Payroll Play 4/10: Employee benefits made easy: How to set up benefits programs [2024 update]
We all know how tough it can be to attract and retain top talent, especially with job loyalty on the decline in the market. That's where a killer benefits package comes in handy.
Now, budget is always top of mind. But you can choose benefits and perks for employees that not only give your HR team that competitive edge but also fit into your budget.
So, here's the plan, step by step:
Scenario
The demographics of your workforce change: a growing number of the aging workforce or vice-versa millennials.
Fierce competition for top talent.
When an organization restructures or undergoes mergers and acquisitions.
Entering new geographical regions.
Ensuring compliance with updated legal requirements.
Actions
1. Do internal research
Analyze your current benefits scheme. Some benefits might be underutilized.
Consider your company size, employee demographics, and other things like family status and income level.
Conduct employee surveys to determine benefit preferences and needs.
2. Analyse market benchmarks
Research industry benchmarks, best practices, and top benefits for employees.
Review surveys and reports from reputable organizations such as SHRM, the Bureau of Labor Statistics, and WorldatWork.
Utilize online platforms like Glassdoor, PayScale, or Comparably for information.
Analyze competitors’ benefits packages.
If expanding abroad, research the best benefits for employees in the target region.
3. Negotiate with benefits suppliers
Get quotes from at least three suppliers to negotiate for discounts.
Pay attention to the fine print.
Negotiate for perks such as bulk purchase discounts, faster delivery, and early invoice payment discounts.
4. Check local regulations
Ensure compliance with local laws, such as Social Security requirements..
5. Establish your budget
According to the Bureau of Labor Statistics, employers typically spend between 31% and 38% of total compensation on benefits.
One-time items like company swag are the least expensive.
Savings plans and insurance benefits for employees tend to be the most costly. This is why smaller companies often opt not to provide health insurance benefits for employees.
Consider the costs of delivery when drawing benefits for remote employees.
6. Ensure clear communication before, during, and after the benefits enrollment process
Centralize all information about employee benefit programs to facilitate staff research.
Use a variety of communication channels, such as email, newsletters, social media, and in-person meetings.
Use an online self-service system for benefits enrollment and administration, enabling employees to apply for benefits anytime. See how it works in the Juggl system:
Automate admin tasks with HR tech to process claims faster and access real-time statistics.
Expected results
Enhanced employee loyalty and strengthened employer brand.
