There are many reasons you should offer employee benefits. A good benefits package can lower the costs associated with turnover, improve employee retention rates, and even improve employee engagement and productivity. Moreover, the right benefits help your employees live their best lives and achieve their goals.
Some of the reasons employers tend not to offer benefits are the costs and the administrative burden associated with them. How much does it cost to give employees benefits?
The average estimate starts around $2,000 per employee earning $50,000. For an employer with 10 employees earning $50,000 salaries, that would amount to $20,000 per year. This number can go up or down, depending on how many employees you have, their salary ranges, and what you offer to them.
While this might seem like a lot of money for a small business, investing in a great employee benefits package is actually one of the smartest moves you can make. There are ways to save as well, and one of the best ways to make sure you’re getting the most out of employee benefits is to implement the right solution.
What Are Employee Benefit Solutions?
Before you dive in, you need to know what employee benefits solutions are. Essentially, the term refers to your entire benefits package and the supports you use to administer the package to your employees.
You want to make sure you’re offering the right solution to your employees. The solution offered should vary based on your business and employee needs. Buying a prepackaged solution often means your needs won’t be met. This can result from not having all the benefits you require or having benefits that go unused by your employees.
What Should You Put in an Employee Benefits Package?
The next question you likely have is what you should include in your package. For most employers, packages include some form of medical or health insurance, along with dental insurance.
Other benefits include long-term and short-term disability insurance, life insurance, and travel insurance. A pension plan or other savings program can also be considered part of a benefits solution.
Vacation, paid time off, and “frills” like pet insurance are sometimes included in employee benefit solutions.
What should you include in your company’s package? It really depends on what your employees want.
Designing a Package for Your Employees
To ensure you have the right benefits package for your employees, you’re going to want to ask them what they want or need in a benefits solution. Your strength as a business is built on the uniqueness of your workforce. Any employee benefit solution you adopt should reflect this fact.
Ask your employees what they want by taking a survey. With feedback in hand, you’ll be able to look for options that provide the most of what your employees want.
You’ll also want to think about the structure of what you offer to your employees. Traditional benefits models are tried and true, but many employers are now looking to health reimbursement arrangements, high-deductible insurance, and flexible benefit offerings.
Not Sure What You Need?
If you’re still not sure what employee benefit solutions might be right for you, it might be time to talk to a broker. A broker can help you determine your needs and work with you to find solutions that work for your employees and your business alike.
Employee benefits should be an advantage for both your employees and your company. If you’ve been holding back because you thought you couldn’t afford to offer them, it’s time to re-evaluate your options.