If you think salary is ultimately more important to employees than anything else, you may want to reconsider.
A 2018 study found that a shocking 80 percent of employees would choose a job with great employee benefits over an identical job role that had no benefits but paid 30 percent more.
So, if employee retention is important to your company, one of the best things you can do is develop a great employee benefits program.
But, how do you start the process of building a benefits program and what are the most important things to consider when you do?
This guide is here to help. Keep reading for an overview of how to design an employee benefits program that your staff will love.
1. Determine a Budget
Before you do anything else, you must determine how much money your company can afford to put towards a benefits package.
While you need to make sure that you’re not committing to something that the company ultimately can’t afford, try to remember the advantages of building out a benefits program while you work on the budget.
Not only will a comprehensive benefits package increase your current employees’ satisfaction, but it can also help you be more competitive when recruiting for new hires.
Once you determine the right price, you’ll have peace of mind knowing that everyone wins when you offer great employee benefits.
2. Talk To Your Employees
While you’re still in the early phases of planning out your employee benefits program, it’s a good idea to talk to the people it’ll impact the most: your employees.
Depending on the size of your company, you might hold a small meeting to get feedback from your staff on the benefits they’d find most desirable.
Or, you could send out an anonymous survey to hear from employees in a low-pressure way. By getting their feedback, you can start to prioritize different benefits that appeal most to your workers.
3. Know the Required Benefits
While developing this new benefits package, it’s a good time to make sure you’re familiar with all the required employee benefits you must offer. If you’re not currently in compliance with these regulations, make it a priority to do so.
Regardless of the size of your company, you must offer the following benefits:
- Unemployment insurance
- Medicare and social security benefits
- Workers compensation
- Leaves of absence
In certain states, disability insurance is also required. Check with your state laws to ensure you’re in compliance.
Once you’ve confirmed you’re offering all the necessities, you can focus on additional option to make your benefits package more appealing.
4. Decide What To Offer
Aside from determining your budget, this is the most important part of developing an employee benefits program.
There are plenty of things you can offer your employees. Be sure to carefully consider all of them when deciding how to prioritize them. Here’s an overview of some of the most popular benefits to offer.
Health Insurance
One of the most popular (and most needed) employee benefits is health insurance. However, it’s also one of the most expensive, due to ever-rising premiums.
But, you have options when deciding to offer health care. You can offer a Health Maintenance Organization (HMO), which requires employees to choose from a network of approved doctors for treatment.
Preferred Provider Organizations (PPO), on the other hand, are generally more expensive, but they give employees more freedom when choosing a doctor. Point-of-Service and High-Deductible Health Plans are also options you may consider providing.
Dental Insurance
Many employees expect companies to offer dental insurance in addition to regular health insurance.
You can choose to offer plans that cover 100 percent of employees’ costs or a portion of their costs, depending on your benefits budget.
401(K) Retirement Savings Plan
If you’re looking to attract high-quality, talented employees, offering a 401(K) match is one of the best ways to do so.
In doing so, you can offer a set maximum percentage that the company will match when an employee contributes to their 401(K) retirement plan.
Paid Time Off (PTO)
There’s no denying the importance of a healthy work/life balance. But, it’s hard for employees to achieve that when they feel like they can’t take time off from work.
By offering the benefit of PTO, you can encourage employees to take time off when needed, and make your company more competitive in the job market as a result.
While most companies offer at least two weeks of PTO to start, offering a bit more can help set you apart from other similar companies.
5. Calculate the Total Compensation
Once you’ve decided on all the benefits your package will include, you need to calculate the total compensation value of the benefits plan.
Essentially, this should show a dollar amount for each benefit, that can be communicated to your employees as part of an annual statement of their full compensation.
Not only does this show your employees the value of the benefits package, but it can be a helpful number to show when recruiting for new hires.
6. Talk To an Expert
If all of this sounds like a lot of work, that’s because it is! But, the good news is that you don’t have to do it all by yourself.
Before you put your new benefits package into place, it’s a good idea to talk to an Employee Benefits Consultant to make sure you’re not overlooking anything.
They can help you define the plan from the very beginning or help you refine the plan you’re already developing.
7. Re-Evaluate as Needed
Finally, remember that you don’t need to take a “set it and forget it” approach when creating a benefits package. Every few years, it’s a good idea to re-evaluate your plan and see if there’s room for improvement.
Increase Worker Satisfaction with an Employee Benefits Program
Now that you know how to create an employee benefits program, it’s time to get to work. Trust us, your employees will thank you for it!
For more helpful business advice like this, check out our other articles today.
