How to Improve Employee Benefits With a Low-Cost Impact
The overall cost of employee benefits is expected to rise by at least 5% this year. As an employer, you want to improve employee benefits but are concerned about constant cost increases.
The expense of employee benefits can become unmanageable if you don’t approach it thoughtfully. The good news is that it’s possible to control costs while providing outstanding benefits. As personnel experts, Epic Placements offers the following tips for maximizing employee benefits and minimizing costs.
Start With a Benefits Analysis and Needs Assessment
Begin this journey with a needs assessment by asking your employees what they desire from their benefits program. What are they saying about the current benefits you offer? Do they express an overwhelming desire for better healthcare coverage? Are they more concerned about having more PTO days?
Every organization has a unique mix of employee concerns, and it’s hard to know what those are until you ask. Conduct an employee survey to solicit feedback. Welcome diverse input from employees in all roles and levels of the organization.
Listen closely to what your employees are telling you about desired benefits. Also, incorporate feedback from exit interviews and job candidates who previously turned down positions with your company. What types of benefits would maximize employee retention and satisfaction?
Incorporate industry and market trends to hone in on your optimal plan. For example, new research indicates 87% of all workers would accept an employer’s offer to work remotely, so consider whether working from home should be added to your benefits plan.
As you conduct your workplace’s needs analysis, remember that meeting the company’s needs without sacrificing employees’ needs is essential. Avoid causing burnout and minimize turnover by adding benefits that support your employees’ sense of personal control, health, and well-being.
Strive for Just-Right Insurance to Avoid Overinsuring
There’s no need to add unnecessary benefits that will be underutilized. However, if you neglect to find a benefits plan that fits your business perfectly, you could end up paying for an array of expensive benefits nobody uses.
For example, a Kaiser study found that 43% of employers changed their biometric screening programs during the COVID-19 pandemic due to reduced use from employees already receiving health screenings for other reasons. Could your organization make a similar change to streamline cost management?
As you improve employee benefits or adjust benefits options to be more cost-conscious, educate your employees to ensure they understand what the company offers. Maintain a two-way street of communication to understand ongoing needs and overall benefits utilization.
Explore Unique and Nontraditional Perks
Offering employee benefits is more than a one-size-fits-all approach. On top of the basics most employees expect, including medical coverage, 401k, and a paid time off (PTO) policy, your plan should also be customized to provide unique perks matching your company culture.
Some employers find their employees are delighted to have personal wellness benefits like free massages, gym memberships, and relaxation getaways. Other organizations discover that their employees prefer perks like free lunches and vouchers for meals at upscale restaurants.
Employer-sponsored student loan repayment is a relatively new trend that’s quite popular among U.S. employees. However, just 8% of all employers offer it, so your company could stand out in the employment marketplace by providing this type of unique benefit.
Minimize Administrative Costs and Waste
Look for opportunities to cut unnecessary costs for rarely used benefits. For example, some employers are eliminating paid maternity/paternity leave beyond what’s required by law because they have so few employees taking advantage of it.
Always stay compliant with applicable federal and state laws, including the Affordable Care Act, domestic partner benefits, and other regulations that may apply to your business. Failure to work within the law could risk costly penalties for your business.
Finally, look for innovative new ways to cut costs wisely. Automation and artificial intelligence (AI) provide new opportunities to maximize resources and minimize waste. Add automation wherever possible to reduce repetition, errors, and extra work for your employees.
How to Improve Employee Benefits Without Adding Excessive Costs
When you need to add benefits without adding unnecessary costs, Epic Placements is here to help. Whether you’re an employer adding benefits or a job seeker in need of a new employer, turn to Epic Placements to start your hiring journey.