Creating a benefits program that will be competitive while not freezing too much of your company’s funds is a challenge for many businesses. This is not a decision you can make on a whim and benefit schemes can get very complex. But once you understand some of the basics and avoid some basic mistakes, everything should come into place. Let’s take a look at some of the dos and don’ts of crafting a benefits program.
Do – Make It Clear as Possible
Some employers make the mistake of making their benefits programs way too convoluted while others make it almost impossible for employees to get benefits. You might think that you’re getting one over your employees by doing this, but once they realize how truly disadvantageous your program is, you will hear about it, and it might cause dissent among employees. This could eventually descend into conflict. So, make sure that everyone knows what they’re getting from the get-go and that the benefits are actually redeemable.
Don’t – Overload the Program
A lot of employers care about their employees and also want to seem attractive as employers, so they will add all sorts of fringe benefits to their packages. But things like stock options and fuel allowances might only be marginally attractive while costing your company a lot of money.
Even things like vision care don’t have to be part of your main benefits package. Some people simply don’t need it and might be unhappy to see that they have to pay for it even if they’ve had a healthy vision all of their lives and don’t expect it to change.
Vision care is still something you want to have on a program, but you could always have it as a supplemental benefit. People are often scared to offer those since they can be difficult to manage, but you could use a supplemental vision benefits card provider and management platform to make things much easier for you.
Do – Incentivize Good Behavior
Most business owners see benefits as a way to protect their employees or give them perks that will encourage them to stay with the company. But more companies should be using their benefits package to encourage behavior that will ultimately benefit their bottom lines.
You could have benefits that offer special discounts and rewards on all purchases of health-related products, for instance. Some employers will offer rewards when people invest in preventative care or wellness activities. All of this will contribute to a happier and healthier workforce and improve productivity while reducing absences.
Don’t – Be too Rigid
A lot of people will draft a one-size-fits-all program for all their employees, and that’s a bad idea. It is almost certain that some of these benefits will be irrelevant or too extensive for some of them. So, you should at least offer them multiple choices of programs with a varying number of features at different price points.
Crafting a benefits program that will make all of your employees happy and keep you competitive without costing you too much is difficult but possible. Take the time to look at all the different options out there, and don’t be afraid to try different structures until you find what works for your organization and workforce.