Last Updated on May 20, 2021 by MoneyVisual
Every employee expects financial security when working under someone’s supervision. An intrinsic part of securing finances is the benefits (Employee Benefits Plan) and perks that an employer offers to their employees.
While some of the benefits are mandatory per the laws, others include the ones that an employer offers to stay ahead in the competition. After all, the rush to hire the best talent from the same pool is constant for all employers. Thus, the need for innovative employee retention policies is vital for every organization.
In case you are also looking forward to choosing an employee’s benefits plan for your hires, you’ve come to the right piece on the internet. Here, you’ll find all the necessary tips, in a step-by-step series. Following the steps, you can choose a plan that keeps your employees happy and is also economical for your business.
Step1. Assess What Your Employees Are Looking For
The primary step towards planning benefits for the employees is to assess what they may appreciate. For instance, depending upon the employee size, location, and industry, your employees may expect full-cover health insurance and asset security.
However, assessing the needs may not help list the exact benefits that you should include in your plan. Rather, it can offer an overview of what sorts of benefits you should include. For instance, you may consider offering a travel allowance to marketing personnel, but not a software developer. And it is also possible that a travel allowance may not be so important to the developer. So, it is wise to have an idea about what your employees may acknowledge as well.
Of course, you should consider designing different plans for different positions in your corporate hierarchy. Since there may be differences in opinions and the needs at different positions in your company, offering the same benefits to every position might not encourage the ranks. For instance, a fresher may expect to receive health insurance and provident funds, whereas, an experienced employee may expect accommodation or leisure benefits.
Step2. List The Perks In Addition To The Legislated Ones
Once you have an overview of what your employees expect from you, it’s time you start choosing what perks you can add to the plan. As already mentioned, there are a few legislated perks such as insurance and pension plans. What you need to decide are the additional perks you can offer. Essentially, it is necessary to evaluate the possibilities at stake, since the benefits are equally contributed by both- the employee and employer. Now, of course, it means you can offer them inclusive in their annual package, or you can offer them as incentives.
Offering additional benefits, besides the legislated ones, can improve employee retention and mitigate with high turnover rates. Now you can add whatever benefits you deem fitting to the employees. For example, you can offer family insurance covers if they have dependant kids or parents.
Step3. Consider Your Budget And Add What You Can Afford
As already mentioned, benefits are equally contributed by both parties, keeping a track of the overall cost of the package is important. Amidst all the choices you have, it is quite easy to miss out on the financial toll these perks can have on your company’s budget. Essentially, these expenses not only refers to the cost of adding and paying for the perks, but also the cost of revaluation and adjustments. Of course, you cannot expect a single policy to be effective throughout the tenure of an employee at your company.
It has been observed that employee expectations increase with time and experience. If you really wish to keep your employees entertained and perform their best, you also need to keep adjusting your policies with their interests. Therefore, you must estimate the cost of restating and modifying your employee’s benefits plan as well. Add only those benefits to your cart that you can afford. Along with, keeping a backup for contingencies.
Step4. Seek Expert Assistance When Designing The Employee Benefits Plan
Quite possibly, you may need to test and try a particular plan for a while. Now consider the costs of revising your benefits plan too frequently. Being flexible is, of course, needed but it does not mean that you should revise your policies too frequently. Doing so, may increase the cost of your package and waste precious human hours, that could have been used to do something more productive.
You can take reference from experts and follow their opinions. That could be a solution. There are several online resources, say the experts from Shelter Bay Financial, that can help you create and compare different plans as per your need. Expert opinions are great when you wish to create a competitive benefits plan.
Step5. Communicate The Plan To Your Employees & Seek Feedback
The last step is to communicate the plan that you’ve decided. It is necessary to fill in the gaps and help your employees understand the benefits that you are offering. Incomplete knowledge may lessen the effectiveness of the benefits plan.
Make sure that you introduce the employees to how they contributed to the design of the benefits plan. Also, be open to any suggestions or feedback that your employees offer. It could help you assess how well your plan meets the expectations of your employees. So that you can make note of any shortcomings, and improve the plan during revisions. After all, revisions are also necessary from time to time. Choosing an employee benefits plan that connects with the employees’ expectations and also brings in sizeable ROI can be a tough nut to crack.
However, having a clear vision and following little precautions you can make the best out of your efforts. It is needless to say that a meticulous evaluation of any existing policies and comparing them with the upgrades is the best way to clear the clouds of doubt. Additionally, reviewing the benefits plan periodically can also help boost employee morale and retain them for longer. It suggests that you are concerned about your employees and they are not neglected.