Creating a Cost-Effective Employee Benefits Program

Posted By: Team Moody,

Benefits are one of the largest expenses a company can incur. They are also an influential factor in a potential employee’s decision-making in whether to accept a job offer. Because employee benefits programs comprise so much of an overall compensation package, it is a worthwhile exercise to review your current program and determine whether changes and updates may be necessary. Here we go through an employee benefits program example to help you identify the steps you need to take to stay competitive in the marketplace without going broke.

Step 1. Survey Your Current Employees

You’ve probably heard of Voice of the Customer Surveys. Think of this as a Voice of the Employee Survey. Who better to ask about a benefits program than those who will experience it directly? With the information collected, you can answer the following questions:

  1. Do your employee needs align with your budget?
  2. Where should you direct and prioritize your funds?
  3. Are there current benefits not being utilized that could be moved and the cost directed elsewhere?

Step 2. Include Mandatory Elements

Mandatory benefits are those required by the local, state, and federal governments. These typically include things like unemployment, social security, and worker’s compensation. Leaves of absence and disability insurance may or may not be required in your area. You probably already provide these benefits, but you should always check to ensure your bases are covered here.

Step 3. Determine Your Main Benefit Plan Elements

There are many options when it comes to health insurance plans including high deductible plans, healthcare savings accounts (HSA’s), and group plans. You can provide additional perks such as contributing toward your employees’ HSA accounts and taking some of the burdens off them. Life insurance, retirement savings accounts (also with employer-matching contributions), and paid time off (PTO) are additional employee benefits. PTO is another area where you can offer some flexibility to give you an edge above other employers.

Step 4. Add in the Employee Perks

Consider factoring in elements that aren’t necessarily tied to compensation but add to the appeal of your company offerings. Fitness memberships, remote work options, and food are three areas you can deliver benefits to your employees that are considered valuable. These are especially useful if you are not able to be as competitive in some of the required areas.

Step 5. Communicate Your Package

All other things being equal, the employee benefits package you offer can be the deciding factor in a potential employee’s acceptance of your job offer. These plans also comprise a big chunk of the overall compensation package. It is worthwhile for your organization, as well as the employees,  to have a solid understanding of exactly what is offered and how it compares to other companies.

About Moody Insurance Worldwide

Moody Insurance Worldwide, a division of Moody & Associates that was founded in 1914, is a leading provider of risk management programs and insurance coverage to individuals and businesses across the East Coast. We write all sizes of businesses, with technical expertise in many key industry areas, and provide personal insurance programs for estates and high net worth individuals. Our licensed, experienced commercial account managers can work with you to determine the coverage that you need at a competitive rate. Contact us today at (855) 868-0170 to learn more about what we can do for you.