Employee benefits help you compete with other organizations who are vying for the same talent as you. Along with salary, benefits are one of the top considerations for potential employees when choosing between job offers. You want to remain competitive to ensure you attract and keep the best talent. So, it is important to also make sure you aren’t blindly implementing benefits without giving any thought to your overall strategy.
Top Mistakes Companies Make:
Covering 100% of the Employee Cost On All Plans– While it may be a great selling point for you to tell potential employees that the company will fund 100 percent of their medical plan, it can actually lead to over-insurance. Think about it from the employee perspective. If all plans are “free”, you’d likely pick the plan with the lowest co-pays and deductibles too, right? The lower the copays and deductibles, the more expensive the premium. So, you can quickly see how you are steering your employees to pick the higher cost plans and increasing your company’s cost unnecessarily by doing so. You can still take good care of your current and potential employees by offering to fund a high percentage of the cost, but not 100 percent. By not funding the entire plan, employees will have the financial incentive to pick the best plan for their needs, rather than just the most expensive one.
Not Offering Dental, Vision and Other Benefits Because You Think They Are Too Expensive– Medical benefits are typically the most expensive benefits you can offer employees. This often leads to employers failing to offer other benefits, like vision, dental and life insurance. In reality, these benefits cost significantly less than medical insurance. Many would be surprised to find out they can offer them without increasing their costs significantly. Offering these types of benefits can be a huge draw for potential employees and greatly aid in recruiting and retention efforts.
Not Considering High Deductible Plans – One thing is certain: you can expect health insurance prices to increase each year. That is why it is important to think not just about this year, but the future as well. Start by mapping your contribution to the cost of a particular plan so you are prepared for increases in the years to come. High deductible health plans are becoming especially popular for this reason. They tend to be lower in cost than other plans, so employers can better contain costs year over year. In exchange, many employers are taking some of this “savings” and making contributions to their employees’ health savings accounts (HSAs).
Only Considering One Insurance Carrier – Some companies get so used to having a specific carrier for insurance (i.e, Blue Cross, Aetna, United) that they don’t want to switch to another one. The concern is that doctors that are in network with one carrier will not be in network with others. While this can certainly be true, more often than not, if a doctor is in a network with one carrier, there is a good chance he or she will be in network with another. Sometimes switching to a new carrier can be the best option for expanding coverage for your employees. It is worth looking into to see if it is an option before just squashing it with an attitude of “it can’t be done.”
Competitive Benefits Package? Benefits are regularly named by job seekers as the number one factor considered when accepting a position, and so to attract the best employees, it’s vital that businesses offer a robust benefits package. As a recruiting and retention strategy, benefits planning is key – certainly – but what exactly comprises a competitive…
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