What Are the 4 Main Types of Employee Benefits Plans?

Businesses are always looking for value. As a broker, you can help them see the importance of key programs and policies like employee wellness and sustainability. 

Employee benefits are a major deciding factor for today’s job seekers. Candidates consider everything from health plans to retirement plan options when assessing a job offer. Active employees also consider what their employer offers them when deciding whether to stay long-term.

As an employer, you need to consider the main components when deciding what to offer your employees. This guide walks through the main types of plans, how to improve the way you approach employee benefits and why you should consider working with a professional employer organization (PEO).

There are certain benefits that many employees consider essential. They almost always include:

• Health insurance
• Dental insurance
• Retirement planning

These are considered the bare minimum, and each of these plans must be competitive.

Consider all the components of your current employee benefits, uncovering gaps or areas toward which you should put more resources. Securing these competitive essential plans is a top priority for most employees.

Your workforce prioritizes employee benefits to better manage work-life balance and feel support from you even when they’re not at work. When you’re looking at your employee benefits package, here are four essentials to consider and what they entail:

Healthcare costs continue to be a major concern for many Americans. KFF data shows that about half of American adults say they have trouble affording healthcare costs, and 1/4 say they or someone in their household faced challenges when paying for healthcare in the last year.

Providing great insurance plans is critical. Health insurance helps people afford their medical expenses and seek out preventive care, which could help them stay healthier and more productive. Consider the specific needs of your workforce when making selections.

Unexpected issues with dental and vision health can create a significant financial burden for Americans.

About 41% of adults have debt from medical or dental bills, KFF found. This is why employees value additional support in these areas. 

When you have the support of a PEO, you can access premium health, dental and vision insurance options that would normally not be affordable. A PEO has greater purchasing power with multiple clients, so it can obtain better rates.

Employees also value support when it comes to retirement. They want to feel like their financial future is secure, and they want their employer to help them accomplish that security.

Consider improving or reevaluating your retirement plan, like a PEO 401(k), if you think it’s not the right match for your staff and company needs. If it’s possible within your organization’s budget, consider matching employees’ contributions each month for even more of a competitive edge. A strong retirement plan is an essential employee benefit.

Employees – especially those who have a family at home – also prioritize life insurance, which pays out to their dependents should they pass away. Offering a life insurance plan to employees helps them gain the security that their family will be taken care of if something happens.

Additionally, disability benefits help employees who are unable to work because of an illness or injury continue to get income or job protection. Note that five states (California, Hawaii, New Jersey, New York and Rhode Island) and Puerto Rico require employers to participate in their state-provided disability benefits.

Regularly reviewing your benefits offerings can help you take the pulse of staff needs and satisfaction, and it can lead to consistently high retention rates. Here are a few tips to help you improve the employee benefits you offer to meet your staff’s needs:

A PEO can help your organization round out your benefits plan. PEOs bring Fortune 500 benefits accessibility and affordability to smaller businesses. They can help with your benefits strategy and budgeting while analyzing trends and incorporating the right benefits technology.

Following news and research helps you see how employees across the nation are viewing certain benefits. But every workplace is different. Learn what your unique employees value and prioritize. Work with a PEO and agent who listen to you and your employees; they can make educated recommendations based on your business goals.

Each organization has different priorities when it comes to budgeting for benefits. Keep the bottom line in mind and work to balance your budgeting needs with the benefits you’re considering adjusting or adding. Seek out data about factors like plan performance and review your strategy regularly. And remember – working with a PEO allows you to access premium employee benefits at lower rates.

Following the news related to benefits can help you succeed; for example, you may see changes to inflation and interest rates and can consider how those changes may be impacting your workforce. During harder financial times, you may want to prioritize financial benefits if possible. When healthcare costs rise, it may be time to look at your health plans and see if any adjustments can be made that fit both the organization’s needs and the staff’s healthcare goals.