Gone are the days when employees worked only for a monthly pay cheque. With the evolution of the workspace culture, they are now expecting several non-fiscal advantages, along with their salary and compensation components.
Employers have understood the importance of employee wellbeing and the link between workplace wellness and overall productivity. To ensure that they are on the right path in terms of employee engagement and to safeguard overall firm efficiency, companies now are introducing employee benefits programs.
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If you’re wondering how to design an employee benefits program, we’ve got you covered. But before you go on to learn about designing an employee benefits program, here’s a quick primer on employee benefits for better understanding.
Now that’s out of the way, read on to find out what is an employee benefits program, how it can benefit your organization, and how can you go about developing one.
What Is An Employee Benefits Program?
An employee benefits program, as the name suggests, is a plan to extend a range of benefits to employees. Typically, it includes perks such as medical insurance, life insurance, and paid time off – all of which aim to provide a layer of comfort or privilege for the employees.
The types of benefits offered as part of the employee benefits program can mainly be classified as monetary and non-monetary. The former includes perquisites, such as monetary rewards and bonuses that go over and above the total compensation paid to the employees.
The latter includes health insurance and retirement plan benefits that are required to be provided as per law or optional benefits such as flexible work or paid vacation balances.
Now that you know what a benefits program means, let’s understand why it is pertinent to introduce it at the organizational level.
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Why Is An Employee Benefits Program Important?
An employee benefits plan is a vehicle to ensure high employee engagement. It can make or break your workforce’s decision to stay with you and can substantially impact firm performance and results.
It is also true that employee benefits are an add-on that every employee looks forward to in addition to their compensation package or CTC. Offering a good plan, therefore, helps in attracting the right talent and ensuring higher retention in the longer run.
However, a benefits program could mean heavy costs for employers, especially so if it is poorly designed. Therefore, an employee benefits strategy is crucial to meeting the needs of employees and your organization’s budget.
Read on to find out how you can successfully design an employee benefits program for your company:
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How To Design An Employee Benefits Program: 5 Simple Steps
As per market research studies, providing employee benefits amounts to roughly 30 to 40% of a company’s total compensation costs. That’s why employee benefits programs are created with a great deal of planning and after taking several factors into consideration.
Here are 5 simple steps that can help you design and effectively implement an employee benefits package:
1) Define your goals
Brainstorm on why you are creating an employee benefits plan in the first place and how can it profit your organization. While doing so, think about the areas in which you wish to support your employees and if there’s anything amiss with your current plan.
Once you have your goals defined, you can incorporate the noted parameters into devising the right plan. However, remember that your employee benefits strategy isn’t permanent. It can and should change with a shift in your goals and as you gain a deeper perspective into the needs of employees.
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2) Set your budget
While it would be great to provide your employees with all that they wish for, it may not always be possible. Consider budget constraints, if any, and prioritize the benefits to be offered in the order of their urgency or need.
If you already have an employee benefits plan in place, revisit it to see how you can improve it with your new budget. If you’re creating an employee benefits program for the first time, work out an estimate by getting a quote for basic benefits. Don’t forget to factor in a buffer, to avoid chances of over-spilling your budget.
3) Assess the needs of your employees
It wouldn’t be prudent to assume what your employees are truly looking for. While you may have a general sense of what they want, get confirmation on it by rolling out a survey or by asking for their suggestions.
Getting employee feedback will help you develop a plan that works in the favor of the workforce and thereby the organization as a whole. You can also conduct a use assessment to understand the benefits that the employees use the most and the ones that they don’t need. This way, you can restructure the plan for more efficiency.
4) Consider legal requirements
While the benefits offered mainly intend to boost employee engagement and wellbeing, they are sometimes mandated as per law too. To stay compliant with legal requirements and to avoid regulatory fines/costs, it is essential to consider and prioritize benefits that are legally required in your plan.
For instance, group health insurance is compulsory as per law. Health insurance is also one of the most widely used benefits and it is therefore important to adequately factor in health care and medical expenses into the employee benefits program.
5) Share your plan with employees and upgrade it periodically
Once you have the employee benefits plan ready, communicate it to the employees to help them make the most of it. You can also thank them for their feedback and let them know that it helped you immensely in developing the right plan.
Once again, an employee benefits plan needn’t be etched in stone. As the organization grows and your goals change, your benefits plan should also be upgraded. With more profits flowing in, you could look at incorporating optional benefits into the plan.
Alternatively, you may look at including flexible working arrangements, mental health awareness seminars, and more as part of the non-fiscal benefits of the program.
Plan For Success With Employee Health Benefits
Everyone wants a workforce that is happy and committed to the office. However, as we all know, employee engagement isn’t a one-way street. To ensure that your people are indeed happy and healthy at work, it is essential to look after their needs.
Download a quick and easy-to-read guide for implementing employee benefits that work for you and your organization.
To do so, designing an effective employee benefits plan is your first step. While there are several factors included in a benefits program, health is one of the prime ones. Loop helps you cater to it with customized health care programs and insurance schemes.
To help you devise a great employee benefits program and solicit better employee wellbeing, we offer perks such as mental health awareness sessions, free and round-the-clock wellness consults, and a host of other benefits. To know more about our wellness offerings, get in touch with us immediately!