As a business owner, you don’t just want to hire great employees—you want to keep them. One way that you can both attract and retain top talent is through an employee benefits package. These benefits go beyond salary to provide health insurance, retirement plans, disability income insurance and more to ensure that your employees are satisfied with their compensation. Of course, knowing that you need to offer benefits is just the first step; you also need to figure out what benefits to offer and how to administer them. One of the ways to do so is by working with an employee benefits consultant, who can help you determine what options are most suitable for your business.
Types of Employee Benefits
While there are a wide variety of benefits options to choose from, certain benefits are considered must-haves: health insurance and retirement plans. If you don’t offer at least these two benefits, your business will struggle to stay competitive by failing to attract top talent.
Health insurance is perhaps the most important—and the most expensive—benefit offered by employers. While most employers are not required to provide health insurance for their employees, companies with more than 50 full-time employees may face tax penalties under the Affordable Care Act (ACA) if they do not. Employers can choose to purchase group insurance directly through from an insurance provider, or through the ACA’s health insurance marketplace.
If you purchase an insurance plan through the marketplace, your business may qualify for tax credits, lowering the total cost of offering this benefit. Employers may also choose to fully or partially fund dental or vision policies, which are typically not covered by health care plans. A technology-backed benefits consulting firm can help you take a look at plan comparisons and choose an affordable health insurance plan that fits your employee’s needs.
After health insurance, retirement plans are the second important benefit offered by employers. Retirement plans fall into two categories: defined contribution plans, such as a 401(k) or an IRA, and defined benefit plans, like a pension. Today, most businesses offer defined contribution plans, which encourage employees to save for their own retirement. Employee contributions to these tax-advantaged accounts are capped by the tax code; employers can choose to match a percentage of these contributions.
In addition to any matching funds, employers will be responsible for certain administrative costs associated with maintaining these plans. Deciding which defined contribution plan is right for your company depends largely on the number of employees and the size of your payroll. A benefits consultant can help analyze a suitable plan for your business based on these factors, as well as the cost of administering the plan and any tax implications.
Disability income insurance is a benefit appreciated by many employees, as these policies will provide income if they are unable to work. There are two types of disability income insurance: short-term and long-term. Short-term disability income insurance payments typically limited to 60% of an employee’s salary and integrate with the start of Long Term disability benefits. Long-term disability income insurance will generally provide payments for one’s Social Security Normal Retirement age. This is one of the main reasons why adequate Long Term Disability coverage cannot be overlooked, and is so important.
Employee life insurance policies are another common benefit offered. These policies can be offered in any amount, from a full year’s salary to a smaller amount that would cover funeral costs. These policies typically do not require any evidence of insurability, are affordable, offering substantial coverage at a low cost. A benefits consulting firm can help you evaluate group life insurance options and quotes.
In addition to these insurance options, employers may wish to extend more unique benefits to their employees. This could include anything from tuition assistance, adoption reimbursement or student loan repayment programs. Offering these benefits can give your business an edge in a competitive job market, allow for more educated long term employees, and can increase employee retention.
Benefits for Satisfaction
Beyond these common benefits, there are many benefit options that may help increase employee satisfaction. A company can offer almost any benefit to its employees, from parking or transportation reimbursement to child care reimbursement to gourmet cafeterias or places for employees to rest. But for most companies, additional benefits will include more basic items such as life insurance and disability income insurance. These benefits will enhance the total value of your compensation package, and often are available for a relatively low cost.
What Benefits Should Your Company Offer? Contact BBG Today
When it comes to benefit packages, there is no one size fits all answer. One of BBG’s experienced benefits consultants can assist a business in determining which employee benefits they could offer and in selecting the right providers for each benefit. To learn more about what benefits your company can offer, please contact an The Business Benefits Group by giving us a call or sending us a message online.