Building an Employee Benefits Program

As a business, it’s not just important to take care of your customers, but it’s also important to take special care of your employees, too.

When onboarding employees, you will want to establish a clear benefits package that will be appealing for new recruits as well as entice your best current employees to stay.

The list of benefits provided to employees is extensive. It is important to evaluate which are most important to you, which will be most enticing for employees, and those that you legally cannot be without.

Required benefits
Some benefits are required by law and therefore are not featured as a lure for potential employees. When you hire an employee, you are paying for much more than just their salary. The law requires that employers contribute to benefits such as Social Security, unemployment insurance, workers’ compensation, and leaves of absence. Ensure these are all accounted for when budgeting for all employee expenses.

Optional benefits
Benefits packages may contain several elements that are similar to other companies, but small differences can go a long way.

Health insurance
Depending on the size and type of business, some employers are legally required to offer health insurance to their employees. However, how those packages can be structured in a number of ways. Some employers choose health plans with lower premiums, but higher deductibles, whereas other employers may have higher premiums but lower deductibles. Other businesses provide an option for a health savings account. There is not a one-size-fits-all plan, but taking budget and needs into account in making these decisions is essential.

Retirement options
Many employers offer a defined contribution retirement plan, such as a 401k, to help them stay competitive. Many employers require their staff to be a full-time staff member for a certain amount of time before offering this option as a tactic to retain long-term employees. Matching a contribution up to a particular amount is a great way to show employees you are also invested in their future.

Paid Time Off (PTO)
Most employees are seeking a competitive PTO option when they take on a new role. This includes policies surrounding time off for national holidays, vacations, sick leave, etc.

Life Insurance
Providing a life insurance option for employees also shows that you care about an employee and their family, and it is very low-cost to the employer.