Employee Benefits Program Startup Tips
Posted on: March 23, 2020 by iSure
The benefits you offer potential employees can be the deciding factor if they will work for you or not. Also, employee benefits are a very important investment for a business owner. Being strategic when determining what to offer your workers can give you an edge over the competition.
Starting an Employee Benefits Program
Take this advice and consider these steps to begin building a well-rounded employee benefits program.
Goals and Budget
First and foremost, you must have a reason behind the employee benefit offering and how much you can spend. Having goals and a budget will help you remain focused and realistic when choosing what benefits to provide.
For instance, is your main priority to attract and retain highly qualified employees, stand out in the labor market, or comply with appropriate federal and state laws?
You may not be able to compete head-to-head with bigger companies, but you can give employees a few perks that the big companies can’t. Just keep in mind what benefits your competitors are offering their employees and emulate them where you can.
You are most likely already offering employee benefits that are required by federal, state and local laws, such as:
- Social Security
- Unemployment insurance
- Workers’ compensation
- Disability insurance (sometimes required, sometimes optional)
- Leaves of absence
Consider the costs for these so you can include that in your budget and communicate them as part of an employee’s total compensation package.
The rest of your employee benefits program is compiled of optional benefits that you choose for your employees. To attract top talent and compete effectively, many businesses offer:
Due to the rising costs of healthcare, health insurance is a must-have according to many employees.
Providing life insurance protects employees’ families through covering a specific amount for beneficiaries if an untimely death occurred.
Disability insurance replaces income for employees who become unable to work due to sickness or accidents.
Retirement Savings Plans
Offering a defined contribution retirement plan, such as a 401(k), encourages employees to contribute their own money every pay period toward their future. An employer matching program will make your company really well-liked.
Paid Time-Off (PTO)
Most employees expect paid time off for national holidays, as well as vacations and sick leave (at least three weeks per year).
Highlight Special Perks
Intangible benefits are often referred to as “perks”. Be well aware of your company’s perks and highlight them whenever possible.
Are you able to offer work schedule flexibility to your employees, such as flex hours, telecommuting, etc.? Can you give your employees a chance to collaborate with the executive team? These kinds of benefits may be things that larger companies aren’t able to offer and help make your company a satisfying place to work.
Be sure to clearly explain the benefits you provide and give each employee an annual statement of total compensation, showing all of their wages plus any other benefits translated into a dollar amount. The dollar value of their benefits is essentially a “hidden paycheck.” Written as a report, your total compensation statement should show a breakdown of each of the benefits and how much you pay for them to hopefully increase appreciation. Conclude the report with a reminder that total compensation is significantly higher than their annual salary or wages, and provide the total cost for offering the outlined benefits.
About iSure Insurance Brokers
After serving leaders in the Greater Miami market for more than three decades, iSure Insurance Brokers has become the provider of choice for discerning commercial clients and individuals alike. Because no two insurance programs are or should be alike, you can be sure that iSure will craft a comprehensive approach to protection that is as unique as you are. We welcome the opportunity to protect what you have worked so hard to build. Please contact us at (855) 221-3406 to learn more about what we can offer you.
Posted in: Employee Benefits