A good employee benefits program can make all the difference in your ability to find – and keep – the best workers. Three in five people say benefits and perks are top influencers over their acceptance of new jobs. And 92% say benefits are critical to their overall job satisfaction.

An employee benefits program is the package of non-wage compensation that employers use to demonstrate their investment in the health and future well-being of their workers. Benefits can be indirect, non-cash or cash compensation above and beyond their wages. Some are required by law – employers must make payments on employee’s behalf, for example, for Social Security, medicare and unemployment benefits and workers compensation. Others, like health and life insurance and paid vacation, are standard enhancements to basic wages. Voluntary benefits – like wellness stipends and debt remediation services – can give tremendous payback for very little cost.

Not all employee benefits programs look the same, of course. Each organization, its culture and employee composition, and budget, too, is different. The idea is to create a program that meets people where they are at, but is flexible enough to be modified as circumstances and needs indicate.

Follow these steps to create a well-designed employee benefits program:

  1. Determine objectives and budget. This exercise will likely lead you to a list of specific benefits, but what’s more important is looking at your objectives in offering them – key business and HR strategies, for example – that reflect everyone’s needs. Objectives should include factors like your size, location, industry and collective bargaining agreements, if relevant. Just remember: Your benefits objectives should be evaluated and revised as your strategies and employee needs changed.
  2. Undertake a needs assessment. Your best employee benefits program will result from actually asking employees what they want via personal interviews and simplified questionnaires. A utilization review of your current program’s plans will be informative, especially in showing gaps in the current offer, utilization and needs. An analysis of current workforce demographics will also signal other benefits opportunities by segments.
  3. Pull it all together to design your program. Step 2 should have loaned you the insights into what’s needed and what’s missing. Now you can begin prioritizing your offerings, and don’t forget that budget’s a parameter. This is complicated as various factors need to be considered: What in your current program can be changed to save costs? What underutilized and undervalued benefits can be eliminated. Is it time for a third party administrator or a broker?
  4. Communicate! Your employee benefits program must be effectively communicated if it’s to be effectively utilized. At the least, create awareness and appreciation of what’s new and improved and remind employees what is still there. You want them to understand the benefits, how they work and their value and how they can be effectively used. Use straight-forward language and use channels with which your people are most comfortable.
  5. Evaluate your program and adjust when necessary. Things change. Your workforce may age and place value on different benefits. The economy may make employment tighten up and force you to bolster your benefits. Your organization’s objectives and your employee’s needs don’t remain in a state of stasis. Your employee benefits program must be evaluated and adjusted on an ongoing basis – a dynamic reflection of the business itself.

HUB International’s employee benefit specialists consult with employers of all sizes and in all industries on every aspect of employee benefits program planning and management. Contact us to talk to an advisor today.