Hiring and retaining the right employees is a critical factor for business success. Staff turnover can be particularly challenging for business owners to overcome and is often what keeps them from reaching their goals.
Most owners know employee benefits programs are important when it comes to attracting and retaining quality talent. Not having a robust benefits package could actually cost a business owner more than maintaining one. In a recent survey, 40% of workers reported they had left a job to pursue better benefits.
But in many cases, business owners aren’t sure where to start, how much they should spend, or whether or not their company is ready to invest in a benefits program. Below, we’ll explore the hallmarks of a great benefits program, talk through considerations for employee participation, and provide some tips for success.
Darryl Wagner, Senior VP of Organizational Development at BBSI, joins the show to discuss developing a killer employee benefits program that will help attract and retain the right talent.
You’ll learn about how benefits impact hiring, the full range of benefits to consider, and tips to tailor a plan to your needs.
Benefits are a key consideration for many job seekers in their search for workplaces and compensation packages that meet their needs. Benefits are as important as wages when it comes to compensation; they help employees meet basic needs, save for retirement, and maintain their general financial health.
But what sets great employee benefits programs apart?
Competitive benefits packages typically feature a combination of government-mandated offers and other optional items that employees can choose to take advantage of.
Depending on your state and local laws, your business may be required to provide some or all of the following to employees based on their status:
Federal, state, or local laws may also require employers to offer time off for:
While your business might be required to provide some form of health insurance based on the employment laws in your jurisdiction, companies can choose to include the following types of health coverage in their employee benefits packages to remain competitive in the marketplace:
In addition, some municipalities require employers to offer enrollment in or contribute to retirement accounts like 401(k)s, IRAs, or SEP plans.
Finally, businesses may offer some of the following ancillary benefits to comply with relevant regulations or to meet industry standards:
Employee benefits packages can be critical for both attracting and retaining employees. Simply put, high-quality candidates will likely have a variety of work opportunities to choose from. By offering a high-fidelity benefits package, you can make employment offers that are more attractive than those offered by your competitors.
Competitive employee benefits programs can provide:
As businesses build their employee benefits programs, it’s important to think beyond the minimum requirements and, instead, create comprehensive packages that help them remain competitive in the market and attract the right people to their teams.
Losing quality employees to companies with better benefits packages can be frustrating and discouraging for business owners. If one or more of your staff members have left to pursue better benefits, it’s time to reevaluate just how valuable an investment in benefits can be in regard to:
It’s also important to consider the costs of not offering healthcare in particular. Employers who don’t offer comprehensive healthcare coverage might see an increase in workers’ compensation claims, which can result in higher premiums. In addition, businesses could face fines or legal trouble if they don’t meet their municipalities’ minimum benefits requirements — costs that could eclipse the price of administering the required benefits in the first place.
If your leadership team is having trouble justifying the cost of quality benefits, reframe these costs as an investment in both recruitment and retention.
It’s important to keep the needs of your employees in mind when considering which benefits to offer. If you view benefits administration as “checking a box” without careful consideration, your benefits plan could become a sunk cost and not provide a return on investment for your business.
As you build an employee benefits package (or overhaul your current offer), consider the following tips:
You should also carefully choose the right benefits partner. Experienced, helpful benefits administrators can help you run your program as effectively as possible.
As you structure your benefits program, consider three main areas: medical care, mental health care, and work-life balance.
If your employees don’t participate in your benefits program, the time and money spent developing it won’t produce a return on investment. The key to maximizing that investment and leveraging benefits as a retention tool is ensuring all your employees understand what’s available to them.
Communication is vital. It’s not enough for a company to put a plan in place and advertise it. Businesses must communicate with their employees to help them understand what’s included in their benefits and how they can sign up. Consider hosting town hall meetings, webinars, or educational programs to help your staff best understand and take advantage of the offers available.
To optimize participation, consider working with a partner. Enlisting a benefits broker or working with a PEO alleviates the burden of plan administration, and providers can also engage employees and answer questions.
As you build and maintain a package that will attract quality hires and retain your most valuable team members, consider the following tips for success:
Organizations looking to create an optimal employee benefits program can easily do so with one best practice: Partnering with BBSI and your local Business Unit team.
As part of your dedicated team, an experienced Benefits Professional will partner with you to make simple plan decisions and guide you and your employees through open enrollment.
The BBSI Benefits Program will also give your business a competitive edge in today’s job market. You'll gain access to plans and rates typically only available to much larger companies and provide your employees with national access to quality care.
Contact your local Business Unit today to learn more about how BBSI can help optimize your benefits offering, develop growth strategies, and take your business to the next level.