The Dos and Donts of Employee Benefits
Far too often, small business owners forgo the need of employee benefits for the sake of saving money. What many of these business owners don’t realize is that cutting employee benefits can have a dramatic effect on a business owner’s overall profits. Employee benefits not only benefit the employee but the employer as well. Employees who receive substantial benefits report being more satisfied with their job and are more productive overall.
As a result, employers can enjoy a lower turnover rate and fewer absences. Sure, it may decrease your short-term profit margins, but in the long-term it can mean for a prosperous company filled with an enthusiastic and loyal staff. So in order to ensure employee satisfaction, we’ve put together a few of the do’s and don’ts regarding employee benefits.
DO: Ensure You Are Clear
When you offer employee benefits, it is incredibly important that you are completely clear on what these benefits entail. Plenty of companies make the mistake of being vague about the details of the benefit packages they offer employees. By developing processes and guidelines that expose your staff to the details of the benefit plans you offer, you can help them feel important and like a valued part of your team.
DON’T: Make it Difficult to Access
Making the process of enrollment incredibly difficult is a poor tactic used by some employers. If employees find it too difficult to enroll, the employer can avoid the payment but still look like the good guy…right? Wrong! In reality, inaccessible employee benefits can be just as bad, if not worse than no benefits at all. Having a hard-to-understand process can frustrate employees and make them feel that all parties involved have some level of incompetence. To avoid this, train your HR department (or a designated manager) to help your employees enroll in your benefits plan. With their help, the process of enrollment can be a far less intimidating process and can prove to your employees that you care about them accessing their earned benefits.
DO: Pay Attention To Your Employees
Providing a generic, cookie-cutter solution to all of your staff can lead to wasted benefits and disgruntled employees. Each employee that you have is different with different needs. Therefore, looking into benefits that have some level of customization can be extremely beneficial. Maybe one employee is healthy in their twenties while another is ill or has children. These different situations can call for extremely different wants and needs when it comes to health care, maternity leave, job security and other types of exclusive benefits. Shop around and find the best solution to benefit as many of your employees as possible.
DON’T: Steer Too Far From the Basics
When employees enroll in their benefits, they expect security, not just for themselves but for their families as well. Some employers make the mistake of including all of these bells and whistles to their benefit plans without addressing their employee’s basic needs, healthcare. Health insurance has been rated as the most important kind of employee benefit. While paid sick days, performance bonuses, and paid time off are all nice, they don’t compare to the necessity of healthcare. By paying attention to your employee’s basic needs, you can develop benefits that both employees and employers are happy about.
Securities offered through AXA Advisors, LLC (NY, NY 212-314-4600), member FINRA, SIPC. Annuity and insurance products offered through AXA Network, LLC. AXA Advisors, AXA Network and AXA Equitable are affiliated companies and do not provide tax or legal advice. AGE-140790 (11/18)(Exp. 11/20)