how to explain benefits to employees

How to Explain a Comprehensive Employee Benefits Package to Your Employees

• Make the benefits information easily accessible.. Accessibility is a big hurdle to climb when it comes to your employee...
• Use new-hire orientation to your advantage.. One of the best methods of explaining comprehensive employee benefits...
• Carve out time to specifically go over medical benefits..

Full Answer

What are the best benefits to offer your employees?

Listen to employee concerns and be open to having uncomfortable conversations while being transparent. Giving your employees all the information necessary to make the best decision for themselves and their families can drive engagement, increase retention, and open the door for more communication.

What benefits should I offer my employees?

Having a conversation with your manager is often more productive in your efforts to increase your compensation. They see firsthand what you contribute to the organization and how you support your team. If you’re going to compare your compensation to other organizations, you have to make sure the business is like yours.

What are the best benefit options for employees?

• Pet insurance
• $1,000 "Baby Bucks" for new parents--including adoptive and foster parents
• Free breast milk shipping
• Fully-equipped mothers' rooms with hospital grade pumps and fridges
• Adoption assistance: $10,000 per household towards the expenses related to the adoption of a child.
• Fertility services: Services and treatments subject to eligibility.

More items...

What benefits do companies offer employees?

• Disability insurance
• Life insurance
• Tuition reimbursement
• Gym memberships
• Financial wellness programs
• Commuter benefits
• Pet insurance
• Childcare
• Catered meals
• Time off for volunteering

How do I tell my employees about benefits?

We recommend utilizing the following strategies to inform your employees of their benefits:Know your benefits program. ... Develop a communication plan. ... Ensure communications are accessible. ... Try selling your benefits program to employees and manager. ... Evaluate the success of the program. ... About HR Knowledge.

How do you introduce new benefits to employees?

How to Successfully Implement New Employee BenefitsMake sure everyone is on board with the decision. ... Confirm the details with your legal advisor. ... Align other company policies and procedures. ... Develop a benefits communications plan. ... Consider designating benefit ambassadors. ... Conduct a post-implementation debrief.

What are 3 examples of employee benefits?

The most common types of employee benefits offered today are:Medical insurance.Life insurance.Disability insurance.Retirement contributions and pension plans.

How do you present a company benefit?

Here are 5 ways you can make your employee benefit presentations fun:Make them interactive. Give your employees interactive handouts to follow along with the presentation. ... Make them visually stimulating. It's no surprise that most benefits presentations are very data driven. ... Make them concise. ... Make them virtual.

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.

How do you sell employee benefits?

8 strategies for selling group benefitsLeverage pre-existing P&C relationships. ... Prepare for a condensed market. ... Do more than quote. ... Give HR a hand. ... Market to millennials. ... Know that the government is watching. ... Don't be afraid of self-insured plans. ... Get your E&O coverage updated.

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 should I ask for?

Consider hiring bonuses, vacation time, retirement plans, sick leave, insurance, and other company benefits as open for negotiation as well. If you are planning to go back to school, tuition reimbursement may be just as important as health insurance.

Why are benefits important to employees?

A good benefits package can make employees feel rewarded and appreciated for their work. Benefits also provide support to an employee's family, health, and financial future which can help attract and retain top talent.

How do you educate employees on benefits?

5 Tips on Educating Your Employees About Their BenefitsCommunicate with Employees to Help Them Understand Benefit Offerings. ... Make plans customizable to meet individual needs. ... Explore options to offer more voluntary benefits for financial security. ... Talk about benefits outside of open enrollment. ... Make it easy to sign up.

How does employee benefit affect HR?

Employee benefits have a significant impact on the administrative aspect of HR, especially when regulatory issues are involved. But there are ways to manage benefit plans more effectively to save time and reduce the possibility of mistakes. Here are five things to consider:

What is retirement benefit?

Retirement. Retirement benefits help employees feel more secure about their future after retirement. In the U.S., for example, a common benefit is the 401 (k) in which both company and employee make defined contributions to the employee’s account on a regular basis.

Why do employers pay attention to demographics?

Also, some employers pay attention to the demographics of their employee base to give everyone the benefits they need most based on their characteristics. For example, in order to retain and engage millennials, businesses may offer them benefits such as student loan repayment support and co-sign support for auto loans.

What is fringe benefit?

Before we get into the nitty-gritty of employee benefits (or fringe benefits), let’s define the term: Employee benefits are any kind of tangible or intangible compensation given to employees apart from base wages or base salaries. This employee benefits definition points to examples of job benefits such as insurance (including medical, dental, ...

How do employees choose to invest?

Employees choose how to invest contributions, or how much to contribute from their paycheck through pre-tax deductions. Employers may also contribute, in some cases by matching a certain percentage of employees’ contributions. At retirement, employees receive the balance in their account.

How to find the right software for HR?

To find the right software, do your research and make a compelling business case. Measure benefits and costs diligently . This will be the responsibility of the finance department, but it’s important for HR to keep track of rising or plummeting costs and gains.

Does disability insurance cover long term disability?

Disability insurance may cover long-term and short-term disability or illness. For example, if an employee gets sick, they can receive payments for as long as their sickness lasts. In the U.S., some employers may sometimes use short-term disability policies to fund paid maternity leave for female employees.

What are the benefits of an employee?

Employee benefits include non-wage compensation in addition to regular salary. Various types of employee benefits typically include medical insurance, dental and vision coverage, life insurance and retirement planning, but there can be many more types of benefits and perks that employers choose to provide to their employees.

Why do people invest in companies?

Investing in your company means you can benefit from its growth and profitability while increasing your personal net worth.

What are the options for retirement?

Several common retirement options employers offer include 401 (k) and IRA plans, 403 (b) retirement plans (especially if you're employed with a nonprofit), simplified employee pension (SEP) plans and more.

What is disability insurance?

Some employers may offer temporary disability insurance plans that provide income support to employees who have suffered an injury or illness outside of work. While disability benefits can vary between employers, many offer some form of short-term disability coverage in the event you're injured on the job.

How long does life insurance last?

Usually, the life insurance term lasts for as long as the employee works for their employer. Other life insurance plans may be available depending on the employer, but group-term plans typically cost less than individual insurance policies.

When will the benefits package be available for 2021?

February 22, 2021. Most employers offer employee benefits packages, which can include basic health coverage and retirement planning. In addition to basic health coverage, employers offer a variety of other perks, depending on the nature of their companies. It can be worthwhile to find out what your employer offers in terms of benefits packages, ...

Is dental insurance a separate benefit?

Many employers provide dental coverage as part of their overall employee medical benefits, but sometimes dental insurance is a separate benefit. Depending on your workplace, you will either have a complete benefits package where medical and dental are grouped together, or you will have two separate insurance policies for both your medical and dental plans.

What happens if you don't educate your employees about health insurance?

However, if businesses don’t take the time to educate their employees about basic benefits terms, employees may not realize the value of their benefits or use them. It takes more than offering your employees a great health insurance plan. To maximize the benefit, employees must fully understand the policy and insurance terms.

Why is communication important in health insurance?

Communication truly is key so employees are able to make the best choices and get the most out of their health benefits. A thorough understanding of health insurance terms goes a long way in reducing confusion.

What is a formulary plan?

Formulary. A list of prescription drugs covered by the health plan, often structured in tiers that subsidize low-cost generics at a higher percentage than more expensive name brand or specialty drugs. 5.

Can an employer fund an HRA?

Unlike HSAs, only an employer may fund an HRA, and the funds revert back to the employer when the employee leaves the organization. HRAs are not subject to the same contribution limits as HSAs, and they may be paired with either high-deductible plans or traditional health plans. 8. In-network.

Why are benefits important?

Benefits can improve focus and productivity. A good benefits package that offers perks such as paid time off, health insurance and disability insurance can prevent employees from worrying about things like finances, medical expenses and child care. If employees are more confident about personal matters before, during or after work, they can better focus on their tasks and career advancement.

What are the benefits of retirement?

Some companies offer retirement benefits such as employee pension plans and 401 (k)s, which allow employees to put a pretax percentage of their earnings toward their retirement savings. An employer might contribute to or match a certain amount of those funds. Other types of retirement plans include profit-sharing, stock bonus, employee stock ownership and cash balance plans.

What is a good benefits package?

Benefits such as paid time off, workplace perks, wellness programs and tuition reimbursement can make employees feel valued. This can lead to employees who are happy to be in their job, loyal to the company and motivated to do good work.

What is the benefit of having more than 50 employees?

The Affordable Care Act requires companies with more than 50 employees to provide health insurance to 95% of full-time employees or pay a significant fee to the IRS.

What are the benefits of working from home?

Work-life balance, or the harmony between your career and your personal life, has become increasingly important to employees. Benefits that improve work-life balance include vacation time, unlimited or generous paid time off, flexible hours and the ability to work from home. These types of benefits can help reduce employee stress and fatigue and prevent burnout. Employees are likely to be more productive at work and at home as a result.

Offerings Overview

Start from a bird’s eye view. Do you feel like listing the names of all the benefits and perks offered in your introductory slide? Resist that urge. Categorize your offerings, then group those categories into fewer categories. You now have your second slide: “Traditional vs Additional”.

Health Benefits

Health Benefits are what your audience is here for. They want to know what they are and how much they have to pay for them. Here is a good opportunity to use a creatively designed data comparison slide to show coverage. Then use a carousel slide to go into traditional health benefits including medical, dental, and vision.

The Icing on the Cake

Things like personal development plans, flexible work arrangements, new tech, and office perks are all optional offerings that no employer has to have. So, if your company offers it, you should definitely flaunt it.

Culture and Team

Positive and constantly reinforced culture is a difficult thing to achieve. Once you do, it becomes a very tangible part of your offering package. Don’t believe us? Pick a few companies on Glassdoor and scroll through some reviews. “The good, the bad, and the ugly” all have to do with offerings, especially cultural ones.

Leaving an Open Door

A call to action is great. However, there's not much your employees will need to do right away (with the exception of Open Enrollment meetings where you want to reiterate some deadlines).