While a competitive salary is the most obvious building block in attempting to attract and retain top employees, the modern workforce demands more. In addition to an adequate rate of pay, staff also need security, support, and fringe benefits that make them feel appreciated.
This is where employee benefits insurance comes into play, but what exactly does it offer and why should companies consider it an absolutely essential part of their compensation packets? Here, we unpack what’s covered under this package and why it’s such an important asset to companies and employees in a concise and easy-to-understand way.
Meaning of Employee Benefits Insurance
It is a type of insurance policy that provides financial and health support for workers above and beyond a standard rate of pay. The employee benefits insurance protects employees and their families in the event that something unforeseen occurs. From health insurance to retirement perks, the vast majority of these coverage options are essentially safety nets to help employees handle a number of life’s surprises.
For companies, implementing a comprehensive package makes employees happier and increases employee morale, loyalty, and productivity. It truly is a classic win-win scenario: your staff feel appreciated, and your company can retain top talent.
What It Includes
What this covers is going to be largely dependent on company-specific goals and budget. However, while there are plenty of factors that go into deciding which option makes the most sense for you and your organization, there are a number of coverage options that are almost always a lock when it comes to any policy. Here are some examples:
Health Insurance: These are going to cover medical and dental expenses for employees. At a minimum, these will help workers obtain quality healthcare without having to incur deep debts.
Life Insurance: This is the type of coverage that will help families with finances should an employee pass during the term of their policy.
Disability Insurance: In the event of long illness or injury, this is going to help employees to recover lost wages.
Paid Time Off (PTO): This coverage option includes vacation days, sick leave, and holiday hours that help employees to receive paid leave. They can take a well-deserved break and not have to worry about lost wages.
Wellness Programs: These can run the gamut of all types of resources, such as mental health resources, gym memberships, and stress management programs.
Why Is Employee Benefits Insurance Important?
Employee benefits insurance isn’t just an excellent opportunity to provide your employees with much-needed perks. It’s also an amazing way to build an exceptional workplace culture. Here’s why it is an absolutely essential part of any company:
Attract and Retain Quality Private Talent: As a rule of thumb, job applicants care a lot about perks when deciding if they should accept an offer or not. As such, the policy could be an extremely easy way to take some of the legwork out ahead of time.
Improve Retention: When you make your employees feel valued, they’re less likely to leave. Added benefits, such as those that are in place to help retain employees, will enable your company to have streams of direct impact.
Loyalty and Morale: This is a way to help future employees feel at home in pretty much their first week of work. Also, if this is presented correctly, your staff will feel inspired to be loyal to your firm for the future. Click here for more insight on its importance.
How Does Employee Benefits Insurance Work?
The nuts and bolts of employee benefits insurance are somewhat flexible, as a business can determine what works best for their specific set up. But the process generally looks something like this:
Needs Assessment: Employers recognize the key perks their employees need and want. This information can be gathered via employee surveys or working with insurance agents.
Planning: Companies work with an insurance provider to choose a plan.
Enrollment: All employees select their benefits during the open enrollment period, agreeing to contribute financially when needed.
Management: Companies and providers work together to keep the plan going and to make changes as necessary. This includes staying up to date on the eligibility of team members.
Small Businesses and Employee Benefits Insurance
While most people think employee benefits are only for big corporations, the reality is that small businesses can and do offer those that are budget-friendly. There are some programs that financially assist small businesses in providing employment goodies. Group health insurance, for example, can be more affordable than purchasing individual plans for each employee. Programs like 401(k)s also help employees prepare for life after work.
Tips for Choosing the Right One
As mentioned, there can be some confusion around health insurance for small business owners since there are so many options to choose from. Here are some steps we recommend for choosing a plan:
Think About Your Team: Think about the benefits that would excite and help the make-up of your team. If you have a young team, student loan assistance might be a priority. If your team is older, they might be interested in an employer with retirement plans.
Compare the Competition: Be sure to shop around and compare plans to find the one that’s best for your business.
Educate Employees: Whatever you choose, make sure your team is educated on it.
Start Small: Your first benefits package doesn’t have to be a home run. In fact, most employees will appreciate a light benefits package compared to none at all. For more information on how to make the right choice, check out this resource: https://preply.com
Conclusion
Whatever way you look at it, health benefits insurance is an investment in your team and your team is an investment that ultimately dictates how successful your business will be. Having one means making great decisions and having an environment people want to be a part of a workplace that supports and recognizes its employees. Ultimately, healthy and happy employees build better businesses, and a health benefits package makes all the difference.
