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 benefits package and what if you can’t afford to offer one?
Competitive Benefits Packages
The most comprehensive packages usually include the following:
- an HMO or PPO plan with a national carrier
- plans with lower co-pays and deductibles
- dental insurance
- vision insurance
- 401K plans
- company-sponsored life and accident insurance
- short- and long-term disability plans
- Flexible spending accounts
- Other perks such as merchant discount programs, employee assistance programs and more
It’s arguably recommended that to attract the best talent, the least amount to offer in a benefits package are health insurance and a retirement plan.
If You’re Trying to Cut Costs
First, keep in mind what it would mean for your company to have the best employees you can find work for you. Many times, the return on investment in these employees works out in your favor.
However, with rising premiums, it’s natural to look for ways to keep costs under control. With most small companies allocating between 10% to 15% of payroll costs to health care, this expense can be daunting.
Here are some tips:
- Experiment with premium/deductible ratios
- Consider health savings accounts, which allow employees to save pre-tax dollars to cover costs uncovered by high-deductible plans
- Educate your employees about your offerings. Sometimes what they didn’t know will alleviate their concerns that they aren’t getting enough coverage
- Pick up the majority or all of the costs of a less comprehensive plan
- Share what the benefits cost with employees so they see what they are getting and how much you are contributing in dollars
- If you can’t afford to offer everything you would like to, see if you can offer some of these benefits (i.e. dental or vision) on a voluntary basis, meaning the company would not be contributing to the cost, so that employees can still have an avenue to obtain the insurance if they would like to
Offer the right – and most desirable – benefits, and you’ll draw top candidates to your door, while your existing employees will tend to be more productive. And that pays off for everyone.
