Top 5 Mistakes Employers Make with Their Employee Benefits Packages
It’s important to understand what not to do when looking for the right employee benefits plan to sidestep trouble and get the most value out of your benefits package.
Top 5 Mistakes Employers Make
- You don’t properly communicate with your workforce
Like any form of compensation, an employee needs to know what they are getting, or there may be legal trouble. The problem, when it comes to employee benefits packages, is they can be quite involved and all that legalese may turn off your employees. But going too far the other way with oversimplification can cause miscommunication that leaves your business with liabilities you won’t find until an employee approaches your HR with a complaint about not getting the benefits she was told she had. Yikes.
Solution: Keep in regular communication with your employees, especially after you renew, to make sure they know what the benefits package entails. Employees should have access to a plan document that is up to date, and any changes should come with a mail out that tells your employees the new terms, and how they affect and interact with the old terms.
- You’re not taking your workforce into account
The best benefit plans, the ones with the most return on investment, are the plans that are custom tailored to your employees. Depending on your employee’s age distribution, geographic location, and even personal circumstances, different plans will appeal to them. And, depending on your industry – white collar, blue collar – different plans will offer your employees peace of mind.
No matter, how much you shop around, and do your homework on the internet, you will never know what is best for your employees if you don’t ask them. If you can find a plan that meets the exact needs of your employees, you will get the most out of a benefits plan – and so will they.
Solution: Before you talk to an advisor, talk to your employees. It takes little investment to survey your employees, and it has zero drawbacks. Not only will it help you tailor your benefits plan to aid talent retention, but it will make your employees feel involved in their benefits package.
Want to know what resonates most with your employees? We offer employee surveys at no cost, and without obligation to ensure you find the greatest benefits solutions that will attract the best talent.
- You don’t stay on top of your plan
Too many businesses tend to set it and forget it with their benefits packages. They find the right plan for their employees and their industry and then assume all the work is done. An attitude like that can open your business up to liability issues, and an overly expensive benefits package that will quickly become a burden on your business. Whether you have ex-employees still lingering on their plan, or new employees that still haven’t been added, an out-of-date benefits package is more trouble than no package.
Solution: Setup a recurring review of your benefits package to make sure that among other things, every eligible employee is enrolled in the plan and that everyone enrolled in the plan is still employed by you.
- You’re not taking your competition into account
Your industry not only affects who you attract, but what those employees expect from a benefits plan. So, while talking to your employees will make sure you have a benefits plan that will aid in retention, looking around to see what your competitors offer will aid you in creating a benefits package that will help attract new talent.
Solution: Before you talk to an advisor, find out what your competitors are offering with regards to a benefits plan. Chances are if most of your competitors are offering certain benefits, you should too. Especially if you’re looking to grow and attract new, rising talent.
Curious to see what your competition is offering their current and prospective employees? We offer benchmarking reports that give insight into what other employers are offering, giving you a bird’s eye view of your industry so you can compete and hire your dream employees.
- You shop around too much
While shopping around can net you the best price, it can also result in extra admin fees, and trouble in the office (that could result in carrying hidden liabilities). And, chances are, that better price is only introductory – meaning you’ll be back to normal in no time, and all that effort may have been for nothing. There are times to shop around, but shopping around every renewal creates more work for everyone, and more chances for things to fall through the cracks, causing more headaches down the road.
Solution: Trust an experienced reputable advisor to find the best plan and stick to it. Your advisor will know when the best time to shop around is, and when companies are trying to suck you in by offering introductory rates that will make a lot of work for little benefit.
Creating a Win-Win through Your Employee Benefits Plan
If you want to attract and retain the best employees, we can help you avoid all of these mistakes by helping you provide a top-notch benefits plan. Contact us today and find out about our employee surveys, benchmarking reports, plan audits, and anything else benefits related.
We offer:
- Employee surveys (mentioned above)
- Benchmarking reports (Also mentioned above)
- Regular plan audits to root out hidden liabilities, as well as strategy updates to keep your business up to date with industry trends.
Call Bayview Financial today for your trouble-free benefits plan.