Essential Tips on Creating an Attractive Employee Benefits Package
Thursday, March 17, 2022 17:48 Posted by Admin
Here at Taylor Benefits, we talk a lot about the importance of creating attractive employee group benefits packages and how they help attract and retain talent. Let’s review the benefits most commonly included in today’s employee benefits packages and look at a few essential tips on designing a winning benefits program.
Do I Need to Offer an Employee Benefits Plan?
In a word, Yes! The federal and some state governments require businesses to provide five essential benefits, including:
- Social Security & Medicare: Both employers and employees contribute through payroll deductions. Social Security ensures residents will have some income after they retire or if disabled. Medicare guarantees health coverage for residents over 65 years or with designated medical conditions or disabilities.
- Workers Compensation: Workers Compensation Insurance covers employment-related costs such as medical treatment, hospital care, rehabilitation programs, and paid leave for income replacement for work-related illness or injuries.
- Unemployment Insurance: Federal and state government UI insurance provides short-term income due to involuntary job loss.
- Health Insurance: Businesses with more than 50 full-time employees must provide health insurance benefits as mandated by the Affordable Care Act (ACA) or Obamacare, passed in 2010. Remember, companies must offer the same benefits and options to all full-time employees.
- Medical & Family Leave: Under the Family and Medical Leave Act, employees may receive up to 12 weeks of unpaid, annual leave with the guarantee of job protection upon return. Leave for the birth of a child, family medical care, or military deployment is available after one full year of employment and in companies with 50 or more employees.
What Benefits Do Employees Want Most?
Here’s where your employee benefits package needs careful attention and planning.
First, according to research by Fractl, let’s look at the benefits that matter most in a survey of more than 2,000 employees:
- better health, dental and vision insurance (88%)
- more flexible hours (88%)
- more vacation time (80%)
- work from home options (80%)
- unlimited vacation (68%)
- student loan (48%) or tuition (44%) assistance
- paid maternity/paternity leave (42%)
- free daycare (38%)
- free gym (39%), fitness/yoga classes (33%)
- free snacks (32%) and free coffee (30%)
- free company-wide retreats (26%) and free weekly employee outings (24%).
These desirable employee benefits have substantial costs and tax implications for employees and employers. But, they offer a path to additional benefits beyond the basics that may make a difference in recruiting and retaining employees.
Employee Benefits Wish List
Care.com reported the five family assistance benefits employees say would most help them do their job better. They included “backup child care, discounted/reimbursed care, help hiring a housekeeper, help finding reliable child care and long-term or tailored senior care planning.”
Six Tips for an Attractive Employee Benefits Package
So, where do you start when designing the best possible employee benefits plan for your business and your employees? We’ve got six tips that will help you create the most affordable, most attractive benefits to offer your employees or recruits.
- Set a realistic benefits budget: It sounds simple but figuring out the cost of your benefits plan is where expert advice is invaluable. Your benefits consultant can also advise on tax savings strategies and credits available from federal and state government programs.
- Pick the most popular benefits: Consider adding some of the most desirable additional benefits, which include medical/vision care, paid time off (including vacations, sick days), retirement savings plans such as 401(k) or 403(b), flexible or health savings plans (FSA, HSA), life/disability insurance, and some of the extra perks that appeal to today’s younger generation and female workers.
- Perform benefits analysis: Make sure to total the direct salary cost, indirect benefits mandated, and the cost of employer-paid indirect benefits above. That will give you a more accurate cost analysis.
- Consider using professional groups or associations: Industry associations or large professional groups sometimes offer managed benefits programs, with many desirable features and costs that may be lower than other plans. Ask your benefits advisor about the possibilities.
- Finalize your program: Once you know the costs and features that appeal most, finalize your benefits plan, complete all the paperwork, and get ready to launch.
- Communicate to your employees: This is among the most critical steps in getting employee support for your program. Ensure employees understand the features, the costs and most importantly, the benefits and your company’s commitment to their well-being.
Pitfalls to Avoid In Benefits Packages?
You can design an incredible benefits package that includes everything in addition to the kitchen sink. But your business and your employees will have to pay for extra features that may be less important to them than you think. Don’t over-design your benefits plan because it may simply be too expensive.
Ready to Create Your New Benefits Plan
You’re ready to review your plan with an expert with your planning done. Our Taylor Benefits team has decades of experience creating some of the most attractive employee benefits packages available. We’re just a phone call or email away.