Top-tier companies understand the importance of retaining their most talented employees and attracting excellent prospective employees. To be successful in that endeavor, those companies prioritize offering the right employee benefits as part of their compensation plan.
Business owners don’t generally have the time or specific expertise to build a benefits plan from scratch. Here are 10 tips for finding the right employee benefits services to handle the project.
1. Define Company Goals
When choosing a benefit provider, consider whether the provider is a good fit for your organization. Understanding the company’s goals as they relate to employee benefits is important; being able to quickly articulate them to prospective providers will help eliminate anyone who isn’t a good match.
Common company goals include improving overall employee health, lowering healthcare costs, making the health plan administratively efficient and ease of use.
Aligning the benefits package with company values helps to create a company culture that naturally attracts and retains outstanding employees.
2. Understand Which Services the Company Requires
Some benefit service providers offer a full package that includes 401(k) and retirement plans, life and disability insurance, and time-off administration. Others offer only health-related services like health insurance and dental insurance.
Many of the newest and most attractive benefits like commuter benefits and health club memberships are attractive to potential employees but may not be on a company’s radar.
3. Decide What Level of Customer Service Employees Prefer
Will employees be able to call the benefits service provider directly with their questions? Are HR software solutions needed for things like recruiting, PTO and holiday pay tracking, and payroll?
Giving employees direct access to service providers may help reduce overall HR costs. It also gives employees a sense of control over their benefits.
4. Compliance Matters
Hiring the right benefit services provider is as important as hiring the right accountant. Healthcare is a notoriously changing landscape, and remaining compliant is necessary. Find out if the companies being considered have resources to help with ACA and ERISA compliance.
5. When in Doubt, Choose Advanced Technology
Today’s workforce expects easy access to their personal benefits information via mobile technology. Choosing an easy-to-use interface will help reduce HR administrative costs, as well.
Benefits technology helps employees understand and take advantage of the full benefits package. Millennials will make up a large percentage of the workforce in the near future, and keeping up with technological advancements by using digital HR tools helps growing companies stay relevant.
6. Focus on Innovation
Staying competitive in the world of employee benefits requires a certain open-minded and forward-thinking attitude.
According to Glassdoor, 57 percent of people looking for a job say benefits and perks are a top consideration. Paid volunteer time, flexible work options for new parents, student loan debt reimbursement and life coaching services are attention-getting options for innovative benefits.
7. Talk to Current Employees
According to the same Glassdoor survey previously mentioned, four out of five employees would prefer new benefits and perks over a pay raise.
Retaining great employees may be as simple as asking them what they want and choosing benefit services that can deliver. An open dialogue will also help reveal areas where current benefits are lacking.
Understanding the weaknesses of the current benefits program will help you choose a benefits services provider that can help remedy the problem.
8. Carefully Consider HR Administration Costs
There’s no doubt that benefits packages make up a sizeable portion of employee compensation. When weighing the pros and cons of different benefit services, factor in potential HR administration costs associated with the less-robust options.
9. Choose Benefit Services That Include an Employee Wellness Component and Add a Disease Management Program for the Best ROI
Employee wellness programs help employers reduce healthcare costs in many cases. A RAND Wellness Program Study that included nearly 600,000 employees at seven companies indicates that lifestyle management programs, while valuable to employees, don’t reduce healthcare costs.
However, disease management programs and health assessments to identify at-risk employees and get them the personalized care-management program they need to be healthier reduce hospitalizations and chronic illness. The ROI for this type of program amounts to $3.80 for every $1 spent.
Lifestyle management remains relevant. This type of program had an ROI of $1.50 for every $1 spent on the program.
10. Learn About Available Decision-Making Tools to Help Employees Choose Benefits
In many companies, employees are responsible for a portion of the cost of their benefits. Enrollment periods are often brief, and employees expect HR’s support and expertise when it’s time to choose benefits.
Fewer companies are using paper forms and call centers to enroll employees. Make sure employee benefit services can facilitate an easy-to-use enrollment for the benefit of participants.
A company’s benefits package is key when building good relationships with employees and motivating them to excel. A solid benefits package goes beyond the basics of health and dental insurance. Choosing the right employee benefit services keeps HR and administrative costs to a minimum while improving the overall benefits package.