Ensuring Fulfillment Of Required Benefits
Government regulations require companies to offer certain benefits to employees who meet the criteria. Depending on the size of the company, some of these benefits could include:
- Family medical leave
- Time off for jury duty
- Time off to vote
- Time off for military service
Additionally, employers must pay unemployment insurance and workers compensation insurance on behalf of their employees without charging the employees. Employers must match the contributions of the employees for social security taxes and Medicare taxes.
HR software can ensure that the company follows the rules for all of these required benefits, preventing possible violations.
The Benefits For Employee Wellbeing
Sure, nobody’s going to get sick and die from missing the World Cup . But that doesn’t mean it’s not a wellbeing issue for you to manage. Leaning into events like the World Cup can benefit both the mental and social wellbeing of your employees.
Managing employee stress can be an uphill battle at the best of times. But the morale-boosting effect of bringing things like the World Cup into the office can keep your people resilient. Getting to enjoy these matches as they’re happening will help carry your people through that next big crunch. And seeing England score is the kind of thing you just can’t replicate as a HR professional.
And, even if things go badly for us this year, there’s still the cameraderie of witnessing it together. This leads nicely into the social wellbeing benefits of managing employees during the World Cup. Workplace friendships make the trials and tribulations of work bearable. Research shows they make most employees happier in their roles, and can even boost productivity.
And the World Cup is the perfect time for people to bond. Back before streaming services overtook them, broadcast television worked on the idea of the “water cooler moment.” Those moments in newly broadcast episodes that people would be excited to talk about the next day. These days, it’s hard to talk about things like that at work because you might all be at different points. But, in that sense, live sports events never change.
Form A Stronger Personal Bond With Staff
An employee financial wellness program can be customized to address specific financial issues your employees may face at any given time. Survey your staff anonymously and ask what topics such a program could address to boost their financial confidence.
When you receive feedback about the topics of interest, structure the timing of programming to align with your team’s personal financial goals and realities. For example, employees may express their need to build up savings in an emergency fund. The financial wellness program can offer introductory resources on how to create a budget or steps for setting up a savings account. The more relevant your financial wellness initiatives are to your staff, the more your business can benefit from it.
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Build An Employee Benefits Program That Wont Break The Bank: 5 Steps
The benefits you offer potential employees can make or break their decision to work for you. Also, employee benefits are typically one of your heftiest expenses as a business owner.
With so much on the line, its important to be strategic when youre deciding what youll offer your workers, regardless of your budget or the number of people you employ. To do that, your benefits program should:
- Be centered on clear goals
- Be financially realistic
- Be as competitive as possible
- Differentiate between required and optional employee benefits
- Fit into the total compensation picture
Take these steps to start building an employee benefits program that wont break the bank.
1. Review your goals and budget
Before you start building your benefits program, you have to know why youre offering employee benefits and how much you can spend. Having goals and a budget will keep you focused and realistic as you choose which benefits to offer.
For example, your objective may be to sponsor employee benefits that allow you to:
- Stand out in the labor market
- Operate within the budget
- Comply with appropriate federal and state laws
2. Know the required employee benefits
Chances are, youre already offering a few employee benefits those required by federal, state and local laws.
These required benefits may include:
- Social Security
- Disability insurance
- Leaves of absence
3. Pick optional benefits
To attract talent and compete effectively, many businesses first elect to offer:
4. Highlight special perks
Benefits And Payment Details
Employees should get all the information they need about benefits and payments from day one. This tends to be one of the more confusing parts of starting a new job. If its not handled properly, questions about wellness perks, insurance coverage, and payroll could distract employees for days on end.
What Is An Employee Benefits Program
An employee benefits program allows your organization to provide employee benefits such as health or life insurance and retirement plans. These programs can include traditional group health insurance policies, dental and vision insurance, and employee perks.
Offering attractive employee benefits helps your business stand out from your competition in a tight labor market, especially in the wake of the Great Resignation. You can attract and keep the best talent with an employee benefits package.
However, theres been a shift away from traditional benefits and toward personalized benefits in recent years.
Today, there are five different generations in the workforce, each with unique wants and needs. Traditional employee benefits such as group health insurance dont allow employees to control their benefits and how they use them.
Personalized benefits empower employees to use their benefits in the best way for them. This is accomplished by allowing your employees to choose the benefits and perks that are most meaningful to them. Usually, this is done by setting aside a monthly allowance to reimburse employees for eligible expenses.
What Is Job Orientation
Job orientation is the process of welcoming new employees to the organization. It usually occurs on their first day of work and includes completing new hire paperwork, reviewing company policies, and meeting co-workers. Whats important to remember is that when creating a job orientation, there is no one-size-fits-all. Its about personalization and customization for each organization.
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Make The Most Of Your Retirement Plan
When you start a new job, retirement is probably the last thing on your mind — especially if you’re young. But let’s face it you, too, will grow old. And if you gloss over the details of your employer’s retirement plan, your “golden years” are going to bite.
Retirement benefits vary considerably among employers, but these days most offer some type of defined contribution plan. Under this type of plan, the employee or the employer makes contributions to an individual investment account like a 401. The amount paid upon retirement depends on the value of those investments.
As you set up your benefits, scope out ways to maximize your retirement savings. For example, many employers will match some contributions you make to your retirement account. A common match is 50 cents on the dollar for the first 6 percent you save. This means that if you make $5,000 a month and contribute $300 to your retirement plan, your employer will give you an additional $150. You wouldn’t ignore someone shelling out 150 bucks on the street, so you shouldn’t pass up your employer’s $150 match, either.
But don’t stop there. Financial planners recommend that you save 10 percent of your salary for retirement. So set up an automatic withdrawal to get that money out of your account before you can get your hands on it. If you can’t afford that much at first, find out if your employer offers an auto-escalation option that will automatically increase your savings rate over time.
Offer Employees Flexibility Options
Giving flexibility options is a great way to reduce the risk of absenteeism, and to free up the holiday rota a little. Core hours or overtime can help a lot. But we expect that the most sought-after option will be remote work. It’s become insanely popular in the last couple of years, and people will prefer to watch matches in the comfort of their own home.
Remote workers tend to be at least as productive as in-office counterparts, and often voluntarily work more hours. You might be worried about distraction. But do you really think they’ll be more focused at the office?
The Basics Of Employee Benefits
What’s required? What’s not? And what’s just good policy? This primer will help you figure it out.
Once you have great employees on board, how do you keep them from jumping ship? One way is by offering a good benefits package.
Many small-business owners mistakenly believe they cannot afford to offer benefits. But while going without benefits may boost your bottom line in the short run, than penny-wise philosophy could strangle your business’s chances for long-term prosperity. “There are certain benefits good employees feel they must have,” says Ray Silverstein, founder of PRO, President’s Resource Organization, a small-business advisory network.
Heading the list of must-have benefits is medical insurance, but many job applicants also demand a retirement plan, disability insurance and more. Tell these applicants no benefits are offered, and often top-flight candidates will head for the door.
The positive side to this coin: Offer the right benefit, and your business may just jump-start its growth. “Give employees the benefits they value, and they’ll be more satisfied, miss fewer workdays, be less likely to quit, and have higher commitment to meeting the company’s goals,” says Joe Lineberry, a senior vice president at Aon Consulting, a human resources consulting firm. “The research shows that when employees feel their benefits needs are satisfied, they’re more productive.”
Introduction To Their New Team
Finally, job orientation should include team introductions. This includes the people your new hires will be working with daily. You may also want to facilitate introductions to future collaborators for example, a new marketing manager may want to ask a sales leader for insight on campaigns.
Its also a good idea to encourage existing team members to set up time with new hires to welcome them and explain how they will work together.
How Do I Administer Employee Benefits Packages
Now that youve decided the type of benefits you want to offer, you need to administer the benefits. When you administer benefits, youre responsible for:
- Creating the benefits program
- Communicating what benefits are available
- Helping employees update benefits selections
- Liaising with providers to ensure your benefits are competitive
- Ensuring benefit providers are paid each month
- Making sure the correct amount is withheld from each employees paycheck
There are a few ways to do this: internally, externally, or a combination of the two.
While it may seem less expensive to administer the benefits internally, carefully consider the amount of time and work it takes to manage these. Often, small businesses do not have the capacity to manage benefit administration.
If you choose to outsource your benefit administration, youll be relieved of most of your paperwork and compliance requirements. When evaluating benefit administration providers, consider what services they do or do not offer, the cost structure, and compliance assurance. Its important to plan ahead for rising premium costs from year to year.
There are also a few online platforms that can help you administer some of the benefits yourself and outsource other parts. This allows you to have some guidance in regards to compliance and still benefit from the lower costs of self-administration.
Seven Questions With Daniel Yerger Mba Cfp Chfc Aif Cdfa
We asked Longmont, Colorado-based financial advisor, and small business specialist Daniel Yerger to answer seven questions useful to business owners thinking about building a benefits program for their employees.
Q: What is a common financial planning challenge unique to small business owners interested in setting up employee benefits that you frequently encounter? How do you work with them to overcome this challenge?
Daniel: Many business owners are trying to walk a tight rope between the costs of employee benefits and being an attractive long-term employer. A core element of this consideration that many business owners need help understanding is whether theyre trying to attract and retain talent for the long term or if the nature of their business is simply going to have high turnover.
Examples of a long-term talent retention goal might be a software company or professional services such as law firms, medical practices, and accounting firms, while short-term retention might be convenience stores or amusement parks.
A key element is helping employers align their business model and revenue generation back to how their employees actually assist in growing the top line and maintaining the bottom line for the business owner. In turn, this helps provide a compensation philosophy that can help the business not only grow its talent base but grow its revenues and profits.
Get to Know Daniel Yerger, Financial Advisor for Business Owners:
3. Do you think we should have a 401 plan?
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Flexible Working Hours And Remote Work Options
Flexible work schedules are more important today than ever before. Employees want to know that they can easily attend doctor appointments, family events and other obligations without getting penalized. By offering flextime and giving employees the chance to set their own hours or work during a certain time period, you can attract and retain more employees. Allowing your workers to work remotely, either full time or a few days a week, is another perk you should explore.
Run A World Cup Fantasy Football League
Ah, fantasy football. The place where stats nerds and football fans can meet in the middle. And the World Cup is the perfect time to have some friendly in-office competition. It’s the perfect way to bring some excitement into the office.
We’d recommend against using money as a prize, though. But you should be able to find something that interests everyone on your team.
It’s the sort of thing managers can make a big show of tracking in the office. They can even put up a scoreboard to move people up and down as their fantasy line-ups overtake one-another.
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Why Are Oregon And Other States Sponsoring Their Own Retirement Plans
America faces a retirement crisis, as many people find themselves financially unprepared for their non-working retirement years. In response, states such as Oregon have begun establishing their own retirement plans.
Did you know that when taking into account all working individuals, the average American has no money saved for retirement? Even those who have retirement accounts have only managed to save about $40,000. When accounting for an individuals net worth, 77 percent of Americans still fall short of meeting what would be considered conservative retirement savings targets for their age and income based on working until age 672. Financial experts recommend that by age 67, a worker should have between five and eight times their annual salary saved for retirement.
Research Data On Your Employee Demographics
There are countless ways to determine how and what you want to offer by way of employee benefits to your team members. Although we help you look at this topic from a few different angles, the most straightforward numbers to view are the ones that point to the most popular benefits to employees.
There are endless comparisons regarding what men and women prefer as the most desirable benefits in the workplace. Harvard Business Review reported some differences, with women placing more value on insurance and flexibility over other benefits.
In addition, there was a survey issued by the International Foundation of Employee Benefit Plans that lists Transgender-inclusive benefits:
- 90% request Mental Health benefits
- 86% request Gender Reassignment or Affirmation Surgery benefits
- 14% request Cosmetic Surgery benefits
According to Forbes, non-binary employees now want to see changes in the wording on traditional paperwork, with gender designations other than male or female. For example, X. They are also looking for domestic partnership options for healthcare and insurance.
Employees within the baby boomer generation and employees within Generation Z want different types of fringe benefits. There are plenty of overlapping examples, such as PTO or vacation time and paid holidays, as all employees want those benefits. However, Boomers value 401 and healthcare more than Gen Zers, who desire skill development, work-life balance, and mobility.
Here Are The Top 10 Employee Benefits Worldwide:
- Private Health Care Plan
- Retirement / Pension plans
- Work From Home and/or flexible hours
- Food and snacks
- Bonuses / Awards / Gifts
- Company equipment
Note that the most popular benefits vary per location and there are also benefits that are exclusive to certain areas. For example, Australians can receive novated leasing as a benefit, enabling them to lease cars with their employer taking on the contracts obligations.
In the U.S., where paid parental leave isnt federally mandated by law like in other countries , time off for mothers and fathers is a popular company-offered benefit.
In four English-speaking countries, employee benefits may include:
Cost Analysis Per Benefit
Its important to do a cost analysis per benefit when determining your budget. Recently released data from the Bureau of Labor Statistics shows the various amounts that employers pay for different kinds of employee benefits. The percentage that employers spend is well upward of 30% of each employees total compensation. For example, for an employee making $35 per hour, the average employer pays an additional $13 per hour in employee benefits.
Employee Benefit Costs by Type
|Employees are reimbursed for commuter expenses required in some locations.
|Life and Disability Insurance
|Some employers pay for a fixed benefit amount, such as $50,000, providing an option for employees to purchase additional coverage.
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