Steps to Build an Employee Benefits Program
HR Tech Outlook | Thursday, April 22, 2021
Fremont, CA : A successful employee benefits package will help you achieve certain specific objectives. To begin with, it will provide financial security to workers and their families in the event of injury, sickness, unemployment, or death. Second, it will help the company's overall efficiency and foster better employee morale. Finally, it must be used as a recruiting tool to help the organization retain and attract top talent without costing more than it is worth. Designing an employee compensation package that satisfies all requirements is a difficult challenge for many business owners.
- Start by including the primary and federally required benefits for workers in your employee benefits package. Workers' compensation insurance, unemployment insurance, and social security are examples of such benefits. Any company in the United States should have at least these three benefits to ensure that employees are protected in the event of disability, injury, or unemployment.
- Consider the relevant optional benefits to provide. You'll find that these optional perks have become industry standards, and you'll have a hard time recruiting and retaining talented employees if you don't provide them. For example, in several sectors, life insurance, health insurance, flexible pay policies, retirement plans, and sick leave schemes are all standard benefits plans.
- Consider including additional incentives in the package. You can evaluate benefits such as child care subsidies, telecommuting opportunities, health or exercise incentives, incentive plans, legal insurance, shopping discount programs, flexible spending accounts, and tuition reimbursement programs while the employee benefits package includes the basics. Such services would give you a leg up on the competition to improve employee productivity and lower turnover rates.
- Determine which benefits are most important to each of your staff. You'll need to conduct a survey of prospective or current workers to decide which benefits would be most valuable to them. Part-time retail workers would value a higher percentage discount for an employee purchase over sales-based incentive plans, while an organization with a large number of working parents will appreciate the child care subsidy benefit more.