how to build a competitive employee benefits package

Top Tips for Creating a competitive Employer Benefit Package.

• 1. Ditch the paperwork and invest in human management software. Invest in employee benefits administration technology that will ensure you manage all ...
• 2. Determine the needs of your employees and offer the best choice.
• 3. Ask your employees what they need.

Full Answer

What is a competitive benefits package?

A competitive benefits package is not a one-size-fits-all and largely depends on the age range of your company. For example, younger workforces will be strongly enticed by competitive financial wellness packages and single health and medical benefits. A more mature workforce might prioritize family benefits.

What is an employee benefits package?

An employee benefits package is a set of perks and special offers given to company employees. These items, often called "nonwage benefits," encompass many tools employees can use to take care of themselves and their families, establish a healthy work-life balance, save money and more.

How can I help my employees manage their benefits package?

Finding an intuitive online portal that's easy for your employees to access and navigate is important to help them understand what they can do with their benefits package. If you make it easy to enroll and make changes down the line, employees will feel in control of their benefits.

How to design the Best Employee Benefits program?

Aim To Provide Value To All Employees Design a benefits program that contains value for all employees, not just some. When the organization spends money on something relevant to only a portion of employees, such as vision care, they question the investment.

How do I set up an employee benefits package?

Take these steps to start building an employee benefits program that won't break the bank.Review your goals and budget. ... Know the required employee benefits. ... Pick optional benefits. ... Highlight special perks. ... Draw the total compensation picture.

What should be included in a benefits package?

Benefit packages may offer such things as a car allowance, cellphone, gym membership or travel reimbursements to lure top talent from around the world, but they usually start with health insurance for employees, and if possible, for their families. Sometimes, a health care flexible spending account is included.

What does a competitive benefits package look like?

A competitive pay package is inclusive of the salary and fringe benefits that a company offers to its employees. The number of benefits that a company can offer to its employees is basically unlimited. Benefits might include anything like the following: Health insurance.

What are the 4 major types of employee benefits?

There are four major types of employee benefits many employers offer: medical insurance, life insurance, disability insurance, and retirement plans. Below, we've loosely categorized these types of employee benefits and given a basic definition of each.

What are typical benefit packages?

A typical benefits package includes health insurance, retirement planning, and paid time off.

How do you budget for employee benefits?

Experts suggest that you should expect to pay a range of 1.25 to 1.4 times each employee's base salary. That extra $10,000 might include things like $120 for life insurance—an average cost for your younger and older workers—$5,760 for family health coverage, $520 for dental insurance, and $200 for long-term disability.

What benefits do employees value most 2021?

From flexible work to retirement benefits and childcare support, here are nine benefits that can help you win the race for great employees.Flexible work culture. ... Remote and hybrid work. ... Childcare and family benefits. ... Insurance benefits. ... Mental health support. ... Retirement planning. ... Student loan repayments. ... Shares in the company.More items...•

What is an attractive compensation package?

Arkema offers a compensation package that is higher than the average for businesses in our sector. Share. Compensation is a recognition of individual commitment in line with the responsibilities of a given position and the company's performance.

What is a competitive bonus structure?

A bonus structure is an employee incentive program. These plans include rewards or incentives beyond an employee's salary. They are a perk and are conditional based on metrics being met or a goal being complete. Each company's bonus structure setup might look different depending on its type and size.

What are 5 employee benefits?

Here is a list of the top five types of benefits employers can offer to employees - each can be a valuable tool for recruiting and retaining employees.1) Health Benefits. ... 2) Retirement. ... 3) Workplace Flexibility. ... 4) Wellness Program. ... 5) Tuition Reimbursement.

What benefits do employees value most?

The most sought-after employee benefits are:Paid time off. ... Flexible hours. ... Paid family leave. ... Four-day work week. ... Free food in the office. ... Student loan assistance. ... Pet insurance/pet friendly offices. ... Fitness perks. Gyms and yoga studios have certainly struggled during the pandemic.More items...

What are the most popular employee benefits?

Paid time off, flexibility/remote working options and paid family leave are the top non-insurance benefits employees want, according to a new survey of 1,500 U.S. workers by benefits provider Unum.

Why is a generous employee benefit package important?

A generous employee benefits package can be an excellent way to keep the talent you have, and to recruit the cream of the crop. There are many ways to measure the success of an entrepreneur, including the number of new ideas launched, the revenue and profits earned, and the ways in which he or she serves an industry or a community.

When does an employee make an election?

An employee makes an election (up to a maximum dollar amount established by the employer) that is available throughout the plan year (Januar y 1 to December 31) to pay for out-of-pocket medical, dental, and vision expenses.

What percentage of employees neglected to use vacation time in 2009?

Some 66 percent of employees neglected to use all of their vacation time in 2009, according to a study released by Right Management, a consulting firm in Philadelphia. Workaholic employees may seem attractive in theory; in practice, they will likely suffer from burnout and cause stress among other workers.

What percentage of companies offer 401(k) plans?

Only 15 percent of companies with between five and 99 employees offer a 401 (k) plan, the most common type of employer-sponsored retirement savings program. A 401 (k) is a voluntary retirement savings plan into which employees can contribute a portion of their pre-tax earnings.

What is flexible work?

Under a flexible work arrangement, an employee can choose to work atypical business hours so long as they complete assignments in a timely manner. These arrangements take many forms including working a 4-day week, telecommuting, and job-sharing.

Is 2 weeks paid vacation a good benefit?

Providing workers with paid vacation time is extremely common, and generally considered a low-cost benefit to offer. Two weeks paid leave is fairly standard for a small business in the U.S. Many companies start workers at two weeks and reward them with additional time off as they accrue seniority.

You will attract top talent

Competitive employee benefits packages are a huge factor in enticing and keeping the best of your workforce. An excellent benefits package will attract those who share your values, which means you’ll spend less time training them!

Ensure Healthy Employees

Good medical leave days and perks such as gym membership will ensure that employees stay healthy while they work. That will keep employees at work as they should.

Improve corporate image

More customers want to relate with organizations that portray great values, including treating employees well.

Top Tips for Creating a competitive Employer Benefit Package

Invest in employee benefits administration technology that will ensure you manage all the benefits efficiently. Effective human capital management (HCM) software will help you automate employee benefit eligibility and enrollment in various schemes. Below are the benefits of human capital management (HCM) software:

What can be added to a company sponsored retirement plan?

While establishing a retirement plan might not be the most unique employee benefits offering, providing employees with access to nontraditional investment options within your company sponsored plan will definitely make your business stand out. A few alternative investment strategies that can be added to a company sponsored plan include private stock, qualified employer securities, joint ventures, real estate, agriculture/maritime rights, and other types of loans and liens. If you’re really looking to differentiate your company’s retirement plan, we encourage you to consider cryptocurrencies like Bitcoin and other forms of digital assets.

What are voluntary benefits?

You can also look into voluntary benefit options to make your plans more flexible according to the specific needs and preferences of your employees. These options may include, disability insurance, dental insurance, telemedicine coverage, and even gym reimbursements. These customizations will not only lead employees to higher satisfaction levels regarding their benefit program, but it will ultimately increase overall job satisfaction and decrease employee turnover.

How does employee engagement affect productivity?

Employee engagement, which is credited for up to a 17% increase in productivity and a 41% decrease in absenteeism, is linked to better benefits – especially those that free up resources and reduce worker stress.

What are benefits above and beyond?

Benefits above and beyond the basics. You can consider anything aside from a paycheck as a benefit, and some companies are rather creative with their perks. Any of these may make sense for you, too, provided your employees actually want it (and it’s not just a fad). 5. Child-related expenses.

What is Flextime in work?

With flextime, a worker is allowed to adjust their hours according to their own needs. As long as the employee completes their set number of hours, the “when” is largely up to them while you (the employer) work out the terms.

What does it mean to make a job attractive?

Making a job offering attractive to today's workers means more than just giving them a suitable salary. Benefits are incredibly important and encompass myriad aspects of employees’ lives outside the workplace.

Can you back up stock options with tangible benefits?

While startups may dangle stock options as a desirable perk, be sure you can back it up with something tangible. Make it easy for employees to convert them to cash or something else of value, or they may not see it as a real benefit.

Is PTO a perk?

PTO. Paid time off, or "PTO," has gone from a nice-to-have perk to something employees expect. The law may even demand it, especially for full-time workers and those in certain industries. Few federal mandates exist, but companies need to stay on top of state and municipal laws regarding PTO.

Why Benefits Matter

Your company’s benefits are so much more than the tagline you include in job posts, “competitive benefits offered.” When you’re doing it right, they’re effective tools for:

Know Which Benefits to Offer

The turbulent health care landscape over the past couple of years makes dependable health care benefits a top priority for most employers, but the soaring costs also make it one of the most expensive, and therefore the hardest to change in HR.

Communicate the Benefits

Once your benefits package is solidified, communicating it to your workforce is critical. They can’t appreciate your hard-won benefits if they don’t know about them or how to use them.

What is an employee benefits package?

An employee benefits package is a set of perks and special offers given to company employees. These items, often called "nonwage benefits," encompass many tools employees can use to take care of themselves and their families, establish a healthy work-life balance, save money and more. Some benefits are mandated by law in certain instances, ...

What is included in compensation package?

In addition to employees' pay, these packages typically include a number of other perks, like health insurance, retirement plans and paid time off (PTO). A truly impactful employee benefits program goes well beyond medical coverage, said Alex Shubat, ...

What are the benefits of health insurance?

Health insurance, including the following:#N#Medical: Health benefits are among the leading reasons an employee chooses to work at a company. Offer plans or options that help employees and their families access the ongoing and preventive care they need to lead healthy lives.#N#Dental: Annual cleanings, cavity fillings and emergency dental work can be among the most expensive healthcare costs. A good plan helps employees and their families access preventive and vital care at an affordable price.#N#Vision: For the millions of people who wear glasses, vision insurance helps them access discounted or free corrective eyewear. This can lift a significant financial burden off your employees' shoulders. 1 Medical: Health benefits are among the leading reasons an employee chooses to work at a company. Offer plans or options that help employees and their families access the ongoing and preventive care they need to lead healthy lives. 2 Dental: Annual cleanings, cavity fillings and emergency dental work can be among the most expensive healthcare costs. A good plan helps employees and their families access preventive and vital care at an affordable price. 3 Vision: For the millions of people who wear glasses, vision insurance helps them access discounted or free corrective eyewear. This can lift a significant financial burden off your employees' shoulders.

How to stand out and make your company more attractive to employees?

To stand out and make your company more attractive to employees, you'll need to go above and beyond, within your small business budget. "All companies wish they could spend more on benefits, but it is a balancing act," said Jeff Yaniga, former chief channel officer of Maestro Health.

Can you supplement a high deductible health plan with voluntary benefits?

Allowing employees to personalize their package to meet their own goals is a big part of increasing satisfaction with your benefits plan. High-deductible health plans can be supplemented with voluntary benefits, such as low-cost loans, Yaniga said.

Can you match your company's contributions?

Your company may also elect to match contributions up to a certain amount or after a certain number of years of service to the company. Additional insurance (e.g., life and disability): Life and disability insurance can help your employees and their families if something catastrophic occurs.

Do voluntary benefits eat up your budget?

Employers must budget benefits with the same rigor by which they budget payroll, innovation, and building great products and services.". Benefits don't have to eat up your whole budget, though.

When trying to create an attractive benefits package, should employers conduct a cost-benefit analysis?

When trying to create an attractive benefits package, employers should conduct a cost-benefit analysis to understand what benefits are being utilized. It is also important to know if your employees understand how to maximize their benefits. Employee education, focus groups and surveys can help an organization understand what is important ...

What is benefits program?

Design a benefits program that contains value for all employees, not just some. When the organization spends money on something relevant to only a portion of employees, such as vision care, they question the investment. Offering a more personalized plan, experience and insights on a modern technology platform will deliver huge value to the employees and their families. - Jennifer Bouyoukos, Entertainment One

What are soft benefits?

Employers need to consider soft benefits, such as work flexibility, work-from-home office allowances, with a particular focus on a strong culture to stand out from their peers. With employees working from home, certain benefits have fallen to the wayside, like free lunches and office snacks, so it's important that employers promote a strong culture of collaboration and inclusivity. - Polina Wilson, Unruly ®

Is competitive benefits package one size fits all?

A competitive benefits package is not a one-size-fits-all and largely depends on the age range of your company. For example, younger workforces will be strongly enticed by competitive financial wellness packages and single health and medical benefits. A more mature workforce might prioritize family benefits.