communication, payroll deductions, and ACA reporting.
- Employee communication/training strategies – Making sure your employees have the information and resources they need to navigate their benefits options is essential for them to get the most value from them. This can include using best-of-breed benefits administration platforms that give employees on-demand decision support tools and benefits comparison guides. These help employees make better coverage choices based on their unique circumstances.
- Getting employee feedback and iterating offerings – Over time, you should continuously evaluate the effectiveness of your benefits coverage options. By getting employee feedback and reevaluating your budgets and programs once a year, you’ll make sure you’re getting the best ROI on your investments in your staff.
Create a Benefits Package Your Employees Will Appreciate
A benefits package in your business can be a powerful tool for attracting and retaining great talent. By taking the time to review your options and selecting the time of coverage that resonates with your teams, you’ll maximize your employee retention while developing a great company culture moving forward.
