Is your company winning the race for talent?
Unfortunately, many are not, according to a recent Society for Human Resource Management (SHRM) survey. In it, more than two-thirds of employers reported “challenging recruiting conditions in the current talent market”—and healthcare providers and manufacturers are among the sectors hardest hit.
As recruiting and retaining high-performing employees becomes more challenging, HR professionals have turned to utilizing employee benefits as a recruitment and retention tool, according to 2016 findings from another SHRM survey. And while there is a clear incentive for employers to offer employees the best possible benefits packages, many business owners don’t know where to start when it comes to benefits design and administration.
So what exactly goes into crafting a superior benefits offering? Here are three things to consider:
When it comes to balancing the rising cost of benefits and offering an attractive package, employers have their hands full. According to a recent PricewaterhouseCoopers report, 2017 medical costs will likely rise at the same rate as in 2016, but all signs point to bigger increases down the line.
By hiring a professional employer organization (PEO) to handle benefits design and administration, business owners can offer employees customizable, cost-effective packages. Pooling client employees into a single group allows PEOs to spread claims across a large premium base, resulting in the most cost‐effective programs.
In working with a PEO, small organizations enjoy collective buying power. For example, a PEO with 50 clients that each employ 10 individuals can purchase health insurance as a 500-employee business. The greater the number of total employees, the lower the cost of benefits. It’s just that simple.
Offer a comprehensive solution
What’s in a comprehensive benefits package? Major medical plans, dental, vision and life insurance plans, short- and long-term disability plans, section 125 flexible spending accounts, employee assistance programs and 401K programs are a good place to start.
It’s difficult to compete for high-caliber employees without offering a robust benefits package. But just how important are employee benefits? A recent Glassdoor survey found that 79 percent of employees would choose extra benefits over a pay raise.
Beyond offering a wide-ranging benefits package, employers also should help employees select the right plan. This may mean sending emails that outline plan specifics and meeting with employees to discuss their options.
Remember, customization is key
Keeping employees satisfied goes beyond offering a competitive salary and an extensive list of perks. It’s also important to provide staff with a flexible selection of benefits.
According to a TNS Omnibus survey, 86 percent of workers said it’s important to them to be able to personalize their benefits. But what does this mean exactly for employers?
Consider offering several customizable plans for employees to choose from. While millennials may want inexpensive plans with the option of earning wellness points, older employees with families may be looking for a more comprehensive plan. Regardless of age, the importance of benefits should not be overlooked. Employees are more likely to stay at a company with benefits packages that meet their needs.
Navigate offers a host of solutions, including outsourced human resources, payroll services, compliance assistance, and benefits design and administration. Each Navigate team member has over 20 years of experience in his or her specialized field. In partnering with us, you gain access to a team of seasoned and highly skilled individuals who act as an extension of your business.
Our staff is committed to seeing your business succeed by managing the tasks that keep you from growing it. With the Navigate team, you’ll receive unmatched assistance when you need it most. As your strategic partner, we help you choose and administer benefits that attract quality applicants and keep costs in line.
To learn more about benefits design and administration best practices, please contact us at info@NavigatePEO.com.