Employee Benefits Programs: Design an Attractive Package
Attracting and retaining talented employees in today’s workplace is no easy task. Increasingly, employees expect more than their employers’ traditional set of benefits. In addition to medical and PTO, many companies are now implementing unique benefits such as remote work options, daycare services, and pet-friendly workplaces. Companies are beginning to realize the need to stand out with attractive employee benefits programs if they want to hire the best talent in the workforce.
What are Employee Benefits Programs?
An employee benefits program is a package of non-wage compensation benefits that employers provide to their workers in addition to their regular wages. These packages typically contribute to employee wellbeing, company culture, recruitment, and retention.
Who Should Be Involved in Creating a Program?
If your company is interested in recruiting and retaining the best talent, it makes sense to ask your current employees what they would like to see. What would make them more likely to stay loyal to the company? What would make it difficult for them to leave?
Additionally, it’s essential to include your HR and finance departments in deciding which programs your company should offer. Benefits aren’t always free, and it is crucial to determine what your organization can afford. Since your HR department will be managing these benefits, their insight will be beneficial to the process.
Essential Questions To Consider
Before you begin designing your ideal program, consider some essential questions:
- Will the selections improve employee retention and morale?
- Can the company afford it?
- Will these benefits make your company stand out from others?
10 Steps To Set Up Employee Benefits Programs
- Create a Budget
Before committing, it’s important to keep in mind what is affordable for your company. Some benefits, such as health and dental, are costlier than others, like pet-friendly workplaces or free snacks and beverages in the office. Knowing what you can realistically offer to your employees is a critical first step.
- Identify Objectives
Knowing the goals of your program will help guide the final product that your organization ultimately creates. Identifying practical objectives (employee retention and productivity) and philosophical objectives (employee quality of life and workplace morale) will help you design a well-rounded package.
- Conduct a Needs Assessment
What exactly do your employees want and need from their employer? What are your competitors offering their employees? Your organization can better understand what to include in your package by conducting a needs assessment.
- Decide What to Include
After understanding your budget and receiving feedback from your needs assessment, now is the time to decide which benefits will be the most valuable to your new package. Some of the most popular options include medical, dental, vision insurance, and retirement planning.
- Unique Considerations
Benefits don’t have to be limited to the traditional healthcare, vision, dental, and retirement packages. Consider offerings that will help your organization stand out from other companies. These can include non-traditional options like unlimited PTO, company-wide retreats, free gym memberships, remote work options, etc. Unique offerings can also help to reduce worker turnover.
- Analyze Total Compensation
When speaking to job candidates and employees, convey the value of the total compensation they are or will be receiving, including the new package. Total compensation includes more than just the employee’s paycheck, and conveying the encompassing value of what your company offers will help employees feel valued.
- Communicate the Plan to Employees
It is crucial to communicate the benefit plan to employees, and you should cover some critical objectives. Employees should understand the company’s value in them through the package. They should also understand the full range of benefits and how best to use them.
- Consider External Resources
Creating a good package is no easy task, and it may be a project that your organization needs outside help in completing. In this case, seeking assistance from a Professional Employer Organization (PEO) may be an option. PEOs assist with HR administration and can provide access to group benefit rates that your business may not otherwise qualify for.
- Finalize Program
Now that you have thoroughly developed a high-quality benefits package, it is time to finalize the program. Ensure that you have the needed paperwork finished with providers, determine a start date, and roll out the package to your workforce.
- Develop an Evaluation Process to Determine Effectiveness of Benefits
To determine whether your new package positively impacts your employees, you will need to evaluate it. Ensure that the benefits you selected meet your company’s needs and objectives. Regularly assessing the impact of the employee benefits program is an excellent way to ensure that the package you have created is the best one for your company and your team members.