Key takeaways:

• Why is benefit plan selection so important? The majority of employees would rather have better benefits than an increase in pay. A better benefit plan helps you satisfy employees, attract top talent and retain your workforce.
• Tips for benefit plan selection:

1. Consider your employees’ needs
2. Create a budget
3. Align company values
4. Consider a strong contribution strategy
5. Give people options

Today’s employers are tasked with managing the ever-changing expectations of their employees. Employee sentiment about health insurance, wellness perks, flexibility options, financial support and other benefits continues to build, and a company’s benefits package is now just as important as the paycheck.

Whether you’re selecting a benefit plan for the first time or it’s time to update, there are important considerations to bring to the table to ensure you’re satisfying employees and staying aligned with your mission. This guide will help you understand why it’s so important to choose the right plan and how to establish a stronger program that will attract and retain great talent.

Supporting your employees goes far beyond salary. Benefits packages are a key component of their compensation, and many workers will even sacrifice more money for better perks. A Glassdoor survey found that almost 80% of employees would rather have new or added benefits than get a pay increase.

Often, managers negotiate benefits, like paid vacation days, when making a job offer to top talent to sweeten the deal. Candidates will leverage what they can, even outside of their salary, to find the right situation for their lifestyle and goals.

Your people want to feel supported by what you offer them, particularly with health benefits, paid time off, retirement contributions and flexibility. Perks like gym memberships, tuition reimbursement and financial wellness support are also gaining traction in what workers want and expect from their employers.

These benefits help them establish and maintain a more successful work-life balance. Today’s employees want companies to recognize that they have rich lives outside the office.

Thus, selecting the benefit plan that’s right for your employees is critical to maintaining satisfaction and engagement. When workers feel like they’re supported at work, they’re more likely to stick around, helping you reduce turnover.

Additionally, when you can build and launch a competitive benefits plan, you’ll attract and retain top talent in your industry. Focus on creating a benefit package that meets the expectations of the type of employees you’re seeking.

So, how should a company select its benefit plan, and what’s most important to consider? You have a lot of options out there, and what you select will have a big impact on employee wellness. These tips will help you create a benefits plan that successfully meets your goals:

1. Consider your employees’ needs

First and foremost, your employees have a unique set of expectations, needs and desires that you need to factor into decision-making. Align what you choose with what’s most important to your people. If you’re not sure what they prioritize most, simply ask them. Send around a benefits survey to ask if people are happy with the current plan and what they want to change.

Do some research on your own to study what benefits are trending and which options may help you stand out in the job market. Your goal should be to understand what would make people feel satisfied and secure.

2. Create a budget

Every business would probably love to be able to afford the best benefits package out there without hesitation. But most companies do have restraints, which can make decisions more challenging. Be strategic with your budgeting. Make sure you pursue options that are realistic for your budget while prioritizing benefits that are most important to employees.

Collect plenty of quotes on benefits costs and weigh the pros and cons. Make sure you consider more than cost, too, including ease of use for employees, customer service, plan limitations and other factors.

3. Align company values

Your organization’s core values should be present in every aspect of the business, including benefits. When looking at your options, ask yourself if your selections align with your values. Are you delivering on your promises? Are you staying committed to prioritizing employees’ well-being?

Check in with your mission and make sure you’re not compromising anything important just to save money.

4. Consider a strong contribution strategy 

A central tenet of any benefits plan is the employer contribution. A strong contribution strategy is a major determining factor of employee satisfaction. Companies that pay for 100% of their employee-only benefits attract and keep better talent.

5. Give people options

There are many moving parts to your benefits program, just as your employees have many different perspectives and needs. Employees are people at different stages in life and may prioritize conflicting benefits, like more retirement savings or better health insurance.

Consider the many different people you aim to please with your benefit plan. Where possible, offer plenty of options so they can customize their package to their unique individual needs.

There is no right answer to the perfect benefit plan. Each company is different, with a different set of employees, budgetary restrictions and industry expectations. Be mindful of how you’re approaching changes to your benefit plan, and make sure you’re selecting options and perks that resonate most with your employees.

And don’t forget to support employees along the way. StaffLink offers personalized benefit coaches to meet with your employees one-on-one to explain and help them navigate benefit election and any confusion that may arise in the process.

Request a proposal or contact us at (954) 423-8262 for more information.