Putting together a competitive and affordable benefits package is no easy task. If you have a small business, how do you offer your employees the quality of care they want without breaking the bank?
Studies show that benefits play an important role in boosting morale and productivity, leading to a happier, healthier, and more engaged workforce. In a tight labor market, a top-rated employee benefits package is a must for attracting and retaining top talent, showing employees you care, and staying ahead of the competition. By planning ahead, small businesses can develop an competitive and affordable benefits program.
According to a recent MetLife study on Employee Benefits Trends, 80 percent of those surveyed said that meeting the needs of workers across all life stages is at the forefront when selecting employee benefits. While benefit options (and costs) vary, most employers offer health insurance, life, and disability insurance, retirement income plan benefits, paid-time-off benefits, and educational assistance programs.
Read More: Choosing the Right Health Plan for Your Small Business
Here are a few important strategies to consider as you put together your benefits program and budget.
Gather Employee Feedback. MetLife's benefits study identified five key areas that employers can address to create a more satisfying experience for workers. According to the survey, employees are looking for a competitive benefits package, along with:
For more insight, gather employee feedback through one-on-one interviews and questionnaires. This process is an opportunity to learn more about the areas that are important to your employees as well as areas that may need to be addressed long-term.
Conduct a Utilization Review. If you already have a benefits plan in place, determine how benefits are currently being used so that you can make necessary adjustments. Many times, your health insurance carrier will provide a utilization study for your review.
Determine Health Insurance Coverage. The most important (and most expensive) employee benefit you can offer is health insurance. Before selecting a health insurance plan, determine how many employees are eligible for coverage and how many employees plan to participate.
Understand Health Insurance Laws. Be familiar with applicable federal and state health insurance laws and regulations that apply to your business. For example, make sure your plan complies with key provisions for employers under the Affordable Care Act (ACA), as it may affect your decision on who should receive coverage.
And review the provisions under the Department of Labor’s Employee Benefits Security Administration (EBSA) which administers several important health benefit laws covering employer-based health plans. These laws include:
➡️➡️Read More: Health Insurance and Employer Responsibilities
Understand the Different Types of Health Plans. From a traditional group plan, Preferred Provider Organization (PPO), to a High-Deductible Health Plan (HDHP), there are many options when it comes to health insurance for small businesses. Understand the advantages of each and compare costs.
Explore Tax-Deductible Benefit Options. For additional cost savings, look for available tax-deductible benefits, such as Health Savings Account (HSA) and Flexible Savings Account (FSA).
Look for Flexibility. Changes in the economy, your industry, and regulatory mandates can affect your benefits program. Look for benefits that offer the flexibility to make necessary adjustments to manage costs, such as eliminating administrative expenses and underused benefits.
Benefits that Work for Your Employees and Your Budget
When it comes to employee benefits, a more engaged and productive workplace is one that focuses on the whole employee. Seek guidance from an insurance broker or benefits expert who can help calculate costs and identify competitive benefits options that work for your employees and your bottom-line.
Please Note: This information is for general reference purposes only. Please check with the appropriate organizations or government agencies for the latest information and consult your employment attorney and/or benefits advisor regarding your responsibilities. In addition, your company may be exempt from certain requirements and/or be subject to different requirements under the laws of your state. (Updated August 16, 2022)