Review Your Employee Benefits
By: Will Helmlinger
The end of the year is a great time to review the menu of benefits you offer employees. It will help you determine the ones you want to keep, add, and even toss, in the coming year.
The end of the year is fast approaching and before you know it, people will be making New Year's resolutions. Now is a great time to make a New Year's resolution and examine your recruiting toolkit. One of the best recruiting tools to look at this time of year is the benefits you offer.
Set aside time now to reexamine all current benefits and explore options for the upcoming cycle. While not intended to be a complete list of benefits, the following are examples of benefits that you can sponsor or offer as voluntary options: medical, vision, Rx, dental, group life, short term disability, long term disability, accidental death and dismemberment, health savings accounts (HSA), health reimbursement accounts (HRA), wellness programs, 401(k), pension plans, flexible spending accounts (FSA), alternative health care options (chiropractic, acupuncture, naturopathic), personal time off (PTO), vacations, sick days, paid holidays, sabbaticals, leaves of absence (both paid and unpaid), employee assistance plans, educational assistance, tuition reimbursement, professional organizational dues, transportation and parking assistance, banking services, long term care, critical illness coverage, accident insurance, auto and home insurance, access to pre-paid legal services, college savings plans, funding sources for home loans, estate planning, gym membership, and even pet insurance.
The task of selecting, modifying, postponing, implementing or eliminating employee benefits can be a daunting task. Examine these steps before you embark on your critical journey.
Select a Broker
One of the wisest investments you can make is to secure the help of an outside professional. A broker is your outside expert, a person or company that represents you in the marketplace. Broker commissions vary, so inquire how the broker gets paid before you engage them. Even if you are happy with your broker, ensure that they are providing you with the level of service you expect. From time to time, comparison-shop your broker services. As you grow, your needs may change. If possible, over-hire the broker so that they have the capacity to grow with you.
Comparative Market Analysis
Job candidates and your employees are both very attuned to what benefits other companies offer. Have your broker provide a comprehensive and current market analysis. Your broker should provide you with in-depth data about your competition. This comparative analysis will assist you in determining if you wish to be "at, above, or below" your competition in each of your benefit categories.
The Budget
Your budget is always a major consideration. Costs of plans vary based on the offerings you select. True, benefit costs continue to rise, some more than others. However, skimping on benefits may cost you by not being able to hire the best talent because of a weak benefits package. Should great employees become disenchanted and leave because you "can't afford" to offer an array of benefits, there will be an additional burden placed on your company. Don't let the competition steal your talent over this issue.
Cost Sharing
Be totally candid with your candidates and staff about what their portion of benefits will cost them. They know that benefits can be extremely expensive and understand that most employees have to share some of the burden. Your market analysis will assist in determining where you want to be in comparison to the marketplace. Proper cost sharing will contribute positively to recruiting and retaining your employees.
Outsourcing Benefits
For some companies "outsourcing" your benefits to a trade organization or a Professional Employer Organization (PEO) may be a great option. Trade, professional organizations, and PEO's often provide employer sponsored benefit plans to their members. These organizations may be able to provide you lower cost options vs. going it alone. Finally, even though you may have looked at them previously and decided not to use them, look at them again. They could have what you need today.
The Differentiator
Consider selecting one benefit to be your differentiator: a benefit that employees will find valuable to them. Perhaps the one you select will set you apart from your competition. Think competitive advantage. This might mean carrying over vacation/PTO (personal time off) to the next year versus a "use it or lose it" approach. Perhaps it might be offering insurance coverage from day one of employment or the first of the month following employment versus waiting 90 days or more. Another approach might be providing certain benefits using pre-tax dollars. A newer approach is allowing employees to contribute their PTO to their 401(k) plan. Whatever your decision, be creative.
Communications
Whether you add, drop, modify or keep the same benefit package, communicate to your recruits and employees alike. And do it in writing. A communications piece can be as simple as a written summary of your benefits and employee contributions. Make it professional, as how you communicate your message can be an additional recruiting tool. Work with your broker. They should provide you with helpful marketing communications tips to your candidates and employees. Don't forget, it is impossible to over communicate your benefits message to either candidates or employees.
While company sponsored benefits are costly, it's also part of the cost of doing business. Take the time to do your homework. You will be happy you did and so will your recruits and employees.
