During these challenging times, organizations are scrambling to recruit, motivate, and retain talent. One important way to gain a competitive edge is by knowing which benefits these days matter to your people the most.
How you’re supporting your employees, current and future, in this topsy-turvy environment can mean the difference between a loyal and resilient workforce and one that’s noncommitted – to you or its work.
So, you must put a premium on setting up the best benefits program possible. After all, benefits are a key component of the overall compensation package. Here’s what you need to know about creating employee benefits programs.
A Budget Must Be Established
Regardless of what kinds of benefits you offer, you’re going to have to figure out how much you can spend on a benefits package. This amount will be based on how much you can handle and what employers are offering as standard.
When calculating your budget, it’s crucial that you conduct a cost analysis per benefit. To help guide you, the federal Bureau of Labor Statistics keeps data on all the differing amounts that employers shell out for various kinds of employee benefits such as health, dental, and vision insurance; FSA and HSA; retirement planning; commuter benefits; and life and disability insurance.
There Must Be Decisions About What to Include
Now you must figure out what goes into your plan. Employers usually choose among medical, dental, vision benefits; paid time off; retirement savings options; FSAs or HSAs; life and disability insurance; and work/life balance perquisites.
Note that while you aren’t required to provide all the above, those elements are still considered the basics, when it comes to benefits plans. More and more, to get a leg up on rivals, organizations are expected to go beyond the fundamentals and offer creative employee experiences such as free yoga classes or daycare services, pet-friendly workplaces, or free workplace snacks and drinks.
Total Compensation Must Be Determined
In addition to the paycheck and requisite benefits, total compensation lumps in employee compensation such as any commissions, bonuses, child-care and tuition assistance, profit-sharing distributions, IT reimbursements such as personal computer, public transit credit, employee assistance programs, or gym or club membership.
The Plan Needs Rechecking
Now that you’ve gone through all the major steps, scour the plan before you put it in place. If you aren’t using an external resource such as Mercer to help you, you’ll have to contact healthcare providers on your own to find the best employee benefit programs for your organization.
The Plan Gets Launched
Congratulations, as you’re now ready to communicate to your employees not only what has been developed, but how and why. This means that after notifying your staffers of the plan, but you’ll need to provide details and give people a chance to ask questions. Then you need to publish the program so that employees have a portal or some place to return to for points of clarification.
You should also be certain to add your new top benefits to your company’s online career page where prospective talent can see it. The new benefits should also be included in your job advertisements. After all, a Glassdoor survey found that about half of jobseekers reported being frustrated by the lack of online info about an organization’s benefits.
As you can see, creating an employee benefits program is more than a notion, but at least now you know what goes into it. To put a program in place, we recommend not only that you get outside help, but that you go with the consultant Mercer for its breadth of experience and expertise. The firm will work with you to produce health and benefits solutions that will benefit your employees and their families, as well as your organization.