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Human Resource

5 Steps for Crafting an Effective Benefits Package

Prosperous business owners recognize that fuel for growth centers around attracting and retaining exceptional employees. Offering enticing benefits packages are an excellent method for appealing to employees who align with the culture of your company. However, negotiating the costs and managing the choices of employee benefits plans is time-consuming and multifaceted.

Designing and Implementing the Process

A valuable employee benefits program achieves several targeted goals. First, it contributes financial security for workers and their families in the event of unemployment, disability, illness, or death. Second, it fosters positive staff morale and boosts overall productivity. Finally, it serves as a recruitment tool to attract and keep quality talent. For many business owners, the task of a creating a solid benefits package that meets all of these criteria is daunting. Accordingly, following these five steps can provide management with the tools to craft effective benefits packages.

  1.      Profile your unique workforce needs. Creating a custom-tailored and balanced benefits package based on your staffs’ needs provides quantifiable employee satisfaction and goal achievement data essential for recruiting and retaining top talent. Analyze your workforce case history and demographics to establish a profile of their requirements based on the average life stages and specific circumstances.
  2.      Evaluate your current benefits. Review existing benefits plans to identify potential patterns impacting your options. Certain voluntary benefits are industry standards and businesses not offering these perks have significant difficulty hiring or retaining talented staff. For instance, paid and sick leave programs, life and health insurance, flexible compensation plans, and retirement plans are all benefits plan staples across many industries.
  3.      Audit the rollout experience. After selecting benefits programs, performing an audit of current employees’ perceptions provides an accurate impression of the deployment experience. This process may involve email surveys, data collection from online job board comments, or live discussions. Lunchtime Focus Groups allow employers to determine what is important to employees and their overall experience of the rollout, including the presentation, communication, and enrollment.
  4.      Manage the renewal process. Companies do not need to completely reinvent their benefits plans annually as long as they focus on industry trends and the needs of the current workforce. Re-evaluating messaging techniques, revitalizing communication as benefits strategies evolve, and continuing to conduct benefits experience audits ensures a culture of understanding and maximization of the value of benefits offered.
  5.      Secure legal compliance. When evaluating benefits packages, business owners must take into account and ensure compliance with a variety of laws. Some of these regulations include ERISA, ADA, age discrimination laws, HIPAA, and various state laws.

Small businesses and large multi-state organizations alike choose to work with consultants who manage employee benefits and business insurance. Their support equips employers with the planning, budgeting, and communication tools necessary to convey the value of benefits programs to their workers.

Looking Beyond Employee Benefits

Productivity tends to increase when employees perceive overall satisfaction of their benefits needs. Businesses offering the best benefits may realize significant growth. Providing employees with the benefits they value enhances fulfillment, decreases sick days, improves retention, and creates a higher commitment to achieving corporate goals.