Navarinou 10, 1100, Ayios Andreas, Nicosia

savvas@insurancelinkcyprus.com

         

70 08 88 83

Giving benefits to your employees can result in greater productivity

Employee benefits Design

Employee benefits Design

The key to success for any business is based on the productivity of its employees. The well-being of your employees and how satisfied they are with their workplace are vital to the growth and success of your business. Recent research has shown that employee benefits are increasingly the most important criterion for employees when looking for a job.

To retain employees and keep them engaged, healthy, and feeling appreciated, it is important to offer a comprehensive benefits program.

If you are looking to offer benefits to your employees, I can offer you a variety of benefit options from which to choose, and we can create a plan that will be tailored to your needs and budget. I will work closely with you to create the best possible benefits plan.

Employee benefits Design

Why are employee benefits important?

Many employees would rather have new or additional benefits instead of a pay increase. Good wages are important, but so are good benefits. Benefits are desirable to employees and can always improve your business. Adding benefits can:

  1. Increased loyalty
  2. Increased focus and productivity
  3. Increased attendance
  4. Improved recruiting
  5. Protect Your Most Important Asset
  6. Increase Employee Morale

How we Design an Employee Benefits Program

Benefits programs vary greatly, and selection and design are critical components in the total compensation costs. Due to the employer cost investment and the importance of employee benefits in recruiting and retaining, employers should have a well-thought-out benefits plan design that meets both employee needs and employer objectives.

Step 1: Identify the Organization’s Benefits Objectives and Budget

An important first step in designing an employee benefits program is to identify its objectives. This will provide overall guidance in establishing the selection and design of the benefits program. This process provides an overview of the organization’s objectives of offering benefits that reflect both the employer and employee needs. Factors such as employer size, location, industry and collective bargaining agreements should be considered in the development of the benefits objectives. The benefits objectives are not static and should be evaluated and revised to reflect the current employer strategy and employee needs.

Sample objective: To establish and maintain a competitive employee benefits program based on employees’ needs for protection against the risks of old age, loss of health and loss of life.

Equally important is determining the budget available for spending on benefits, as most employers have cost constraints in offering benefits to employees. If a current benefits plan exists, we will analyze current benefits costs and projected costs and create a budget spreadsheet outlining annual benefits costs.

Step 2: Conduct a Needs Assessment

A needs assessment should be conducted to determine the best benefits selection and design based on the needs and wants of the employees. The needs assessment may include an employer’s perception of employee benefits needs, competitor’s benefits practices, and tax laws and regulations. But a more recent trend is to take a market research approach to employee benefits planning. Common market research techniques include employee inquiries in the form of personal interviews, and simplified questionnaires. If a current benefits plan exists, the employer may also conduct a utilization review of each plan to determine actual employee use. Knowing the frequency, a particular benefit is used and to what extent may help the employer determine cost-saving design practices.

Will also need to consider any legal requirements regarding benefits offerings. Some employers may have obligations to offer benefits due to collective agreements.

Step 3: Formulate the Benefits Plan

Once steps 1 & 2 are finished, we will formulate the benefits plan. Using the data collected from all resources in Step 2, we can begin to formulate benefits offerings in order of priority. Then we will determine the cost of providing the prioritized benefits and evaluate it against the benefits budget. This step is complex and may take many factors into consideration: Can changes be made to the current plan design to induce cost savings? Can benefits that are underused or not valued by employees be eliminated? What are the administrative costs for the benefits? What cost-containment features can be put in place? Will employees have to contribute, and how much? Are there resources to administer in-house, or will a third-party administrator and broker be necessary for certain plans? These are among the evaluations an employer will make in determining whether to add, change or eliminate benefits offerings.

Step 4: Communicate the Benefits Plan to Employees

The communication strategy is a critical component to the benefits planning and management. An employer’s understanding of the benefits can be critical to employee buy-in. Without buy-in, the employer’s efforts, no matter how perfectly designed to meet employees’ needs, may be futile. If employee input was obtained and used in the benefits design process, employers should be sure to share this with employees and let them know how their feedback influenced the benefits program’s design. The positive impact on recruiting, retention and employee morale may be lost without effective communication plans. We will provide communications such as a summary plan description, and a full wording of the benefit. Communication objectives should include action for creating awareness and appreciation of the new or existing benefits and improving employee financial security, as well as providing a high level of understanding of the benefits offered, thus will encourage wise use of these benefits.

Step 5: Develop a Periodic Evaluation Process to Determine Effectiveness of Benefits

Periodically reviewing the benefits plan is another important step in the benefits management process. The benefits program must be assessed on a regular basis to determine if it is meeting the organization’s objectives and employees’ needs. Changes in the business climate, the economy, the regulatory environment and workforce demographics all create dynamics that affect benefits offerings. Employers should consider conducting employee surveys or a full-fledge needs assessment on a recurring basis.

What benefits are of greatest value to employees?

There are many benefits you can choose to offer employees. Employees think the following common benefits are extremely important:

  • Health insurance
  • Retirement savings plan
  • Dental or vision insurance
  • Life insurance
  • Disability insurance

How much will cost me to offer benefits to my employees?

As a small business owner, providing benefits to employees might not seem affordable. You can start by offering low-cost employee benefits. Some benefits are even free to offer, including flextime, work from home and casual Friday dress. Sometimes employees are prepared to pay for the cost of benefits if the benefits meet their needs.  If you set up the benefit, your employees might be willing to pay for all or part of it.

Would you like to Learn More About Group Benefits Plans?

Creating a benefits package that works for you and your workers can be a challenge. Thankfully, I am willing to help you plan and launch your very own group benefits plan.

I am interested
RSS
Follow by Email
Facebook
Twitter
LinkedIn
Share