Employee benefits are often a significant portion of an employer’s compensation costs – but at the same time, they are also an important recruitment and retention tool.
Even when benefits start rising as a percentage of payroll costs, there are still opportunities for employers to provide current benefits more efficiently.
Most employers find during benefit planning that they must make trade-offs between an ideal package and one that will maximize the desired impact at a price that can be afforded.
Three Questions Every Business Should Ask
- What budget does my company have for benefits? (Or: What can we afford?)
- What benefits will best attract and retain the employees we need to grow our business while staying profitable?
- How do I know that my benefit provider is recommending the best options for our needs?
In response to question 3, employers should engage in strategic planning as they try to balance employees' needs and a budget. This is where we can help.
Strategic Planning Is Essential
There are a number of considerations to look at simultaneously when exploring your options, and an experienced program administrator with a clear understanding of the financial impacts is critical.
KEEP IT CURRENT: Taking advantage of new tools, such as online plan administration, can help save time and money.
RESEARCH WHAT YOUR EMPLOYEES REALLY WANT: Employers should research what benefits would work best for their workforce. Benefit programs are most effective in attracting, motivating, and retaining employees if they are part of a complete compensation strategy targeted for the employer's workforce. There is data available to help you with this process. Ask for it.
STAY IN CONTROL OF YOUR BUDGET: Strategic planning can provide for controlled budgets over a period of years, and with a TPA you own your reserve.