How to Choose Employee Benefit Packages for Your Employees

In today’s competitive hiring market, an attractive employee benefits package is more important than ever. Employees carefully consider the total compensation deal before accepting a job offer. In order to draw high quality candidates to your company, you must develop a dynamic benefits program. This does not have to cost a fortune, but does require a strategic and thoughtful decision process.

Budget

Before you can create a package, you need to have an idea of what you can spend. The least expensive choices are one-time promotional items such as t-shirts or lunch-and-learn opportunities. The most expensive (but also usually most valued by employees) are health-related, such as medical insurance, and savings plans, such as 401(k). A good rule of thumb is that employers generally spend approximately 30% of an employee’s total compensation on benefits.

Demographics That Affect the Employee Benefits Package

Consider the employees that make up your organization and what will motivate them. While the following details are important, the best route for determining employee benefits is to ask them with a survey or focus group.

  • Physical location: where people live and how they get to work is important if you are considering commuting benefits.
  • Age groups: older people will likely want health benefits, younger employees may prefer benefits related to training, and middle-aged employees will appreciate benefits that are family-focused.

Benefits to Include

There are many options for benefits to include when designing employee benefits packages. Here are some popular options:

  • Savings Options: 401(k) and 403(b) plans enable employees to save money for the future. Some companies offer programs to match employee contributions up to a set percentage.
  • Health Insurance: employers generally contribute to the medical part of the insurance package, while dental and vision options are often employee-paid.
  • Health Savings Accounts: employees and employer contribute a certain amount per year to FSA and HSA accounts, which assist with employees’ medical expenses.
  • Life and Disability Insurance: these can be employee-contributed or company-sponsored, and offer great options to assist employees with medical or funeral expenses.
  • Paid Time Off: a policy of paid leave for vacation, illness, holidays, and bereavement allows for important work/life balance for employees.
  • Other Perks: businesses may get creative to offer unique benefits that will attract employees and add to job satisfaction. Some additional options may include:
    • food or drinks
    • remote work
    • professional development
    • flexible schedules
    • gym memberships
    • student tuition assistance
    • corporate retreats
    • daycare services
    • pet-friendly workplaces
    • IT benefits (Wi-Fi, laptop, cellphone)
    • Employee assistance programs

Once the program is laid out, you should notify your employees, provide details, launch an online hub for resources and program management, and advertise your benefits to potential new hires. A creative and comprehensive employees benefits package will help to retain great employees and attract the best potential candidates to your business.

About Haughn & Associates

Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.